BABY BUNTING TO BREAK INTO $5BN MARKET
BABY Bunting has its eyes set beyond its current base to the broader $5.1bn baby goods market that would expand its one-stop baby and maternity stores further into clothing, nappies, baby food and toys.
The baby goods retail chain booked a net profit of $8.15m for the December half year, up 12.2 per cent on the back of a 10 per cent surge in revenue to $239.1m.
Baby Bunting chief executive Matt Spencer said longer term the retailer was looking at expansion opportunities.
“If you just think about the addressable market that we‘ve got it is about $2.5bn and there are three categories which are back from being a billion dollars, so food, nappies and apparel, and they are only a very small component of our overall offer,” Mr
Spencer said, also noting there was potential to expand its toy offering.
Baby Bunting, which currently has 64 stores in Australia, said online sales grew 32.6 per cent to $56.8m, accounting for 23.8 per cent of total sales, up from 19.7 per cent in the previous first half.