CEO Ron Boskell said the transition to the new distribution ""did not run smoothly"

CEO Ron Boskell said the transition to the new distribution ""did not run smoothly"

New Zealand-based clothing retailer Postie Plus has revealed a decline in first-quarter sales, which it blames on delays in getting stock into its stores from a new distribution centre in Auckland. 

At the company's annual meeting on Friday (7 December), outgoing CEO Ron Boskell said the transition to the new distribution and warehousing solution with its third party logistics company "did not run smoothly". 

At the end of the first quarter, total sales were down 2.9%, with declines of 1.4% and 17% at Postie and Schooltex respectively.

But the company is still hopeful it will see benefits from the computerised warehousing management system, including speedier replenishment of product on a daily basis.

"We expect the Postie performance to improve over the coming months with our distribution concerns resolved," added Boskell.

The retailer swung to a full-year loss in September on the back of a series of one-off costs, including the sale of its Babycity brand and the new distribution centre.