1 00:00:00,080 --> 00:00:02,800 Speaker 1: Now not a bad result for the Warehouse. It's reported 2 00:00:02,840 --> 00:00:05,600 Speaker 1: a net profit after tacks of nearly sixteen million dollars 3 00:00:05,600 --> 00:00:07,240 Speaker 1: for the half year, but it is warning of tough 4 00:00:07,280 --> 00:00:09,920 Speaker 1: times ahead if the around war drags on. The chief 5 00:00:09,960 --> 00:00:13,800 Speaker 1: executive is Mark Sturton high Mark, Hi, how are you? 6 00:00:14,000 --> 00:00:15,800 Speaker 1: I'm well? Thank you know, I see you're opening your 7 00:00:15,880 --> 00:00:18,239 Speaker 1: first stores in three years. This is a bit of 8 00:00:18,239 --> 00:00:20,959 Speaker 1: a vote of confidence, isn't it. Yeah. 9 00:00:21,079 --> 00:00:22,640 Speaker 2: You know it's part of a growth path that we 10 00:00:23,200 --> 00:00:25,600 Speaker 2: want to get back onto. You know, we we closed 11 00:00:25,640 --> 00:00:28,680 Speaker 2: three stores in the last couple of years, and you know, 12 00:00:28,800 --> 00:00:31,960 Speaker 2: retailer needs to be expanding, and we see that Magnifi 13 00:00:32,120 --> 00:00:34,280 Speaker 2: area is just a really great catchment for us, and 14 00:00:34,320 --> 00:00:35,440 Speaker 2: we're really excited about it. 15 00:00:35,520 --> 00:00:36,959 Speaker 1: Yeah. Why why got amonga PI? 16 00:00:38,040 --> 00:00:40,000 Speaker 2: Well, I think it's just a growing catchment. I think 17 00:00:40,000 --> 00:00:42,280 Speaker 2: it's one of the fastest growing catchments in the country 18 00:00:42,280 --> 00:00:44,520 Speaker 2: at the moment. And you know, we're just the communities 19 00:00:45,560 --> 00:00:48,040 Speaker 2: growing really nasty, and you know, the ware House of 20 00:00:48,200 --> 00:00:51,920 Speaker 2: history has all been about getting into communities and serving 21 00:00:51,920 --> 00:00:55,040 Speaker 2: in those communities, and I think our offering is really 22 00:00:55,280 --> 00:00:57,520 Speaker 2: appropriate for there. But it's a growing catchment and we 23 00:00:57,560 --> 00:00:59,240 Speaker 2: need to be a part of these growing catchments. 24 00:00:59,640 --> 00:01:02,640 Speaker 1: Now, obviously this is a business that has not always 25 00:01:02,680 --> 00:01:05,120 Speaker 1: been in the best shape. So give me a status 26 00:01:05,120 --> 00:01:07,800 Speaker 1: report on where you think it is after the tidy 27 00:01:07,840 --> 00:01:08,640 Speaker 1: up you've already done. 28 00:01:10,200 --> 00:01:13,880 Speaker 2: Yeah, I think it's I'm pleased with the results, you know, 29 00:01:13,959 --> 00:01:17,959 Speaker 2: in the circumstances and the economic conditions, and also acknowledging, 30 00:01:18,040 --> 00:01:20,160 Speaker 2: like you say, the turnaround that job that we've got 31 00:01:20,200 --> 00:01:23,880 Speaker 2: to do. I think we probably in the first third 32 00:01:23,920 --> 00:01:26,920 Speaker 2: of it, particularly in the red the warehouse business. I 33 00:01:26,920 --> 00:01:30,480 Speaker 2: think I'm pleased with where our warehouse stationary business is 34 00:01:30,520 --> 00:01:34,640 Speaker 2: really performing nastly and really a standout performance out of 35 00:01:34,640 --> 00:01:38,040 Speaker 2: the three. And our not leaving business made the same 36 00:01:38,040 --> 00:01:39,720 Speaker 2: amount of profit that it made the whole of last 37 00:01:39,760 --> 00:01:41,840 Speaker 2: year in this first half. So I think from a 38 00:01:41,840 --> 00:01:46,840 Speaker 2: contribution perspective, we're happy with noles in the and warehouse stationy, 39 00:01:46,880 --> 00:01:49,800 Speaker 2: but the red business we've still got some work to 40 00:01:49,840 --> 00:01:51,840 Speaker 2: do on margins, and we've still got some work to 41 00:01:51,840 --> 00:01:53,520 Speaker 2: do on some of our assortments, which is going to 42 00:01:53,560 --> 00:01:56,200 Speaker 2: take a little bit more time as we work through 43 00:01:56,200 --> 00:02:00,000 Speaker 2: some of old assortments that you know we've bought previously. 