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Reitmans warns of sales hit over warehouse problems

Reitman's retail location at the Toronto Eaton Centre.

Moe Doiron/The Globe and Mail

Reitmans (Canada) Ltd. said Wednesday that its sales for August have been hurt by problems with a new warehouse management system at its distribution centre.

The clothing retailer said it believes the situation has been fixed, but the disruptions in the shipping and receiving of merchandise to stores would hurt sales and margins for the third quarter.

"The amount of such impact is not known at this time and is difficult to quantify as sales are affected by a number of factors," Reitmans said in a statement.

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The company's recent sales have already been hard hit due to what it calls "a difficult retail environment," as cost-conscious consumers rein in spending amid a still unsteady economy.

Reitmans has stores in Canada, under the Reitmans, Smart Set, RW & CO., Thyme Maternity, Penningtons and Addition Elle banners.

Shares in the company, which reported the problems after the close of markets, were down 35 cents at $12.50 on the Toronto Stock Exchange on Wednesday.

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