Supplier Conference May 2013

PRIVATE AND CONFIDENTIALThis presentation contains information that is confidential to The Warehouse Group Limited. If you are not the intended recipient you must not peruse, use, disseminate, distribute or copy this report. Please notify Kerry Nickels, on phone +64-9-489 7000 to arrange for document retrieval. PRIVATE AND CONFIDENTIAL

Supplier

Conference

May 2013

PRIVATE AND CONFIDENTIAL

Welcome – Mike Pook

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Feedback from last year

We have repeated what you liked

The store visit Hearing from the Leadership team Clarity on strategy

We have improved what you didn’t like

X Simplified the slides X Bigger room / better AV X Less presentation; more Q & A

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What’s Next: This Presentation Pack will be emailed to you along with a Survey Monkey to get your feedback


Agenda (and Housekeeping)

New Store walk through - TWL Royal Oak Strategy

Mark Powell Red Shed Lead Team

Category Support Initiatives – Raising the Bar Jon Adams

Supplier Survey and Communications Tania Benyon

Sir Stephen Tindall Q&A Session

Red Shed Lead Team

Wrap Up Mark Powell


Mark Powell – Group CEO

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Group Strategy

A Trading Group with: multiple business units clear core competencies that can add value to each trading business unit

Develop & Leverage Core Competencies Sourcing expertise Understanding New Zealand Customer, Market, and Channels Our people, and a best practice Way of Working/Culture

Leveraging Group Synergy while still remaining “Customer Led, Store Focused and People Centered”

Identify and grow business verticals where we can leverage core competencies to be number 1 or 2 in that

business vertical

A multi-focused group of companies leveraging our core competencies

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TWG Retail Brands

The Warehouse Financial Services Ltd, Various Consumer Finance products

Seamless Multi-Channel:- The Warehouse, Warehouse Stationery, Noel Leeming Pureplay Online:- Red Alert, I Love Beauty, Torpedo 7, One Day

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Tech Solutions, Telecommunications, Connectivity


Clearly Defined Competitive Advantage

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Way of Working Framework – Giving Competitive Advantage

Brand Specifics

MerchandiseWorking SmarterBuying Smarter

StoresWorking SmarterSelling Smarter

People

Policy, Process & Systems

Brand Positioning & Personality

Company Working Smarter

Brand Strategy

Team Model

Thinking Smarter

Business Principles

Retail Principles

Strategic Planning &

Deployment Framework

Support Principles

LeadershipFramework

Customer Led, Front-line Focused,

People Centred


Group Synergy

Each retail brand in The Warehouse Group has and will continue to have its own distinct brand positioning and personality

While the retail brands do have some category overlap there is a large degree of distinctness in customers, product range and sales process

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Red Strategy Evolution – Key Result Areas

Brand and Price & Promo Framework

Clear ‘Way of Working’ Framework

Multi Channel and Direct Customer Engagement

Category Strategies and Margin Dollar Growth

Store Experience: Execution and Rejuvenation

Financial Services & Other Services

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Community and Environment


Warehouse Group Strategy

-Building Long Term Sustainable Growth-Building a 100 Year Business-Building something we can all be proud of… For our Customers, our Team, our Shareholders, our

Suppliers and for New Zealand


Store & Customer Experience: Execution & Rejuvenation

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Simon TurnerEGM Store Operations


It starts with the CUSTOMER

This is what we want our customers to say……

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The Prices are great

The Quality is

right

I enjoy the shopping

environment

I can get help, information and

advice I need when I want it

Service is quick - I don’t wait too

long

I am loyal to the Warehouse and tell others how great it is

I can get what I want, when I want,

where I want


Store Experience : Execution and Rejuvenation

Developing a ‘better (for customers) simpler (for our people) and cheaper (for profit)’ approach

Stores Working Smarter to deliver increased productivity: Using Westgate as a ‘store of the truth’, with a focus on 3 areas - checkouts, ticketing, night filling

Closing the gap between best and worst stores and driving all stores to excellence

Accelerating the internal and external modernisation programme and refits• 20 refits completed so far• 16 modernisations completed

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Evolution


Suppliers can help us to deliver ‘Better, Simpler, Cheaper’

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We are focused on Better for customers....

