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Scentre’s long-serving chief executive Scentre Peter Allen will step down from running the country’s biggest shopping centre owner in September, handing the baton to chief financial officer Elliott Rusanow.

The succession plan was announced as Mr Allen proved his capacity to lead through turbulent times, handing down a strong full-year result, with the Westfield operator shrugging off lockdowns to more than double its payout to shareholders and flagging a further 5.3 per cent lift in distributions this year.

Mr Rusanow, another veteran of the Westfield operation and a grand-nephew of its founder, Sir Frank Lowy, takes charge from October 1 before Mr Allen retires from the company next year. While the result fell short of some analysts’ expectations, Mr Allen’s departure caught shareholders by surprise, with Scentre stock dropping 14¢, or 4.4 per cent, to close at $3.02.

“The business is in a really great position, we’re coming out of an extraordinary 20 months,” Mr Allen said.

“Business-wise, it’s the right time and even for me personally, it’s the right time. I’ve now been involved with Scentre Group over 26 years. I’ve really committed all my efforts and energy to this organisation.”

Scentre’s operating profit of $845.8 million represents 16.32¢ a security, up 10.9 per cent. Funds from operations – the industry’s standard earnings measure – was $862.5 million in total, up 12.7 per cent to 16.64¢.

The statutory result, which includes property revaluation gains, was $887.9 million, up from a whopping loss of $3.7 billion in the previous year, which included hefty portfolio writedowns during the initial wave of COVID-19.

The full-year distribution of 14.25¢ a security exceeded guidance and more than doubled the 2020 payout.

With a further lift in distributions to 15¢ flagged for this year, Mr Allen struck a bullish note as customer visits bounced back after the latest omicron wave, and leasing spreads – the difference between old and new rents – improved.

“The financial strength of the consumer is really positive. Particularly since people have gone back to school and how well that has gone, consumer confidence has improved, and we are starting to see the visitation numbers increasing and therefore dwell numbers increasing,” he said.

A short-term bump in inflation would have little impact on Scentre, according to Mr Allen, while a long-term rise would be positive because it would signal a growing economy.

“If there is inflation that means people are spending money and driving up prices,” he said.

Amid the goodwill, Mr Allen reserved a stinging rebuke for the NSW and Victorian state governments, which have extended a commercial code of conduct allowing rent relief to retailers even though lockdowns are over.

“Governments effectively forcing the transfer of the retirement savings of ordinary Australians via their super funds to benefit businesses that generate millions of dollars in revenue is poor policy,” he said.

Macquarie analysts noted there could yet be further upside to Scentre’s expected distributions, with its guidance falling below market consensus.

But they also said in a client note that, while Scentre maintained that its balance sheet remained robust, “we view the likely widening of retained earnings is being driven by elevated leverage”.

The head of electronics giant JB Hi-Fi has warned that certain categories of consumer goods could see prices rise by 8 per cent on average as supply chain issues force suppliers to up the price of their goods.

Chief executive Terry Smart told The Age and The Sydney Morning Herald the company was starting to see higher prices being passed through from suppliers, specifically for home appliances.

“We buy from the local suppliers who import the products, and they’re the ones who have been bearing this increased supply chain cost,” he said. “They’ve been absorbing that, and now they’re getting to a point where they’re going to pass that on in the form of a price increase.”

“Broadly, that’s around 8 per cent [higher].”

Mr Smart said JB Hi-Fi would absorb some of those costs where possible, and that the current competitive market would mean discounts would still be applied. However, customers should still expect to pay more for appliances, though he noted prices for consumer electronics had remained stable.

On Monday, JB Hi-Fi unveiled its half-year earnings, with the business reporting net profit after tax of $287.9 million for the six months to the end of December. This was a 9.4 per cent decline on last year’s record half-yearly profits but still above market expectations and in line with guidance given by the business earlier this year.

Sales at the major retailer also fell slightly, down 1.6 per cent to $4.86 billion, however, online sales continued to grow, rocketing up 62 per cent for the half to over $1.1 billion. The segment now makes up nearly a quarter of JB Hi-Fi’s total revenue.

The company has been a major beneficiary of the varied trading conditions brought about by the pandemic, with shoppers requiring consumer electronics and home office equipment throughout COVID-19.

Mr Smart also announced the retailer would return $250 million to shareholders via an off-market share buyback alongside an interim dividend of $1.63, with a total of $437 million in capital being returned to investors.

The chief executive knocked back queries from analysts on if the funds spent on the buyback would be better reinvested in the business, saying JB Hi-Fi and its Good Guys whitegoods subsidiary was in a solid position and did not need excessive additional investment.

JB Hi-Fi acquired The Good Guys for $870 million in 2016, with the business now making up around a third of the company’s total sales. Mr Smart, who was The Good Guys’ managing director before taking on the chief executive role last year, said the business was open to the idea of another acquisition in the same vein.

“We are constantly looking,” he said. “We’ve got a strong balance sheet, and we’ve got capacity to do something should something come along.”

Sales through January rose across most of the business’ divisions, with JB Hi-Fi Australia up 4.3 per cent and The Good Guys gaining 2.5 per cent. The business’ New Zealand stores’ revenue fell 1.8 per cent.

Given the current uncertain environment due to the pandemic, JB did not provide its usual earnings guidance, however, Mr Smart said he was feeling positive about the momentum through the second half.

Shares gained 5.4 per cent to $51.71.

Jarden analyst Ben Gilbert welcomed the positive result and the share buyback, but also questioned JB’s lack of continued investment. “While we see this as a great business with management executing well, we continue to question the sustainability of momentum without increased investment,” he said.

Confident shoppers with a capacity and willingness to spend more than they did before the pandemic are underpinning a resurgence in sales and foot traffic at Australia’s largest shopping malls.

Shopping centre giant Vicinity Centres – which part-owns and manages Australia’s largest mall, Chadstone in Melbourne – has pivoted from a thumping $394.1 million loss in the half-year to December 2020 to a $650.2 million profit in the latest December half.

The landlord attributes its brighter outlook to a bounce in retail sales and the quick return of “purposeful” shoppers who had the “confidence and the capacity to spend” after the grinding lockdowns in NSW and Victoria last year.

Investors agree. Shares in the group jumped 11 per cent to $1.865 on Wednesday.

“It’s a nice morning to be the chief executive,” said Vicinity’s boss Grant Kelley, with evident relief. “It’s been hard. I think it’d be foolish to pretend otherwise. But the reality is, this result really is evidence Vicinity is actually recovering from the pandemic.”

A significant chunk of the group’s profit, $320 million, came from rising asset values in its mall portfolio: a lumpy figure that is excluded from payouts to security holders. However, funds from operations – a measure of its earnings – rose 7.7 per cent to $287 million.

‘Across all states, shopping remains more purposeful, with average spend per visit up 29 per cent on pre-COVID levels.’

