LAB3 to migrate large NZ retail chain The Warehouse to the cloud

New Zealand retail giant The Warehouse Group has unveiled plans today for a major technology overhaul that involves moving its operations to Microsoft's Azure cloud platform, partnering with Melbourne's LAB³ for the migration.

The Warehouse Group operates 218 stores across Aotearoa New Zealand, has around 10,000 staff and NZ$3 billion in sales.

It's brands include The Warehouse, Warehouse Stationery and Noel Leeming.

The multi-year project aimed to slash costs by shifting away from more than 750 physical servers currently managed by the company on-premises, and end-of-life infrastructure.

Cloud migration specialist LAB³ is the technology partner with the Kiwi retail chain, to manage the transition over 12 months, focusing on minimising disruption to its 12,000 employees.

The project will leverage artificial intelligence tools to identify which systems should move first for maximum cost benefit.

"It's great for our stores to be able to rely on 24/7 accessibility, and no longer be reliant on a single datacentre on our premises", said Ankit Gupta, general manager of group technology operations at The Warehouse Group.

"Microsoft recommended LAB³, which enables us to use AI-powered migration tools like Dr Migrate", Gupta said.

Early trials show promise beyond basic infrastructure changes, with the company testing machine learning for product pricing optimisation.

"The Warehouse Group has always been recognised for its competitiveness in the market, and that's exactly what this partnership will enhance", Kerry Purcell, chief executive officer at LAB³ said.

Environmental benefits played a key role in the decision, with Microsoft's New Zealand cloud promising significant energy savings.

Microsoft's New Zealand cloud region promised up to 98 per cent greater energy efficiency compared to traditional computing systems.

"Right now, every business, especially in retail, is being challenged to do more with less", Vanessa Sorenson, managing director of Microsoft New Zealand said.

The company had already transferred roughly one-third of its applications to Azure, ahead of the local Microsoft cloud centre opening.

The move aims to provide better system reliability, with automatic switching between locations if problems arise.

Sustainability monitoring tools will allow the retailer to track its carbon footprint from cloud usage.

The shift aligns with broader industry trends as retailers seek ways to reduce costs while improving service reliability.