Australian fashion brand, Cotton On’s co-founder Ash Hardwick emphasises his confidence in the brick-and-mortar retail model for their brand. During a recent podcast interview, he emphasised that shopping centers will continue to be their primary sales channel, despite the rise of e-commerce and online retail options.
Hardwick shared Q1 financial results as of 15th October, revealing that Western Australia, South Australia, and Queensland outperformed the rest of Australia in retail sales. However, he acknowledged that this data is skewed due to the varying number of stores in different states. Nonetheless, he emphasised that physical stores are still a growing part of their business, while online and wholesale spaces have faced more challenges in recent months and the past year.
Highlighting the performance of their brick-and-mortar stores across most states, Hardwick mentioned example of a 22-year-old resilient customer who continues to drive steady sales, reinforcing the significance of shopping centers as the lifeblood of Cotton On.
While acknowledging the impact of technology and the surge in online channels, Hardwick expressed his unwavering faith in the shopping centers. He believes that, as long as physical stores evolve, they will remain the brand’s biggest sales channel.
Regarding online sales, Hardwick noted growth despite challenges, especially considering it was a relatively new channel for Cotton On before the COVID-19 pandemic which led them shut down their stores globally. He expressed confidence in not repeating the closure of 1,500 stores across 22 countries, indicating a commitment to a multi-channel approach for the future.