Briscoes fourth quarter margins disrupted by Black Friday sales
Retailer Briscoe Group's fourth quarter sales have been disappointing with heavily discounted online Black Friday sales affecting profit margins and disrupting traditional pre-Christmas sales.
The company, which owns Briscoe homeware and Rebel Sport brands, expected net profit for the year ended January to be at least $64 million, up 1 percent on last year, before tax adjustments of about $2.7m.
Briscoe's group fourth quarter sales were up 1.8 percent to $210m, with full year sales up just over 3.3 percent to $653m.
Group managing director Rod Duke said online sales grew 16.2 percent, reflecting the change in consumer spending patterns.
"Consumer spending patterns continue to change with a huge concentration of sales in relation to Black Friday promotions now influencing the traditional steady sales build through to Christmas," he said.
"We operate in highly competitive markets, and while the trend towards major event-based campaigns, such as Black Friday and Boxing Day, have wide customer appeal, they do come at the cost of gross profit percentage."
The company was expected to release its full year result on 16 March.
This article was originally published on RNZ and re-published with permission.
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