Reuben Casey: Stores ‘still have a role’ for Kathmandu despite online uptake

Bricks-and-mortar stores still play a fundamental role for Kathmandu despite COVID-19 accelerating consumers’ uptake of online shopping.

Kathmandu chief executive Reuben Casey says bricks-and-mortar stores still play a fundamental role in the company despite COVID-19 accelerating consumers’ uptake of online shopping.

Mr Casey said the New Zealand outdoor retailer was guided by its customers in determining the balance between physical stores and its online platform.

“We really believe that online and bricks-and-mortar stores really operate in conjunction with one another,” Mr Casey told The Australian’s E-Commerce Summit on Wednesday.

“Where we see online is strong in a particular customer catchment, often the store is doing well in that catchment and vice versa. It’s about both our stores and online experiences supporting each other and driving the experience of our Kathmandu brand.”

Mr Casey said customers were most likely to visit a store in person if they were buying technical products such as hiking boots or a multi-day hike backpack.

The retailer’s percentage of online sales rose from 10.5 per cent to 18.5 per cent in the past financial year.

“It was a real change. Obviously this was helped by the fact that our shops were shut in April so people had no other choice but to buy online,” he said.

“It’s been a growing trend over the years from customers who are new to shopping online with us to remaining happy to do so after COVID.”

But he said the brand’s shop fronts in New Zealand and Australia were still profitable.

“There are some stores that as they come to the end of their lease we will look to close if we don’t see a good long-term future for them. But it’s really about optimising the network rather than wholesale reductions,” he said.

“Our online channel is also profitable for us and we have the same pricing model in store and online so the margins we make are pretty comparable.”

Mr Casey said the brand was hoping to overcome overseas supply shortages, due to delays with freight travel, before the Christmas period.

“We tried to protect our summer-specific products like tents and camping equipment, but other areas where we deferred we’ll see how it pans out,” he said

As lockdown restrictions eased in the middle of the year, Kathmandu’s sales were boosted as people sought to travel domestically. “In New Zealand over winter post the lockdown period, people couldn’t leave the country so a lot of people … decided to explore locally. Because it’s quite cold they had to deck themselves out.”