Online furniture and homewares retailer Temple & Webster capitalises on captive shoppers

Web-based decor retailer Temple & Webster is capitalising on captive shoppers, reporting an ongoing surge in active customer numbers.

Online furniture and homewares group Temple & Webster is the latest company to report an ongoing surge in customer numbers as more Australians try e-commerce for the first time during the COVID-19 pandemic.

The firm said its active customers rose 77 per cent in 2019-20 and continued to rise in July, exceeding the “magical milestone” of 500,000. Growth continued this month, with trading up 160 per cent on the same month last year.

Measured satisfaction reached record levels in the June quarter, and chief executive Mark Coulter said keeping customers happy was the focus to ensure those trialling online shopping for the first time came back.

“Australians are still turning to the online channel to meet their ongoing needs,” Mr Coulter said.

“The advantages of being the online market leader are apparent as we continue to grow our market share.”

The company said it had 3.8 million website users and 2.5 million email subscribers and was also reaching customers on social media, while the average time to dispatch was 1.8 days.

There was significant room for growth, with online adoption in Australia lagging US and UK markets, Temple & Webster said.

It booked a full-year net profit of almost $14 million, including an income tax benefit of nearly $6 million, and is cashed-up after a $40 million capital raising last month.

Another event outside the reporting period was a “small investment into a start-up company developing AI interior design tools”, which generate room ideas for customers, the company said.

As well as selling direct to consumers, Temple & Webster has set up complete design and install package solutions for display suites and furnished apartments.

Shares in the company leapt 13.7 per cent to $9.34 in morning trade.