Warehouse chief exec resigns as ‘fresh energy’ needed

Friday, 17 May 2024

Warehouse Group chief executive Nick Grayson has stepped down “effective immediately” to make way for someone to bring fresh energy to attempts to turn around the iconic retailer.

Investors in the company have had a disappointing run, with shares in Warehouse Group down nearly 30% in the past 12 months.

The retailer is in the middle of a strategic reset which involves simplifying the business, and selling off, or closing, loss-making ventures.

Earlier this year it sold its Torpedo 7 outdoors business, and it is to close its online store The Market.

In March, Warehouse Group announced a half-year loss of $27.3 million, and earlier this month it reported sales in the third quarter of its financial year, which ended on April 28, were down 9.2% on the same period last year.

Warehouse Group chair Joan Withers said Grayston had led the retailer since 2016 through a period of significant change in the retail industry.

“His focus on sustainability, adopting Agile ways of working, navigating the challenges of Covid and initiating the significant and successful programme of critical infrastructure upgrades have been hallmarks of transformation of The Warehouse Group in the last five years,” she said.

“However, as we look to the future, we have agreed a change in direction is necessary for the company and that it needs fresh energy to execute.”

On Monday, John Journee will take over as interim chief executive while the search for a successor to Grayston takes place, the group said in an announcement on the NZX sharemarket.

Journee has been with Warehouse Group for 15 years, and has held roles including as chief executive of Noel Leeming. He has been on the TWG Board since 2013.

Grayston said that leading The Warehouse Group has been one of the most rewarding experiences of his career.

It was the right time to step aside, he said.