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Mosaic Brands ships 4.4 million items as it refocuses its online offer

Mosaic Brands, the Australian apparel retail group, says a focus on e-commerce saw online sales account for 20 per cent of group turnover in the latest financial year, with 4.4 million items shipped.

Mosaic Brands owns and operates apparel brands including Millers, Rockmans, Noni B, Rivers, Katies, Autograph, W Lane, Crossroads and Beme.

The company is completing the rollout of a new online platform which includes AI-driven customer analysis. It warned that the transition might impact digital revenue in the short term, but the system will be operational prior to upcoming key trading periods. 

The online focus is part of a broader repositioning strategy for the group which in offline retailing is shifting towards big-box retailing – and away from higher-rent, smaller-format stores had aided the turnaround and was the basis of what the retailer calls its ‘Big strategy’.

Mosaic Brands will open 40 large-sized ‘mega stores’ this financial year as it transitions into what it describes as “a more ageless, value-driven, big-box retailer”.

Mega stores are typically three times more profitable than standard-sized stores and those in shopping malls. The new ones in planning will be located largely in regional areas.

The strategy was revealed along with the group’s annual result which saw a $33.5 million turnaround from a loss of $16.4 million last year to EBITA of $17.1 million in the year to June 30. 

CEO Scott Evans said the company’s improved performance stems from management recognising that retail has “forever changed” with customer expectations shifting dramatically. The business realised that achieving a return to the pre-Covid era trading and profitability “required taking a leap forward rather than taking a step back”.

“Mosaic Brands has survived the pandemic-induced downturn and emerged as a more value-driven, operationally-lean, and strategically-focused organisation that has a clear vision as to where future growth opportunities in the retail landscape sit,” he said.

“This $33 million turnaround is not simply a result of customers returning to in-store shopping post the pandemic.”

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