Elk co-founder Marnie Goding unveils how Australians are shopping in independent boutiques after lockdown.The brand currently operates six retail stores across Australia, including its latest opening in South Yarra, Melbourne.
How has the shopping landscape shifted following the COVID-19 pandemic?
We have seen simultaneous growth online and in our retail stores, which has been fantastic. However, we have noticed the greatest changes in our wholesale arm with a significant reduction in independent stockists, mostly as a result from the pressures through COVID. Where stores have closed though, we have been able for the most part to transition those sales online, but the physical brand presence is missed.
The other change is the increase in dwell time in store. We have more customers seeking us out as a destination and are spending an increasing amount of time with our team. This has been a great change, the more time we have with our customers, the more time we have to get to know them, get feedback and build brand relationships.
How is ELK navigating these changes?
Firstly, we are looking for new retail locations not only in metropolitan areas but also in regional to combat some of the reduction in wholesale representation. We are also looking for new spaces that have multi-functional opportunities. South Yarra illustrates this perfectly with its double story structure allowing us to provide experiences beyond purely shopping. Ideal sites will have room for events, private styling and to host small groups.
Has there been a shift in consumer shopping behaviour?
The greatest shift we have seen is with customers who are back working in the office. They are looking for less traditional corporate pieces to wear and are opting for elevated basics, stand out shapes to pair back with existing items and key prints to lift their outfits. Sneaker sales have dropped in favour of more “dressed” footwear, simple accessories are being outsold by more elaborate designs and plain basics are being outsold by pieces with a design edge. It is perfect for us, particularly in our CBD store where the corporate uniform has changed, and we can meet their needs.
What opportunities are you seeing in the brick-and-mortar space?
Elk has always had a mixed sales channel strategy, which has been our strength with online, retail and wholesale. Today, we still have great regional and urban representation of the brand through our wholesale partners, however we are seeing a real shift in this market with wholesale opportunities in decline.
This provides opportunities for us to open our own retail stores in areas where we don’t currently have good representation or in locations where we have historically good coverage. We also take our online data and look for trends in purchasing behaviour and couple that with consumer feedback to determine where the opportunities lie.
We are finding that our customers are wanting to spend more time in store. They are valuing the experience of service and connection, and so the store design needed to reflect that. We have comfortable seating and a warm, dressing room space with interchangeable configuration because we are also seeing more groups come in.
What are the biggest challenges?
There are always challenges but nothing insurmountable. We have an incredible retail team, and we are careful to ensure our planning and commitments are solid – we don’t over commit, and we don’t overload our team, so they can support our growth and help us achieve our vision.
From a product point of view, our price point remains our greatest challenge. Whilst they have increased along with the rest of the global fashion industry, they still represent great value from a quality, design and sustainability point of view, so we are very confident in our position. It’s an exciting growth phase for us, and we feel very ready to push ahead with our plans.
What do you predict in the future of shopping?
Our model of a homely environment and genuine service I think reflects the future. Customers broadly are looking for quality over quantity and want to feel connected to a brand. Our retail environment is designed with this in mind and our staff are trained to support this ethos. The shopping experience I think will be more intimate – certainly our customers are looking to buy less and be more mindful of what they do spend on, which we encourage. The vintage and pre loved categories will also be integrated into every retail experience. We have a space allocation for this category in each of our retail stores and will see the first garments sold in store in our Preston location next month as part of our ReNew program launch.
What business initiatives do you have in the pipeline?
Looking more broadly at the business, we have some exciting things that we have just completed, as well as other projects on the horizon. Most notably, we are ready to submit our application to become a B Corporation Certified business after three years of planning. We have also moved into an incredible new office fitted out entirely with pre-loved furniture, we have installed water tanks, are now 100% solar-powered and welcomed 10,000 bees into hives located in our onsite garden (Elk honey soon to come!). Elk is not simply about our product, we have so many great things we do as a business, and we like to think that the future for all business’ will include the celebration of all the positive actions and impacts.