10 Jan 2017

Major renovations for the big red sheds

1:30 pm on 10 January 2017

The Warehouse Group has announced a new restructuring plan that will see the chief executive roles for the Red Sheds and Warehouse Stationery merged.

A worker scans items at The Warehouse in Lyall Bay, Wellington

The Warehouse says the changes are needed to stay competitive. Photo: RNZ / Alexander Robertson

As a result, the Warehouse chief executive Simon Turner will leave the company after four years in charge.

The country's largest listed retail chain said the plan was needed to improve its financial performance in a tough retail environment.

Group chief executive Nick Grayston said the business - which included the Red Sheds, Blue Sheds, Noel Leeming and Torpedo7 - was operating in a very competitive climate.

"Changes will focus primarily on simplification to reduce complexities, drive efficiencies and increase business agility, while removing significant cost," he said.

Tim Edwards - who was currently in charge of Noel Leeming - would also take control of Torpedo7, while current Blue Sheds chief Pejman Okhovat would also take the reins of the Red Sheds.

The Warehouse Group refused to be interviewed by RNZ Business, but said it would reveal more details at its half-year in March.

Before Christmas, the company marked down its adjusted profit expectations by 10 to 15 percent, to between $38.5 million and $41 million, because of weak sales.

That compared with the previous $45.6 million.

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