Following hugely successful trading throughout the early lockdown months, Growth 2000 homewares retailer Cox & Cox has been in a strong position to invest in range expansion and increase marketing activity considerably, driving awareness to gain share – and has seen net revenue sales up 103% in Q3, driving full year sales up 72%.
Order numbers have risen in line with this by 108% in Q3, with its active customer base growing 54% in the past 12 months. Revenue per customer has also risen by 26% in Q3.
CEO Richard Bell explains: “Momentum from activity earlier in the year has meant that we are generating far higher customer performance KPIs without a corresponding increase in costs to do so. This has driven a sharp increase in our profitability, along with better intake margins and less discounting, resulting in a 14.2% return.”
While the retailer’s retention rates for existing customers are the best they have been in more than five years, results in new customer acquisition figures in particular have been exceptionally high over the period, with the number of new buyers recruited rising +130% YoY.
September drove the highest uplift so far this year with new customer growth at +145%. Performance is strong across all channels due to the halo effect provided by the increased awareness driven by advertising, PR and media, and brand partnerships.
All departments continued to trade up, and SKU counts have increased across all departments as the company grows existing categories and introduces new ones.
Furniture as a category has continued to perform well at +124% YOY. Demand for desks and all home office continues to be strong as customers sort out home working arrangements.
Buying Director Dani Taylor comments: “Our fast growth has put us in a fortunate position where we are willing to take more risks and experiment more with what we might usually buy. We’ve tested new price points within existing categories such as home office, adding in many more accessories and storage solutions, and moved into completely new areas like freestanding kitchen furniture which has generated a substantial portion of new business this quarter”.
The company had a very strong start to Christmas with early sales up threefold on last year and continuing to trade +167% on last year.
Bell says” “It would be very easy to put our success this year entirely down to the lifestyle changes that we have all been through, and while that may have been true for Q1, it is not the case since then. We’ve grown the range well and effected a significant increase in brand awareness which we are converting and retaining better than ever.”