At an annual shareholders conference, Adair’s CEO, Mark Ronan told attendees that the company plans to focus on ongoing sales growth by expanding its omnichannel footprint.
According to Ronan’s presentation at the bedding retailer’s ‘Morgans Queensland Conference’, Adairs hopes to achieve a growth of five to eight percent in like for like sales in FY19.
Part of the company’s strategy for achieving this goal is to focus on its omnichannel shopping experience, to evolve its capabilities and drive growth.
“Online is now sufficiently material that if we can grow online by 30 percent in FY19, this will contribute circa four percent to our like for like sales growth for the overall business this year,” Ronan said in his presentation.
To achieve this, the retailer’s CEO says an expansion of online-only products that can be ordered either in-store or online and increased digital marketing efforts to drive consumers in-store and online will be two key focuses.
Ronan has also emphasised the importance of the company’s website as a shopping tool that aids research and planning. Using tech to provide better complementary product recommendations, and providing more ‘inspirational’ content that showcases how to get the look are on the radar for the business over the next 12-months.
According to Adairs, its cross-channel shoppers are generally more engaged and spend more money with the business each year than those who only shop through one channel. Online-only shoppers spend an average of $242 per year, followed by in-store shoppers spending an average of $374. Consumers who spend on both platforms, however, reportedly spend $801 in total per year, with $510 spent in-store and $291 online.
As such, the business reportedly wants to drive more customer engagement through its Linen Lovers loyalty program and social media, to drive higher spends across every category.
In 2018, 13 percent of the company’s revenue came from its online store, but by pushing more user engagement, the company has a target of 15 percent of total sales by 2019.
In the 13 weeks since the start of 2019, Adairs has reported a like for like sales growth of 5.2 percent across both its online and in-store channels. The company hopes that by the end of FY19, it will reach total sales of $345 to $360 million with a gross margin of 59 to 61 percent.