The Warehouse sees online sales growth

The Warehouse Group released its first half results today and they clearly show that Kiwis are increasingly shopping online. With strong online growth last Christmas and throughout the summer quarter (November - January).

The Red Sheds online sales grew by 30% in Q2, well ahead of the online market. According to BNZ data for the quarter, domestic online purchases were up 3.7% and international online purchases rose by 14.5%.

A product was shipped from The Warehouse Group every four seconds in December 2014, with internet traffic showing more than 1.3 million unique users in the month.

Customers at the Red Sheds are letting their mice, apps and fingers do the purchasing more than ever. The Warehouse is now the country’s biggest online retailer for new products, and second only to Trade Me for the number of online visits in the relevant Hitwise rankings (the shopping and classified category).

CEO of Red Sheds Simon Turner says that "The Warehouse’s online sales in December 2014 grew considerably faster than the market, and at a greater rate even than international online purchases, showing just how much Kiwis are enjoying the Red Shed online experience.

As well as buying online, customers of The Warehouse Group are increasingly using shopping options such as ‘Click and Collect.’ This is a service that combines online shopping with the store network, allowing customers to order online and pick up in-store where they want, when they want. Often it is not convenient to have deliveries sent to a home, as couriers often deliver when a customer is out.

‘Click and Collect’ is growing rapidly across the group, particularly at The Warehouse and Torpedo7.

Mr Turner says that ‘Click and Collect’ purchases regularly account for over 20% of online sales for The Warehouse Red sheds".

The Warehouse Group includes ‘clicks and bricks’ retail brands The Warehouse, Noel Leeming Group, Warehouse Stationery, Torpedo7 and No 1. Fitness, as well as pure online retailers like pet.co.nz, baby.co.nz and Shotgun Supplements.

The Warehouse Group CEO Mark Powell says that as well as seeing rapid growth in its pure play online businesses like pet.co.nz, the group’s experience with ‘Click and Collect’ reflected the growth potential in combining online stores with physical store networks, a trend evident overseas.

"New Zealand’s experience is proving to be similar to what is occurring around the world, which is that ‘clicks and bricks’ has the potential to offers even greater leverage, and that pure online retail growth appears to be slowing" said Mr Powell.

"Far more powerful than pure play online retail is the growth potential in ‘clicks and bricks’. This offers customers choice as to how and when they shop and combines the service element of in-store retail with the convenience and delivery of online shopping," said Mr Powell.

Mr Powell said today that through the Group’s investment in its online and multi-channel strategy, it is quickly establishing an online leadership position in New Zealand.