Homewares retailer Briscoe Group says online sales growth of 21 per cent helped the company achieve a 20-per-cent increase in net profit in the year to January.
Group sales rose by 6.8 per cent to $744.4 million, with net profit reaching $87.9 million. Online sales now account for 26.39 per cent of the group’s sales.
Rod Duke, Group MD said part of the reason for the business’ success last year has been its focus on maintaining sufficient inventory levels.
“With the uncertainty around national and international supply chains, we committed to a strategy of securing product often months in advance of traditional timings, to minimise the wide-spread and widely reported, supply chain disruptions.”
The group’s stores in Auckland were shut for 84 days during this period (and in other cities for at least 21). Pent-up consumer demand after the first nationwide lockdown contributed to the retailer’s sales resurgence later in the year.
Strong inventory levels ahead of the significant Black Friday and Christmas promotional events due to early ordering put the company at a distinct advantage. Looking ahead, it is now focussing on progressing its strategic initiatives by optimising the quantity and frequency of stock ordering, redirecting imported product landings between ports to shorten delivery times, extending its online product ranges, and introducing gift cards.
“Pandemic-related constraints on trading have invariably led to a strong recovery from pent-up consumer demand and we have no reason to believe that this won’t be the case again as the Omicron variant subsides,” said Duke.
Group chair Dame Rosanne Meo said the group has proved its ability to navigate uncertain times, producing “incredible results” while still balancing the interests of its team, customers, suppliers and shareholders.