“In NSW and Victoria, retail sales rebounded strongly when restrictions eased in October 2021,” Mr Kelley said.

By November and December last year, retail sales had increased 5.6 per cent on pre-COVID levels, driven by robust foot traffic across its portfolio.

Mall visitor numbers jumped from 50 per cent of pre-COVID levels at the start of last year to 84 per cent by the end of the year in NSW and Victoria. In states less affected by the outbreak, customer numbers were near pre-pandemic levels and retail sales growth was consistently strong, Mr Kelley said.

“Across all states, shopping remains more purposeful, with average spend per visit up 29 per cent on pre-COVID levels, with electrical, sporting goods and luxury retailers, together with discount department stores continuing to outperform the portfolio.”

Financial analysts described the result as a “big beat above consensus”. The half-year result was well ahead of expectations, said merchant bank Jefferies.

Centre sales are being buoyed by the strong local economy and restrictions on international travel, which are corralling Australians into spending at home. While the recovery from the pandemic is gaining momentum, Vicinity is not out of the wilderness yet.

The spread of Omicron continues to hit visitor numbers, particularly at city-based shopping centres like The Strand Arcade in Sydney and Emporium Melbourne where work-from-home rules and border closures are proving challenging.

“In January 2022, Omicron had a material impact on visitation, particularly at the group’s centres located on the east coast of Australia, however, Vicinity has seen an upward trend in the first two weeks of February,” Mr Kelley said.

Foot traffic in CBD shopping centres is about half of pre-COVID levels.

Vicinity’s chief financial officer, Adrian Chye, said the company expected that to increase.

“We are expecting sales and probably income to take about 24 months to come back,” Mr Chye said.

The company is still providing rent assistance to struggling tenants. Since the start of the pandemic in February 2020, it has allocated more than $300 million to support retailers. About 90 per cent of that is outright rent forgiveness, it said.

Vicinity said it expects funds from operations per security this financial year to be in the range of 11.8 cents to 12.6 cents.

Wesfarmers-owned Kmart Group has revealed the impact mandated store closures, supply chain disruptions and elevated absenteeism had on its operations throughout the first half of FY22. 

The Group, which comprises businesses Kmart, Target and Catch, stated that it lost approximately 25% of store trading days during the period. 

As such, Kmart Group's revenue declined 9.6% to $4,917 million for the half, while earnings before significant items dropped 63.4% to $178 million. 

Meanwhile, combined Kmart and Target earnings declined 55.8% to $222 million for the half.

Speaking on the result, Wesfarmers MD Rob Scott said 

"[These results reflect] the significant impact of government-mandated store closures...as well as higher costs and lower stock availability as a result of domestic supply chain disruptions. 

"Relative to the Group’s other divisions, Kmart Group and Officeworks results were more significantly impacted by COVID-related disruptions during the half.

"Kmart Group in particular was affected by temporary store closures between July and October 2021.

"Across the Group’s retail businesses there were around 34,000 store trading days impacted by trading restrictions, representing almost 20% of total store trading days for the half.

"This included more than 20,000 store days for which stores were completely closed to customers.

"In addition, operating costs and stock availability were impacted by ongoing supply chain disruptions and elevated team member absenteeism

"The Group’s commitment to pay team members where there was no meaningful work during lockdowns and when they were required to isolate also led to additional costs during the half," he said. 

With stores closed, Kmart and Target's online sales lifted, with Wesfarmers reporting a 44% increase in digital sales for the retailers in the half. 

"Kmart and Target continued to invest in data and digital capabilities, and strong growth in online sales for the half reflected ongoing improvements to the digital experience for customers, as well as elevated online demand during lockdowns," Scott added. 

Wesfarmers also completed the restructure and closing of select Target stores during the half, with the business reporting that converted stores are performing at expected levels, adjusted for COVID lockdowns. 

Meanwhile, the Group's pureplay business Catch also reported lower earnings due to the investments in the team, technology, marketing and capabilities, as well as higher levels of inventory clearance compared to the year prior.  

During the period, Catch's gross transaction value increased 1.0% in H1 FY22, and 97.5% on a two-year basis. 

Scott added that the business has also made changes to Catch's subscription/loyalty service Club Catch. 

"Earlier this month, the Club Catch subscription program was rebranded and repositioned as a new program named OnePass, at a reduced monthly fee of $4 or annual price of $40," he said. 

"Subscribers will continue to enjoy free delivery on eligible items purchased from Catch, exclusive deals and OnePass-only pricing.

"This program will form the basis of a broader subscription program with opportunities to provide even greater value and convenience to customers across the Group.

"Work is underway on a broader set of benefits that will be available to OnePass subscribers when shopping across Wesfarmers’ retail businesses," Scott said. 

Going forward, Wesfarmers said its retail businesses will, "maintain their focus on meeting changing customer needs and delivering even greater value, quality and convenience for customers." 

The business will continue its investment into digital capabilities to enhance the retail brands' online offering, expand the addressable markets and improve operating efficiencies. 

The brand was sold for between $13 million and $19 million, according to WWD, who first reported the news.

Minkoff will remain in her role as chief creative officer while her brother Uri, who’d been the company’s chief executive, will step down from his position and assume an advisory role. A spokesperson for Rebecca Minkoff confirmed the sale to BoF, but declined to provide further details.

Sunrise Brands, which is based in Los Angeles, owns the labels Current/Elliott, Equipment and Joie. The company did not respond to a request for comment.

The Rebecca Minkoff brand launched in 2005, and developed a following for its leather handbags. The company has been at the forefront of technology experimentation in fashion; launching rental, NFTs and even an OnlyFans account. In a 2019 interview, Minkoff said the brand had “north of $100 million” in gross sales, according to CNBC. However, the company was hit hard during the pandemic and struggled with its wholesale accounts cancelling orders.

The first half of FY22 was a rocky one for Wesfarmers, according to CEO Rob Scott, who told investors yesterday that it was the most disruptive period for the business since the beginning of the pandemic. 

Extended store closures and trading restrictions in Australia impacted about 20 per cent of the group’s retailers’ trading days, as well as constantly shifting consumer behaviour and stock shortages due to supply chain pressures. As a result, Bunnings, Kmart Group, and Officeworks all suffered.

In particular, Kmart Group was hit hard, with earnings down 63.4 per cent during the half.

“What we experienced, particularly in the first quarter, is anything other than a normal operating environment,” Scott told investors. 

“It was incredibly abnormal. It was abnormal because the government said we weren’t allowed to let customers into our stores. Our businesses, currently, aren’t set up to accommodate the level of online demand we saw, on top of all the other Covid-19 related challenges that we had to navigate.”

As for the remainder of the year, Scott said performance has so far remained subdued, with  fewer customers entering stores due to the Omicron shadow lockdown.

