New Zealand retailer the Warehouse has cut its profit forecast for the year ending 27 July 2008 by 10 percent to between $84 million and $88 million. The key contributing factor to the revision has been a marked downturn in consumer spending since the latter part of May, which has significantly reduced the company’s sales and margin expectations for the remainder of this financial year.

 

The Warehouse is currently a takeover target, with Foodstuffs and Woolworths (AUS) both interested in the retailer.