New Zealand's Warehouse Group blames flat quarter on fuel crisis
Warehouse Group, one of New Zealand's largest retail chains, has blamed a flat quarter of sales on the sharp jump in fuel prices. According to RNZ Business, the company said household spending was under pressure, especially in non-discretionary categories. The result illustrates how the energy shock linked to the Strait of Hormuz is bleeding into the wider economy.
Warehouse Group, one of New Zealand's leading retailers, has reported flat sales over the past quarter. According to RNZ Business, management cited the sharp rise in fuel prices as the main reason. The team also stressed that household demand has softened in home and gift categories as families redirect spending toward essentials.
Fuel prices in New Zealand rose 13 per cent in April. That increase is linked to global market spillover from supply concerns around the Strait of Hormuz. The government is debating short-term support packages, while the Reserve Bank is signalling that its inflation outlook may need to be revised.
Warehouse Group warned that the coming quarter could also be difficult but said it is taking steps to improve operational efficiency. The company's shares traded choppily after the statement. Other New Zealand retailers are expected to flag similar messages in their results.
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