nd it supplies to department stores, such as David Jones, Myer, Kmart and Big W. Designworks’ divisional general manager Brooke Norton told Inside Retail that the brand sells about 15 million units each year and is heading towards $200 million in wholesale sales. And now, following a significant period of growth, it is looking to expand its offering.  “We have 75 per cent market share of sporting equipment in boxing, so online is a growing area that exploded during Covid-19, as everyone was setting up home gyms,” Norton said. “We just signed our first territory outside of Australia and New Zealand, being the Philippines, for Everlast, and are meeting the guys in New York next week to see what happens over the next few years.” According to Norton, Designwoks plans to expand in four key areas. They include new brands and licences, developing and progressing its own brands, expanding its category offerings for the licences it already holds, and expansion outside of Australia and New Zealand.  She explains the brand’s recent revenue growth – about 60 per cent, compared to pre-Covid-19 years – can be attributed to the fact that volume retail was open for a lot of lockdown. “We have a Coles business and a volume department store business, and because they have FMCG offerings, it meant that they were open a lot of the lockdown,” she said. “We had this funnelling of customers squashing into that space and our business – a lot of which is leisure, lounge, sport and athleticwear – just exploded,” she said. Brooke Norton – supplied The market is holdings its breath Designworks is expanding because it sees opportunities to bring new, international brands into the market. This is supported by recent studies showing 19.2 per cent, year-on-year retail sales growth in August 2022. However, cost-of-living pressures are intensifying, with Norton asserting that the whole market is holding its breath until after Christmas. “Sales across Brand Collective are good, and the areas where we’ve seen a slower start to the season have been weather-dependent businesses, like children’s shoes, where you’d expect would normally have a huge sandal period,” she said. However, Norton is buoyed by what she expects to be a huge back-to-school period, which is expected to be uninterrupted for the first time since early 2020.  She also believes that customers might move away from specialty trading, and into department stores because of cost-of-living pressures. This, she contends, would be a positive thing for the company. “We recognise that we’re in an unsure, economic outlook. We see that the first half of 2023 might be difficult, but we see 2024 as being back on track,” she said. Norton adds that Designworks’ Everlast brand is growing exponentially in Kmart and Rebel, and that its brands are resonating with a younger audience. “Given that Gen Z are the biggest consumers of products in the world, that’s a good sign, and it shows that the work we’ve done with our major brands in consumer research is coming into fruition,” she said. We feel positive with most of our brands going into Christmas, and [if] spending stays in Australia, like it has the last couple of years, that’d be a great thing for Australian retail.” Focusing on the consumer While Designworks typically looks to acquire new brands, it had to change tack because of Covid-19 restrictions. It focused on its existing portfolio, as well as its end consumer. According to Norton, that worked well for the company, as it was able to achieve a better understanding of evolving buyer behaviour. “Given that Everlast is the biggest brand in the group, [focusing on that] has given us a lot of confidence in moving ahead with the brands we’ve got. We’re probably ready now for the next swag,” she said. Designworks has also established an ethical sourcing program founded on industry and retail best practices. Norton partially credits this work to the recent merger between Pas and Brand Collective, which enabled both companies to combine their sustainability initiatives.  “Pas have adopted all the sustainability measures that have been in work at Brand Collective, and we’re working really closely with our supplier base to make sure that there is transparency and sustainability,” she said.  “We’re working closely with all the Australian councils and the BWA [Baptist World Aid] to make sure that we’re gearing ourselves up for what happens over the next three years.”