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Coronavirus pandemic spurs spike in new ‘goon sack’ sales for small business

Alexandra Szwarcberg-Poch’s business dropped by 95 per cent because of COVID-19. But she’s come up with the most Australian solution ever.

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The coronavirus crisis has devastated countless businesses and left scores of Australians facing an uncertain future.

But amid the devastation, inspiring success stories are starting to emerge.

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Many small businesses are now unexpectedly booming, as the pandemic pushes up demand for certain surprising items.

Here’s a roundup of just some Aussies businesses turning the crisis on its head and enjoying record sales.

LUXO LIVING

Aussie e-commerce business Luxo Living has recently had an 1150 per cent spike in bedsheet sales, and despite operating for two decades, the company has never experienced such a dramatic surge in demand before.

The company also has droves of customers ordering flatpack at-home saunas at the moment, representing a 339 per cent increase on this time last year.

CEO Winston Tu said the coronavirus had sparked a “challenging but interesting time” in e-commerce.

“We are seeing buying behaviour that we have never seen before in our 20 years of trading – the recent 1150 per cent spike in bedsheet sales certainly had our team intrigued,” he said.

“There was a short period where spending halted but then it increased again with customers wanting to update their homes without breaking the budget. Customers are looking for more value than ever.”

BIG GIRLS

Aussie fashion retailer Big Girls, which sells intimates and swimwear for women of all sizes, is also experiencing a COVID-19-inspired boom.

The business has just launched a new site in Brisbane that is the size of four tennis courts.

Founder Karen Edbooke said the sudden growth was the result of several factors, including Big Girls’ offer of virtual bra fittings via the internet and the closures of many competitors.

It has also introduced a click-and-collect drive-through service as well as giving away free coffee and vouchers to frontline health workers and increased advertising spend on social media.

Staff are also doing regular live-streamed fashion parades during the pandemic, with real women modelling lingerie and swimwear.

ALLIE’S

Cold-pressed juice business Allie’s, which supplies juices to cafes, hotels and restaurants across NSW, was decimated by the recent government restrictions, recording a staggering 95 per cent decline in trade.

But a savvy pivot has caused sales to soar 700 per cent.

“Home deliveries have never been a big part of our business, but we thought we’d try something new a couple of weeks ago and start selling our five-litre bulk juice boxes – basically goon sacks of juice – that we usually only supply to large, busy cafes, and the demand for these delivered to homes has been overwhelming,” co-founder and director Alexandra Szwarcberg-Poch told news.com.au.

‘Goon sacks’ of Allie’s juice are being used to make iso-cocktails. Picture: Supplied
‘Goon sacks’ of Allie’s juice are being used to make iso-cocktails. Picture: Supplied

“We were in a pretty devastating place and a few friends encouraged us to try out these bulk sizes with home deliveries. I was a bit sceptical people would want them because they’re normally for busy cafes but the response has been overwhelming.

“I think it helps that everyone is really getting behind fresh products from local producers. A few have actually told us they’re using them as mixers for their iso-cocktails so that might also explain some demand.”

MOOGOO

Australian natural skincare brand MooGoo’s sales have spiked more than 50 per cent online and 30 per cent in-store as people clamour to stock up on hand sanitisers, hand washes and moisturisers.

Dermatologists and skin experts also claim constant handwashing combined with coronavirus stresses have caused an increase in eczema breakouts, which has also increased demand for MooGoo’s Eczema and Psoriasis Cream.

CEO and founder Craig Jones said MooGoo was “breaking its own rules” by manufacturing an alcohol-based hand sanitiser.

“It isn’t ‘natural’ of course but urgently required and we are doing our best to make it as gentle on hands as we can,” he said.

“It is still alcohol based, but we are pairing it with aloe vera and glycerine and using Australian grain alcohol.

“We are also researching though a partner a non-alcohol-based product that targets viruses.”

