Warmer winter weather wears down sales
Christchurch-based clothing retailer Postie Plus Group says its “disappointing” annual sales growth was caused by a late start to winter and cautious consumers.
At the end of the previous quarter, Postie had reported that tighter control of stock levels and fresh marketing had boosted sales 4.75 per cent for that period, and it had been hoping for a “strong finish” to its financial year.
Chief executive Ron Boskell said yesterday that while the annual lift in sales was less than expected at the start of winter, it compared well to the flat retail performance that had been reported across the country’s specialty apparel sector.
Boskell said the group had protected its market share and sustained margin at strong levels while many retailers had encountered “substantial pressure on gross margin in very competitive and challenging conditions across the retail sector.”
Postie Plus had not escaped the unseasonal effects of a warm May and June in what was normally the busiest sales period for cold weather clothing, and trading declined in the fourth quarter.
“We’ve got the tools and the stock. We just hope that the public are out there spending,” Punter said.
Consumers had been cautious nationwide, but anecdotally the group’s Canterbury stores that were open had been trading quite well, he said.
The group expected a small increase in net profit on the previous year.