Less expenditure on entertainment and unseasonable hot weather are responsible for current stretch of declined sales, which in turn affected the country's biggest retailer The Warehouse, where sales continue to be flat. For some period of time flat sales have been recorded and the quarter ending May 2 was no exception, down 1.9% to $376 million.

Sales for the year have collapsed by .9% to $1.29 billion. Still the expectation of the company is full year net profit which is comparable to last year's result. Furthermore, the retailer's story is not different, with a trivial increase in sales at Warehouse Stationery swabbed out by the presentations of the big red sheds.

Warehouse Stationery's third quarter sales were up 2.2% to $52.2 million, with a 6.3% lift in year to date sales to $148.4 million and an 11.2% increase in similar store sales. However, at the main retail arm of the business sales were down 2.6% to $323.8 million, with year to date sales of $1.14 billion, down 1.8%.

Chief Executive, Ian Morrice said, "The sales shortfall was due to "a continued contraction" in the music and DVD market, combined with a slow start to winter that hit key categories such as winter apparel and heating." customers were responding well to growth initiatives in categories such as footwear, sporting goods and jewellery.