E-commerce sales increased by 227%! LFL in Canada is developing rapidly

LFL (Leon's Furniture Limited), one of Canada's largest home furnishings retailers, sells products including furniture, major appliances and home electronics. Recently, the company announced record financial results for the fourth quarter of 2020.

Record sales

Total LFL systemwide sales increased 10.6% to a record $830.9 million in the fourth quarter of 2020 , compared with $751.3 million in the fourth quarter of 2019.

And, with growth across all product categories , LFL's revenue for the quarter was $675.1 million, up 8.6% year-over-year, up from $621.4 million in the fourth quarter of 2019. Meanwhile, gross margin across all product categories improved from 44.88% in the fourth quarter of 2019 to 45.73% in the fourth quarter of 2020.

Overall, LFL's adjusted EBITDA increased 20.2% to $106 million in the fourth quarter of 2020 compared to the fourth quarter of 2019.

E-commerce business performed well

In terms of e-commerce business, LFL's e-commerce sales increased by 227% this quarter , continuing its trend of triple-digit growth in e-commerce business.

The company's continued focus on e- commerce , including its online chat program, helped drive a 227% year-over-year increase in e-commerce-driven sales in the quarter . E-commerce platforms are key to the company's ability to attract new customers as consumers begin to shop online.

The strong growth momentum of e-commerce sales this quarter shows that the company's e-commerce platform has fairly good scalability .

Edward Leon, CEO of LFL Group , said : " LFL overcame the challenges brought by the epidemic and achieved solid growth in its performance in fiscal 2020. I am particularly proud of our team's performance in the fourth quarter, with e-commerce driven sales growth of more than 200%. In 2020, annual sales driven by e-commerce increased more than fivefold year-on-year. At the same time, we will continue to see the entire industry maintain its growth momentum in 2021. "

LFL is now clearly positioned as one of the strongest omni-channel retailers in Canada today . With the country's largest "last mile" delivery network, LFL provides customers with the opportunity to shop anytime, anywhere .

Its management said that since LFL moved its online store to the Shopify Plus platform, it has provided customers with a better experience and more interaction, and the platform will continue to provide the company with greater competitive advantages.

In the long term, LFL believes that the Canadian economy remains relatively strong . Although it is difficult to assess future consumer confidence and its impact on the retail industry, LFL is cautiously optimistic about the growth of its sales and profitability. LFL will continue to invest in digital innovation and believes that this will drive more customers to visit its Canadian online e-commerce website.

In addition, Statista data shows that furniture and home furnishings sales are expected to account for 11.3% of Canada's total retail e-commerce sales by 2024. This shows that furniture and home furnishings have great development potential in Canada.

Canada

E-commerce

Home Furnishing Retailers

LFL