For a retailer that prides itself on the speed to which it delivers new trends to market, Sportsgirl seemed to have bucked a major one in 2010.
ARJ Group Holdings, the company behind womenswear retail chains Sussan, Sportsgirl and Suzanne Grae, declared in December a profit of $28 million for the financial year to the end of July, double that of the previous corresponding period.
It came as major retail chains offered ominous forecasts for the year ahead, following a dismal 12 months of trade which ended with an 0.2 per cent monthly sales increase in December.
That’s not to say there wasn’t a micro trend at ARJ. Accounts from the Australian Securities and Investments Commission revealed a revenue increase for the group of just 0.95 per cent to around $500 million.
But it’s growth that captures the mind of Sportsgirl chief executive Elle Roseby today, and growth in an area which defies the grey clouds circling the broader retail sector: jewels.
First launched at Melbourne Airport’s Virgin terminal and Sydney’s QVB complex in 2009, SG branded accessory stores are set to take off.
“After the resounding media and consumer acclaim for the range of fashion accessories, we plan to open 15 new stand-alone stores over the next two years,” Roseby confirms.
“The new SG accessory concept stores will present the entire range of shoes, bags, jewellery and other accessories as well as designer capsules and global trends.”
The latter two categories are an important point of difference for the fast fashion retailer, with its 110 national stores competing against a number of High Street operators for the Gen Y dollar. Its ‘Global trends’ capsules present limited edition collections sourced from around the globe, while the designer collaborative ranges are entirely exclusive to the company.
For the first time, its impending designer collection with London-based Richard Nicholl will be pushed through www.sportsgirl.com.au first. A ‘wish list’ will go live weeks before the range is available for purchase, allowing customers to preview and select items before its online release on March 21 and in stores from March 28. This initiative follows the recent launch of Sportsgirl’s e-commerce mobile platform site, bolstering its existing digital offer of blogs, online shopping, e-photobooths, forums and look books.
“The mobile site has allowed us to be at the forefront of the rapid growth of mobile usage among our target market,” Roseby says. “The sportsgirl.com.au mobile platform allows customers to browse, buy and engage with our brand and we have made shopping ‘on the go’ possible for our customers.”
Roseby acknowledges that international players such as UK’s topshop.com and asos.com – the latter of which Ragtrader recently revealed has launched an internship program for Australian designers – are competitors in the field but believes continued innovation will give Sportsgirl a competitive edge. Online sales are currently equivalent to a medium size Sportsgirl store.
“Whilst it’s important to consider the competitive market, Sportsgirl will remain focused on the feedback from our customers and continue to deliver the best online experience for our target market,” Roseby says. “We are proud that we were the first Australian retailer to introduce an e-commerce mobile site and we will continue to innovate in this area. The importance of our mobile platform as a sales channel is a significant focus for us.”
There is also a renewed focus on creating personalised marketing activations. A recent ‘Sportsgirl Sleepover’ campaign saw one customer (and nine friends) spend the night at Sportsgirl’s Bourke Street store in Melbourne, enjoying live entertainment, make-overs, movies and gift vouchers. Regular competitions and collaborations with aspiring photographers, stylists, bloggers and artists have also become part of the Sportsgirl experience.
“Fresh retail innovations are absolutely instrumental to our marketing strategy – it is these ongoing events and activations that make the brand what it is and help us maintain our ethos of first, fashion, fun,” Roseby says. “Connectivity between online and offline is also extremely important to our overall brand experience. Our sponsorship with the Good Vibrations Festival was the perfect example of this. We drove the festival online through our website and festival goers were also able to link back by giving them the opportunity to update their Facebook profile picture in the Sportsgirl Green Room.”
The ‘Green Room’ installation was set up at music festivals in Sydney, Melbourne and Queensland as part of a marketing drive for its core Gen Y demographic. It featured multiple elements such as DJs, a nail bar, photobooths and numerous giveaways. This mirrors the experiences on offer at Sportsgirl’s three ‘super flagship’ stores – two in Melbourne, one in Sydney – which include live entertainment, award-winning merchandise displays and art installations.
It is difficult to estimate how much of these activations translate to sales, but in a sector marked by heavy discounting strategies, it has allowed Sportsgirl to maintain a strong branding proposition.