NEW ZEALAND: Distribution delays impact Postie Plus trading
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.
- Supply chain takeaways from Sourcing at MAGIC
- Why voters don’t want more global supply chains
- Denim and athleisure top picks for back-to-school
- What's 3D-printing doing for apparel and footwear?
- Labelling – The importance of the fine print
- H&M takes action over Myanmar child labour breach
- Vietnam garment industry calls for strategy update
- US Q2 in brief - Burlington Stores, Destination XL
- Zara USA faces US$5m deceptive pricing lawsuit
- EU clothing imports from China continue to plunge
- Too Many Standards
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Under Armour, Inc. (UA) - Financial and Strategic SWOT Analysis Review
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Myanmar's Garment Sector in 2015 - now with updated members' directory