Profits increased 6 times! Australian home furnishing e-commerce TPW is developing rapidly

Under the epidemic, while physical businesses suffered shocks, e-commerce experienced rapid development. Consumers shopped online more frequently, driving the growth of online sales in all walks of life.

TPW profits increased sixfold

Office furniture has remained popular during the pandemic as many Australians have spent much of their time at home and opted to shop online.

According to the Sydney Morning Herald, Australian online homewares and furniture retailer TPW ( Temple & Webster ) reported a six-fold increase in profits in the first half of the year as its sales surged. In the six months to the end of December, its EBITDA (earnings before interest, tax, depreciation and amortization) increased by 556%.

TPW doubled its number of online active customers to 687,000 and saw sales increase by 118%.

TPW will increase investment

PowerRetail news shows that Australian shoppers aged between 24 and 39 are entering and becoming TPW's core customer base. This emerging online consumption habit may be the result of the epidemic.

And, taking advantage of Australia’s online boom, TPW plans to improve its online sales capabilities through data, personalisation, artificial intelligence and augmented reality.

Additionally, the retailer will aim to increase brand awareness from 55% to over 80% across digital and non-digital channels in the coming months .

TPW CEO Mark Coulter said the company's current focus is on converting revenue growth into more significant and profitable growth, which will enable TPW to make greater investments in areas of its business such as data, technology and further marketing.

Currently, 75% of the company ’s products come from international suppliers, but the company is looking to expand its higher-margin private label range. “Private label is currently 25% of sales and could be 30%,” Mr Coulter said.

TPW's business continues to grow in the new year , with revenue up more than 100% in January. Coulter said the company will consider reinvesting some of its $85 million in cash to consolidate its gains in market share.

The company's chief financial officer , Mark Tayler, said the company does not expect to encounter any significant adverse factors by 2021 and is confident that it can continue to maintain a high growth rate in 2021.

It can be seen that Australian e-commerce is in a period of rapid growth, and the home furnishing industry may usher in a period of explosive growth. Retailers should seize the opportunity and occupy a larger market share based on consumer demand.

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