The Warehouse has launched Red Rack, New Zealand’s first large-scale ‘off-price’ retail offering. Red Rack will see some of the world’s biggest brands in streets, sports, surf and fashion available at low prices in 47 The Warehouse stores across the country. Men’s, women’s and kids’ big brand clothing and footwear will be available for 20-60 percent less than current New Zealand market prices. All products in the offering are genuine branded imports, sourced from reputable suppliers and include brands such as Nike, Adidas, Puma, Superdry, Fenty by Rihanna, Ben Sherman, Billabong, Paul Frank and many others.
“Some Kiwis may already be familiar with off-price retailing with the likes of TK Maxx, Ross Dress for Less and Nordstrom Rack in the US and similar outlets in the UK. Our mantra is to bring Kiwis low prices, every day and to make the desirable affordable. That’s what Red Rack will do,” said Nick Grayston, chief executive of The Warehouse Group.
“One of the best things about Red Rack is seeing the reaction of customers when they find that cool pair of shoes or t-shirt at an amazing price. We can provide a ‘treasure hunt’ experience because stock is replenished weekly and new shipments arrive constantly.”
The Warehouse Group is continually striving to meet and deliver on customer expectations. “We’re innovating in a number of ways to compete in the rapidly changing retail landscape and Red Rack is just one example of that. Red Rack is a truly disruptive play in New Zealand for branded apparel and footwear, and we’re confident Kiwis will embrace the concept,” said Grayston.
Customers reacted positively to trials of the Red Rack put in place across seven stores. The Warehouse noticed significant growth in sales at the store during the trialling of the concept compared to The Warehouse’s previous branded import offering. “There’s definitely an appetite out there for big brand labels at prices way below other department stores.”
Off-price retailing has been increasing internationally, and the market for this is expected to grow globally to US$33 billion by 2021, with close to two-thirds of US shoppers purchasing brand clothes at off-price retailers. Grayston said The Warehouse also expects to see further benefits from Red Rack, with cross-brand private label product sales and foot traffic expected to increase as a result of the launch.