Home / Knowledge / News / Apparel/Garments / Postie posts profit plus in a very tough market
Postie posts profit plus in a very tough market
Sep '11
New Zealand retail group Postie Plus Group Ltd has improved net earnings in the year ended 31 July 2011, despite a very challenging retail environment throughout all provinces.

Full year group sales increased to $115.73m, (2010: $113.77m).
Gross profit was $60.19m (2010: $60.50m). Operating profit was $1.92m (2010: $1.70m). Profit before interest and tax is $1.07m (2010: $0.78m).

Net profit of $656,000 has improved last year's bottom-line result of $415,000 although not as great as had been targeted at the half-year.

“Our trading year had distinct promise of a solid year, with postie yet again making market share gains in a sector that has been flat for the last 2 years,” said the chairman Mr Richard Punter. “However, the ongoing economic uncertainty has seen consumers inclined to commit more to savings than to personal spending on clothing.”

“In addition, the 2010-11 period has had more adverse events than most years in our history, with a sequence of natural disasters and a May-June 2011 experiencing historically high temperatures during these, our important winter months.”

Mr Punter said that despite the uncertainty generated by the above events the 2011 result provides encouraging confirmation that PPGL has not only locked in previous efficiency gains but has made further improvements in the cost of doing business.

The board's strategy to refresh the group's core brand, “postie” has strongly improved the chain's impact and full year sales underscored the benefit of investment in key areas of the business.

These included:
• Ongoing capital expenditure related to store refurbishment and store openings.
• Right-sized inventories to match variable market demand in a slower retail sector.
• Effective spend on strategic marketing programmes.

The chief executive officer, Mr Ron Boskell, said PPGL's results concur with a general slowing in consumer spending, exacerbated by natural events.
“We continued to showcase our brand with our store upgrade programme in a competitive marketplace which has enabled us to increase our market share.”

The group opened three new postie stores situated at Rolleston, Feilding and Chartwell (Hamilton) and one new BabyCity location at Lower Hutt.

“We are very pleased with the positive community response to the new stores which have traded well since opening with a range of quality apparel priced right for middle New Zealand families,” said Mr Boskell.

“The school uniform business, Schooltex, expanded its retail footprint in the Auckland region during the year. Our buying power offers New Zealand families a strong range of individualised school apparel and a new range of footwear at attractive prices across 83 postie stores. Customer schools have again benefited from our long-running rebate programme.”

Mr Boskell said “PPGL has had excellent continued good results from customer loyalty programmes which now embraces a strong e-commerce offer to our community of postie, Schooltex and Babycity customers.”

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search