BGP, WHS: 2 big retailers to watch as Briscoe announces its sales update

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BGP, WHS: 2 big retailers to watch as Briscoe announces its sales update

 BGP, WHS: 2 big retailers to watch as Briscoe announces its sales update
Image source: MONOPOLY919,


  • The retail industry is facing several headwinds like cost escalation and wage inflation.
  • These extra costs to retailers will be passed on to shoppers
  • Prices could go up more than 7%, according to Retail NZ

Retailers and shoppers are in for tougher times as they brace for cost increases this year.  According to Retail NZ, retail prices are expected to go up by 7% in the next quarter. The prices are set to go up to a number of additional costs that retailers are trying to meet.

The costs include an increase in the minimum wage and cost due to supply chain disruptions.

Since retail is typically a low-margin business, all this cost escalation is likely to be passed on to consumers.

retail, financials, results, BGP, WHS, NZX

Source: © 2022 Kalkine Media®

Briscoe Group Limited (NZX:BGPASX:BGP)

NZX-listed leading retailer operates across New Zealand and Australia. It operates in brick-and-mortar and online platforms. On Thursday, the Board of BGP announced that unaudited sales for the first trading quarter were 1.77% higher at NZ$176.2 million. Q! sales for the Group’s homeware segment increased by 21.3% to NZ$106.8 million while sporting goods sales increased by 1.21% to NZ$69.4 million. Rod Duke, the managing director of the group, said that it’s a good start to the year. A significant influence throughout the year was the escalation of the Omicron outbreak and its impact on foot traffic to real stores. This led online sales to grow significantly representing 20.2% of Group sales for the quarter compared to 15.4% for previous year.

But for online sales, the performance of the Company could have been negatively impacted by up to NZ$4 million as consumers took a cautious approach and avoided visiting malls and shopping centres.

In an updated annual report recently, the Company also said that despite turbulence in the retail environment, it would perform well in 2022 as it had strengthened its systems and processes. The Company is known to reward its shareholders with good dividend payouts.  Recently, it declared a final dividend of 15.5 cps. This final dividend when added to the interim dividend of 11.5 cps, takes the total dividend for the year to 27.0 cps.  

Must Read: BGP, KMD: 2 NZX retail stocks as shoppers gear up for more price hikes

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On 6 May, the stock was trading down by 2.10% at NZ$5.820, at the time of writing.

Warehouse Group Limited (NZX:WHS)

NZX-listed Warehouse Group is a leading retailer in New Zealand. In its latest update, the Group reported a drop in its half-year profits by 8.2% due to store closures across locations throughout NZ. The Group reported that its Auckland stores were closed for almost 84 days in the six months. Its net profits were down by 57% and this includes the cost of restructuring and the repayment of the wage subsidy.

Its total online sales grew by 67.8%, which shows the Group’s ability to capture customer shifts and demands.

Do Read: How will these 4 retail stocks fare amid expected price hikes? BGP, WHS, MHJ, KMD

On 6 May, the stock was trading 1.76% down at NZ$3.34, at the time of writing.

Bottomline: Retailers will be going through a tough time as cost escalation and wage inflation make it difficult for them to survive. Therefore, they would be passing them on to consumers in the near future, says Retail NZ. 


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