The Warehouse pauses all advertising for eight weeks
The Warehouse is hitting pause on all advertising spend
Embattled New Zealand discount retailer The Warehouse is stopping all external ad spend for eight weeks, after announcing 270 job cuts last week.
The company’s chief marketing officer Frankie Coulter announced the risky move yesterday.
“The Warehouse needs a big revival and to do that we’ll need to make some big calls,” he said.
“Our first step is to hit pause on most of our advertising spend and rely on our own channels for the next eight weeks.”
Coulter said the retailer “needs to figure out what will really resonate with the 1.5 million Kiwis who already shop with us each week and for the rest of New Zealand”.
“We’ll continue to celebrate and promote big in-store moments that Kiwis love from us like Mothers’ Day and Easter, while testing and learning whether the dollars we spend on advertising are making a difference for our customers, or whether we could do something better with that money.”
Last week, the retailer announced a restructure of its head office, plus 270 redundancies, as it looks to save NZ$70m (A$60m) over the next five years.
Chief executive officer Mark Stirton said the jobs will be outsourced to Tata Consultancy Services (TCS).
“Our cost base is not sustainable for a value retailer. As one of New Zealand’s largest retail employers we must make these tough choices for our 10,000 team members and their families across the country and return the Group to sustainable profitability.”
The Warehouse reported a net loss after tax of $4.5m for FY25.
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