Naked Brand Group launches retail, outlet store expansion strategy
Naked Brand Group has signed a series of new leases for retail and outlet stores across Australia and New Zealand to commence the first stage of its planned two-year rollout strategy of 20 additional stores. Three new sites have been confirmed in New Zealand. Additionally, one site is underway in Perth, Australia which will open in a new direct factory outlet, or DFO, one of six highly productive outlet centers owned by Australian property retail group Vicinity. Once under full operation, the total incremental revenue per store is projected to be approximately $650,000, with the four-wall contribution projected to be in excess of 20%. The company defines four-wall contribution or net profit percentage of the store as gross margins minus all store operating costs. The Naked Brand Group retail and outlet network currently consists of 33 stores in New Zealand, 25 in Australia and contributes approximately 40% of overall sales and approximately $650,000 in annualized revenue per store, complimenting wholesale distribution across New Zealand. A further 16 sites have been identified and are expected to be rolled out by 2020, with a particular focus on highly productive and proven outlet opportunities which have a projected category growth of 25% over the next two years, with a projected four-wall contribution in excess of 20%.