Love Your Customer (Behavioural and interaction training)

Specialised training (product service, product knowledge)

Developing a service style of leadership

You can help us with Simpler for our people....

Productivity improvements e.g. shelf ready packaging, clear product descriptions on outers, appropriate case sizes etc

Improving stock flows, replenishment and availability e.g. DIFOT, planning of FIS deliveries

And Cheaper for profits...

Continuation of focus on Shrinkage e.g. quality packaging to reduce damages in store and tagging

PRIVATE AND CONFIDENTIAL 18PRIVATE AND CONFIDENTIAL

‘Better, Simpler, Cheaper’ for Store Visits

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Visiting & Servicing Stores…Merchandising, rep & vendor support in stores is appreciated

The resource & financial commitment is high

Stores need help in a consistent way

How can we help each other…Develop a set of guidelines to use when servicing stores

A set of workshops with our suppliers are planned, starting now, completed by end of July

Build and agree guidelines - ready for launch 1st August

Providing consistency of approach

From you I need…Your attendance & feedback in workshops – let me know if you are interested in attending

Once guidelines finalized, full communication to your team and eventual compliance

’

Our primary goal is ‘better for customers


Brand and Price & Promo

Framework

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Tania BenyonEGM - Merchandise


Same Store Sales Trend Continues to Improve

The trend of improving Same Store Sales continues with now 8 consecutive quarters for the first time since 2004

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We are very early in our transformation journey. The scale of change required is significant and there is still much to do – It’s all about Products & Quality, Price, Store Environment and Service, - The Strategy must address these areas


Brand & Price/Promo Framework

Clear Brand Positioning & Personality to drive “New Zealand's most loved retailer” = relevance

Deeper understanding of customer perceptions/awareness through customer panel

Drive brand re-appraisal = price + quality + service + patience: Understand and address inhibitors to re-appraisal

‘House of Bargains’ & ‘Home of Essentials’ = differentiation Home of Essentials: Dial Up House of Bargains: Continuous Improvement

Embedding and Evolution of the Price and Promotional Framework = promotional excellence plus guides advertising, pricing & store execution

Strategy 2011 - 2013----------------------------------------------------Establish and drive clear brand positioning, personality and approach to Price & Promotion

Strategy 2014 & Beyond----------------------------------------------------Embed brand positioning and Price & Promotion framework. Focus on Pointsof difference

Evolution

Whilst HOB & HOE have been increasingly embedded over the last 18 months, brand perception (sum of parts) takes a long time to change – to drive re-appraisal by customers

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Competitive Positioning

We have a unique competitive positioning – and are famous for House of Bargains. We still need to embed Home of Essentials.

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Category Strategies and

Margin Dollar GrowthGeneral Merchandise and Apparel

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Focused on where we can leverage competitive advantage Price and Promotional Framework; clarity on traffic drivers, sales drivers and GP$ drivers Commercial Thinking Shape Changers Merchandise Zones

Strategy 2013-------------------------------------------


Strategy 2014-------------------------------------------

----Category Strategies and Margin Dollar Growth through

continuous improvement

Evolution

A Unique Category Mix and Offer in the Market.

Product the key to making TWL the “House of Bargains” and “Home of Essentials”

Category Strategy Guidelines: Win-Lead, Play-Grow, Play-Dominate, Play-Show

Clear Brand Matrix and Price Architecture (Very Basic, Basic, Better, Best) , Brand and Private Label Framework

Trading Triangle Framework – commercial thinking to drive GMROI, reduce COGS and optimise retail price

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CSB High Level by Category

Some categories have shifted location within the CSB framework. More refinement (including at sub category level) will follow driven by continuous improvement and deepening of our strategic

thinking.

