Shaver Shop’s Online Sales Grow 387%
The Shaver Shop’s online sales grew by a massive 387% over the six weeks to 10th May, “more than offsetting the material sales decline experienced across its physical store network”, the company said in a trading update on the ASX. Online sales accounted for 43% of the total over this period.
“Pleasingly, the strong online sales trends that we saw in April have continued through Mother’s Day. As we have seen in previous economic downturns, our business is proving to be highly resilient as customers turn to the Shave Shop for their DIY grooming and personal care needs,” Shaver Shop’s CEO and Managing Director Cameron Fox said.
Following the announcement yesterday the Shaver Shop Group share surged by 30% to $0.56.
“Our investment in building our digital sales and fulfilment capabilities over recent years has proven invaluable over the last six weeks,” Fox said.
Despite foot traffic falling 50% year-on-year in April, and the Shave Shop temporarily closing 11 of its Australian stores, the company was still able to report overall sales growth of 32.1% over the six-week period, thanks to its e-commerce operations.
Shaver Shop is not the only retailer channelling more investment into expanding online retailing capacity, with Wesfarmers announcing a similar approach last week.
In their trading update, Shaver Shop alluded to potentially changing the structure of its retail network, stating: “Having regard to the increasing proportion of online sales and the success of our omni-retail strategies, Shaver Shop will continue to evaluate the size and composition of its store network as retailers and landlords adjust to accelerated changes in customer shopping preferences.”
A number of the sector’s major players, including Solomon Lew and the Australian Retailers Association, have called on landlords to do more to assist retailers.