Womenswear retailer Noni B has revealed the secrets behind its 10-fold increase in full year profits to $2.7 million, up from $231,000 made in the same period last year.
As previously reported on ragtrader.com.au, Noni B achieved results at the top end of its guidance, provided in July, with a sales revenue of $119.7 million – an increase of two per cent from $117.3 million over the previous year.
This week, the company's chairman Lynn Wood, along with joint managing directors David and James Kindl, revealed the details behind the business's improved performance which they said “resulted mainly from its success in differentiating Noni B in a very competitive market”.
James Kindl, responsible for Noni B's retail operations, human resources, buying and marketing, said the company's success in the 2012 fiscal year was significantly underpinned by its personal customer service which “has always been a Noni B strength”, its 'Styling by Appointment' service, and its innovation awards program to motivate staff.
He added that rewarding regular customers for their loyalty has also formed a key part of the company's marketing strategy, which in turn, has increased membership of its loyalty club, with 100,000 new customers added to the Noni B database during the year.
In addition, he said the company's continued investment in training has helped the company differentiate its brands in the new retail environment where retailers are “cutting costs in response to weak consumer demand and online competition”.
Kindl added that this year Noni B managers will also be enrolled in an advanced diploma in retail studies to develop their management skills further.
Going forward, the company has outlined that its focus remains similar to 2012, with plans to introduce new product ranges, update its products’ styling and continue to invest in cutomer service and staff training.
James Kindl also said the company will continue to work closely with its jewellery supplier to develop additional accessories which complement its fashion ranges and are exclusive to Noni B.
David Kindl, responsible for strategy, finance, administration, information technology, distribution, property and investor relations, added that Noni B has also been successful in reducing base rents for some renewals and securing attractive terms for new leases.
Six new stores were opened during the year – three in Victoria, two in Western Australia and one in New South Wales – and six that were under-performing were closed.
He said the company was also pleased with the response to its webshop, which was upgraded in September 2011, but would maintain its conservative approach to inventory, expenses and cash going forward due to the tough trading environment.
Wood also attested to the gloomy economic outlook and said 2012 was as “equally difficult” as 2011, but said that despite the current market challenges, she is very confident that Noni B can look forward to a bright future.
James Kindl also conceded that he
believes the company has found the “right formula to enable a
fashion retailer to prosper in these difficult economic times”.