The Warehouse to be 'reshaped' around core brands, new leadership

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Photo: RNZ / Nate McKinnon

The Warehouse is looking to restore its fortunes with a restructure.

Interim chief executive John Journee said the business would be “reshaped” around its three core brands, along with new leadership.

“We’re not where we need to be, and we must act decisively to fix that. We need to be leaner and focused on our core brands – The Warehouse, Warehouse Stationery and Noel Leeming.”

He said the group’s management has been shaken up with new roles created to look after the combined Red Sheds and Warehouse Stationery operations, and dedicated leadership for the Noel Leeming appliance and electronics business.

Journee said the new appointments would be ‘laser focused’ on what needed to be delivered.

The Warehouse group has been through a torrid few months as it reported falling sales and margins, a large loss on asset writedowns, the sale of its Torpedo 7 business for $1 and the closure of its online Marketplace.

That resulted in the departure of chief executive Nick Grayston who had been brought in to turnaround the group’s performance in 2016.

“These changes are the first step for us to simplify and streamline our operating model, reduce cost and sharpen the focus on our core brands,” Journee said.

“We’re taking quick and decisive action to improve our performance and better serve our customers.”