PETZYO

Sales have jumped for pet care company PETZYO’s natural, transparent and eco-focused meal plans delivered directly to customers, many of whom are now working from home and spending more time with their fur babies.

“Since COVID we have seen a 30 per cent increase in customers signing up to receive their dog food directly to their door,” PETZYO’s David Latimer said.

“We have also seen increased once-off spending on all our accessories by approximately 100 per cent including treats, pharmaceuticals and grooming accessories.

“We are expecting strong growth as people become more accustomed to the ease and convenience of online shopping and home delivery, which can now include high-quality pet food and pet care products.”

MACHINES4U

In the past few weeks, machinery marketplace Machines4U has experienced a 55 per cent year-on-year increase in traffic

There has also been a 46 per cent increase in leads delivered to sellers on the site.

“These times are unprecedented and we know some businesses are doing it tough, but there are also a lot of businesses doing really well, and we’re seeing that in the numbers on the platform,” Machines4U co-founder Steve Krebs said.

“We know a lot of people are turning to online solutions because of social distancing in local dealerships and without the ability to attend trade shows or field days.

“But cows still need to be milked and construction needs to continue, and we’re super grateful to be able to provide a platform that gives buyers and sellers the opportunity to continue doing business in these challenging times.”

RAWKANVAS

Sales of skincare company Rawkanvas’ Eternal Collagen Serum have jumped 300 per cent in the last week alone.

Co-founder Simona Valev said Aussies were looking for alternatives now beauty salons and clinics were shut.

“I believe (the increase) is due to customers looking for at-home alternatives to their beloved skin clinics and injectors since social-distancing requirements have had them closed,” she said.

“Our probiotics range, which has three products, has also seen an increase.

“We believe the increase comes from people wanting to rebuild and strengthen their skin’s barrier which has taken a hit (from) the increase in sanitiser and handwashing.”

EASI

Food delivery company Easi has also seen a surge since the pandemic began, with suburban orders increasing by 28 per cent, CBD orders by 27 per cent, average spend on orders growing by 14.9 per cent and order frequency jumping by 9 per cent in April compared to February.

Founder Jason Shen said there was also an average new user increase of 6137 per day.

“The growth is definitely in relation to the lockdown restrictions, hence more people are using food delivery services as dining-in has been forbidden,” he said.

“We have also noticed an increase on grocery orders especially since we have introduced next day fresh food delivery service.

“If we compare last week’s number to the week before lockdown, the surge is quite dramatic.”

3P LEARNING

Global online education provider for K-12 3P Learning has seen an increase in demand for its services due to COVID-19 and in response has launched a program to help schools make the transition to remote teaching and learning and helping kids stay on track.

“We have increased our staff by more than 10 per cent to support customer demand and we are running professional development sessions to help teachers move to remote teaching,” chief executive Rebekah O’Flaherty said.

“Our continued investment in our products has seen us recently add 10,000 new activities to our flagship Mathletics brand, release our new spelling product Readiwriter spelling and we will soon be releasing Meritopia a really exciting student engagement program.

“Importantly our products help kids stay aligned to their state curriculums.”

NEXBA

Over the past 13 weeks, beverage company Nexba has noticed a 30 per cent growth in sales of Nexba Tonic Water while Nexba Kombucha has grown 76 per cent.

“Even during unprecedented times excess sugar and artificial consumption from food and beverage categories such as soft drinks remain under scrutiny as leading contributors to obesity, diabetes and numerous other health issues,” Co-founder and co-CEO Troy Douglas said.

“With the increased focus on immunity it’s no surprise that consumers are looking more into what they consume during this time.

“Now is a time when consumers want to be health conscious but they also don’t want to ‘restrict’ themselves to products that simply don’t taste good - life’s too short.”

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Original URL: https://www.news.com.au/finance/business/retail/coronavirus-pandemic-spurs-spike-in-new-goon-sack-sales-for-small-business/news-story/6342d8a21d2c44d7bcb65198a59e4c6b