Kathmandu Goes Global Following New Digital Strategy

Kathmandu saw a net profit of $NZ33.5 million, a 64 percent leap in profits from the previous year. This is despite a decline in sales in the UK region and the recent closure of three of its four UK stores this year.

Kathmandu’s chief executive Xavier Simonet said the results “exceeded expectations” and attributed the upturn to efforts to keep costs down, focus on margins as well as product newness and strategic marketing management. The company credits its positive growth to its revised brand and management strategy.

The activewear chain will be exploring its expansion into international markets in FY2017 and says it aims to grow its offshore brand presence through online retail and digital marketing.

Mr Simonet said that Kathmandu’s new digital and social media marketing strategy was already having a positive impact, with plans to ramp it up further.

The outdoor-wear brand has been following in the footsteps of online retailer Surfstitch, using digital content and social media to encourage consumers to spend more on sleeping bags, hiking boots and fleece, which has proven to be a positive return on investment.


“We have seen a huge increase in the number of younger customers getting excited about the brand and visiting our website,” said Simonet.

The group’s online sales grew about 15 per cent, amounting to seven percent of total sales.

“Strengthening the distinctiveness of our brand will also open up opportunities to be relevant in international markets, as well as on social, digital and online channels,” said Simonet.

“We remain committed to offering great, innovative, distinctive and sustainable quality products to our customers and providing a seamless shopping experience whether in-store or online.”

Kathmandu also announced it’s seeing progressive results from its new inventory planning system, which is helping to sustain lower stock levels.

Kathmandu opened four new stores in Australia this year, and one in New Zealand.


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