Investors voiced their concerns about the group’s flagging performance through a period where several other retailers are running high above a pre-pandemic average, with one investor pointing to Premier Investments and JB Hi-Fi as examples. However, Scott said he is confident that as conditions stabilise, the group’s ‘lowest price’ approach will continue to resonate with customers – especially should inflation rise.

And, looking forward, Scott outlined a number of opportunities the business hopes to execute on in the coming months.

Club Catch is no more

Earlier this month, online marketplace Catch’s subscription service Club Catch was redesigned, rebranded, and relaunched as OnePass. 

According to Scott, OnePass will serve as the basis of a group-wide subscription service similar to Amazon Prime, offering free delivery, members-only pricing, and Flybuys functionality across Wesfarmers’ retail businesses: Catch, Kmart, Target, Bunnings, and Officeworks.

“I should note that the rebranding of Club Catch to OnePass is very much a soft launch [right now],” explained Scott.

“We’ll be testing a number of broader benefits across our group’s businesses with team members prior to launching the offer publicly later this year.”

Catch Group’s growth has somewhat stagnated under Wesfarmers, reflecting a continued investment in growing the business’ technology and data capabilities to strengthen integration with the wider group rather than focusing solely on sales growth.

Wesfarmers is expecting to invest a further $100 million into Catch Group in operational expenses over the next year, setting the foundations of a stronger digital platform for the wider group.

Healthcare arm just a vote away

Additionally, Wesfarmers’ buy-up of health business Australian Pharmaceutical Industries (API) is almost complete, subject only to an investor vote, and Scott outlined the potential benefits this acquisition will have for the business. 

API will serve as the basis of a new healthcare arm of Wesfarmers, which will see the business enter the fast growing health, beauty and wellness sectors, powered by Wesfarmers’ retail, distribution and tech knowledge. 

“If the vote goes through, we’ll have ownership by the end of March, or early April, so the first focus of growth in that healthcare space will be to invest in and improve the performance of the businesses within API,” Scott told investors. 

“[Once we get control of API], we want to spend a bit of time to engage the team there and learn more about the business and opportunities before we get too far ahead.”

However, Scott didn’t rule out expanding the business into adjacent categories, such as pet care, in the near term. 

“There are some areas that are logical adjacencies to API. The health, beauty and wellness space is a very broad and rapidly evolving space, so we’ll be able to find some of those opportunities to strengthen that business, capture some of that growth and deliver some returns,” Scott said. 

It could be another busy year of floats for Quadrant Private Equity.

The firm, which arguably helped reopen Australia’s initial public offering market with Virtus Health nine years ago and has made the most of it since, has added its national retailer Amart Furniture to the IPO pipeline.

It is understood Quadrant has investment bank Jefferies helping with the preparations, and has rival firms lining up to be part of the mooted marketing campaign.

Amart’s a bit of an unknown as far as listed equity markets are concerned, and has spent the past 15 years in private equity hands.

First, Ironbridge Capital and its partners GIC and Macquarie Funds Management acquired it from founder John Van Lieshout in 2006, before Quadrant bought a stake and then took control about five years ago.

Retailer Baby Bunting Group has reported strong revenue growth in the first half on the back of market-share gains. 

The baby goods chain recorded sales of $239.1 million, up 10 per cent, with same-store sales up 6.8 per cent. Net profit after tax was $8.1 million, up by 12.2 per cent. 

Online sales rose by 32.6 per cent to $56.8 million. Click and Collect sales surged 46.4 per cent and accounted for 59 per cent of online sales in areas where the company has a physical store. With so many online shoppers thus heading to stores to collect their purchases, about nine in every 10 sales by the retailer included a store visit.

The group opened new stores in Alexandria and Wagga Wagga (NSW), Shepparton (Vic) and Cairns (Qld taking the network to 64 stores in Australia. 

In a results presentation, Baby Bunting’s CEO and MD, Matt Spencer indicated the company has plans to enter the New Zealand market with 10 stores. The Covid pandemic has delayed the opening of the company’s first store there, however the company’s new loyalty program – ‘Baby Bunting family’ – is complete, he said. 

“Given our growth over the last two years, we will review our store network plan to assess opportunities and leverage our digital headless architecture to enhance our online experience and expand our range of products.

“As the strength of our offer grows and our customer engagement increases, we will assess the broader $5.1 billion baby goods market for the future long-term growth opportunities,” he said.

Australian retail sales rose by 4.8 per cent in December according to retail trade data released by the ABS on Tuesday.

Most sectors posted year-on-year gains, with a 9-per-cent decline in department-store sales marking the worst-performing category overall. Sales in supermarkets and liquor stores rose by 2.2 per cent for the month. 

December’s figure followed three consecutive months of increases: November (7.3 per cent), October (4.9 per cent) and September (1.3 per cent).

Seasonably adjusted, monthly turnover fell 4.4 per cent compared to last month.

Trading conditions worsened in December due to the arrival of the Omicron Covid-19 wave that spread rapidly across the country, making consumers adopt caution.

ARA CEO Paul Zahra said the robust Christmas results provide a lifeline for struggling retailers, but all signs point to a dismal January as Omicron challenges continue to create a shadow lockdown. 

“Christmas sales are when most discretionary retailers make up to two-thirds of their annual profits. This solid December performance, following a strong November, will help replenish cash reserves for retailers affected by a year of restrictions and lockdowns.”

Zahra said it was pleasing to see categories such as clothing, footwear and personal accessories and hospitality surge at Christmas after a horror year.

“We can also see signs of a longer-term trend of the Black Friday weekend event and consumers shopping earlier for Christmas becoming cemented into the consumer mindset. Unfortunately, department stores continue to be affected by pandemic hesitancy and this ongoing challenge will create flow-on effects for other retailers particularly in our struggling CBD locations.”

He said the outlook for January and February is not as positive for retail with Omicron causing confidence levels to drop to their lowest level in 30 years.

“Foot traffic has slowed significantly and ongoing staffing shortages, supply chain delays and pricing increases are creating another dire set of trading conditions for retailers this year.”

December’s ABS figures show Victoria leading the states in growth, with sales up 6.5 per cent year on year, followed by WA (up 5.3 per cent), NSW (up 5.2 per cent) and Queensland (up 3.7 per cent). 

ASX-listed online luxury retailer Cettire reported strong revenue growth of 192 per cent in the first half of the financial year, recording $154.1 million in sales. 

Sales revenue grew 181 per cent to $113.7 million with product margin increasing by 178 per cent to $42.7 million.

The company ended the half with a cash balance $55.5 million and zero debt, positioning it well to capitalise on global growth opportunities the company wants to execute. 

The company’s web traffic increased by 80 per cent during the half with active customers increasing by 208 per cent to over 208,700 reflecting the brand’s customer acquisition and retention strategies. Repeat customers accounted for 46 per cent of gross revenues with a higher average spend per order.