44 00:02:00,480 --> 00:02:02,720 Speaker 2: So but yeah, I think but we're doing good cost 45 00:02:02,760 --> 00:02:05,680 Speaker 2: control and can kind of control the elements of our 46 00:02:05,720 --> 00:02:09,160 Speaker 2: business that are within our gam bit of control. And 47 00:02:09,520 --> 00:02:12,720 Speaker 2: that's we've done quite well over this half on bringing 48 00:02:12,760 --> 00:02:13,679 Speaker 2: those down. Yeah. 49 00:02:13,680 --> 00:02:15,240 Speaker 1: And so do you think you've got on top of 50 00:02:16,160 --> 00:02:19,040 Speaker 1: buying stuff, you know, being better at choosing the stuff 51 00:02:19,040 --> 00:02:20,639 Speaker 1: that is on trend and that we want to buy. 52 00:02:21,919 --> 00:02:25,040 Speaker 2: Yes, I think we're definitely getting much much stronger than 53 00:02:25,040 --> 00:02:28,760 Speaker 2: when I first arrived at this business. I'm really excited 54 00:02:28,760 --> 00:02:30,800 Speaker 2: probably for some of this year is probably the best 55 00:02:31,320 --> 00:02:33,600 Speaker 2: indication of our new buying team, a new head of 56 00:02:33,639 --> 00:02:36,640 Speaker 2: merchant house and head of planning, and I think that 57 00:02:36,800 --> 00:02:39,280 Speaker 2: extra planning discipline that we've added to the business is 58 00:02:39,320 --> 00:02:42,040 Speaker 2: really going to pay dividends for us because you know, 59 00:02:42,080 --> 00:02:45,120 Speaker 2: it's better stock management, better margin control, and also it 60 00:02:45,240 --> 00:02:48,120 Speaker 2: actually just controls risks in a in a very you know, 61 00:02:48,240 --> 00:02:50,519 Speaker 2: more conclusive way than we've done potentially in the past. 62 00:02:50,600 --> 00:02:52,800 Speaker 1: How do you tidy something like this up? Because I mean, 63 00:02:52,840 --> 00:02:56,760 Speaker 1: I would imagine that that deciding what to buy and 64 00:02:56,840 --> 00:02:59,920 Speaker 1: deciding what Heather of Ponsonby is going to want to 65 00:03:00,840 --> 00:03:02,880 Speaker 1: is quite a subjective thing. So how do you how 66 00:03:02,919 --> 00:03:03,640 Speaker 1: do you nail that? 67 00:03:04,960 --> 00:03:06,640 Speaker 2: Well? I think it's it's a lot of your research 68 00:03:06,680 --> 00:03:09,320 Speaker 2: and the work that you do upfront, and some of 69 00:03:09,360 --> 00:03:11,440 Speaker 2: that is in trends. Some of that is that you've 70 00:03:11,480 --> 00:03:13,320 Speaker 2: got to improve your lee times. You know. One of 71 00:03:13,360 --> 00:03:15,280 Speaker 2: the big things that we've we struggling well is that 72 00:03:15,360 --> 00:03:17,480 Speaker 2: are our lee times are too long. So to your 73 00:03:17,520 --> 00:03:19,440 Speaker 2: point is that if you don't cautch your lee times 74 00:03:19,480 --> 00:03:22,560 Speaker 2: down in your responsiveness, you get stuck in product that's 75 00:03:22,639 --> 00:03:25,239 Speaker 2: moved on, you know, and their customer has moved on. 76 00:03:25,400 --> 00:03:28,200 Speaker 2: So you know, it's all in the buying and merchandising 77 00:03:28,280 --> 00:03:31,040 Speaker 2: processes upfronts, which obviously I've got quite a bit of 78 00:03:31,080 --> 00:03:33,720 Speaker 2: experience from my past which I'm hopefully bringing to the business. 79 00:03:33,720 --> 00:03:35,320 Speaker 2: And we've got some great leaders in there that have 80 00:03:35,400 --> 00:03:38,640 Speaker 2: also got some good experience that are new and fresh blood. 