The Warehouse to offer a subscription based online retail option
Tuesday, 16 July 2019
The Warehouse Group is getting ready to launch a new shopping platform in a move that could shake New Zealand's traditional retail market.
The company plans to launch TheMarket, 'a curated lifestyle shopping platform' in August.
Products listed on the platform include Barkers, Tribeca, Joco, Bobux and homewares brand Citta.
While TheMarket has an Instagram and online presence, the site is still in the testing stages.
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A spokeswoman for The Warehouse Group said the retailer was not ready to speak about the new project.
'We are working on a new e-commerce platform and we're still in the testing phase so we're not quite ready to talk about this yet,' she said.
According to the terms and conditions listed on the beta-version of TheMarket website, the platform will allow connect shoppers to buy from third party retailers and suppliers.
Customers are told that they will be transacting directly with merchants and there is the option to pay for a subscription that would wipe the delivery fee on all orders.
Influencers will be able to register and brands are promised access to a platform 'backed by New Zealand's largest retail group we provide access to 3.5m active customers, localised customer service and a distributed last-mile collect & return network, to provide a frictionless customer experience'.
The Warehouse Group, which includes The Warehouse, Warehouse Stationery, Noel Leeming and Torpedo chains, has faced increased competition form the likes of global brands like Amazon, Kmart, Bunnings and Briscoes.
Under the leadership of group chief executive Nick Grayston it adopted a model of every day low pricing and binned its traditional strategy of having a good chunk of stock on special all the time.
In May, chief executive of The Warehouse and Warehouse Stationery, Pejman Okhovat told Stuff the group welcomed competition because it kept the business on its toes.
'It's healthy for the whole industry. It's our job to ensure the trust and loyalty of our customers remains with us,' he said.
The Warehouse Group reported third quarter sales of $714.4m, a 1.9 per cent increase on the same quarter last year.
Online sales for the company were up 18.7 per cent year-on-year.