Pandemic-driven online shopping spree gives Booktopia its best ever Christmas

An online book retailer has enjoyed its best ever Christmas trading period, with one investment in particular helping sales fly out the door.

Online book retailer Booktopia has had the best Christmas trading period in its 16-year history, with its recent investments in getting products out the door swiftly paying off amid strong pandemic-driven demand.

The NSW-based company said in a trading update on Wednesday it had shipped 4.2 million units in the first half of 2020-21 – a huge surge from three million during the previous first half.

“The increase in trading volumes compared to the previous year are consistent with other online retailers and a continuation of the shift towards online shopping experienced throughout 2020,” Booktopia said.

About 728,000 units were moved last month alone.

“The Christmas period saw strong demand from customers,” chief executive Tony Nash said.

Tony Nash says the retailer is confident the momentum and growth will continue. Picture: Jane Dempster/The Australian

“Our investment in additional capacity and automation allowed us to meet customer orders in a timely fashion and ensured we were able to have the biggest December in the history of the company.”

Booktopia listed on the ASX on December 3 after completing the first stage of its multi-million-dollar Lidcombe distribution centre upgrade just in time for the Christmas rush.

It now has robots that can move heavy payloads and reach up to five metres, allowing more high-density shelving and increasing the facility’s capacity over time from 600,000 units to 1.8 million units.

Investments in Booktopia’s distribution centre have sped up deliveries.

The company said its stellar first-half performance, which boosted revenue by 52 per cent to a record $113 million, should not be seen as an indication of the potential full-year result, saying there is ongoing uncertainty around further COVID-19 lockdowns and the vaccine rollout.

Mr Nash, however, said Booktopia was confident the momentum and growth should continue, so the business was on track to meet the forecasts in its prospectus.

That includes pro forma full-year revenue of $204.5 million, up 23.4 per cent on the previous financial year, when the company sold one item every 4.7 seconds.

Shares in Booktopia jumped more than 10 per cent to $2.94 after the update was released.

The company’s initial public offer last year raised $43 million at a price of $2.30 per share.

While 85 per cent of the items it sold in 2019-20 were books, it also sells ebooks, DVDs, audiobooks, magazines, maps, calendars, puzzles, stationery and cards – giving Amazon a run for its money.

Originally published as Pandemic-driven online shopping spree gives Booktopia its best ever Christmas