Kennedy is preparing to launch small-format luxury department stores, buoyed by strong online revenue and growth in new watch categories.
Kennedy CEO Aaron Faraguna told Ragtrader the format would deliver core products, alongside complementary categories.
“Think luxury timepieces and jewelry - which we already sell - accompanied by fine fragrance, accessories, small leather goods, and just creating a complete end-to-end luxury shopping destination."
Part of the new store transformation will include the introduction of premium smart watches, which, in the luxury watch industry, are called connected watches.
Watchmaker brand TAG Heuer recently released their Connected Calibre E4 collection, which starts from $1,800.
Despite what many would consider an economic threat to premium watch sales, Faraguna said the rise of smartwatches has been a welcome trend.
“It'd be rare to find someone with a connected watch that hasn't also now invested in what we call a traditional timepiece as well.
“I think the interest in connected watches has expanded the interest in horology and it's pushed them into traditional timepieces as well.
“A lot of my team members will say a similar thing."
The move towards small-format department stores has been buoyed by strong sales in through Kennedy's online portals, which allowed the company to skim through supply chain issues that many other retailers faced over the previous two years.
“From Kennedy's perspective, we've obviously traded through a number of lockdowns in various markets," said Faraguna. “But what we were able to do consistently is really focus on our digital channels.
"Eighty per cent of all our sales come via a digital channel; whether it's an EDM, or it's our website, or it's Instagram.
“We're then able to channel our customers through our team members – who at the time were working from home.
“They were able to interact via digital clienteling, video appointments; we use live chat, we organize covid-safe home delivery. And a number of those things are still in place.
“I think a number of clients, whilst foot traffic has definitely returned, still prefer to interact digitally."
According to Faraguna, the current trends around timepieces are about consumers wanting to make a statement with their accessories.
“Particularly during the pandemic, a lot of people had a lot of time to spend at home and do research on various social media channels. And the whole interest in horology in this market has really exploded.
“I think people realize that while a watch tells us the time, it also tells the world about you.
“We’re seeing that come through, and obviously demand for those more interesting bespoke timepieces.
“But also classic pieces, special sentimental pieces, special events; people want to celebrate and it's right across the board.”
As well as the new watch category, Kennedy will also increase its number of jewelry brands, joining the six new brands they introduced this year.
“We’re very happy with the way the portfolio is coming together.”
Kennedy currently has 14 boutiques across Sydney, Melbourne and Perth. More information on the new small-format luxury department stores will be announced later this year