- Temple & Webster is witnessing strong trading amid a shift in consumer shopping behaviours.
- The retailer has reaffirmed its strategy to invest in its digital platform to capitalise on the accelerated online adoption in the Australian furniture and homewares market.
- Revenue soared 112% y-o-y in Q3 FY21.
Temple & Webster Group Ltd (ASX:TPW) has reaffirmed its strategy for capitalising on the shift from offline to online shopping in the furniture and homewares category. TPW is of the opine that the pandemic-induced shift to online shopping is “permanent”. Also, the company has highlighted that trading “continues to surpass expectations”.
The retailer has been registering robust growth amid the online shopping boom primarily led by pandemic-related restrictions. TPW performed exceptionally well in H1 FY21, and trading in the second half also remains strong to date, as per its market update on 20 April 2021. It is witnessing a strong shift in consumer behaviour as they prefer to make purchases online instead of in-store.
Image source: © Kittisaktaramas | Megapixl.com
Temple & Webster has reaffirmed its business strategy to leverage the online tailwind through investments in short- and long-term growth initiatives.
Backed by strong trading, the company is expecting robust outcomes in the future. Moreover, the strong demand highlights that Aussies during the pandemic period are spending more on furniture and homeware products to enhance their indoors.
Why does Temple & Webster believe in permanent shift in buyer behaviour?
Image source: © Adiruch | Megapixl.com
TPW has unveiled a smashing performance for Q3 FY21 with revenue up by 112% on the previous corresponding period.
By the end of the reported period, active customer base totalled nearly 750K. For April 2021, the company’s revenue is up by over 20% when compared with the same period a year ago or April 2020, which was the fastest growing month last year due to Covid-19 induced restrictions.
Temple & Webster Reaffirms Growth Strategies
Temple & Webster maintains a strong balance sheet as well as enjoys the online market leadership position in the homewares and furniture category.
Given the scope for significant online market growth and longer-term returns, the company has reiterated its growth strategy which is focused on cementing its position in the market through enhanced brand awareness. TPW also intends to achieve national brand status in the next three-year period. The company is planning to invest in the mainstream media to drive repeat as well as first-time customers.
Other strategies comprise expanding operational teams and growing b2b sales, using tactical promotions and pricing to increase conversion, and investing in 3D and AI to boost customer experience.
TPW was trading at AUD 10.320 on 21 April 2021 (AEST 10:39 AM).