The Warehouse Pauses Advertising for Strategic Overhaul
The Warehouse Group has announced a significant shift in its marketing strategy by suspending all external advertising for the next eight weeks. This decision comes under the leadership of its newly appointed Chief Marketing Officer, Frankie Coulter, who was recently named the 2024 Marketer of the Year.
The move is designed to reassess how the retail giant connects with its customers and to realign marketing efforts with its core mission. While the company will continue to honor existing advertising contracts, it plans to focus on internal marketing channels such as Red Radio and direct in-store experiences.
New Vision from an Industry Veteran
Coulter brings over 25 years of experience in marketing, having worked with global brands like Kellogg’s, Durex, Boots, and Wattie’s. Most recently, he played a pivotal role in revitalizing the marketing strategy at Goodman Fielder, which owns popular New Zealand brands such as Vogel’s, Meadow Fresh, and Edmonds.
“The Warehouse needs a big revival and to do that we’ll need to make some big calls,” said Coulter. He emphasized the importance of understanding what resonates with the 1.5 million customers who shop at The Warehouse each week, and how to attract even more Kiwis.
Redirecting Resources to In-Store Experience
Instead of spending on traditional advertising platforms like Google and TV, Coulter wants to redirect those funds into improving the in-store experience and building stronger community connections. “I approach spending like it’s my own money. I need to understand the value we’re getting,” he said. “Right now, we’re in survival mode. We need to grow, but we can’t do that without understanding what’s working.”
He noted that a substantial portion of the current ad spend goes to Google, but he believes those funds could be better utilized in enhancing local store engagement and customer experience.
Emphasis on Local Relevance
For Coulter, the key to success lies in local relevance. “We are present in every region of New Zealand, and we need to ensure our stores are locally relevant,” he said. He sees store employees as a vital source of information for understanding customer needs and shaping the company’s transformation.
While the current pause applies primarily to The Warehouse’s Red Sheds, the company’s other brands such as Noel Leeming and Warehouse Stationery will continue with their current advertising strategies.
Bringing Back Beloved Elements
In an effort to reconnect with customers, Coulter plans to reintroduce some nostalgic elements from the company’s past, including its Kiwi mascot that was retired during a 2005 rebrand, and child-sized shopping trolleys. Although these changes may not be costly, Coulter believes they could have a powerful emotional impact.
“These aren’t fancy marketing things, but they worked before, and I believe they’ll work again,” he said. The goal is to foster a deeper connection between the brand and local communities.
Reviewing Partnerships and Enhancing Local Support
As part of the marketing reset, The Warehouse will also review its relationship with its current advertising agency TBWA and other partners. Coulter emphasized a preference for working with local businesses and creative teams that understand Kiwi culture and humor.
“We are a local business and want to support other local businesses,” he explained. “That doesn’t mean we’ll only work with local partners, but the preference will always be there if the skills match.”
Cost Reset Amid Broader Organizational Changes
The advertising reset follows a broader cost-cutting initiative announced by The Warehouse Group, which includes 270 job cuts at the head office and the outsourcing of certain functions overseas. CEO Mark Stirton stated that these changes are necessary to ensure long-term sustainability.
“As one of New Zealand’s largest retail employers, we must make tough choices for our 10,000 team members and their families,” said Stirton. “These efforts will help us return to sustainable profitability and deliver better value to our customers.”
The company’s cost reset programme, first signaled in November 2025, aims to bring operational costs to below 31% of sales. A comprehensive update on the progress of this initiative is expected during the 2026 half-year results announcement on March 27, 2026.
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.