The Warehouse Group Ltd announced a series of changes to its business operating model on Tuesday.
Group chief executive Nick Grayston said the changes were designed to drive an improvement in financial performance and generate greater customer relevance as customer needs change and competition increases.
“Changes will focus primarily on simplification to reduce complexities, drive efficiencies and increase business agility, while removing significant cost.
“We will implement a series of operating model changes in the coming months, including:
- strengthening & consolidating the various group support service functions to drive synergy benefits, deliver efficiencies and reduce complexity across all group brands
- combining The Warehouse (red sheds) & Warehouse Stationery (blue sheds) by integrating their operating structures & executive leadership. This will also occur for Noel Leeming and Torpedo7 Groups.”
Mr Grayston said that, after the decision to change the scope of the role of the brand chief executives, The Warehouse Ltd’s chief executive, Simon Turner, had decided to leave the business.
Mr Grayston said Mr Turner had refocused The Warehouse brand over the last 4 years, achieving 16 quarters of positive sales growth: “Under his leadership, The Warehouse has been recognised as one of the best places to work in New Zealand and, as such, Simon is much admired & respected within The Warehouse Group. Simon has a wealth of international retail experience and I know he will approach his next venture with the same passion & commitment that he has shown at The Warehouse.”
Pejman Okhovat, chief executive of Warehouse Stationery & Torpedo7 Group, will lead The Warehouse & Warehouse Stationery brands. Tim Edwards, chief executive of Noel Leeming Group, will lead both Noel Leeming & the Torpedo7 Groups. Mr Okhovat joined The Warehouse Group in 2005 and Mr Edwards has been with Noel Leeming Group since 2009.
The Warehouse will outline further detail, associated costs & benefits in its half-year report in March.
Attribution: Company release.