Which 2 NZX retail stocks to be explored before holiday season?

Highlights

• The season could give a much-needed boost to the retail sector and the related stocks.
• The Warehouse Group sales decreased in 1Q FY22, but the online sales rose on pcp.
• Briscoe Group felt the adverse effect of the lockdown in NZ in August.

The holiday season can prove to be a turnaround for the retail sector, which was witnessed even in the pandemic that started in the year 2020. The year 2021 saw a rollout of vaccination and the economy around the world to reopen.

Therefore, in 2021, the retail sector is anticipated to be on its mark to attract maximum consumers and hope for attaining record sales.

On the back of the above, let’s now go through updates of NZX-listed retail stocks.

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The Warehouse Group Limited (NZX:WHS)

Functional for four decades, The Warehouse Group Limited is the biggest group in the NZ retail sector.

A few days ago, the Company provided a 1Q FY22 sales update, where the Group sales for the 13 weeks until 31 October this year stood at NZ$630.7 million, decreasing by 14.6% on pcp. This reflected the adverse impact of the pandemic beginning 18 August.

However, the online sales increased by 11.8%, reflecting 30.1% of Group sales.

On the dividend front, a final distribution amount of 17.5 cents was announced, which is due to be paid by 3 December.

Also, the Company’s virtual Annual Shareholder Meeting will be held on 26 November.

On 16 November, The Warehouse Group last traded at NZ$4.14, up by 0.73%.

Related article; The Warehouse Group (NZX:WHS) provides sales update for Q1 FY22

Briscoe Group Limited (NZX:BGP; ASX:BGP)

NZ-based holding entity that runs retail stores like Briscoes Homeware, Rebel Sport, Briscoe Group Limited has physical stores throughout NZ.

At the beginning of November, the Company published its performance for 3Q 2021 (August-October 2021). The 13 weeks duration, closing 31 October, witnessed unaudited sales of NZ$138.5 million, a decrease of 14.14% on pcp.

Briscoe Group’s MD Rod Duke stated that the financial effect of stores shut down due to the national lockdown from 18 August was evident.

Similar to The Warehouse Group, the online platform proved to be Briscoe’s saviour as well. The Company’s online sales increased by 98% for 3Q, indicating 38% of all sales.

Briscoe Group, by the end of the trading session, on 16 November, was at NZ$6.89, decreasing by 0.43%.

Also read; How did Briscoe (NZX:BGP) perform in third-quarter 2021?

Bottom line

With booming digital platforms in the retail sector, retailers have managed to see a boost in their sales numbers. The holiday season with days like Black Friday, Cyber Monday and Christmas eve might get to see customers splurging their savings on gifts and other purchases.