ONLINE GROWS APACE FOR THE WAREHOUSE GROUP

By NZHJ March 18, 2016 Retailing News

Online sales +24% for the The Warehouse Group (TWG).

TWG's group-wide NZ online sales were $52.8 million for Q2, which is +24.1% compared to the same quarter last year and +23.5% on a like-for-like basis.

TWG's growth figures are way ahead of domestic online spending growth - for example the Marketview BNZ Online Spending Report for January shows total NZ online spending growth as +15% (more here), +11% with local retailers.

Breaking out the individual banners' online growth figures, Noel Leeming's was +65%, Torpedo7 +47% and The Warehouse +30%.

Noel Leeming's figure is impressive compared to the performance of retailers operating in and around the same markets.

Take Briscoe Group’s Q4 result to end January 2016, which showed an increase in Briscoes' online homeware sales of 40%.

Or JB Hi-Fi, whose overall (Australasian) online sales were +28.9% in the half year to end December.

 

Looking at clicks & mortar

TWG makes much of the progress towards integrating its online and physical stores as a factor in all this, singling out Noel Leeming, 40% of whose online sales are now fulfilled via click & collect.

The figures also single out for comment the growth in online sales being generated in-store - where customers place an online order at checkout for home delivery.

For The Warehouse these sales represents more than 15% of online sales.

It will be interesting to revisit these stats at the end of the next reporting milestone, what with TWG's websites scheduled to receive a more responsive, mobile-friendly design, the extension of the trial of the Red Shed's Auckland Click & Collect store, the installation of mobile POS technology in The Warehouse pop-up stores around the country, and the introduction of apps designed to enhance the productivity of team members and store managers.

While TWG isn't saying what percentage of its total sales takes place online, the BNZ says that local online retail spending for the 12 months ended 31 December 2015 was equivalent to 6.8% of retail sales.

Excluding grocery and liquor, this figure rises to slightly more than 10% of retail sales.

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