The Warehouse Group released its new strategy at its 2026 Investor Day, outlining how it plans to build exceptional retail brands and deliver improved, sustainable shareholder returns.
The Group has set a target of NZD 100 million in operating profit within three to five years, up from NZD 22.6 million in FY26, and aims to open four to five new stores a year across its three brands.
Group Chief Executive Officer Mark Stirton said The Warehouse Group has a strong endowment to build from.
“We welcome around 1.7 million customer visits to our three iconic retail brands every week, and we have a national store and distribution network that is enviable. Over time, the business lost sight of what customers wanted from us and, as a result, has not performed to its potential,” he said.
“Our new strategy is grounded in knowing our customers better, offering the right products, making our stores more exciting to shop and running the business with much greater discipline.”
Stirton added that they have a credible, realistic pathway to achieving the target of NZD 100 million in operating profit within three to five years, without relying on any single initiative.
“We will first improve our existing business, then regain market share while pursuing growth through new stores and new profit streams. Importantly, much of what we need to execute is within our control and does not rely primarily on near-term economic recovery.”
The strategy includes plans for a simpler, more responsive and lower-cost integrated supply chain to improve product availability, reduce aged stock and markdowns, respond faster to customer demand and lower the cost to serve. Underpinning the strategy is a disciplined capital management framework, which sets out how cash will be allocated.
The Board has revised the dividend policy to target an annual ordinary dividend payout ratio of 50 percent to 70 percent of adjusted NPAT. It intends to consider resuming dividends for the FY27. Any dividend remains subject to the Group’s performance, financial position and Board approval.
Trading for the first quarter of FY27 remains constrained by a subdued retail climate and is consistent with the update provided at the Group’s FY26 annual results, with Group sales broadly in line with the prior year and margin performance ahead of the prior comparable period.
The Group will provide further detail on first-quarter performance in its Q1 Trading Update on the 13th of November 2026.
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