People ‘choosing not to spend’

Briscoe boss Rod Duke says the lack of miserable winter weather and high petrol prices worked to cut the retailer’s half-year profit.

The Briscoe Group which owns the Briscoes Homeware, Rebel Sport, and Living and Giving chains on Tuesday reported profit after tax of $28.3 million for the half year to July 31, down 3 per cent on the same period in the previous year.

Duke said the mild weather reduced demand for winter staples, such as duvets and heating, which led to stock being sold at a discount. An accounting standard change shaved $1.14m off the profit.

‘‘Winter traditionally starts around Easter time, it gets cold and horribly wet around May, June and July.

‘‘Regrettably this year, we got none of that,’’ Duke said.

‘‘Sales picked up as soon it started to get cold but unfortunately that happened in the very last days of July. August, for us, was really really good.’’

Duke said consumer sentiment was also slipping as homeowners became less confident in the value of their properties.

Petrol prices, particularly in the biggest markets, also took a toll, he said.

‘‘There is a bit of pressure on the household at the moment.

‘‘There are a lot of people in the suburbs not feeling quite as wealthy as they once thought they were. If you put that together with the late start of winter, it is just a recipe for people keeping their hands in their pockets and choosing not to spend.’’

The group was refurbishing stores and launching new websites for its brands.

Living and Giving had already launched its website, Rebel Sport’s would follow in the next few days and the Briscoes site would go live in about two weeks, he said. ‘‘We have a fair bit happening at the moment so all we have to do is hope no catastrophe hits and summer arrives when it is supposed to.’’

Duke said he was not concerned about global rivals eyeing New Zealand.

Earlier this year, French sporting goods company Decathlon indicated it would open a store in New Zealand. However, a Decathlon spokeswoman said this was no longer the case.

Hamilton Hindin Greene investment adviser Grant Davies said Briscoes result was in line with market expectations. But competition would increasingly come from global brands turning their sights to New Zealand.

Davies said: ‘‘Your competitors are not the store next door – it is Amazon, it is the big Aussie companies that are looking at their options. You certainly can’t rest on your laurels with those guerrillas waiting in the wings.’’

Briscoe Group will pay an interim dividend of 8.5 cents per share, up from 8c last year.