Hallenstein Glasson boss alert to Amazon threat
Online trading at Hallenstein Glasson Holdings will help the fashion retailer post a Christmas trading period that may be 50 per cent higher than last season.
Digital purchases have accelerated to more than 12 per cent of all sales compared with 9 per cent a year ago.
New group chief executive Mark Goddard told the wellattended annual meeting in Christchurch that rivalry with global online retailer Amazon would revolve around the speed of delivery of goods.
Hallenstein Glasson would be unlikely to replicate product lines but was mindful Amazon was offering same-day services and even half-day delivery in places such as Japan, Goddard said.
In response to a query, Goddard said Hallenstein Glasson would not use Amazon as a distributor because that would mean losing control of brands and pricing.
The company was building its own digital team, which kept a close track on social media to learn what people were thinking about brands and latest fashions.
Chairman Warren Bell said Hallenstein Glasson was investing more in technology in recognition of the importance of engagement with customers online.
At the same time, physical shops with their layout and customer service remained integral.
The first 19 weeks of the new financial year had seen sales grow 16 per cent on the previous year.
‘‘The improved buying strategy of the individual brands has allowed the gross margin rate to also increase on last year.
‘‘Customers have reacted well to our new season’s product offer and web sales continue to show increased rates of growth.
‘‘Should this current trading momentum continue through to February 2018, the full summer season net trading profit could be more than 50 per cent ahead of the prior corresponding period.’’
Bell paid tribute to outgoing chief executive Graeme Popplewell, who will end 46 years with the company.
Shareholders will receive a final dividend of 17 cents a share, taking the total dividend over the 2017 year to 31.5c a share.
Sales for the 2017 year were $239 million ($223m in 2016) and the profit after tax was $17m, an increase of 26 per cent over the previous year.
The share price has remained strong at $3.43 a share.