Flagship Apparel Brand Holds Sales Level in Slow Market
NZX/Media Statement 31 August 2012
Flagship Apparel Brand Holds Sales Level in Slow Retail Market
PPGL Annual Sales
New Zealand’s favourite clothing retailer, Postie, the core brand of Postie Plus Group, ended the 2011-12 year with sales on par with the previous year despite a flat apparel sector.
“The solid performance by Postie supports our decision to sell the low margin Babycity hardware chain. We want to focus on building the higher margin, flagship Postie brand and expanding our nationwide retail footprint through acquisitions in the future,” Group CEO Ron Boskell said.
As a result of lower Babycity sales, Group sales for the year ended August 5 2012 were down by $4.8 million or 4.36 per cent to $11o.9 million. Babycity sales’ slippage was due to the business being sold during May as part of the strategy to build the business into a modern, exciting retailer, double in size, with Postie stores located conveniently around the country and an appealing on line presence.
The sale of Babycity has left PPGL in a position to pursue acquisitions of compatible, value adding brands.
The Group, which is due to report its full year results on September 24, is continuing to lock in efficiencies and lower the cost of doing business. In the next few months the move to a new outsourced national distribution centre in Auckland will be completed. Postie’s merchandising, planning and marketing functions, under newly appointed GM Postie, Jane Gammon, will move to Auckland in January 2013.
Mr Boskell said Group expenses were continuing to be well managed, offsetting the protracted flat sales trend in the apparel sector. Postie’s focus on providing fashionable attire at prices families could afford, left it competitively placed to take advantage of the eventual recovery.