25 Nov 2013

Warehouse group seeks to expand outside of bricks and mortar

7:01 am on 25 November 2013

The Warehouse Group is seeking companies that will help it grow its business outside of its bricks and mortar Warehouse stores.

It wants the non-Warehouse part of its business to be as big, or bigger than the iconic retail chain.

On Friday, the company announced the purchase of R&R Sport to complement its outdoor sports online retailer Torpedo7, but it wouldn't say how much it paid for it.

The Warehouse chief executive Mark Powell says there's huge opportunity in that market.

Christmas is crucial to the Warehouse's trading and Mr Powell says so far the summer season is shaping up well.

He says the Warehouse already has a relationship with Westpac and is looking to grow the financial services area, as well as growing in the area of telecommunications and digital connectivity.

The Warehouse says it expects first-half profit will be down because of a squeeze on its profit margins and its spending on acquisitions and growth.

It still expects annual profit will be higher than last year but the increase won't be as big as initially expected.