New Zealand clothing retailer Postie Plus has announced plans to relocate two of its three operations based in Westport, to Christchurch.

The group said it had taken almost 12 months to review the Westport business - where a substantial part of its national distribution is centred. Postie, which owns the Arbuckles and Baby City chains, could not comment on the extent to which 90 jobs in Westport would reduce.

Ron Boskell, chief executive of Postie Plus Group, said: "We face tremendous competition in every aspect of the business and there are dramatic changes occurring across the retail sector in the flow of products to the shop shelves.

"PPGL has grown to seven locations in Westport in our efforts to manage an ever growing supply of products as our national retail chains continue to expand.

"The local distribution business is too small for the size of our nationwide operation with the business volume doubling in the past five years and our Westport facilities cannot cope with the growth. The stock situation is not going to get any easier as Postie's expansion continues."

Postie plans to move its school uniforms operation, Schooltex, from Westport and to combine its activity with the recently acquired Classmates business on one site in Christchurch.

It will also move the initial distribution of new stock to Christchurch, but will retain its nationwide store replenishment activity at Westport.