Home improvement retailer Mitre 10 announced its annual results for the year to June 30, 2017, recording another strong performance with group revenue of $1.364 billion, up 9.8% year-on-year.
Mitre 10 chairman Martin Dippie says a number of external and internal factors drove growth over the past year.
“These positive results reflect a buoyant property market, sustained consumer confidence, and the commitment of our members to help Kiwis improve their lives and build their dreams,” Mr Dippie says.
“Our customers have responded to our expanding product range, and ongoing investment in providing the highest level of customer service, such as our new retail and trade online platforms and the innovative showrooms launched in-store.
“Our members are continually investing in their stores, upgrading, expanding and finding new ways to deliver the best in-store experience for our customers.
“Complementing this in-store growth is our commitment to create a complete online experience for our customers as well. From inspiration to advice and product purchase — we’re focused on delivering the best options, product range and service to customers.”
Reflecting this, Mitre 10’s online sales grew 48% compared to last year, and the company added another 7000 stock keeping units to its online product range.
Mitre 10 chief executive Neil Cowie says the omnichannel approach has strong appeal with customers in both the retail and trade segments because they can easily buy online, and it offers the freedom to get inspiration and advice and compare products and prices, 24/7.
“Having done their homework online, our customers then have the option to visit their local Mitre 10 store and take advantage of our showrooms, range, product knowledge and advice,” Mr Cowie says.
“Our recent kitchen showroom rollout helped drive a strong increase in kitchen sales compared to 2016, and we are also rolling out our new bathroom showrooms which we expect will perform well.”
Building supplies have continued to be a strong contributor to Mitre 10’s financial performance, generating sales growth of around 15% this year, backed by growth in direct-to-site sales and timber sales, reflecting a buoyant construction sector and strong demand for new housing.
“Our Mitre 10 members have continued to invest in the trade network, including new frame and truss plants, store trade yard expansions, team training and an update to the online trade ordering portal — the Mitre 10 Trade Hub — which streamlines the ordering, delivery and invoicing process, all from one easy-to-use platform.
“Another key strength for the co-operative will always be its Kiwi-owned and operated roots,” Mr Cowie says.
“Our members live, work and invest in their communities. Whether it’s our sponsorship of national provincial rugby, the Community of the Year Award or the many community projects our stores initiate and support, our local connection to Kiwis and the DIY spirit informs every aspect of our business,” he says.
Mr Dippie says the company enters 2018 confident about the long-term future of Mitre 10 during which a number of new store and existing store expansion opportunities across the country will be explored.
“It is going to be exciting to take our market-leading range and customer experience to even more Kiwis in years to come,” Mr Dippie says.