Homewares and manchester retailer, Adairs, has recorded significant online growth with sales up 42 per cent to $24.3 million for the six months to December 30.
Adairs’ Managing Director and CEO Mark Ronan said the solid growth of the first half, despite a weaker housing market, was a result of the company’s focus on delivering a great product at a good price.
“Our trading results suggest that the business continues to take market share, which is underpinned by category expansion and superior omni‐channel retail execution. Adairs’ results also indicate that our customers continue to decorate and update their homes despite the deterioration in house prices and tightening credit availability,” he said.
“We are confident that our strategic priorities will continue to deliver profitable growth. The result highlights the potential for further growth with strong growth in both sales and profitability.
“Another terrific online result combined with further progress in our category expansion strategy delivered a 9.1% increase in our net profit after tax to $14.9 million for the half. Pleasingly, we also reached an important milestone of delivering a profit in New Zealand that we can build upon in the years ahead.
“We are encouraged by the improved performance in New Zealand with sales up 30 per cent on the prior year. The initiatives put in place included changing the third‐party logistics provider to improve the supply chain, reworking the price point of our “basics offer” to better appeal to first time Adairs NZ customers, and building further brand awareness. These initiatives have seen improved inventory freshness and contributed to improving gross margin by 540bps vs pcp.”
Adairs continues to focus on optimising SEM and SEO marketing, as well as enhancing its social media presence and loyalty program in a bid to drive online sales.
“We also opened four new stores and refurbished six stores with two of these upsized over the half. Our store upsizing strategy is delivering strong results and we will continue to target additional stores to upsize to support delivering a better retail experience and a wider product range in more stores,” Mr Ronan said.