11 Jun 2013

Postie Plus distribution problems hit sales

7:12 pm on 11 June 2013

Sales for Postie Plus have been hit again by distribution problems holding up stock getting to stores.

The clothing retailer said third quarter sales have fallen 14% from the same period last year to $19.4 million.

Sales for the year to date have fallen more than 5% to $62.7 million.

And the company is warning again that disruptions with the distribution centre contractor, which started last year, will lead to a significant loss for the year.

Chairperson Richard Punter said Postie's distribution centre had lifted its performance and autumn and winter stock is now flowing through to the stores.

But he said it will be some time before the full cost of the problem is known.

"We are working closely with these people, they understand what the situation is, we brought in some outside consultants to assist, we worked together with them on re-designing some processes and we working now to ensure it runs like the well-oiled sewing machine it should be."

Mr Punter said plans to grow the company by acquisition are still on hold.