Briscoes CEO Rod Duke: Toughest Time for Retailers
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- Briscoe Group posted an 11 percent profit drop despite near-record sales in 2025
- Chief executive Rod Duke says this is the toughest period for business since 1988
- Cost-cutting, discounts and strategic investment helped Briscoes maintain market share
Briscoe Group has reported a full-year profit of $29 million for the year ended January 2025, down 11 percent from the previous period, in what chief executive Rod Duke described as the most difficult time for business in New Zealand in decades.
Duke said the retail environment had become increasingly tough, especially for small and mid-sized retailers. “I think there are certainly some mid-size and small retailers on the edge. I think there's no question about that,” he told RNZ’s Morning Report. He warned that recent retail collapses — including Kitchen Things and Smiths City — were “just the tip of the iceberg.”
Despite the downturn, Briscoe Group achieved $791.5 million in sales, almost matching last year's record, which Duke attributed to stronger promotional activity and tighter cost control. “I'm having to promote more heavily. I'm having to discount a little more heavily… the sales number, you know, I'm protecting it, and I'm pretty much getting it, but it comes at some cost,” he said.
Group sales held up due to increased market share, growing online sales (up to nearly 20% of total revenue), and investment in new technologies and systems. The company has been developing new flagship stores and rolling out electronic shelf labelling across its network. Online initiatives like express delivery and Apple Pay are also boosting digital performance.
Still, tighter margins and rising operational costs, including a 6% wage rise for in-store teams, cut into profitability. The company’s gross profit margin dropped from 42.4% to 40.4% over the year. A one-off tax adjustment of $7.4 million further reduced the bottom line.
Duke said Briscoes was better placed than many competitors to weather the storm, but didn’t shy away from acknowledging the strain. “We have survived, but … this is the most difficult period I've experienced in New Zealand,” he said, adding that households remained cautious amid employment concerns and cost-of-living pressures.
The group declared a total dividend of 22.5 cents per share for the year, reflecting its strong balance sheet and focus on long-term investment. Briscoes continues to fund its new South Auckland distribution centre, expected to open in late 2026, and is investing heavily in digital upgrades, merchandise planning tools and sustainability initiatives.
Looking ahead, the company remains cautious but optimistic, with Duke confident the group’s strategy and resilience will support recovery as consumer confidence eventually improves.