81 00:03:39,200 --> 00:03:41,240 Speaker 1: Okay, so what are the problems that you see you 82 00:03:41,240 --> 00:03:47,680 Speaker 1: look at Iran, what do you see. 83 00:03:45,840 --> 00:03:48,000 Speaker 2: A think Iran is obviously it's got these flow on 84 00:03:48,040 --> 00:03:50,080 Speaker 2: effects across the world, and I think, you know a 85 00:03:50,080 --> 00:03:53,440 Speaker 2: lot of uncertainty that's flowing into supply chains. I think 86 00:03:53,440 --> 00:03:58,280 Speaker 2: that's the real real challenge. And obviously oil is the big, uh, 87 00:03:58,840 --> 00:04:01,240 Speaker 2: you know, the big top at the moment because if 88 00:04:01,280 --> 00:04:04,320 Speaker 2: you don't move oil and oils, that's hard pacess or 89 00:04:04,360 --> 00:04:07,160 Speaker 2: not only just where the prass of oil, but the 90 00:04:07,200 --> 00:04:10,840 Speaker 2: access to oil is really the real challenge. And also 91 00:04:11,000 --> 00:04:14,080 Speaker 2: you know with the supply chages with both, and you 92 00:04:14,120 --> 00:04:16,560 Speaker 2: know there's a lot of blank sailings and contention for both. 93 00:04:17,080 --> 00:04:19,920 Speaker 2: So just the reliability of us of things hitting our 94 00:04:19,920 --> 00:04:22,800 Speaker 2: shores at the right time there's also one fact. And 95 00:04:22,839 --> 00:04:25,280 Speaker 2: then obviously the flow on of prafts is another thing 96 00:04:25,320 --> 00:04:26,359 Speaker 2: that we're very conscious of. 97 00:04:26,520 --> 00:04:28,680 Speaker 1: Yeah, I mean, look that that that is probably one 98 00:04:28,680 --> 00:04:32,080 Speaker 1: of the most important fallouts is that we're likely to 99 00:04:32,120 --> 00:04:34,359 Speaker 1: have another cost to living crisis as a result of 100 00:04:34,360 --> 00:04:37,279 Speaker 1: this in some way, can you guys weather that. 101 00:04:39,080 --> 00:04:41,000 Speaker 2: Yeah, I mean that's where a value resale and the 102 00:04:41,000 --> 00:04:43,599 Speaker 2: mission doesn't change, you know, depending on the on the 103 00:04:43,680 --> 00:04:46,560 Speaker 2: on the circumstances. You know, we deal with foreign exchange 104 00:04:46,680 --> 00:04:50,000 Speaker 2: challenges and various different commodity challenges all the time. Obviously 105 00:04:50,080 --> 00:04:54,040 Speaker 2: this scale feels bigger and we've got contingency plans and 106 00:04:54,560 --> 00:04:57,760 Speaker 2: things that we use internally, and we've started to look 107 00:04:57,800 --> 00:05:00,679 Speaker 2: at scenarios on our own business, which any business around 108 00:05:00,680 --> 00:05:03,200 Speaker 2: New Zealand is doing. Our our presumers this time and 109 00:05:03,240 --> 00:05:06,039 Speaker 2: we're working with all our stakeholders to mitigate as much 110 00:05:06,040 --> 00:05:09,200 Speaker 2: of this flow on effect as we can. But you know, 111 00:05:09,640 --> 00:05:12,520 Speaker 2: we believe, you know, value retailer and tough times should 112 00:05:12,560 --> 00:05:14,360 Speaker 2: do well and you know we well positioned as a 113 00:05:14,400 --> 00:05:17,279 Speaker 2: value retailer to do that, particularly about as our assortments 114 00:05:17,320 --> 00:05:17,760 Speaker 2: get better. 115 00:05:18,200 --> 00:05:20,280 Speaker 1: Mike listen, thank you very much. I really appreciate your time. 116 00:05:20,320 --> 00:05:23,200 Speaker 1: That's Mark Sturton, the chief executive of the Warehouse. For 117 00:05:23,320 --> 00:05:26,919 Speaker 1: more from hither Douplassy Allen Drive listen live to news talks. 118 00:05:26,960 --> 00:05:30,120 Speaker 1: It'd be from four pm weekdays, or follow the podcast 119 00:05:30,240 --> 00:05:31,240 Speaker 1: on iHeartRadio.