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Australian retailer Oz Hair and Beauty is tapping into sustained growth by the ‘bricks and clicks’ sector with plans to almost triple its national footprint as it lays plans for 10 new shopfronts.
The company says the move comes on the heels of a significant shift in e-commerce trends as shoppers allocate spending across both online and physical stores.
Oz Hair and Beauty, which was founded in 2012 by Anthony Nappa, is opening its newest store at Sydney’s Macquarie Centre in Macquarie Park this month and plans to grow its network from six stores to 15 by the end of the year.
The retailer’s growth plans are supported by key investors Edison Growth Fund, Accent Group (ASX: AX1), the CEO of Accent Group Daniel Agostinelli, and billionaire businessman Brett Blundy who bought a stake in the business as part of a consortium in 2019 for an undisclosed amount.
At the time, Oz Hair and Beauty was delivering monthly group revenue of $2 million a month and two years later almost doubled its revenue to $40 million by 2021.
Nappa says the store expansion is backed by recent research showing that retailers with integrated online and physical stores, also known as 'bricks and clicks' retailers, have outperformed pure e-commerce stores.
He says Oz Hair and Beauty customers are increasingly craving online and in-store options equally, while the move also aligns with the rising cost base for e-commerce operations.
“The cost of running an online business has skyrocketed by more than 20 per cent in the past couple of years, with postage costs having soared by more 15 per cent alone,” says Nappa.
“Following COVID we continued to operate at a higher baseline and, while we have continued to grow online, our data indicates the e-commerce sector has softened as that rate of growth was unsustainable.
“Our analysts now predict a slower and more stable trajectory that a rising physical store presence will complement.”
Nappa says the move also provides customers with a personalised experience that many seek.
“In the hair sector, particularly, our customers consistently seek advice, tips and support from specialist sales staff who help them find the best products, as they are qualified hair and beauty specialists,” he says.
“So, we’re taking that feedback and not just expanding across Sydney, but in other cities where we have a large and loyal customer base.
“With hair products making up most of our sales, we strive to ramp up the personalised and expert-led experience our customers love.”
Oz Hair and beauty currently operates six physical stores and salons in Penrith, Castle Hill and the QVB in Sydney, as well as Erina Fair on the NSW Central Coast and Charlestown in Lake Macquarie, NSW.
The company employees more than 120 people across its stores and its warehouse in the Sydney suburb of Caringbah.
With an expansion to 15 storefronts by the end of this year, the company plans to increase its employee count to 165.
Apart from its plans to open at Macquarie Centre this month, Oz Hair and Beauty is looking at three more stores for Sydney, including Rouse Hill, and at Maitland in regional NSW. It is also planning a store for Canberra, Brisbane and the Gold Coast.
“Over the years Oz Hair and Beauty has successfully grown and pivoted in tune with changing retail trends and that has helped it emerge as one of Australia’s leading hair and beauty retailers,” says Accent Group CEO Daniel Agostinelli.
“Its physical move into customer strongholds across the country showcases a savvy and customer-centric approach.
“I believe the next two years will be exciting as it takes its omnichannel retail model to the next level.”
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