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Shape Change Strategies

Pet Zone – Sales and GM$ driver Providing a “One Stop Shop” for all your pet needs and

wants, at prices you can afford with quality you can trust

Book Zone - Sales driver The books your family wants at NZ’s lowest prices

always available

Baby Zone – Sales and GM$ driver Providing a “One Stop Shop” for all your baby needs, at

prices you can afford with quality you can trust

Accessories Zone – Sales and GM$ driver

Creating a one-stop women’s accessories shop – the first choice for a woman to enhance her wardrobe.

Jewellery Zone – Sales and GM$ driver

Delivering NZ’s best value fine jewellery range, offering gifting solutions, for others and self, at affordable prices

Technology and Entertainment For Everyone – Sales driver

Helping everyone connect and entertain with their favourite ‘Big Brands’ at TWL prices

Everything for Home – Sales and GM$ driver Everything you need and want for your home under

one roof at a price you can afford

Enjoying Outdoors – Sales and GM$ driver Delivering NZ’s best outdoors range under one roof

making everything affordable for everyone to enjoy

Celebrations For Everyone – Sales and GM$ driver Making it easy for people to celebrate the important

events in their lives with everything available to make parties, gifting and treating themselves or others easy and affordable

Home of Apparel Essentials – Sales driver

All the family’s essential clothing and everyday footwear needs, of a fit-for-purpose quality at a price that excites

ZonesLeverage our ability to bring together consumables and

general merchandise

Cross Category Defensible Themes Leverage multiple categories for an advantage in the

marketplace

We have made good progress and the shape change strategies will continue to evolve


Quality Support

Pre-qualification for quality and ethical sourcing in place for new sources, an accredited partner network beyond China, and QC in place for all sources

Continue to reduce return rates (thresholds dropped to 5% from 20%, 52% (232k) less units returned

Fit for use specifications in place prior to placing orders for priority categories

Product Quality Improvement - immediate action taken & long term strategy developed Measurement and PARs drive continuous improvement in quality Simplify quality processes and ensure fit for use prior to purchase Market leading quality and ethical processes to be proud of

Strategy 2013Build on Direct Sourcing, and

stop the brand damage in quality

Strategy 2014Leverage sourcing strengths, and improve fit for use quality when

sourcing

Evolution

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Suppliers have a key role in delivering quality products that match our specifications and meet our Customers expectations


Multi Channel and

Direct Customer Engagement Multi Channel Strategy

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Andrew BuxtonCEO – Multi Channel


Multi Channel

Increasing speed of growth encouraging 135% increase in online sales in H1 F13

Multiple initiatives delivered in H1 F13 such as Red Alert, Your Warehouse, Longtail books.

Fulfilment for full range online established – 3 store FC’s, apparel DC, Red Alert DC

Margin, operations and operating costs learnings and challenges with high growth

Multiple new online stores and extended ranges Online entry into international sales Making the in-store/online brand experience seamless, including click & collect Retail principles still apply for customer experience

Strategy 2013------------------------------------------------ Multi Channel and Direct Customer

Programs

Strategy 2014----------------------------------------------

Multi Channel Expansion

Evolution

Bringing Essentials and Bargains through all channels to NZ

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Multichannel Strategic Focus

Multichannel Leverage existing stores and brands for online/offline growth Develop/acquire new online stores to capture market share Grow internationally with limited investment

Alternative Channels Continue growth of bargain sourcing to support traditional/new

businesses Develop event/pop-up physical channel whilst retaining

profitability

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Invest for revenue and margin growth


Direct Customer Engagement

BizRewards growing at 40% more than the $43m in FY12 BizRewards launched and growing in TWL Developing target segments and initial acquisitions/comms for BizRewards Launched Your Warehouse as initial personalisation Developed contact centre improvement plan CRM being implemented but progress slow Customer database grown 50% in TWL (over 260k)

Business focus using BizRewards across brands Growth of BizRewards by targeting segments Building consumer information to use for increased segmentation and business growth Developing deep customer interaction into a competitive strength Linking consumer info with services and financial services

Strategy 2013------------------------------------------------ Multi Channel and Direct Customer

Programs

Strategy 2014----------------------------------------------

Customer Loyalty, Contact, Engagement

Evolution

Getting closer to our customers so they love us!

