Christmas period, that usually brings cheer for retailers, failed to do so for the Warehouse, which posted disappointing results owing to low demand in the non-food retail market. The retailer, New Zealand’s largest discount retailer, posted flat sales for the nine weeks to January 3 like it had posted last year.

Ian Morrice, Warehouse Group Chief Executive, added, "We believe that our sales are indicative of the broader non-food retail market overall." He had earlier anticipated steady growth for the firm but slowdown shattered his dreams. Much would be clear from the half yearly financial results due to announced on March 12.

Mr. Morrice hopes to pick-up momentum in the stationary business in the coming school periods in January and February. He added, "We also expect that some other specialist retail formats will have increased sales when compared to the extraordinarily challenging market conditions in the same period in 2008."

Meanwhile, shares of the Auckland-based company -Warehouse Group Ltd declined 2.6 per cent to stand at $4.10 at around 11.30 am in Wellington trading, heading for the biggest decline Since November 3.