Wellington, May 8 NZPA - Retailer The Warehouse Group reported third quarter sales down 2.8 percent on the corresponding period last year to $383.5 million.

Chief executive Ian Morrice said consumer demand remained soft in the three months to April 26, but The Warehouse had made significant progress towards improving its market position.

"Despite a slower than preferred start to winter we are confident that our strong seasonal offer will support continued positive momentum," he said today.

Group sales for the financial year-to-date were 2.9 percent down on the same period last year to $1.3 billion.

The Red Sheds third quarter sales dropped 1.5 percent to $332.4m, with year-to-date sales down 2 percent to $1.17b.

Third quarter sales last year included sales of fresh and frozen foods and liquor, which have been discontinued.

Same store sales for the quarter were up 1 percent compared to last year.

Warehouse Stationery's third quarter sales were down 10.5 percent to $51.1m, while year-to-date sales were down 9.2 percent to $139.6m. Same store sales for the quarter were down 9.9 percent.

Mr Morrice said the stationery and office products sector remained difficult with higher ticket technology, office equipment and furniture sales down significantly on last year.

The directors' view remained that adjusted net profit for the full year would be similar to that for the previous year, subject to any adverse change in trading conditions.

The full year result for the year to August 2 will be released on September 11.

Shares in The Warehouse closed at $3.75 yesterday, up from a year-low of $3 last October but well down on the $5.85 a year ago.

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