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Support Initiatives

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Jon AdamsEGM Merchandise Support & Logistics









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Category Strategy–Support Initiatives

Improve Merchandise Ways of Working

Range and Space Reset

Better Gross Profit Management

Simpler Promotions and Ticketing processes

Embed Value Streams and Better Stock Management

Logistics Developments

Improved Supplier Collaboration

Strategy 2013-----------------------------------------------------

---Building and prioritising our plan,

focusing on improved ways of working

Strategy 2014--------------------------------------------------------

Delivery of key priorities of our plan ensuring they are embedded and

sustainable

Evolution

Year 1 of our 3 to 5 year journey is complete and we are broadly on track.

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Our Suppliers Are Critical to our Joint Success and We Need to Raise the Bar

StoresDistribution Centre Outboun

d Transpor

t

Inbound Transpor

t

Supplier

We are committed to working with suppliers to fix the basics and drive improvements.

DeliveryFrequenc

y& Channel

Lead Time

EDI

MOQ’s

ServiceLevels

On TimeDelivery

StockLevels

ShelfLife

Pack Size

EventPlanning

Supplier Challenge Get the Basics Right


Supplier News – What’s Coming

• Replenishment Review: • Delivery Frequency and Lead times• Pack sizes• Unit pick • Delivery channel

• Data integrity: Improved Supplier Data Capture Sheet

• Reverse Logistics: sign up to the CRC (if not already)

• Supplier Scorecard: Raise the Bar e.g. DIFOT

• E- Supplier: ramp up EDI and ASN roll out

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E-Supplier – now LIVE in TWL 19 local suppliers are live on EDI and ASN’s which is over 20% of our local purchases

Feedback from “live” suppliers is on-boarding has been easier than expected

This is a win-win for TWL and our suppliers. – Improving data accuracy– Reducing ordering lead times driving availability and sales– Reducing the cost of doing business for both supplier and TWL,– Simplifying ordering and payments processes

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We have contacted you already but if you have any queries please contact Ray Renner, our EDI On-Boarding Project Manager on

[email protected]

What’s next?

Top 100 suppliers (accounting for around 90% of our local purchases) on line by the end of 2013.

Trading electronically with all local suppliers by the end of 2014


Christmas is Coming!

Last year we step changed our focus on jointly executing a successful plan. This included:

Key contacts over peak period Staying open and delivering on time and in full Highlighted closed days Focus on post Christmas recovery

Results were an improvement year on year but were still mixed

27 of our top 100 suppliers didn’t provide us requested details/plans 25 of top 100 suppliers still closed for 4 days or more On shelf availability dipped nearly 3% during January recovery period

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WE CAN DO BETTER FOR 2013!


Suppliers and TWL: Working Together

Tania Benyon

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THE WAREHOUSETHE WAREHOUSESupplier Supplier FeedbackFeedback Project – 2012 Project – 2012

Strictly Private & Confidential


Overview

The Warehouse conducted a survey of our suppliers to get a better understanding of how you rated us across various performance attributes.

It was decided to use Coalface Consulting, an independent market research company, to carry out this research to ensure objectivity and confidentiality.

We plan to make this an annual survey to allow comparisons to be made year-on-year.

Warehouse Stationery have been doing this since 2008 and have made significant year on year improvements.

Response Rate

Total Response rate of 73% (83 of 113)

By survey industry standards this is deemed to be a good response rate for a first survey – Thank you for your responses


Headlines

Good set of results: you mostly are happy with our interaction (once you get hold of us!)

Good Feedback from you regarding our direction - the future is bright!

