Online sales more than double at Kogan as Aussies head online
As online retail continues to become normalised by the Covid-19 pandemic’s impact on bricks-and-mortar retail, marketplace Kogan has seen a dramatic boost to business in July.
Compared to the year prior, gross sales grew more than 110 per cent while gross profit jumped more than 160 per cent.
Likewise, active customers grew by 126,000 during the month.
According to research by IbisWorld, the pandemic has had a massive impact on how Australians use online shopping, with many customers that have never utilised e-commerce left no other option.
“Online shopping has increased since the first wave of Covid-19 in April 2020,” IbisWorld said.
“An average of 1.6 million Australian households bought something online each week in 2019; in April 2020 this figure increased to 2.5 million households per week.
“Victoria exhibited the strongest increase in online shopping behaviour relative to other states, and Victorians are expected to continue taking up online shopping throughout the Stage 4 lockdown.”
The strong figures follow fundraising efforts made in June to allow Kogan to make acquisitions when opportunities arise, with the marketplace raising $120 million in new shares.
“While multiple opportunities are presenting themselves, the Company will focus on opportunities that are value accretive and broaden its offering, expand its customer base or enhance its operating model,” the retailer said in an earlier statement.