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ShowroomPrivé boosts sales by 17% in Q1
Business was back on a positive trajectory in Q1 for ShowroomPrivé, which reported a 17% increase in sales volume, to €240 million, and a 12% growth in revenue, to €155.7 million. A positive signal after the setbacks the group experienced in fiscal 2022, when it nevertheless recorded results that were higher than those before the pandemic thanks to a rebound in H2.
The group has indicated that growth was driven by an increase in new customers and by a higher average shopping basket. ShowroomPrivé stated it also benefited from the impact of other positive factors: growth in its marketplace business (sales volume was up 38% in the quarter), in its travel and leisure revenue (up by 27%), and its international business (up by 17%). Not to mention the SRP Services business, a B2B platform that supports brands in expanding their online sales, whose revenue grew by 28%.
“The Bradery also achieved a strong commercial performance, strengthening our group's position in the strategic Millennial consumer segment,” said CEO David Dayan, adding that The Bradery, another event sales site recently acquired by Showroomprivé, posted a 33% business increase in the initial part of the year.
The group indicated it is looking forward to “continued business recovery in the coming quarters, despite the fact visibility is still reduced due to the economic situation.” Faced with a volatile market, Showroomprivé intends to focus on “improving its gross margin results by remaining vigilant on purchasing conditions and inventory levels.” It is also keen to concentrate on “controlling operational costs.”
For the longer term, ShowroomPrivé is relying on a roadmap defined by the acronym ACE: “adapt, consolidate and expand.” The group’s planned ‘adaptation’ involves upgrading to a more premium concept in order to attract new labels, strengthening the range of permanently featured brands by developing its marketplace and its catalogue’s CSR positioning. On the consolidation side, the group is keen to maximise business with regular and high-potential buyers.
In 2022, ShowroomPrivé’s sales volume fell to €939.6 million, down 6% year on year, though it was up 9.6% compared to pre-Covid levels. Revenue in 2022 fell by 9.2% to €657.4 million, but increased by 6.8% compared to 2019.
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