The Warehouse has announced it will stop sending online orders directly to Great Barrier Island and the Chatham Islands from October 15, blaming soaring freight costs.
In a notice sent to a resident this week, the retailer said customers will now need to have items sent to a freight forwarder in Auckland and then pay a carrier directly to forward them to the islands.
The decision effectively removes one of the last affordable direct retail options for residents of Great Barrier and the Chathams and has caused widespread anger across the island, with dozens of comments posted on the Great Barrier Island community Facebook page. Some described the move as “gutting,” “not right,” and “another blow for the cost to have food and supplies.” One resident said freight charges for everyday items would now reach nearly 70 percent of the value of what they were buying. “NZ Post has recently hiked all freight prices to the island astronomically. This is terrible news,” another wrote.
Many accused The Warehouse of abandoning remote customers. “I strongly urge everybody to make a complaint to The Warehouse about how devastating this is,” said one islander who received the notification. Others warned the decision would push residents to shop elsewhere or simply go without.
Barrier Air said it was working to see if there was a way to help. “We are in touch with The Warehouse and NZ Post to see if there’s something we can do to help,” the airline said.
A spokesperson for The Warehouse Group said the decision had not been made lightly.
“The Warehouse Group has made the difficult decision to end direct shipping to Aotea/Great Barrier Island and the Chatham Islands. As one of the last large retailers to offer this service, we understand how disappointing this news will be for our customers in these communities,” the spokesperson said.
“Rising carrier costs have made direct shipping to these islands unsustainable, and we are currently incurring a loss on these orders. As we work to turn around our financial performance in a challenging economy, we need to make some tough decisions like this one. Our Customer Care team is ready to help customers access freight options, and we’ll do everything we can to make that process as smooth as possible.”
Great Barrier Local Board member-elect Izzy Fordham said the move would have a major impact on island residents. “It’s really tricky to give a board perspective before we’re officially sworn in, but I’d expect members to be equally peeved with this announcement,” she said.
“This will have a huge impact on our community as many people shop at The Warehouse. I understand Barrier Air is already in contact with The Warehouse and NZ Post to explore options. Both companies have faced operating deficits — they’re clearly looking to save costs where they can.”
She said the decision also raised questions of fairness. “We sit within the Auckland region, so we should be getting the same benefits as other Auckland areas.”
The Warehouse’s move comes at a time of sharply rising transport costs for Great Barrier Island. Some airfares have tripled in the past five years, and car ferry fares have roughly doubled. Several candidates in the recent local elections pledged to tackle the cost of living and transport, describing them as major threats to the island’s future.
The Warehouse Group itself is struggling. The company reported a 1.6 percent drop in sales in the first half of this year and warned it could post a full-year loss of up to $5 million. Last year its operating profit plunged 75 percent to $17.7 million, driven by higher costs and aggressive discounting.
For Great Barrier and the Chathams, the timing could hardly be worse. The change will add yet another layer of expense and complication for residents already paying the highest transport and freight costs in the country.
