New Zealand’s Noel Leeming is fighting for survival as Australian giants JB Hi-Fi and Harvey Norman muscle into its backyard, snatching customers, suppliers and market share.

The retail chain, owned by The Warehouse Group, is under heavy pressure with analysts openly questioning its long-term viability. Several major consumer electronics suppliers have already abandoned Noel Leeming, branding it “difficult and parochial,” and are instead backing JB Hi-Fi and Harvey Norman, who they already deal with across the Tasman.

The Warehouse Group is due to post its latest results on October 2, but recent numbers paint a grim picture. In the first half of 2025, profit slumped to just $11.8 million on $1.6 billion revenue — down 1.6% year-on-year. EBIT collapsed 54.5% to $19.5 million, while margins fell another 180 basis points to 32.5%.

The company’s woes are being compounded by legal trouble.

Two months ago, the NZ Commerce Commission laid fresh criminal charges against Noel Leeming over its “Price Promise,” alleging repeated breaches of the Fair Trading Act. It follows a 2018 conviction and $200,000 fine for misleading customers about their rights under the Consumer Guarantees Act.

Meanwhile, rivals are booming. JB Hi-Fi’s New Zealand arm grew sales 20.8% to $396.3 million in FY25, with online sales rocketing 48.1%. This surge followed a 2023 management overhaul that saw JB Hi-Fi go after Noel Leeming and Harvey Norman with an aggressive discount strategy.

By contrast, Noel Leeming’s sales fell 9.3% in the April 2023 quarter, while profit plunged 41.4% to $17.2 million. Analysts warn the retailer is now stuck in “a difficult middle ground,” with Australian players cannibalising its once-defensible categories.

Harvey Norman hasn’t escaped unscathed, with New Zealand sales slipping 4.5% to $64.9 million. But globally, the company remains strong, with profit before tax soaring 39% to A$753.1 million and overseas divisions in Asia, the UK and Ireland offsetting NZ weakness.

With Ikea also preparing to enter the market, questions are mounting over how long Noel Leeming and its parent The Warehouse Group can hold out as the Aussies tighten their grip.