Some good ACHIEVABLE opportunities for us to work on

Key Opportunities for the TWL teams:

Speed of Response: respond to suppliers quickly even if its bad news for them

Visibility of Strategy: share our strategy more effectively with you; we have a strategy but we don’t share it


Suppliers were asked to rate The Warehouse Store Support Office using a 5-point scale(Strongly disagree in RED to Strongly Agree in BLUE)

Our objective is to move the BLUE further along the scale to the left next year

Summary of All Survey Questions

Solutions:

Speed to Market

Sharing Strategies

Communication


You were asked to list three things you think TWL should stop doing;

Not involving key suppliers Little time to meet with suppliers Slow decision making Departments not communicating

with each other Poor store compliance Making mistakes with data High staff turnover and use of

inexperienced staff

Parallel importing major brands Stop being so greedy on margin Discounting

We are addressing these in our Action Plans

Sorry but this is the way we work!

Your Comments included:


Next Steps for the TWL team

We asked our teams to:

Review the detailed feedback as a team

Agree an action plan for their team focusing on the big wins not individual comments

Not take the feedback personally, and to use it as an opportunity to improve and work with suppliers more effectively

Each team has built an action plan; ask about it next time you talk to us


Supplier Survey – Team Action Plan Highlights

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Quick response to Supplier Emails/Phone calls – Implement a two day turnaround rule to reply to any and all supplier emails and telephone calls even if to advise further time required

Communicate how long things will take (in order to manage expectations).

Calendar of Supplier meetings based on strategic importance of Supplier – some Supplier meetings to be in store

Share Promo and Range strategies with key Suppliers so they can review and tailor submissions as appropriate

Stop slow / no decision making; quick, direct answers.

Stop taking so long to discuss & implement ideas through TWL


Supplier Engagement – New News for 2013

Supplier Promise

Supplier Brainwaves

Supplier Communication Plans


Supplier Promise

What you can expect from us

We operate ethically We will treat you fairly and with respect We will support you to meet high labour standards We buy and sell our products responsibly

We abide by our terms of Trade We will work with you in good faith to resolve any

escalated disputes

We will abide by our Ways of Working We will use language and behaviour that supports our

guiding principles We seek to continuously improve our ways of working

with suppliers by acting on Supplier Brainwaves We commit to responding to suppliers in a timely

fashion Our answers will correspond to the successful delivery

of our strategy

What we expect from you

Operate Ethically Employment is freely chosen Working conditions are safe and hygienic Child labour shall not be used Living wages are paid No discrimination is practiced No harsh or inhuman treatment is allowed

To abide by our terms of trade; Be knowledgeable about the regulatory body that you are

operating within Operate fairly and responsibly and with transparency Escalate disputes appropriately

To support TWL in delivering our strategy Through appropriate price, product and promotion

submissions Supply products that match our customer promise on quality

standards

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We want to hear your ideas!

From the end of May we will have secured our brainwaves website so only existing suppliers can access it and submit ideas to us

Supplier BrainwavesEmail [email protected]

• You can currently access the supplier brainwaves site via the supplier section on the TWL website BUT from the end of May to get access first you’ll need to register as a supplier.

• This password will also give you access to the Supplier notices section of the website which we will use to communicate any information to you.

• All brainwaves will be reviewed by Tania Benyon and allocated to the appropriate team member for a response

We will email registration instructions by the end of May


Other Supplier Communications Strategic Supplier Sessions being planned:-

Strategic touch points to foster closer working relationships, expedite feedback channels, improve access to TWL leadership group, work on issues and opportunities jointly.

Supplier ‘check-ins’ – “The Breakfast Club” Strategic Supplier Focus Groups – targeted feedback sessions with small selected groups– Topics such as eg. Ethical Sourcing, vendor refills

Supplier “Ways of Working”Improving our way of working together, utilising group skills and expertise to drive continuous

improvement “Thinking Smarter” for Suppliers – pilot in June

But wait – there’s more!!

The Supplier Website is being reviewed and revamped – watch this space!