The brand is also planning to launch a beauty category to expand the company’s market in the hope of becoming the world’s leading online luxury destination.

“Cettire grew very rapidly, substantially increasing unique visitors and active customers, further increasing the proportion of revenues from repeat customers, and overall continuing in its growth trajectory,” said Dean Mintz, founder, CEO and executive director.

“Given the global growth opportunity available to Cettire, we will be running the business to maximise revenues by further investing in brand and customer acquisition in order to drive long-term shareholder value.” 

For the remainder of the year, the company will focus on a customer proposition that is centred around its vast selection of luxury products, developing supply relationships, and investing in proprietary e-commerce technology to support its entry to new geographic markets. 

Temple & Webster chief executive Mark Coulter says the online homewares and furniture retailer is accelerating its ambitious growth plans even faster because size and scale is crucial in online retailing, which is still in an early stage of its development even though the pandemic has shifted many shoppers across.

“In online, bigger is better,” Mr Coulter said.

He said it is relatively easy for new start-ups and smaller rivals to set up online businesses, but very difficult to scale them up.

“The bigger online retailers can keep investing,” he said, pointing to the extreme success of Amazon in building a huge business.

Temple & Webster is investing heavily in spending on marketing, enhanced buying teams, and digital elements such as better algorithms and data analysis to ensure it stays ahead of rivals and becomes the destination of choice for shoppers looking for homewares and furniture.

The business experienced a fresh sales jump in January as the omicron wave of COVID-19 kept people away from bricks and mortar outlets, but it is grappling with high shipping costs and logistics disruptions which crimped its December half profits, although investors lauded its strong sales growth.

Temple & Webster shares climbed by 12 per cent in early trading on the ASX, up 95¢ to $9 by 12.30pm (AEDT). The stock hit $14.71 at the end of August but then retreated to be just above $8 a few days ago. The company listed on the ASX in December 2015, with an issue price of $1.10.

Mr Coulter said the group is winning extra market share, and has tripled in size in the past two years. More shoppers are becoming comfortable buying furniture online after restrictions and lockdowns partially forced that shift in behaviour.

But elevated shipping costs and overall supply chain disruptions, along with heavy investment in growing the business pulled net profit after tax down by 40 per cent to $7.3 million in the six months ended December 31.

Sales revenue was up by 46 per cent to $235 million compared with the same time a year ago. The number of active customers buying items from Temple & Webster rose by 34 per cent to 906,000 in the December half compared with a year ago.

The company sources furniture and homewares from more than 100 factories, mainly in Asia, and has more than 200,000 individual products in its range.

Natalie Tam, deputy head of Australian equities at abrdn, previously known as Aberdeen Standard Investments, said it was “a reassuring result that comfortably beat market expectations”.

Ms Tam said Temple & Webster shares had been heavily sold off in the past few weeks because of “soft” trading updates from rivals, and concerns around cost inflation and moderating demand as lockdowns ended. “The result showed that revenue growth remains strong, driven by strength in repeat customer numbers,” she said.

Mr Coulter said elevated global supply chain costs were a constraint, while there was extra pressure on deliveries and fulfillment because of the huge demand from online shoppers.

But he thinks there is some reason for optimism, with some early signs that shipping delays and logjams might be starting to improve.

“We think it’s on the up,” he said.

He said the most popular items in the December half were in bedroom furniture, and dining room furniture. The home office segment was still strong, but growth rates had slowed from the previous year. “A lot of people had already got their home offices set up,” he said.

Mr Coulter also said he does not look at the day-to-day share price of the company. “I don’t think CEOs should look at share prices. What it does is encourage short-termism,” he said.

Temple & Webster is also expanding into the trade and commercial segment. Mr Coulter said he had huge respect for hardware giant Bunnings but aimed to claw away some of its market.

In the December half, marketing costs as a percentage of revenue were 13.6 per cent, compared with 12.8 per cent a year earlier.

Mr Coulter said Temple & Webster was growing faster than the overall market.

The omicron wave of COVID-19 in late December and January kept many people out of shopping centres and other bricks and mortar retail stores.

But Mr Coulter said it had prompted a renewed surge in business at his group, as households bought online.

Revenue in the five weeks from January 1 to February 6 was up 26 per cent compared with a year earlier. Sales in that period were up 161 per cent on the same time in 2020, just before the pandemic began.

Mr Coulter said more of Temple & Webster’s customers are spending higher amounts, and more often.

Online penetration in the homewares and furniture category is around 10 per cent, with the Australian market a long way behind the United States, where it is around 22 per cent.

• Australians are among the world’s biggest e-commerce spenders, according to a new report.
• The average annual e-commerce haul cost local users more than $2,700 in 2021.
• The turn to online commerce is slated to continue, boosted by systems like buy now, pay later.

Australians are among the biggest e-commerce spenders in the world, a new report reveals, with each consumer dropping more than $2,700 each year on digital shopping platforms.

In its 2022 Global Overview Report, social media marketing firm Hootsuite and creative agency We Are Social state that local consumers might not be the most regular online shoppers, but spend big when they do log on.

Around half of all Australian internet users aged 16 to 64 admitted to buying something online at least once a week, but Australia ranked below the global average for habitual online shoppers.

Similarly, around one in four local respondents said they buy something online each week through their mobile device, below the global average of 30.6%.

However, Australians admitted to spending an average of $2,776 per year via e-commerce, well above the global average of $1,435.

The figure put Australia in 11th place worldwide, behind leaders Hong Kong ($4,497) and the US ($4,386), but ahead of comparable economies in Canada ($2,669) and New Zealand ($2,474).

Average Australian spending per e-commerce user increased roughly $667 in the 12 months leading to January 2022, the data suggests.

E-commerce sales soar, lifted by lockdowns and buy now, pay later

The data comports with local spending habits through multiple rounds of COVID-19 lockdowns through 2021, which forced Australians to become even more familiar with online shopping portals.

It also backs up a recent survey of local small business owners, who said that revenue from online sales has surpassed brick-and-mortar takings for the first time.

Australia Post and logistics giants have also reported massive upticks in parcel deliveries, with a combination of COVID-19 infections and mass demand forcing the former to temporarily suspend pick-ups from e-commerce providers in late 2021.

Hootsuite and We Are Social state the rise of buy now, pay later options has further boosted the role of e-commerce in daily life.

“With major retailers from ASOS to Amazon launching or partnering with ‘Buy Now, Pay Later’ initiatives, online shopping is on the brink of a new era of frictionless purchases in which delivery times grow ever shorter, while actually cashing out for a product feels like a distant future,” the report said.

“While major providers are addressing the ethics of this further normalisation of credit in their communications, this feature is set to become a mainstay in e-commerce.”

Purely-digital consumption on the rise

Beyond physical items purchased online, the data also points to the boom of purely digital services and fintech solutions.

