Mosaic Brands, the Australian apparel retail group, says it will open 40 new large-sized ‘mega stores’ this financial year as it transitions into what it describes as “a more ageless, value-driven, big-box retailer”.
The plans were revealed along with the group’s annual result which saw a $33.5M turnaround from a loss of $16.4M last year to EBITA of $17.1M in the year to June 30. Mosaic Brands owns and operates apparel brands including Millers, Rockmans, Noni B, Rivers, Katies, Autograph, W Lane, Crossroads and Beme.
During the past year, Mosaic culled its store network by a net 148 outlets. With that in mind, comparable store sales rose by 9.6 per cent, while absolute sales rose by six per cent.
CEO Scott Evans said the company’s improved performance stems from management recognising that retail has “forever changed” with customer expectations shifting dramatically. The business realised that achieving a return to the pre-Covid era trading and profitability “required taking a leap forward rather than taking a step back”.
Mega stores are typically three times more profitable than standard-sized stores and those in shopping malls. The new ones in planning will be located largely in regional areas.
