Adairs Ltd. · ASX:ADH
Adairs — ASA Investor Conference 2020
22 slides from Adairs's conference presentation, Nov 12, 2020
Slide 1: ASA Investor Conference 2020: Investing in the future of retailing
ASA Investor Conference 2020 “Investing in the future of retailing” For personal use only Mark Ronan, CEO & MD Adairs Limited
Slide 2: Disclaimer
For personal use only Strong Omni Channel Execution Disclaimer Some of the information contained in this presentation contains “forward-looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect Adairs Limited current intentions, pl
Slide 3: Agenda
Agenda 1 For personal use only Introduction to Adairs 2 What do the retail futurists predict? 3 The impact of COVID-19 on the future of retail 4 Retailing challenges in the next decade 5 How Adairs is positioning itself for this future 6 Questions
Slide 4: For those who don't know us - About Adairs Limited
For thoseAwho don’t recap: Ourknow us - who we are … strategy 3 About Adairs Limited (ASX: ADH) For personal use only ► Australia’s largest omni channel specialty retailer of home ► Specialty retailer of home furnishings with a national footprint of furnishings and home decoration products stores ac
Slide 5: What retail futurists say – stores of the future
What retail futurists say – stores of the future 4 Digital commerce will lead to a redesign of storefronts and service delivery For personal use only Store front ► Retailers will be able to send alerts to notify of new pricing, products or experiences to a consumer’s individual wearable or voice pla
Slide 6: Online retailing – where to from here?
Online retailing – where to from here? 5 Retail e-commence is growing steadily but not all categories sell easily online and, while COVID has helped, the next stage of evolution is likely to require substantial investment For personal use only E-commerce share of total global retail sales 22.0% Some
Slide 7: What a global retail sector investor has to say: Omni-channel
What a global retail sector investor has to say For personal use only 6 Omni-channel “The future was always going to be omni-channel. Pundits have been prematurely predicting this for many years, but it is finally happening. There is a strange belief in certain circles that the future will be e- com
Slide 8: What a global retail sector investor has to say: COVID-19
What a global retail sector investor has to say 7 COVID-19 For personal use only “I believe the biggest long-term beneficiaries of COVID will prove to be category leading brick and mortar retailers. Many of the perceived COVID winners such as e-commerce, videogame and streaming media companies have
Slide 9: The impact of COVID-19 – an acceleration in online B2C interactions
The impact of COVID-19 – an acceleration in online B2C interactions 8 According to a recent McKinsey Global Survey, COVID-19 accelerated the adoption of B2C online interactions by 3-4 years For personal use only and most of those surveyed expect this new level to stick 1. Years ahead of the average
Slide 10: The future of retailing – challenges: Customers
The future of retailing – challenges in the next 10 years (Customers) 9 Challenge #1 – Customer demographics - the rise of Millennials and Gen Z * For personal use only Baby boomers (traditional consumers) are in decline Implications for retailers ► By 2025, Millennials will represent c.75% of the A
Slide 11: The future of retailing – challenges: Technology
The future of retailing – challenges in the next 10 years (Technology) 10 Challenge #2 – Technology continues to advance at unparalleled speed and the technology landscape for retailers is complex For personal use only Near term (Now to 5 years) Longer term (5-10 years) New technologies (which will
Slide 12: How Adairs is positioning itself for this future
How Adairs is positioning For personal use only itself for this future
Slide 13: Adairs – What we learnt from COVID-19
Adairs – What we learnt from COVID-19 12 COVID-19 has accelerated Adairs online penetration and growth rate with long term 1 Strong online customer growth For personal use only benefit to be realised as new customers return and shop both our channels. ► The combination of stores and online delivered
Slide 14: "Home" is better with Stores
For personal use only 13 “Home” is better with Stores Inspiration and discovery Customer service It’s the real thing ► Curating a home is a process of ► An experienced, customer-friendly store ► Being able to touch and feel a discovery, inspiration and change team can product is very important to ma
Slide 15: Loyalty is important: 800k+ engaged Linen Lovers
Loyalty is important: 800k+ engaged Linen Lovers 14 Our Linen Lovers Club loyalty program is a fundamental growth platform - accounting for 75% of all sales (ex Mocka) with 800k+ highly engaged members and membership growing at a 14% (3-year CAGR) For personal use only ► Launched in 1995, Linen Love
Slide 16: Omni – delivering customer preferences drives revenue
Omni – delivering customer preferences drives revenue 15 Omni is a true “customer-first” model where Customers that engage with Adairs on multiple channels: For personal use only retail is driven by customer preferences make purchases more often; and spend more with each purchase Channel Optimis
Slide 17: Drivers of Future Growth – our business model
Drivers of Future Growth – our business model 16 Our current business model is proven, resilient and offers material scope to grow For personal use only 1 Proven and resilient business model Vertical supply chain ► Greater control (range/quality/cost/timing) ► More agile and responsive to changing m
Slide 18: Drivers of Future Growth – profitable store formats
Drivers of Future Growth – profitable store formats 17 Our stores are key to being omni and retain significant For personal use only growth potential 2 Profitable store formats ► All Stores are profitable with relatively short lease terms ► Larger stores are more profitable ► Significant upsizing op
Slide 19: Drivers of Future Growth – digital transformation
Drivers of Future Growth – digital transformation 18 Our digital strategy was the engine room for 3 Digital transformation For personal use only growth in FY20 and this will continue well into the future Development of our digital strategy & channel ► Accelerating our digital transformation through
Slide 20: Drivers of Future Growth - Mocka
Drivers of Future Growth - Mocka 19 Mocka is a highly complementary and profitable pure play online retailer with significant market opportunities For personal use only 4 Mocka ► Australian brand awareness is growing rapidly ► Cross-promotion opportunities being trialled ► Expansion of Australian wa
Slide 21: Drivers of Future Growth – Supply chain
Drivers of Future Growth – Supply chain 20 Our new NDC will assist in enabling our digital strategy and delivering profitable growth for the next decade For personal use only 5 Omni Supply Chain Strategy New National Distribution Centre ► DHL to operate – we will focus on customers and product ► Fas
Slide 22: Thank you. Any questions?
THANK YOU. For personal use only ANY QUESTIONS?