Next Supplier Survey - November 2013

Supplier Charity Dinner – November 2013

Charity Golf Day – March 2014

Next conference – May 2014

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Sir Stephen Tindall

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Q & A

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Q&A with the Red Shed Leadership Team

Mark Powell – CEO

Simon Turner – EGM Store Operations

Tania Benyon – EGM Merchandise

Jon Adams – EGM Merchandise Support and Logistics

Andrew Buxton – CEO Multi Channel

Mike Pook - MC


Q&A with the Red Shed Leadership TeamQuestions answered on the dayWhy do our teams have to attend so many internal meetings? – it stops them doing stuff

Our internal meetings are where we do our work – we don’t have any other forums to make decisions about trading the business or driving improvement. This is part of our way of working. We do recognise that suppliers would like more time with category managers/buyers which is why we would like to create calendars with you that set agreed frequencies for meetings relevant to your business with us.

Any plans for gathering customer data similar to club card like Tesco in the UK? We have had some debate about this internally but no decision has been made. We recognise that we are a different business to Tesco (and

other international brands) so we are careful that we assess ideas against our own criteria in order to translate for TWL, not transfer.

Why do we do parallel imports? The primary reason is because this supports our House of Bargains positioning and allows us to bring NZers the low prices enjoyed by

consumers in other countries. Another strong reason is that some brands have historically refused to supply The Warehouse and so PIs have enabled us to offer branded items to our customers at great prices.

Do we plan to centralise more products from direct store deliveries to delivery via DC? The answer is we should supply in the most customer centric way. Usually this is via DC as it allows us to ensure product is delivered ‘store

friendly’ (faster to shelf) and we can make sure it is delivered on time for promotional activity. FIS vs. FID delivery will also be assessed on a cost basis.

Plans for delivery to customers for website? We are working through different delivery options and these will also evolve over time. Currently we pick from fulfilment centres for ranged

items and drop ship from suppliers for other items.


Q&A with the Red Shed Leadership TeamQuestions not read on the day Better, simpler, cheaper. The ticketing process should be owned by TWL. At the moment it

is a 4-step process that involves suppliers - extra time; extra communication; extra complexity. Suppliers should concentrate on servicing.

Sorry, we are not clear on the process you are referencing here. We really want to answer your question so please submit a brainwave with a bit more detail, or send me an email ([email protected]) and we will provide an answer.

Over a number of years with changes of buyers we have noticed/experience quite large reduction sin key promotions & volumes, e.g. BTS – 5-6 years ago we would expect 20-30K units sales for BTS. With the course of time and changes in buyers, BTS 2013 volumes were 4-5k. Q: Is this information we should be alerting you to? And to who? From a supplier point of view, TWL is giving up market share without a fight or though ignorance?

Any concerns you have with volumes changing should be initially raised to the category manager/buyer, and then to the merchandise manager if you do not think they have been addressed. There are many reasons for volume changes such as the market changing in size or trends. In the example above our BTS share has actually been growing so potentially the business may have shifted to another supplier. Your category manager would be able to confirm this for you and advise the reasons.

Do you see any product lines/opportunities to be brought back to NZ, leading to job creation, investing in NZ

We do not have any view currently on production that can be bought back to NZ. We remain supportive of NZ made items that fit with our category strategy.


Q&A with the Red Shed Leadership Team Will BizRewards expand to Noel Leeming and Torpedo 7 products and ranges?

BizRewards is a great scheme for businesses. Nothing has been decided yet but we are reviewing whether to extend BizRewards to Noel Leeming as it seems like a good fit. We don’t plan to expand BizRewards to Torpedo7 due to it’s sporting/adventure range not being relevant (largely) for businesses.

Why did you buy Torpedo 7? Do you intend to use it as an online bridgehead into Australia? Torpedo 7 has the largest deals business in NZ with 1-Day.co.nz and has a great brand and existing sporting adventure business backed up

by a great team with the opportunity for much more expansion from this base. Torpedo 7 has a significant portion of its business in Australia which we can learn from with other online retail brands we may launch there.

