Major fashion brands such as Incu, Spotlight and Rebel are flagging brick-and-mortar expansion as a key priority for the year.
With eCommerce continuing to plateau following a surge through Covid – and as consumers slowly return to CBDs – retailers are considering balancing out their sales channels.
Australian fashion brand Incu has spent much of 2022 updating its store portfolio, following a bumper two years in its online sales.
Earlier this year, the brand unveiled its largest store at Chadstone in Melbourne, and the Galeries' Mens Space in Sydney CBD was expanded.
Following this, the brand launched two additional Rag & Bone stores in both Doncaster, Victoria and Chatswood Chase, NSW.
Incu CEO Doug Low said he is also preparing to open a new A.P.C. store in Sydney in May 2023.
“And then in late October [2023], we're looking at doing a remix of our two Galeries women's stores – we're looking at making one into a ready-to-wear store, and the other one solely focused on footwear and accessories.”
According to Low, Incu has a 20/80 mix between online and brick-and-mortar sales, respectively.
“If you had spoken to me a year ago, I think very much the messaging was we're digital first,” Low said. “Whereas now we're realising that we're omni-first.
“80% of our business is still coming from brick-and-mortar – that's what people are very familiar with.
"We understand it a lot better because that's where our roots have come from, and I feel like we're still learning the digital space.
“There's still a couple of things that we need to fine tune."
Australian retailer Rebel is also planning to open more stores across Australia, with a keen focus on strengthening customer experience through its rCX format stores.
This comes as the company recorded a 1.3% increase in sales to $1.21 billion for FY2022, which Rebel puts down to increased contribution from its rCX format stores, where in-store sales make up 78% of total sales.
Rebel GM of Retail Tom Leak said this focus on physical locations is based on customer experience and financial trends.
“Physical retail stores allow Rebel to showcase our in-store experiences to inspire customers, offering the latest in global sporting looks and state-of-the-art technology, as well as incorporating interactive football and basketball zones so customers can try before they buy,” Leak said.
“Our retail stores bring a complete sports retail experience under one roof, creating a landmark sport retail destination.
“Interestingly, across Super Retail Group (parent company of rebel) you would see that in the first half of this financial year, 90 per cent of our transactions involved a customer visiting a store.
“And the key trend which supports this statistic, is the increased uptake of Click & Collect, which grew faster than home delivery and represented 13% of first half sales.
“Stores provide a critical role in the digital retail space. Click & Collect is attractive to many of our customers because it leverages the convenient location of our national store network, gives the customer certainty that the product is available and allows for collection almost immediately.”
Following the opening of three new stores this year, including its latest in Penrith, Super Retail Group (SRG) CEO Anthony Heraghty confirmed Rebel will open five additional rCX stores in FY2023.
Australian retailer Spotlight is also set to boost its bricks-and-mortar footprint both in Australia and overseas.
Spotlight CEO Quentin Gracanin outlined this plan, noting that the company will launch eight new stores, with around 40 store refurbishments in the works.
“We will continue to expand our store network across Australia, New Zealand and Asia, whilst also driving our eCommerce side of the business, including further development of a complete omnichannel experience for our customers,” Gracanin said.
“Our plans include further investment in enhanced online experiences and instore services for our customers.
“Whilst the online area of our business continues with double-digit growth, strategically we will continue with investment in our bricks and mortar stores, as well as the online experience for our customers.”
As well as expanding their store locations, the three major retailers are also implementing unique initiatives towards their omnichannel goals.
Incu continues to tailor its stock for each store location, with Doug Low noting some notable differences between local consumers.
In Chadstone, Victoria, for instance, customers desire big logos and branded items, whereas in Pacific Fair, consumers are still discovering the Incu brands.
“So, then the mix is tailored to them,” Low said. “Whereas in Sydney and Melbourne, the audience there knows us a little bit more.”
Rebel’s rCX store concept is also buoyed by longstanding partnerships with key trade partners such as Nike, Adidas, Under Armour, Puma, ASICS and New Balance, some of which include products exclusive to Rebel.
In mid-August, the brand announced a collaboration with Australian footwear label P.E Nation.
P.E. Nation's athleisure product range will be stocked in five of Rebel's stores nationwide; Mt Gravatt (QLD), Parramatta (NSW), Penrith (NSW), Highpoint (VIC) and Rundle Mall (SA).
Spotlight is also preparing unique initiatives, particularly in investments within services and technology.
Ease of service is of particular importance for the company, noted by its rollout of an additional 10 self-serve checkouts “in the coming months.”
According to Spotlight head of marketing Padma Palini, this “complements” its 4-hour click and collection program.
While the company will continue to focus on physical locations and customer experiences, Palani noted that there are new incoming challenges to face.
“Like other businesses, COVID has posed certain challenges,” Palani said. “Now, in a post-COVID world, we are facing record levels of inflation and a higher cost of living which comes with its own set of challenges.
“Customer experience is always front of mind throughout these challenges."