1 00:00:00,080 --> 00:00:00,160 Speaker 1: Right. 2 00:00:00,200 --> 00:00:02,480 Speaker 2: The Warehouse Group has had another tough year. It's been 3 00:00:02,560 --> 00:00:04,600 Speaker 2: reported all rather. It has reported a net loss of 4 00:00:04,600 --> 00:00:07,000 Speaker 2: two point eight million dollars for the year. Mark Sturton 5 00:00:07,120 --> 00:00:10,559 Speaker 2: is the chief executive of the Warehouse Group. Harmark you 6 00:00:10,680 --> 00:00:12,160 Speaker 2: that tough day for you guys. 7 00:00:13,080 --> 00:00:15,280 Speaker 1: Yeah, it's a tough day. You know. The economy is 8 00:00:15,320 --> 00:00:18,240 Speaker 1: in a tough space as well, and we're feeling it 9 00:00:18,320 --> 00:00:22,560 Speaker 1: as a retailer in these conditions, and consumers are doing 10 00:00:22,560 --> 00:00:25,520 Speaker 1: a tough and yeah, we're proud that we were able 11 00:00:25,560 --> 00:00:29,280 Speaker 1: to keep our top line in the positive in this environment, 12 00:00:29,440 --> 00:00:33,400 Speaker 1: but unfortunately we had to reduce some of our prices 13 00:00:33,479 --> 00:00:36,040 Speaker 1: and be competitive with a lot more promotions and clearance, 14 00:00:36,600 --> 00:00:40,440 Speaker 1: which it hurts our gross margins and they're ultimately our 15 00:00:40,440 --> 00:00:42,840 Speaker 1: result at the bottom line, despite doing some really good 16 00:00:42,840 --> 00:00:43,800 Speaker 1: work on cost control. 17 00:00:44,400 --> 00:00:46,680 Speaker 2: How much of what is going on with the Warehouse 18 00:00:46,760 --> 00:00:49,040 Speaker 2: is down to the economy and how much of it 19 00:00:49,120 --> 00:00:51,320 Speaker 2: is down to the Warehouse and its own problems. 20 00:00:52,760 --> 00:00:55,680 Speaker 1: Yeah, I think that the economy is definitely weighing on 21 00:00:55,920 --> 00:00:59,520 Speaker 1: the consumer sentiment. I mean, we're still getting over all 22 00:00:59,560 --> 00:01:01,840 Speaker 1: the brand. We still get one point seven million people 23 00:01:01,840 --> 00:01:05,240 Speaker 1: come through our doors every week, which is incredible number 24 00:01:05,280 --> 00:01:08,360 Speaker 1: of visits for us as a brand. So we're definitely 25 00:01:08,400 --> 00:01:10,840 Speaker 1: getting the foot traffic and our conversions up across all 26 00:01:10,840 --> 00:01:14,080 Speaker 1: our brands, which is great. People are finding the things 27 00:01:14,080 --> 00:01:17,560 Speaker 1: that we that they want. Unfortunately, the basket sizes are 28 00:01:18,080 --> 00:01:20,000 Speaker 1: are not as big as what they need to be, 29 00:01:20,240 --> 00:01:22,440 Speaker 1: and that's also a function of the mix of the 30 00:01:22,440 --> 00:01:25,280 Speaker 1: products that people are buying. We're seeing a lot more 31 00:01:25,280 --> 00:01:28,720 Speaker 1: people buying too smaller AEMS ticket items, which you know, 32 00:01:28,760 --> 00:01:30,400 Speaker 1: you have to sell a lot more of those to 33 00:01:30,640 --> 00:01:33,440 Speaker 1: make up the dollars that you need in order to 34 00:01:33,480 --> 00:01:36,080 Speaker 1: get the top line moving, so and a lot of 35 00:01:36,080 --> 00:01:38,880 Speaker 1: those items come at lower margins. So's that's really the 36 00:01:38,959 --> 00:01:41,560 Speaker 1: story is that we've and that's across all three of 37 00:01:41,600 --> 00:01:44,600 Speaker 1: our brands. We've found that the mix of the products 38 00:01:44,600 --> 00:01:48,360 Speaker 1: that are being sold is actually also affecting our gross margin. 