Tahua Group’s retail division chief executive Lesley Francis-Ziogas said that like many retailers, Torpedo7 has faced ongoing pressure from the wider economic environment and a shift in consumer behaviour as a result of cost-of-living pressures.

“While the brand has a loyal customer base and strong product offer, the physical retail model has not been delivering at a sustainable level – prompting us to reassess how we best serve our customers and allocate resources across the group,” Francis-Ziogas said.

She confirmed the performance required the move to a less resource-intense business model, and said the shift reflected a broader commercial strategy to simplify operations, reduce fixed-cost exposure and focus investment where it delivers customer value and return.

Francis-Ziogas said the move to digital-only will allow Tahua Group to protect the brand, preserve margin and respond more nimbly to changing consumer behaviour.

Torpedo7’s digital platform is set to benefit from some additional investment as a result, with Francis-Ziogas expecting improvements to be made to its performance, user experience and fulfilment capability, with an expectation of improved delivery speeds.

The Outlet on the up

While Torpedo7’s move to online-only means a closure of its physical locations, the remaining six stores are set to become The Outlet, Tahua Group’s off-price, value retail concept.

Francis-Ziogas said the business has had a strong start since its official launch back in June.

“We’ve seen high customer uptake, strong sales traction and encouraging early performance across all locations. It’s clearly resonating with New Zealand shoppers looking for smarter, value-driven choices.”

She said the reaction from customers had been overwhelmingly positive and thanked the business’ team for a fantastic job curating a “constantly evolving range”, something she credits as helping drive repeat visits and momentum.

Francis-Ziogas wouldn’t disclose how much Tahua Group would be investing to transition the stores, nor how well they were performing financially, but said the group was being targeted and cost conscious in its approach.

“By repurposing existing store infrastructure and leveraging operational efficiencies, we’re able to expand The Outlet quickly and sustainably.”

Once the transition is complete in February 2026, The Outlet will have 17 locations across the country.

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.