Introduction
The Warehouse Group Limited is one of New Zealand’s largest retailers. It has deals on an array of products like clothing, entertainment, grocery, technology and many more. The company is officially termed as TW Group. It was founded by Stephen Tindall in 1982. It maintains 92 stores in New Zealand with an employee base of around 9,000 people (The warehouse official site). Multiple services subsidiaries including but not limited to Warehouse Stationery, Warehouse Group Financial Services and Waikato Valley Chocolates constitute the total TW Group. The Warehouse operates in retail industry selling wide range of grocery and non-grocery items through its discount stores across New Zealand.
2. Situational Analysis (STEPP)
Social:
Changes in people’s social life and customer behavior may affect retailers like Warehouse Group mostly (people tend to buy things online from across the world) (Adams, 2014)
‘International brands attract New Zealanders’. This occurs mainly due to two factors; free shipping and exemption from GST on ‘products under NZ$400’ (Ero monitor International, 2016).
Shifts in consumer preferences: Warehouse Group has to do its best to stay ahead of consumer buying trends. But it often fails to be in the right place at the right time. According to reports, “the group’s trading performance was impacted by a late start to summer seasonal trading” (The Register Retail Intelligence, 2015)
Technological:
The growth of technology can affect retailers unless it cope with the new trends. Warehouse has introduced a mobile app, ‘Your Warehouse’, to address this new trend (Register Intelligence, 2014).
Progressive Competitors may dominate the market. However, Warehouse has determined to overcome this challenge by “challenging traditional shopping conventions” (Sachtleben, 2014).
The country has efficient communication and transport network system. This will help the company reduce the costs of communication and transport (Ministry of Transport, 2016).
Economic:
New Zealand has a free-market based economy, and it has a low-inflation environment (New Zealand Now). This situation is favorable to Warehouse Group).
The economic condition in New Zealand is positively associated with people’s current buying position (Boult, 2016).
Increase in volume of retail sales. For the June 2016 quarter, compared with the March 2016 quarter there has been 2.3 percent rise in retail sales (Statistics New Zealand, 2016). This is favorable to Warehouse.
Environmental:
Growing environmental concern. The company has to improve its corporate social responsibility to meet this requirement.
Agricultural based economy. Since the country is an agricultural one, all business activities must comply with environmental policies.
Degradation of soil (smith, 2015)
. This is an ongoing concern in the country. Therefore, Warehouse also will have to make strategies to address this issue.
Political: Political situation in New Zealand is favorable to retailers
References
Adams, A. (2014). Retail trends: The future of shopping. NZ Herald. Jan 6. Retrieved from http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11181621
Boult, A. (2016). Would you like to live in Kaitangata? Tiny New Zealand town with ‘too many jobs’ seeks new residents. The Telegraph. Retrieved from http://www.telegraph.co.uk/news/2016/06/29/want-to-live-here-tiny-new-zealand-town-with-too-many-jobs-seeks/
Euro Monitor International. (2016). Retailing in New Zealand. Retrieved from http://www.euromonitor.com/retailing-in-new-zealand/report
Ministry of Transport. (2016). Economic development and transport. Retrieved from http://www.transport.govt.nz/ourwork/keystrategiesandplans/strategic-policy-programme/economic-development/
New Zealand Now. Economic overview. Retrieved from https://www.newzealandnow.govt.nz/investing-in-nz/opportunities-outlook/economic-overview
Register Intelligence. (2014). Next-gen retail technology with The Warehouse's app. Retrieved from http://theregister.co.nz/opinion/2014/06/next-gen-retail-technology-warehouses-app
The Register Retail Intelligence. (2015). UPDATED: The Warehouse Group reports big profit drop. Retrieved from http://theregister.co.nz/news/2015/03/warehouse-group-reports-big-profit-drop
Sachtleben, A. (2014). The Warehouse app lays competitor pricing bare. Stop Press. Retrieved from http://stoppress.co.nz/didge/warehouse-app-lays-competitor-pricing-bare
Statistics New Zealand. (2016). Retail Trade Survey: June 2016 quarter. Retrieved from
http://www.stats.govt.nz/browse_for_stats/industry_sectors/RetailTrade/RetailTradeSurvey_HOTPJun16qtr.aspx
Smith, B. (2015). How clean is your country: New Zealand. AZO Cleantech. Retrieved from http://www.azocleantech.com/article.aspx?ArticleID=569
