HomeChoice See Large Sales Growth
When money is tight consumers become selective and hold back on luxury spending. Most retailers have been hit hard by the global economic downturn and local recession but not HomeChoice.
The HomeChoice group sell homeware, clothing and personal tech items and also offers loans and insurance products. The group consists of HomeChoice which does retail and FinChoice which offers financial services.
Recently HomeChoice has seen their profits shoot up by 17.2% (which amounted to R329 Million). This has been as a result of an amazing 24% growth in retail sales over the last financial year.
Share holders were treated to a 15.5% increase in their interim dividend which increased to 82c per share.
Homechoice report that their fastest growing avenue of sales has been online which is where most of their efforts are based. Particularly interesting, is the fact that 67% of their financial services (incl loans) were conducted on consumer’s mobile phones.
This just goes to show that not all businesses suffer during an economic downturn as consumers stop shopping with some firms and migrate to shop with others for a variety of reasons including ease of access to the product or service and pricing. At a recent conference held by the Debt Counsellors Association of South Africa, Mr. Chris Barett of Google SA pointed to the ever increasing importance of catering to consumers via a mobile platform.