22 March 2022

Presenters

Jonathan Waecker

Sarah Kearney

Tania Benyon

Edwin Gear

Jonathan Oram

Chief Customer

Chief Digital Officer

Chief Product Officer

Chief Information Officer

Chief Financial Officer

and Sales Officer

2

We are improving our customer experiences and outcomes

Our Purpose

Helping Kiwis live better every day

Our Vision

To build New Zealand's most sustainable, convenient and customer-first company

3

1, 2, 3

A challenging time for Kiwis

There are a variety of headwinds impacting the disposable income of New Zealanders

  • The rising cost of living and increased inflation is hitting New Zealanders and their families hard and is impacting our overall trading environment.
  • Key customer headwinds include:
    • food inflation (up +6.8% in Feb vs LY)
    • general inflation hitting a 30-year high
    • rising petrol costs
    • low unemployment
    • and rising interest rates.
  • New Zealanders remain focused on safely managing COVID-19 at home, impacting retail trips and causing temporary worker shortages.
  • Consumer confidence has decreased.1
  1. Source: NZ Trading Economics
  2. RBNZ - Inflation by category
  3. RBNZ - Mortgage rates

Value leadership in The Warehouse continues to be recognised by customers

• The Warehouse "good value for money" perception increased +4 pts to 83% in H1 FY22 (vs H1 FY21) 1

• The Warehouse continues to lead on value vs our competitor set 1

• Saving Kiwis over $6 at breakfast compared to everyday prices at key grocery compete 2

• Meaningful customer perception increases around quality improvements

• Gains across "products that last" (+3 pts to 52%), "products that look great" (+4 pts to 69%), and "products that work well" (+4 pts to 68%) 1

• "Convenient store locations" increasing as a driver of value perception

• Price and promotional activity driven by strategic investments into data science and analytics

The Group's market share grew +0.1 points vs LY to represent

6.1% of total retail sales 3

• Group market share grew despite New Zealand H1 total retail spend declining 5.0% vs H1 LY 3

• The Group's online growth rate, +67.8% was over 2 X that of the key compete growth rate (core retail, +31.9% vs LY), and 3 X the growth rate of the total retail market (+22.4%) 3, 4

1.

Source: Qualtrics and TWG Insights. Total retail = all categories, including grocery, liquor, restaurants, and petrol

2.

Source: TWG Insights. Based on average full-price basket of eggs, bread, milk, coffee, butter, oats and Weet-Bix on 18 Mar 2022 costing $29.03 at The Warehouse and $35.61 at Countdown.

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3.

Source: Datamine. Core retail = all categories excl. restaurants, fuel, liquor stores, entertainment, supermarkets, and travel

4. Online Sales includes The Warehouse, Warehouse Stationery, Noel Leeming and Torpedo7, sales through 1-day.co.nz, revenue from TheMarket.com; but excludes TheMarket.com gross transaction value (GTV).

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Disclaimer

The Warehouse Group Limited published this content on 22 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2022 00:49:01 UTC.