It's thought inflationary impacts are the key drivers of The Warehouse Group's financial tumble

Its net profit in the year to July is down more than 65-percent -- with shares dipping 2.86 percent on opening trade today.

That's despite strong sales -- a 3.2 percent rise seen company-wide.

The Herald's Madison Reidy says the overall sale value is smaller -- with more people hunting for a bargain due to current economic conditions.

She says it's not looking good for the group, with margins across the group crushed -- particularly at Torpedo 7.