The Warehouse Group has provided a trading update for the 13 weeks ended the 3rd of May 2026 (“FY26 Q3”).
The Group delivered a stable trading result for the quarter, with sales flat on a like-for-like same-store sales basis, despite growing pressure on consumer confidence throughout the quarter.
Group Chief Executive Officer Mark Stirton said the result reflected progress on improving retail fundamentals in an increasingly tough climate.
“As fuel prices rose, we saw customers become more conscious of travel, making fewer shopping trips but buying more when they visited our stores,” said Stirton.
Group foot traffic declined 1.8 percent during the quarter, while average customer basket size increased 2.7 percent.
Group online sales increased 5.4 percent in FY26 Q3, representing 6.8 percent of total sales, up from 6.4 percent in FY25 Q3, driven by particularly strong online growth in Noel Leeming.
Improved margin management, particularly in Warehouse Stationery and Noel Leeming, partially offset by a decline in The Warehouse, resulted in Group gross profit margin up 50 basis points to 31.9 percent in FY26 Q3 compared to FY25 Q3, and up 10 basis points to 32.2 percent for FY26 year to date compared to the same period last year.
“Cost discipline and working capital management remain our immediate priority while we continue the work to lift margin performance,” said Stirton.
Store footprint growth - Noel Leeming Auckland Central flagship
Noel Leeming will return to Auckland’s city centre this summer with the opening of a new flagship store at 192 Queen Street. Noel Leeming Chief Executive Officer Jason Bell said the new store reflects the growing importance of experience‑led retail.
“We’re bringing Noel Leeming back to the city centre with a store designed to offer something different for customers,” said Bell.
“Alongside the latest technology, the Queen Street store will feature a more modern design and interactive product demos, gaming events and expert service, creating an exciting experience for customers.”
The store’s opening is expected to broadly coincide with the launch of the City Rail Link and Te Waihorotiu station. Noel Leeming last operated on Queen Street in 2021.
Outlook
Looking ahead, trading conditions are expected to remain challenging, with inflationary pressures, global instability and an uncertain domestic economy continuing to affect consumers and businesses.
Like other retailers, the Group has seen higher costs, particularly across international and domestic freight. The Group has managed these pressures through disciplined retail execution and a continued focus on strengthening the fundamentals of the business.
“We’re doing everything we can to balance providing everyday value for customers while managing the impact of higher costs on our business,” said Stirton.
“In this environment, our priority is to stay focused on what we can control.”
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