When accounting for digital payments towards streaming services, video games, apps and subscriptions, along with payments made via Apple Pay, Google Wallet and comparable services, Australia is a world leader.

On average, each local user drops $5,697 each year in digital payments, ranking Australia sixth worldwide.

Although the report suggests Australia’s consumer economy is continuing its migration online, some of the report’s findings cut against other headlines describing the nation’s adoption of digital innovation.

According to the report, some 11.1% of Australians aged 16 to 64 own some form of cryptocurrency — well below Finder’s estimation that 17% of residents have converted their hard-earned cash into blockchain-based currency.

Regardless of the precise number, the report makes it clear that digital commerce titans are prepared to integrate virtual assets with their real-world products and services.

In its projection for 2022, Shopify, a Hootsuite and We Are Social partner, said the market can expect “growth in live shopping, non-fungible tokens, private communities, VIP events, and more”.

One of the silver linings of the COVID-19 pandemic for many Australians has been the opportunity to shore up their household finances.

This is not to minimise the health effects of a deadly virus, the heartache of separation from loved ones, or the economic disruption that saw widespread job losses and business closures.

Yet millions of Australians experienced no loss of income and two years of enforced savings because of lack of opportunities to spend their money.

Households have saved an average of 17.2 per cent of income since the pandemic started, according to the national accounts released in December, compared with an average of 6.1 per cent for the two years before that.

In dollar terms, households have put away about $260 billion in savings since the pandemic started, based on estimates from the Commonwealth Bank. It is, as Treasurer Josh Frydenberg said in late November, “a damn lot of money”.

Mr Frydenberg said he expected the money to be spent across the economy as restrictions eased and Australians went about their daily life, to “give our recovery momentum”.

Indeed, spending was strong at the time. Australian Bureau of Statistics data for November shows retail sales hit a record $33.4 billion, a 7.3 per cent rise from the previous month and 5.8 per cent higher than November 2020.

In December, the Commonwealth Bank’s Household Spending Intentions Index was at its highest level since before the pandemic, led by transport, travel, retail and household services.

But now with the highly contagious Omicron variant raging along the east coast, millions of Australians are again isolating. This includes those infected or close contacts but also many people who are healthy and well and trying to remain so.

Household spending is at the lowest point since the Delta lockdowns, with Sydney and Melbourne lagging the national average.

The Commonwealth Bank estimates consumer spending has already dropped by about 3 per cent over January as a result of the latest spike in COVID cases. A week ago, ANZ measured consumer confidence 2.2 per cent lower than mid-December, while the score for “time to buy a major household item” was 4.9 per cent lower.

As many have pointed out, tackling the virus is not a choice between the economy and public health - the economy relies on public health.

The bigger question remains about what our spending habits will look like after the immediate crisis passes. Will Mr Frydenberg be belatedly proven right that Australians will fuel the recovery by spending their accumulated savings?

As the virus recedes and people can get out and about, consumers are likely to start spending again. We’ve seen that pattern repeatedly between lockdowns.

But even if people return to their pre-pandemic spending patterns, that could just slow down or halt the rate of new savings. It doesn’t mean they’ll also spend the money they’ve already socked away over the past two years.

The Australians interviewed by The Sun-Herald and The Sunday Age have other plans for that money.

For those who do intend to increase their spending, two themes are common. The first is international travel, which doesn’t wholly benefit the Australian economy. The second is home renovations, which benefits only a specific sector.

Meanwhile, the imperative to save for a home or retirement has not disappeared - in fact, the housing boom means it has only intensified.

However, Belinda Allen, a senior economist at the Commonwealth Bank, said younger Australians have been less able to save during the pandemic compared with Generation X and Baby Boomers.

By December, home-buying intentions had fallen compared with the previous year as affordability started to bite.

The savers

James Pearce and wife Karla Quintana are, like many Australians, saving for a home.

The couple, who are in their 40s and have three children, are renting in the Bankstown area. They moved to Mr Pearce’s hometown of Sydney from Ms Quintana’s native Mexico in 2019 and lived off their savings for about a year, while Mr Pearce retrained and looked for work. They own a house in Mexico, but it is not practical to travel there to sell the property during the pandemic.

Mr Pearce eventually landed a job and then a new, better-paying one that could be done remotely during the long Delta lockdown in NSW.

Ms Quintana also found a job just before the same lockdown and qualified for JobSaver when she had to stop working.

The family saved money because lockdown meant they had to forgo family outings to the movies and a planned trip to the NSW snowfields, and could not travel to see relatives on the NSW mid-north coast.

“It’s been nice to have that buffer again,” Mr Pearce said. “We’re pretty much going to keep saving because we want to extend that buffer and, at some point, we’re looking at buying a home rather than relying on the rental market. It will take quite a while before we can afford the deposit because of the price of property at the moment.”

Mr Pearce said the Treasurer’s call for Australians to spend their savings was “ridiculous and disingenuous”.

“You get both arguments, right? When people said ‘we can’t afford a deposit for a house’, [other] people say ‘oh well you can just not go out, not eat out, you’ve got to save your money for the deposit’,” Mr Pearce said.

“And then they turn around and said , ‘hold on, everyone’s got too much savings, you need to go out and spend it’. We can’t do both.”

The business owner

Anushka Bandara, from south-eastern Melbourne, has saved at least $10,000 a year by not travelling overseas.

Mr Bandara, who is co-founder and chief executive of app developer Elegant Media, would normally spend a lot of his time visiting his international and interstate offices, staff and clients, as well as travelling for pleasure and personal reasons.

The repeated lockdowns in 2020 and 2021 also put a dent in his spending on entertainment and social activities, such as dining out, that was not offset by extra spending on takeaway meals and subscription streaming platforms.

“During the lockdown, the business wasn’t affected so nothing changed income-wise, but the expenditure was cut down because there was no way to spend your money,” he said.

Mr Bandara, who is married with a young daughter, said he will use some of the savings for home improvement projects and a trip to visit relatives in Sri Lanka.

He also plans to reinvest a lot of his savings back into the business to capture growth in artificial reality, the metaverse and gaming.

Mr Bandara said people are unlikely to spend money outside the home or travel while the virus is a threat because they don’t want to risk illness or having to isolate.

The investor

Christina Gretton, from Ryde in Sydney, was “bunkered down” for most of the pandemic, only spending money on groceries and other essentials.

Since her income was unaffected, she wound up with thousands of dollars in extra savings.

Ms Gretton said she received quotes for renovations on the house, but delayed her plans because the builders were busy and construction materials scarce.

Given the low returns from bank interest, she decided to invest the money in shares for the time being.

When she was a young woman, Ms Gretton saved a deposit for her first unit by investing in shares after her grandmother encouraged her to learn about it.

She decided to try to pass on this knowledge by also investing in shares for her teenage daughters, aged 14 and 17.

