Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Warehouse launches new e-commerce platform

By Rebecca Howard

Aug. 1 (BusinessDesk) - The Warehouse Group has launched its new e-commerce venture TheMarket in a bid to tap into the $4.2 billion New Zealander's spent online in 2018.

TheMarket has launched with 1,500 brands and more than 1 million products. It includes local brands like Karen Walker, WORLD, Father Rabbit, Citta and Barkers, and Australian and international brands PE Nation, Cue, Billabong, Cotton On and The Nile, it said.

Warehouse Group chief executive Nick Grayston said the $4.2 billion spent online is only going to get bigger.

"It’s a significant opportunity, especially when you look at New Zealand compared to other countries. Our online spend is currently about 9 percent of total retail spending, compared to the UK who are at 18 percent," he said.

Warehouse has been attempting to adapt to the changing retail environment in which online purchases have undermined the traditional 'bricks and mortar' networks.

Last week, it said better trading and gains from its transformation programme meant adjusted profit after tax will beat the previous guidance of $63-$66 million in the year ended July 28. it now expects to report adjusted profit of $67-$70 million, up from $59 million a year earlier.

TheMarket is a subsidiary of Warehouse Group, operating under a structurally separate operating model, with its own board made up of non-executive directors and management appointed by the group board.

It is the sixth consumer brand in the group, joining The Warehouse, Warehouse Stationery, Noel Leeming, and Torpedo7.

Customers can choose to get their items delivered or collect from a network of ‘MarketPoint’ locations operated within existing retail stores throughout New Zealand. Currently 19 Noel Leeming, Warehouse Stationery, The Warehouse and Torpedo7 stores act as ‘MarketPoints’ for pick up, return and click and collect. Additional stores will be rolled out over the next 12 months, it said.

“Most Kiwis live within 30 minutes’ drive of a local group store, so the existing omnichannel and distribution structure is a significant advantage, and will also help drive cross-brand foot traffic and sales for the group,” said Justus Wilde, TheMarket chief executive.

TheMarket has also partnered with Fonterra Farm Source to create MarketPoints at 10 Farm Source stores around the country, so shoppers in rural areas can also take advantage of the site’s convenience. More MarketPoints will be added within that chain over time.

Warehouse stock last traded at $2.27 and has gained 11 percent so far this year.



© Scoop Media

Business Headlines | Sci-Tech Headlines


SMC Expert Reaction: Record Dry Spells And Effects On Forests

With no rain forecast before Sunday, Auckland is about to break a record for the city's longest dry spell. Niwa says Auckland is likely to hit 40 consecutive days without rain this weekend . The upper North Island is seeing severe meterological ... More>>


Reserve Bank: Official Cash Rate Remains At 1.0 Percent

The Monetary Policy Committee has decided to keep the Official Cash Rate (OCR) at 1.0 percent. Employment is at or slightly above its maximum sustainable level while consumer price inflation is close to the 2 percent mid-point of our target range. ... More>>


Research: Climate Change Throws Tree Seeding Out Of Sync – New Study

Climate change is negatively affecting tree reproduction by throwing seed production systems out of synchronisation, according to a new international study co-authored by a University of Canterbury scientist. Many tree species worldwide produce large ... More>>


Science Media Centre: Novel Coronavirus Detected In China – Expert Reaction

The virus was detected after more than 40 people were hospitalised with pneumonia in Wuhan City, China and the outbreak traced to a large animal and seafood market. The Centers for Disease Control and Prevention reports that person-to-person transmission ... More>>


Science Media Centre: Flooding could release toxic gas – Expert Reaction

A chemical substance known as ouvea premix stored at an old paper mill in Mataura could release toxic ammonia gas if it comes in contact with water.More>>