With the acquisition of Torpedo 7, how do you see range differentiation? Torpedo 7 is a pure play online specialist with a different brand personality and range position strategy to TWL. Torpedo 7 has a wider, more

branded, adventure sports range focus. TWL will continue to build category strategies and range plans based on our category strategy box thinking including very basic, basic, better and best brands delivering a range of price points across multiple segments.

Will OEM brands be sacrificed (which TWL) built its business on in the quest for brands? No, within our brand matrix there is room for both house brands and national brands. Both are important to deliver our house of bargains and

home of essentials positioning. We are working towards having strong house brands in almost every segment.

Re: focus on training product knowledge. How do we support you? Online training; store after hours, during hours; training events?

The PK training we need will vary by category. To date our approach has been ad hoc, supplier by supplier – particularly as we have rolled out brands. We will form a view on our preferred approach over the coming months and it is likely to include elements of all the options you have listed.


Q&A with the Red Shed Leadership Team What categories are you looking to strengthen local supply base

We are reviewing our sourcing to ensure that we are clear on the best way to source for each product i.e. buying or selling agent, direct , or local supplier. We have no view on which categories should be sourced locally, rather we want to source appropriately to ensure ethical, lowest COGS, quality and delivery standards are met.

What is the strategy to use local supplier vs.. Shanghai buying office? %. Particularly in apparel. Our strategy is to use agents/local suppliers where they offer a clear advantage over SRO such as technical expertise in a particular segment.

There is no set %.

How do we as suppliers handle the quality price issue when there seems to be an obsession with Kmart whose margin expectations are much less than TWL?

As suppliers you need to be honest with your category manager/buyer so we can make informed decisions. We are not obsessed with Kmart as we ‘follow our customer’, however we recognise they have engineered product to particular key price points – this is why it is important for us to establish the very basic segment in our brand matrix. We will have an (market) opening price point within our offer and it will be marketed authentically. I.e. fit for purpose and worth what I paid.

Buyers still focus on themselves and are not leveraging efficiencies or productivity advantage with the suppliers

This is not really a question but it sounds like you are frustrated. My suggestion is to contact either the merchandise manager or myself with your specific concern so we can understand the issue. It will be important to also understand where your category is located in the category strategy box as this could help explain some of our actions.

Business strategy is great. Is there a plan to communicate the category strategy to suppliers. Our category strategies are detailed plans that support the overall business strategy – every category manager has a strategy and they will be

able to talk you through the key points. I suggest you ask for the category strategy box placement and retail principles, the brand matrix, and the value cocktail to get a good overview.

CRC return centres, are those being reviewed at all for performance (not good to date) We have one CRC (Centralised Returns Centre) which is a key part of our supply chain. This is operated by an experienced 3PL (TIC) who

operate returns operations for major retailers across Australasia, but it is also managed closely by our Logistics team, including on site support. It has been open since September and we are pleased with progress to date, although as in all areas, there is always more to do. One challenge that has come through is returns stock from suppliers yet to sign up creates capacity issues – so it is critical that all suppliers sign up, as this forms part of the way we do business at TWL.


Closing Words

Mark Powell – Group CEO

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Conclusion: The Warehouse (Red Sheds)

No economic headwind or tailwind is expected Long term declines in sales have been reversed and market share

stabilised Key customer concerns are Price, Store Environment, Service, Products

& Quality Customer perceptions are very slow to change, but improvement is

detectable

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We are very early in our transformation journey. The scale of change required is significant and there is still much to do – It’s all about Products & Quality, Price, Store Environment and Service, - The Strategy must address these areas and does…









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Warehouse Group Strategy

-Building Long Term Sustainable Growth-Building a 100 Year Business-Building something we can all be proud of… For our Customers, our Team, our Shareholders, our

Suppliers and for New Zealand


Thank You for Coming

Have a Safe Journey Home

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Supplier Conference May 2013

Documents

Transcript of Supplier Conference May 2013