Warehouse Group Ltd the biggest discount retailer in New Zealand said sales in the quarter ended November 1 declined 1.0% from a year earlier to record NZ$362.9 million ($266 million). On the other hand, general merchandise revenue rose 1.1% to reach NZ$317.7 million.

However, the company's profit inclined 5.0% in the six months ended August 2 as Warehouse closed unprofitable hypermarkets. Consumer spending in New Zealand is likely to improve gradually after the economy ended a series of contraction started in the first quarter last year growing 0.1% in the second quarter.