Ms Gretton is using the Stockspot app and has the children’s accounts as sub-accounts to save on fees, but intends for them to take it over when they turn 18.

“I’ve showed them the app because it shows the fund movements - it’s very simple, it’s very graphic and you can see how your fund is tracking,” Ms Gretton said.

“I show them that because I want to build their understanding of how the stock market works, so that when they do start earning they’re going to see the value in investing their money rather than just spending.”

The spender

Kay White and her husband from the inner west of Sydney usually make an annual trip to Ireland to see family, but they have not been since Christmas 2019.

Even though they stay with family and friends, the cost of flexible flights, travelling around Ireland, spending money and insurance could easily add up to $10,000 for the two of them.

For the first 18 months, the couple went nowhere and spent barely anything. However, in the past six months, they have travelled within Australia instead.

In June, before the long Delta lockdown, White took a trip to the Northern Territory to hike the Larapinta Trail, and her husband came and joined her afterwards to visit Alice Springs and Kings Canyon.

Then in November, the couple stayed at the exclusive Gaia Retreat & Spa in Byron Bay, which cost about $8000 for five days. Ms White said they could not find any accommodation in Byron for less than $400 or $500 a night, with no breakfast, and did not want to self-cater so they decided to splurge.

“It was just really nice. We wanted to stay in a place with really nice food, and we enjoyed doing yoga every morning and while the weather wasn’t great, it was lovely,” she said.

“It’s not a holiday we would normally take, but it was comparable in cost with a trip to Ireland.”

The couple is also planning to build an outdoor entertaining space at home.

Bunnings has claimed the title of Australia’s strongest brand as the Wesfarmers-owned hardware chain benefitted from consumers turning to renovation projects and gardening through prolonged COVID-19 lockdowns, with Woolworths and Officeworks rounding out the top three strongest brands.

Bunnings took the top spot in Brand Finance Australia’s annual analysis of brand strength, which is a calculation of examining a brand’s marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation, from 2021’s leader Commonwealth Bank.

Bunnings led the charge on improvements in brand strength thanks to outstanding public perceptions of the brand’s quality, innovation, value for money and customer service.

Bunnings managing director Mike Schneider said the acknowledgement in the Brand Finance rankings is a credit to the entire team “who provide friendly and helpful service every day and often go above and beyond to make sure customers have the best experience – whether that’s in store, online or out in their local community”.

“Even during a really challenging period for all Australians, the resilience, care and support our team have demonstrated is testament to the importance of creating a people-first culture, and why our team remains the heart of the Bunnings brand,” he said.

Brand Finance Australia managing director Mark Crowe said Bunnings’ efforts “responding to residential and trade demand along with aiding the vaccination rollout has not gone unnoticed by consumers”.

Mr Crowe said consumers ranked the hardware chain highly in terms of quality, innovation, value for money, loyalty and customer service.

Woolworths tops brand value ranking

Woolworths was Australia’s second-strongest brand, while also retaining its place on top of the Brand Finance brand value rankings for the third year in a row, with a brand value growth of 9 per cent to $13.7 billion.

The brand value rankings are calculated on a number of metrics to determine how much of a company’s profits are attributable to the brand, including enterprise value, branded business value, brand contribution, and brand value combined with brand strength.

The supermarket chain scored highly after playing a pivotal role in keeping supply going throughout the pandemic with the rankings finalised before supply chain issues created empty supermarket shelves.

Woolworths group chief marketing officer Andrew Hicks said the omicron wave’s effect on the food and grocery supply chain has been well documented, requiring Woolworths to “again pivot how we communicate and engage our customers with our brand”.

“It has always been important to us to be transparent and responsive in our communications whilst always putting the variety of needs our customers have, especially in times like these, at the heart of our decision-making,” he said.

Changing consumer habits

Mr Hicks pointed to changing consumer habits over the year, as customers move to shop across stores, the Woolworths website and app while also using new services like Scan & Go and Direct to Boot.

“Our focus as a brand is to ensure that our customers have the best shopping experience possible irrespective of how or when they choose to shop with us,” he said.

Mr Hicks said no matter the challenges the supermarket brand has faced through the pandemic, it has “remained true to what it means to be today’s fresh food people with the customer at the centre of the decision-making for the Woolworths brand”.

“We are not only guided by the Woolworths purpose to bring a little good to everyone every day, we’ve acted on it and have tried to live up to it in all we’ve done. After all, a little good can go a long way at times like these,” he said.

“This focus on our purpose with customers at the heart is no doubt contributing to the latest Brand Finance evaluation, and it’s encouraging to see the brand’s value increasing as a result.

“COVID will continue to present ongoing challenges, but if we continue to ensure the decisions we’re taking remain aligned to our customers and communities’ needs then we’d expect that to continue to translate into a strong and valuable Woolworths brand.“

Bunnings’ brand value was estimated to be $4.005 billion, up on last year’s valuation of $2.732 billion, landing the hardware chain 12th on the Brand Finance Australia’s brand value rankings. Officeworks was Australia’s third strongest brand, but landed 70th on the brand value rankings with an estimated worth of $473 million.

Bega, Keno, BetEasy

This year, the total value of Australia’s top 100 brands has risen to $161.1 billion, up 11 per cent from last year. Of the top 100, 66 companies increased their brand value, 22 decreased in brand value, two remained the same, and 10 new companies joined the ranking including Bega, Keno, BetEasy, the Good Guys and Vodafone

Retail remained Australia’s most valuable sector in terms of overall brand value for the second consecutive year with a sector worth of $40.4 billion as retail brands continued to outperform banking, mining and telecoms during the pandemic, with an overall growth of 15 per cent, accounting in turn for 25 per cent of Australia’s total brand value.

Telstra was Australia’s second most valuable brand, with mining conglomerate BHP up from fifth place to third.

Qantas returns

The travel sector showed signs of improvement, with Qantas re-entering the top 10 strongest Australian brands, jumping five spots to seventh position as the brand slowly recovers from the travel sector’s standstill caused by the COVID-19 pandemic.

“Qantas’ recovery is testament to the iconic brand’s enduring strength that fortified the business against the impact of the pandemic, but also ensured it was well-placed to take advantage of the recovery in the airline sector,” Mr Crowe said.

The banking sector continues on the road to recovery after the big four banks all suffered brand valuation declines in 2021, but the traditional banks are increasingly challenged by smaller emerging rivals pushing for digitisation.

Commonwealth Bank dropped from third to fifth most valuable brand in the rankings and also lost its crown as Australia’s strongest brand, dropping to eighth position on that ranking. The ANZ and Westpac’s brand strength were also both down due to lower scores across customer perception but Macquarie boosted its brand strength score while its brand value also grew 35 per cent to reach $4.7 billion.

