Mitre 10’s online sales grew by 48 percent last year. The hardware chain’s focus on ecommerce is just one of the initiatives that’s contributed to a year-on-year revenue bump of 9.8 percent in its latest annual results.
Group revenue for the year to June 30 was a total of $1.364 billion, up from $1.240 in 2016. Mitre 10 chair Martin Dippie attributed the strong performance to a number of external and internal factors, including a buoyant property market, sustained consumer confidence, and a committed team of members.
Mitre 10 stores are owned by store owners who are members of the Mitre 10 Co-Operative, which sources products and provides marketing and retailing services to the stores.
“Our customers have responded to our expanding product range, and ongoing investment in providing the highest level of customer service such as our new retail and trade online platforms and the innovative showrooms launched instore,” Dippie says.
“Our members are continually investing in their stores, upgrading, expanding and finding new ways to deliver the best in-store experience for our customers. Complementing this in-store growth is our commitment to create a complete online experience for our customers as well, from inspiration to advice and product purchase – we’re focused on delivering the best options, product range and service to customers.”
As well as reporting growth in online sales of 48 percent, Mitre 10 added another 7,000 SKUs to its online product range.
Mitre 10 chief executive Neil Cowie says omnichannel appeals strongly to both retail and trade customers because purchasing online offers the freedom to access inspiration, advice and price comparisons 24/7.
Shoppers “do their homework” online, says Cowie, and can then visit their local bricks and mortar store to view products in the showroom and access advice from staff. The co-operative has 81 stores around New Zealand and employs around 5,000 team members.
“Our recent kitchen showroom rollout helped drive a strong increase in kitchen sales, compared to 2016, and we are also rolling out our new bathroom showrooms which we expect will perform well.”
Trade continues to be a key part of Mitre 10’s offering, with building supplies generating sales growth of around 15 percent this year. Growth in direct-to-site sales and timber sales reflects a buoyant construction sector and strong demand for new housing.
Cowie says Mitre 10 members have continued to invest in the company’s trade network, mentioning an update to its online trade ordering portal, the Mitre 10 Trade Hub.
The company is confident about its long-term future, says Dippie, signaling a number of new stores and existing store expansion opportunities across the country.