Facioni said.  He expects the impact to be different across consumer groups, but he’s confident it won’t affect the target General Pants customer group too much, saying they tend to be mortgage-free and fully employed.  “Nevertheless, there will be an impact and we’re looking at what we can do that’s within our control to mitigate the effects [of the slowing economy],” he explained.  Growth in 2023  Despite the headwinds, General Pants is focused on expanding its number of stores this year, with 60 already in place across Australia and New Zealand. Facioni said General Pants was “underpenetrated in a number of key markets” and noted online sales tend to follow store growth.  He added that the organisation now has a store format it’s happy with and one that is easily rolled out. But it all comes down to finding the right sites and agreeing to acceptable commercial terms. “We have a strong pipeline of identified sites that are either under negotiation or have been agreed upon and will be opening in the coming months,” he explained.  The company also sees potential in building its in-house brands as direct-to-consumer and third-party wholesale brands, both domestically and internationally.  Facioni thinks these brands can go into the US and said General Pants is testing the waters in this new market through a combination of online direct-to consumer and wholesale.  “Childrenswear is [also] something we’re looking at and we have recently acquired a small childrenswear brand to help with that strategy,” Facioni said.  He’s also looking at adjacent categories, including accessories, to help General Pants achieve its growth goals.  Online has a solid ramp  Online represents a significant growth opportunity for General Pants, as the channel currently accounts for only around a quarter of the brand’s sales.  Like many retailers, General Pants is building a multichannel strategy encompassing in-store and internet sales and Facioni called this mix critical to business success.  “They’re clearly both important and we don’t think of them as separate channels,” he said.  Multichannel is essential to the General Pants offering because it allows customers to shop when, how, and where they want. It also informs in-store buying, as the company has observed customers will research products online before purchasing them in a store.  “Stores are also important for online fulfilment, through click-and collect or ship from store,” he said.  And social is also a key plank for revenue growth and transactions for the company’s target customers.  Digital transformation and business collaboration  To grow its online and social channels, General Pants is undertaking a digital transformation, re-platforming from a legacy system to a cloud-based solution. Along with this roll-out, the company is introducing a new ERP system fully integrated with online to create a seamless customer interface across channels. These initiatives will make General Pants a better functioning business, while also doubling down on its investment in both its people and its digital team.  This re-platforming isn’t limited to General Pants. It’s a company-wide roll-out for Alquemie Group, and all member companies will reap the benefits, Facioni said. “We also see continued store growth, and online growth, for our Lego Certified stores and our Ginger & Smart businesses.”  The group is also launching new businesses in 2023 to further drive growth, including National Geographic Apparel in partnership with Disney.  “We are also continuing to explore collaboration opportunities across our businesses,” he said.  Hopes for 2023  Facioni says after the events of the last few years, the community is hoping for an uneventful, benign 2023.  But that doesn’t negate the many headwinds Australia and the economy are facing this year, including inflation, the war in Ukraine and the ongoing Covid-19 situation, which just doesn’t seem to be going away.  “We need to stay on our toes,” Facioni said. “I think a return to some sort of normality would be on the top of my 2023 wish list.” This article was originally published in the 2023 Australian Retail Outlook, powered by KPMG. Download here.