“As Australian consumers are less inclined to choose the traditional banking industry, the big four brands have declined in strength, exacerbated by issues pertaining to misleading consumers over credit insurance,” Mr Crowe said.

“While the traditional banks remain a stalwart of the Australian banking industry in name, their brands will have to work hard on improving reputation to defend the competition from smaller emerging banks and nimble fintech brands."

For the first time ever, a runway show for people with disabilities will feature at Afterpay Australian Fashion Week (AAFW) in May. 

The consumer show will put the Adaptive Clothing Collective in the spotlight, a new group of three adaptive fashion labels which aim to “bring strength and unity of message and voice to mainstream media, retail and fashion industries”. Fashion brand Christina Stephens, led by Jessie Sadler, is one of the founding members of the group. 

This year, AAFW has again worked with disability consultants Lisa Cox and Nikki Hind to ensure the inclusivity of the event, from the programming to the runway shows. 

Last year was the first time models with disabilities featured at AAFW, including Paralympians Reed McCracken, Sarah Walsh and Michael Roeger. The event was faced with controversy when several of the models struggled to go down the runway in the closing show.

“It was an incredible experience to be a part of a fashion show…when I was growing up, I knew that I always wanted to be a Paralympian and represent Australia. But I’d seen that on TV and I’d seen people who had gone to the Paralympics just like me, but never once saw someone with a disability walking the catwalk at Fashion Week,” Walsh said in an interview with Athletics NSW after the event.

“To be able to pave the way for the next generation of people with a disability, to be able to do something like that and make more worlds and more organisations more inclusive is pretty special.”

First Nations to the front

AAFW has focused on becoming more diverse and inclusive recently and this year, Indigenous designers will make a return to the event in a wider capacity. 

First Nations Fashion and Design will kick off AAFW with a Welcome to Country, while a runway show from the Indigenous Fashion Projects will feature on the program, including brands such as Indii, Kirrikin, Liandra Swim, Native Swimwear, Ngali and MAARA Collective. First Nations Fashion and Design will also present a discussion called Yours, Mine and Ours and feature in the multi-brand closing show.

“We have a global platform and we’ve always leveraged that platform to shine a light on emerging talent as well our established designers and the best Australia has to offer,” vice president and managing director at IMG Natalie Xenita told Inside Retail. 

“It makes sense for us to really make sure we use our platform to support First Nations designers as well. We want to put a  spotlight on them and there have been some amazing things that have come out of it in the last year. We’re really harnessing that and building on that success to do things even bigger and better this year.” 

Afterpay Australian Fashion Week will run from 9-13 May at Carriageworks in Sydney and virtually at AAFW.com, featuring both industry and consumer events. 

Greenlit Brands and Fantastic Furniture have overcome “the ongoing headwinds of Covid-19” to deliver strong growth last year, according to CEO Michael Ford. 

“The progress we made against our strategic priorities, and the strength of our balance sheet gives us much confidence as we continue to invest and grow our businesses,” he said, releasing the results of the two businesses of Steinhoff International’s Asia Pacific operations. 

All of the businesses within the group were both profitable and cashflow positive, reflecting a significant turnaround from the preceding years. 

Combined group revenue for the year to December was $1.3 billion, up 8.6 per cent year on year, despite Covid lockdowns impacting store trading hours in both Australia and New Zealand. Online sales surged 17.7 per cent to reach $295.8 million.

Combined EBITDA before extraordinary costs reached $107.3 million, an improvement of 15 per cent over 2020. 

Ford, pictured above, said the e-commerce boost reflected the company’s execution of a contemporary, digital-first strategy across all of its brands.

Both Greenlit Brands and Fantastic Furniture ended the year debt-free and with cash reserves of $198.3 million, while the sale of Plush Sofas to Nick Scali resulted in gross proceeds of $110.6 million subsequent to the financial year-end. 

Ford said that while Greenlit Brands remained financially independent from its troubled South African parent group Steinhoff International, there was “no deadline for transacting the remaining Australasian businesses”. Meanwhile, the company would continue to implement strategic initiatives and invest in its brands and people, while evaluating strategic options and opportunities.

“The financial and operational strength of Greenlit Brands, underpinned by our suite of iconic brands, all of which are profitable and cash-flow positive, puts us in a strong position to maximise value for our shareholders. We are not in a rush to transact our businesses,” said Ford. 

“We continue to evaluate opportunities from a position of strength.”

Country Road is set to further advance its sustainability mission, launching its new Towards Circularity collection next week. 

The new range will utilise the brand's own garment waste to create new products for men, women and teens. 

Towards Circularity is a result of a collaborative approach between Country Road and it's long-standing supplier Kashion. 

Country Road brand impact and community manager Fabia Pryor said the business is proud to take this next step on its mission.

"We are so excited to launch Towards Circularity with Kashion.

"Throughout the garment production process, valuable fabric is usually lost due to cutting or faults.

"We’ve worked together to create a more circular process that transforms Country Road off-cuts and factory waste.

"This project is the next step in our journey towards greater circular design initiatives across the business," she said. 

The Towards Circularity collection is made with 30% garment waste combined with 70% virgin cotton, for garment integrity, strength and durability. 

The collection has been 12 months in the making and has the potential to divert 100,000 kilograms of textile waste from landfill per year. 

Kashion sales manager Lisa said that the first challenge in creating the collection was finding a factory who could blend the recycled and virgin materials together, for Kashion to use. 

"The big challenge was to find a spinner who had the ability and was willing to support us.

"There were only a few spinners who could develop it. 

"For the recycled cotton program, we have to sort off-cuts by colours and different fabric quality.

"Strict collection requirements are necessary to ensure the final recycled yarn is good quality, otherwise it will not be up to standard to knit into fabric.

"So, the big change in the internal process is in how to sort off-cuts properly and reuse them," she said. 

The sorting process has opened up new jobs at Kashion, giving less-skilled workers the opportunity to be employed in the garment industry. 

The Towards Circularity collection features sweat tops, pants and t-shirts. 

Country Road has hopes to expand the collection further and introduce new garments to the range. 

Towards Circularity launches in store and online from February 07. 

Major retailers Kogan and Premier Investments have revealed Australians are still keen to do their shopping online, but both companies have warned that pandemic-inspired supply chain struggles are continuing to seriously disrupt operations.

In a trading update on Thursday morning, online-only seller Kogan revealed a steep fall in its earnings for the first half of fiscal 2022 after a swathe of higher marketing costs, supply chain delays, and millions in executive compensation weakened the business’ bottom line.

Gross profit at the business fell 4.4 per cent to $112.4 million as the company was forced to spend more on advertising and faced higher costs shipping and stocking items as COVID-induced supply chain disruptions wore on the business.

Retailers across the globe have wrestled with unprecedented levels of supply chain disruption during the pandemic, which has caused the repeated closure of numerous major ports, sharply increased consumer demand, and led to shortages in key items such as microchips.

