The Warehouse is bulking up its presence in Auckland, saying it will build new stores in a region it is under-represented in.
New Zealand's largest retailer made a flat underlying profit of $57 million and is picking demand to be patchy amid a modest economic recovery.
Chief executive Ian Morrice says it is focusing on keeping costs in check and squeezing more earnings out of its existing stores through promotions.
After delaying expansion plans while it toyed with selling food and liquor, Mr Morrice says it will build four new stores, including three in Auckland.
Mr Morrice says Auckland is a difficult market to get additional selling space in and a smaller format store will open at St Lukes in April. There are also a number of full-size stores of about 6000 square metres which have been developed around the greater Auckland region.
The Warehouse is aiming to expand its low market share in areas such as clothing, footwear and jewellery, homeware and sporting goods and Mr Morrice expects a similar full-year profit to the $85 million recorded in 2009.
