Smiggle to spread wings
PREMIER Investments is launching Smiggle into 10 more countries after record sales from the children-focused stationery stores helped lift first-half profit 13 per cent to $88.8 million.
Premier said yesterday it is pushing into South Korea, Thailand, Indonesia, the Philippines and the UAE in partnership with local operators and into Canada, and into France, Italy, Germany and Spain through Amazon Europe.
Smiggle’s medium-term sales targets have been pushed back due to the impact of Brexit, but the brand’s latest expansion will tap a combined population of over 775 million people and deliver higher margins from lower capital expenditure. Smiggle recorded $178.8 million in sales for the six months to January 26, while Premier’s total sales revenue jumped 8.0 per cent to $680.2 million.
“Smiggle’s accelerated global growth strategy is progressing well with partnerships announced today with leading iconic retailers providing significant new exposure of the brand,” Premier Retail chief executive Mark McInnes said.
China could be Smiggle’s next destination, with Premier in negotiations with online giant Alibaba and other companies over launching Smiggle into other new markets.
Smiggle’s online sales beat expectations by accounting for 19 per cent of UK and 11 per cent of Australian sales, and Premier will launch a New Zealand site during the second half.
But Premier pushed its target for Smiggle to hit $450 million in global sales back from the 2020 financial year to as late as the end of the 2022 calendar year.
“Brexit, ‘a once in a lifetime event’, negatively affected the entire UK economy and sapped consumer confidence over the critical Christmas period,” Premier said.
The retail-focused investment firm shrugged off challenging retail conditions with record first-half sales from its Peter Alexander sleepwear brand. Apparel sales from brands including Just Jeans and Jay Jays also rose 7.5 per cent, while like-for-like apparel sales growth was even stronger as Premier closed unprofitable stores.