Kogan’s adjusted earnings fell even further, down 58 per cent to $21.7 million, which Kogan attributed to “significant equity-based compensation expenses” following the business’ annual general meeting in 2020, where founders Ruslan Kogan and David Schafer were awarded $110 million in a controversial incentives grant.

Shares in Kogan plummeted 15 per cent to $5.99 after the market opened, with analysts labelling the result as a miss on expectations and raising concerns about the company’s lower margins and higher costs spreading into the rest of the financial year.

However, overall sales at the retailer grew over the period, up 9 per cent to $698 million, as shoppers continued to take their retail therapy online through lockdowns and the highly infectious Omicron wave. Kogan’s total active users also grew by 10 per cent to crack 4 million for the first time.

It was a similar story at Smiggle, Jay Jays and Peter Alexander owner Premier, which told investors in its update it had recorded a 27 per cent spike in online sales to $195 million, making up a quarter of Premier’s total sales for the half.

Premier Investments chief executive Richard Murray also warned the company had experienced logistical difficulties over the half, however, the business’ earnings were not as badly affected as gother businesses, with the retailer forecasting profit growth of 4.2 to 5.3 per cent to between $209.5 million and $211.5 million.

“The group has weathered the numerous logistical challenges during the half through meticulous planning and by taking full advantage of Premier’s owned Australian Distribution Centre,” he said.

“Reviews of the group’s distribution centre capabilities in both Australia and New Zealand continue as part of a long-term strategy to meet ongoing demand as customers change their shopping behaviour in the wake of COVID-19.”

Alongside its earnings, Premier – which is chaired by billionaire retailer Solomon Lew – said its sales had also grown over the first half of the new financial year, with trade at the Jay Jays, Smiggle and Peter Alexander owner up 0.5 per cent to $769 million.

Shares in Premier rose 6.3 per cent to $28.22. Morgan Stanley analyst Joseph Michael said the company’s track record of beating market expectations had continued, with “strong execution with no apparent supply chain issues, signs of cost inflation, or issues with staff availability”.

Justin Seskin grew up in the rag trade and has just launched online factory outlet The Dom. Here, he reveals the changes he’d like to see in the industry and what he’s learnt from his father, retail veteran Hilton Seskin.

Inside Retail: How are things tracking since you launched online designer fashion outlet The Dom? 

Justin Seskin: The first period is always very much about talking to the customer, testing, learning, and being agile. We’ve learnt a lot, changed a lot, and we’re super pleased with the resulting metrics.

One of my key aims in launching The Dom was to provide an elevated, fashionable shopping experience for off-price product. We know from the research we conducted that over 80 per cent of Gen Z and Millennials say looking good is important but price is almost as important when buying fashion; 50 per cent of Gen Z and Millennial wardrobes were bought on sale and nearly three-quarters of Gen Z and Millennials have waited for an item to go on sale. This isn’t something that exists on the fringe but a major component of the consumer’s fashion experience.

We’ve also done a lot of testing around price and promo messaging and it’s clear that the industry standards of red pen and shouty signage are not what the customer is looking for. Finding the balance between giving ​the customer the fashion experience they want and making the off-price nature of the product clear is paramount for us.

IR: What are your plans for The Dom in 2022? 

JS: Plenty. We have a big year ahead. Building brand awareness is a key focus in our first full year. This will coincide with the arrival of some big international brands going live, new precincts going live, and significant site developments.

IR: Fashion is one of the biggest culprits contributing to landfill, particularly with surplus stock, which The Dom aims to alleviate. If there was anything you could change about the fashion industry, what would it be? 

JS: The fashion consumer has been trained into trends – thinking new season styles are the only way to look good. The Dom aims to change this perception. Real fashion is about personal style, not fleeting trends. The Dom gives consumers an experience where they can still have all the feels of buying the latest item – inspiration, love, excitement, desire – except that it’s not (and comes at a great discount, too). We are here to break down the taboos associated with outlet shopping in a way that drives new consumer behaviours, and to provide viable, affordable alternatives to the perpetual cycle of trends. Outlet doesn’t have to be a dirty word – we are here to make it just as good as the real thing. I’d love to see a wider industry push on this sentiment, to break the cycle.

IR: Your dad is an adviser at The Dom. What is some of the advice he’s given you since you launched the business? 

JS: Like any true retailer, listen to the customer, be agile, don’t stay flat footed and nothing is ever good enough!

IR: You’ve worked in fashion in leadership roles for more than 10 years. What have been some of the most challenging experiences that you’ve had during your career?

JS: One of the biggest challenges and learnings in my career was working with brands whose values aren’t aligned with the customers’. The customer is more aware than ever and the business’s values absolutely need to talk to those of the customers if it wants to achieve sustainable success.

IR: If you could swap jobs with anyone for a day, who would it be? 

JS: Elon Musk, so I can see what the future looks like. But only for a day. I don’t think I could do his job for more than a day.

IR: What are some of the retail businesses that you admire and why?

JS: I like the positive disruptors – retailers doing good for the supplier and customer. There needs to be equilibrium. Sports giant Nike for their social stance and brand longevity. Secondhand marketplace Depop for the way they have changed the perception of secondhand shopping. Fashion site Lyst for the way they have used tech and data to give the customer a new and refreshing way to shop, and grocery delivery app Milkrun for the way they have brought fun to a normally mundane activity. All of these are things we aspire to bring into The Dom.

A “particularly strong” run-up to Christmas saw department-store chain Myer achieve solid sales growth in the five months to January 1, despite the company losing 27 per cent of its brick-and-mortar store trading days due to Covid-related trading restrictions. 

In a trading update released on the eve of the Australia Day public holiday, Myer reported sales growth of 12.3 per cent year on year, and a 17.1-per-cent boost in the two months to the end of December, which were not impacted by lockdowns. 

“While we are seeing Omicron impact sales post Christmas, we will continue to focus on growing our strong online business, ongoing engagement across our Myer One program and disciplined management of costs and inventory,” CEO John King said in a statement. 

“The results demonstrate the continued momentum of our Customer First Plan and the resilience of the business to overcome the initial months of lockdowns and still record significant sales growth during this period.”

Myer’s momentum in online sales growth remained strong, with group online sales 54.3-per-cent higher than in the same period a year earlier. Online sales now account for 27.7 per cent of group turnover, up from 20.2 per cent the prior year. 

However, the company warned that while operating gross profit had improved, other factors were likely to impact on final profit. While sales were up for the five months, the cost of sales had increased as well – particularly with the absence of government JobKeeper support. And since January 1, the advent of Omicron has negatively impacted trading. 

“Myer’s strong online channel continues to provide customers choice in times of uncertainty and management’s focus on inventory, cash and the balance sheet will position the company well to manage this phase of the pandemic,” the statement concluded. Interim results for the period to January 29 will be released in early March.