New Zealand’s Briscoe Group is striking new investments expected to benefit both its subsidiaries, Rebel Sport and Briscoe Homeware.
This includes electronic shelf labeling to be introduced in both Briscoes Homeware and Rebel Sport stores after completion of successful trials this year, as well as the ongoing introduction of expanded ranges of new products online which are shipped direct from suppliers to customers.
The online investments in particular come as the group’s online revenue share hits 18.72 per cent.
“We continue to invest in both the front and back-end platforms with a number of initiatives designed to connect the online and physical store experiences including; introduction of an omni-members voucher programme and also management of complete customer experience through 'My Account'," Briscoe Group managing director Rod Duke said.
"Complementing this our focus on frictionless customer experience continued with the introduction of features such as; self-service returns and tools to help customers find the right product based on individual needs. Additional payment and delivery options are also being worked on which should enable these features to be expanded during 2024.”
The company is also establishing a new distribution centre in South Auckland, which Duke said is making significant progress.
Regarding its existing distribution centre in Manukau City Centre, Duke said the company is well into the implementation of a new Warehouse Management System.
“This will enable the current team to upskill themselves before transitioning to the new facility when it eventually becomes operational,” Duke said.
“In addition, we have selected our automation partner in relation to the significant improvement in warehousing capability intended for the new facility.
“In February, we also signed a Letter of Intent for the purchase of land and the building of a new warehousing facility at Drury, South Auckland. We expect the project to require expenditure, inclusive of land and building construction, of at least $100 million across the next three financial years.
“This state-of-the-art facility will step-change our capability in warehousing and distribution, enhance inventory management across the entire group network including optimisation of the existing store footprint, to deliver significant performance and efficiency gains.”
Further from these investments, Briscoe Group made a $15.1 million capital investment for the financial year ending January 28, which includes $4.3 million in adding new stores or refurbishing existing ones.
Meanwhile, $5.6 million was spent to purchase the existing Briscoes Homeware site in Timaru and the balance of the capital investment was for online platform improvements, enhancements to system software and hardware and the continuation of security initiatives including ungraded alarm and camera systems, stronger roller shutters and concrete bollards.
Briscoe Group recorded a lift of 0.78 per cent in full-year sales to January 28, hitting $792 million.
Rebel Sport NZ led the charge, with a 1.17 per cent improvement on the prior year, compared to its other subsidiary Briscoe Homeware, which recorded a 0.54 per cent lift.
“Looking forward, we remain cautious as to the retail environment with ongoing uncertainty in relation to economic conditions, customer sentiment and cost pressures,” Duke said.
“We do not underestimate just how challenging trading could be but are very confident in relation to the group’s ability to continue to perform and deliver superior results.”