Photo: SUPPLIED
Major retailer The Warehouse Group has told shareholders that despite ongoing tight retail conditions, it has the fight to turn the struggling business around.
The company which owns the Warehouse, Noel Leeming and Warehouse Stationery, reported a full-year loss of more than $54 million.
It admitted too much time and money was put into Torpedo7 and online platform The Market, which upon sale and closure led to major losses.
At Friday's annual general meeting, a shareholder asked why the Red Sheds are dreary and unexciting compared to major Australian competitor Kmart.
Chairperson Dame Joan Withers said revamping the stores is a work in progress.
Dame Joan Withers. Photo: Supplied
"That is a key focus for us, getting the excitement back into the stores ... The Kmart scenario we are absolutely focused on and we've been very overt about the fact, certainly leading up to the summer season, we've lost market share in homeware and apparel to Kmart but we're coming back with a vengeance.
"I'd say 'watch this space' and look out for the brilliant stuff that we'll be putting into stores."
Interim chief executive John Journee said the group is pushing and refreshing its fast moveable products such as grocery, apparel and homeware to win back customers.
He said sales of its affordable health and beauty products, such as soap, shampoo and conditioner are particularly encouraging.
"Leveraging our private label capability is a key part of this approach. Our Good One range is a great example. Locally made and sourced, it has been hugely successful and we're getting very positive feedback on its value.
TWG interim chief executive John Journee. Photo: SUPPLIED
"In the next few weeks, we launch Poppi, our new skincare brand aimed specifically at teens and young women."
Journee said he is cautious in the run up to Christmas with trade expected to be highly competitive.
"What I can promise you is that we will be firmly focused on bringing great value products to our customers as we continue to execute our turnaround plans."
The Warehouse Group said it will return to paying dividends as profitability improves.
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