The Warehouse Group confirms leaner operating structure

NZX | Media release – 4 February 2026
The Warehouse Group confirms leaner operating structure
The Warehouse Group today confirmed a new leaner operating structure for its head office,
including co-sourcing with Tata Consultancy Services (TCS). These changes form one part
of the cost reset programme signalled in November 2025, which includes wider non-labour
cost reductions to ensure the Group’s cost base is sustainable for a value retailer. The
programme aims to support a Cost of Doing Business (CODB) below 31% of sales.
As part of the new operating model, the Group is expanding its partnership with TCS to
support the delivery of several corporate and administrative functions, including parts of
technology, accounting, call centres and payroll. TCS will provide the Group with access to
modern platforms, capacity and capability, including AI, at a scale and cost that would not be
possible to build internally. With TCS supporting these functions, the Group’s head office
teams will be able to make more progress on critical areas like its in-store experience,
merchandise and supply chain.
Chief Executive Officer Mark Stirton said, “Our cost base is not sustainable for a value
retailer. As one of New Zealand’s largest retail employers we must make these tough
choices for our 10,000 team members and their families across the country and return the
Group to sustainable profitability.”
The restructure will see around 270 head office roles leave the business, with a small
number of areas continuing through consultation.
“We’re supporting everyone affected with care during what we appreciate is a difficult time
for them,” said Mr Stirton.
“Together with the non-labour cost reduction initiatives underway across the Group, these
changes will help strengthen profitability and allow us to deliver better value for our
customers over the long term.”
The restructure will result in redundancy costs of approximately $6 million in FY26. This will
be recognised as an unusual item and will impact Reported EBIT for the year.
The new structure that supports the co-source model is expected to significantly lower the
Group’s labour cost base. Labour cost savings of approximately $3-4 million are expected in
FY26, with annualised savings expected to increase to approximately $17 million by FY31.
This will deliver total expected savings of approximately $70 million over the initial 5-year
contract term. These savings are in addition to the estimated $40 million over five years
announced by the Group in September 2025 on its licenses and managed services
partnership with TCS.

2

The Warehouse Group will provide a broader update on the cost reset programme as part of
its FY26 Half Year Results which will be released on 27 March 2026.
Ends

For media queries please contact: For investor queries please contact:
Lizzie Havercroft
General Manager Corporate Affairs
+64 27 507 0613
lizzie.havercroft@twgroup.co.nz
Julia Belk
Investor Relations Manager
+64 21 240 8997
julia.belk@thewarehouse.co.nz

The Warehouse Group Limited
26 The Warehouse Way, Northcote, Auckland 0627