The cost of living crisis is proving a double edged sword for the Warehouse group that is hemorrhaging profits despite record sales.
The group which includes Noel Leeming, Torpedo seven and the red sheds, saw net profits plummet more than 65 percent compared to last year, even though it sold a record three-point-four billion dollars of stuff.
Weaker consumer confidence put people off big ticket items.
The warehouse grocery line was the stand out performer with sales increasing more than 25 percent as households hunt for a cheaper deal.
The Warehouse group's chief executive Nick Grayston speaks to Lisa Owen.
