Temple & Webster wins big on first-time online buyers in FY20
Online furniture retailer Temple & Webster has capped off a strong year with annual revenue growth of 74 per cent to $176.3 million, and an EBITDA of $8.5 million.
The FY20 year also saw active customer numbers grow 77 per cent year on year, likely a result of an increased reliance on online shopping throughout the Covid-19 crisis.
“Many customers are trying online shopping for their homes for the first time out of necessity, and it’s clear the inherent benefits of online, being range, value and convenience, have resonated with those customers,” chief executive Mark Coulter said.
However, the figure Coulter is most proud of is an increased level of customer satisfaction, which saw the business’ net promoter score hit record levels of 65 per cent.
And the growth hasn’t slowed yet, with July-to-date seeing similar levels of revenue growth to FY20’s Q4 – around 130 per cent up on the prior period.
While this can be partially attributed to the surge in online shoppers Temple & Webster has said it is committed to undertaking a high growth strategy to take advantage of this surge.
“Our strategy of being a category specialist… is working,” Coulter said.
“The advantages of being the online market leader are apparent as we continue to grow our market share.”
E-commerce picks up amid fragile sales
While retail sales climbed slightly in June, up 2.4 per cent, the recent spike in cases in Victoria and New South Wales doesn’t bode well for the remainder of the quarter.
However, e-commerce sales have benefited from the return to lockdown, according to eStore logistics chief executive Leigh Williams noting.
“So far in July, ecommerce activity dropped significantly in the first few weeks as consumers enjoyed their time out of lockdown and slowed down on purchases,” Williams said.
“However, since Victoria’s lockdown, we have again seen record levels of online purchases, despite consumers having already purchased necessary working-from-home office or leisure items.”
This story originally appeared on sister site Inside Retail.