39 00:01:48,480 --> 00:01:49,840 Speaker 2: How long have you been in the job now? 40 00:01:51,240 --> 00:01:53,560 Speaker 1: Ours the group's CFO, and I came over in April 41 00:01:53,640 --> 00:01:56,960 Speaker 1: last year, so yeah, I've been in that role for 42 00:01:57,040 --> 00:01:59,160 Speaker 1: fifteen months and then I took over on the first 43 00:01:59,160 --> 00:01:59,960 Speaker 1: of August this see year. 44 00:02:00,240 --> 00:02:02,240 Speaker 2: Okay, do you see a way to turn this around? 45 00:02:02,960 --> 00:02:06,320 Speaker 1: Definitely? I think we've got incredible brands. I've actually I 46 00:02:06,360 --> 00:02:09,880 Speaker 1: can't believe that we've actually got that endowment of one 47 00:02:09,880 --> 00:02:12,040 Speaker 1: point seven million feet. I mean, you think about New 48 00:02:12,120 --> 00:02:14,880 Speaker 1: Zealand's a population of five point two million, and you've 49 00:02:14,880 --> 00:02:17,480 Speaker 1: got that amount of visitors coming through your stores every week. 50 00:02:17,520 --> 00:02:22,160 Speaker 1: It's owns our job to convert those feet into more 51 00:02:22,200 --> 00:02:25,480 Speaker 1: meaningful baskets. And you know, our stores under our old 52 00:02:25,520 --> 00:02:28,320 Speaker 1: strategy was more digitally focused, and we're going to get 53 00:02:28,360 --> 00:02:30,960 Speaker 1: more focused on our stores. We've got some incredible house 54 00:02:31,000 --> 00:02:33,960 Speaker 1: brands that have probably fallen by the wayside, and we're 55 00:02:33,960 --> 00:02:35,960 Speaker 1: going to amplify those. And so we're really going to 56 00:02:36,400 --> 00:02:39,200 Speaker 1: dig into our rural and regional roots, which we acceptionally 57 00:02:39,240 --> 00:02:42,360 Speaker 1: strong as a business in those towns and cities, and 58 00:02:42,400 --> 00:02:44,919 Speaker 1: then those are our urban areas where we've got a 59 00:02:44,919 --> 00:02:47,600 Speaker 1: lot more competition. We probably haven't invested enough in the 60 00:02:47,720 --> 00:02:51,480 Speaker 1: store experience and things like lighting and visual merchandising and 61 00:02:51,760 --> 00:02:54,440 Speaker 1: the way we present our products. And we're getting some 62 00:02:54,520 --> 00:02:57,520 Speaker 1: amazing traction in our beauty range, and you know, we've 63 00:02:57,520 --> 00:03:00,040 Speaker 1: seen there's a lot of green shoots around the business. 64 00:03:00,080 --> 00:03:03,679 Speaker 1: But we would be lovely if the economy also played ball, 65 00:03:03,760 --> 00:03:07,120 Speaker 1: and we really hopeful that the ocr cuts that hopefully 66 00:03:07,120 --> 00:03:10,120 Speaker 1: come up will help us on our journey. 67 00:03:10,360 --> 00:03:12,160 Speaker 2: Yeah, best of luck with that, Mark, Thanks so much, 68 00:03:12,160 --> 00:03:14,760 Speaker 2: Mark sturs and chief executive of the Warehouse Group. For 69 00:03:14,880 --> 00:03:18,160 Speaker 2: more from Hither Duplessy, Allen Drive, listen live to news 70 00:03:18,200 --> 00:03:21,079 Speaker 2: talks it'd be from four pm weekdays, or follow the 71 00:03:21,160 --> 00:03:22,800 Speaker 2: podcast on iHeartRadio.