Family clothing retailer Postie Plus has decided to move its distribution centre to Christchurch from the company's long-time base at Westport.

Postie Plus said the decision was based on the need to locate all warehousing and distribution in one place, following the earlier move of its Schooltex uniforms brand to Christchurch.

"The decision to position all warehousing and distribution in one location was made after a cost analysis indicated savings in excess of NZ$2m (US$1.6m) over the next three years," said Postie Plus chairman Peter van Rij.

"The current Westport location, operating as it does from a number of buildings, is no longer suitable because of a lack of space, modern facilities and distance to market."

Van Rij said the decision had had to be carefully considered because of the company's historic ties to the Westport area. Staff will be invited to relocate to Christchurch "wherever possible", the company said.

Meanwhile, Postie Plus is predicting a turnaround in its second half of trading after announcing a likely first half loss of NZ$2.8m.

"With ordinary trading conditions prevailing, we foresee a second half turnaround to show a full year profit after tax of about NZ$2m," said van Rij.

The company blamed the poor first half figures on "a multiplicity of volatile factors", plus the additional cost of distribution space and freight, interest paid on the increased stock and the cost of the Schooltex relocation to Christchurch.