As major retailers like Myer and David Jones struggle in the current economic climate, outdoors clothing retailer Kathmandu records a significant improvement with sales up 25.4% and earnings up 32%.
This was achieved on the back of 14 new store openings in 2010/2011 but is still an impressive result. They put their success down to a number of factors including a 30% increase in their online Summit Club membership, increased stock holdings during key promotional periods to take advantage of demand, and re-branding.
We recently quoted one of the Reserve Bank Governor’s who identified that consumers were moving away from purchases of “stuff” to purchasing lifestyle experiences. Kathmandu’s CEO Peter Halkett explained their performance this way – “So whilst it is clear that consumers have generally been reducing debt and are very cost conscious, we believe those who enjoy outdoor activity and travel have continued to spend money on these pursuits, and have seen the past year as an opportunity to get good value from that spend.”
CONCLUSION: To emulate Kathmandu’s success –
(1) Improve your online presence.
(2) Make sure you have enough stock to fully meet demand.
(3) Enhance the lifestyle aspect of your range.
Sigh!! – It always looks so easy in summary doesn’t it?