Online homewares retailer Temple & Webster will launch on the online marketplace, TradeMe, in Q3 of this fiscal year, according to an update provided by co-founder and CEO Mark Coulter at the company’s annual general meeting on Tuesday.
Coulter, who first flagged a plan to launch in New Zealand earlier this year, said the company is currently in test mode.
“Marketplaces provide a relatively low risk way of entering new markets, and we believe Temple & Webster’s range and content experience is an offering which should work in other markets,” he said.
Temple & Webster reported a 39 per cent year-on-year increase in year-to-date trading and said it is on track to record its first full-year of profit in FY19.
The strong start to the year stands a sharp contrast to predictions of the impact of the housing downturn in Australia on consumer sentiment.
In a recent report, Citi said it expects the housing slowdown to have a negative impact on sales for all retailers, but said that furniture, hardware and white goods would be most exposed.
Temple & Webster co-founder and CEO, Mark Coulter, however, was optimistic.
“While the broader furniture and homewares market category may be impacted by these market conditions, we remain confident that online penetration of the category will continue as the oldest millennials turn 35 this year and enter into Temple & Webster’s core customer demographic of 35-55 year-olds,” he said in a statement released after the AGM.
“Millennials have grown up with the internet and already make a significant number of their purchases online in other categories such as fashion and home electronics, and we expect this behaviour to continue for our category, regardless of what happens in the broader housing market.
“We also expect to benefit from a customer shift towards more value-based retail offers, and Temple & Webster’s positioning around affordable beauty offers great value to our customers.”
Coulter provided an update on several key growth drivers for the business in FY19, including range expansion into DIY and small appliances, Temple & Webster-branded delivery, augmented and virtual reality-based shopping features and international expansion.
