Adore Beauty plans to expand its national retail store network over the next three years to accelerate its omnichannel growth.
The company is targeting the opening of more than 25 stores as part of its three-year strategy, which was announced at its annual meeting in Melbourne.
The stores, which will leverage existing infrastructure and strength of the Adore Beauty brand, will help broaden the company’s addressable market, increase brand awareness and boost customer acquisition.
The beauty retailer will also grow its owned brand portfolio through retail and direct-to-consumer channels, as well as wholesale partnerships in new geographic regions. Accordingly, Ikou’s presence will be expanded beyond its New South Wales origins to 10 stores, from its current three stores, in premium metro and regional areas.
The company aims to deliver a 30 per cent growth in revenue, with owned brands to represent 8-10 per cent of total product revenue. Gross margin is expected to expand by over 200 basis points and million annual active customers to reach 1.25 million.
CEO Sacha Laing said it is a “natural evolution” for the company to go from a pureplay online beauty platform into an omnichannel retailer.
“Our clear three-year strategic plan will leverage multiple growth initiatives to deliver a material step change in customer acquisition, revenue growth and profitability, and importantly, strong value creation for our shareholders,” Laing added.
For the last fiscal year, Adore Beauty posted a 7.4 per cent growth in sales and 661 per cent increase in EBITDA, with active customers rising 1.6 per cent to 814,000.
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