Extended periods of lockdown over the last few years gave many of us the opportunity to ‘go wild’. The hair grew long and scruffy as did the beards. It was somewhat liberating, but for those who still had to front up as presentable on Zoom calls, they often had no choice but to do their own grooming.
The pandemic should have been a very difficult time for retailers as they were forced to shut their doors for extended periods of time due to mandated lockdowns. And it was. But despite that, some retailers have prospered as they managed to adapt their businesses to the new reality and position themselves to capitalise on some of the unexpected behaviours that emerged from consumers.
One retailer that adapted very well was Shaver Shop (ASX:SSG). They are a small specialty retailer, focused not only on shavers but also health, beauty and personal care items. Demand for these products actually increased during the disruptions of the pandemic. Despite their stores being shut for large periods of time, Shaver Shop managed to quickly ramp up their online presence and capture this demand.
But Shaver Shop is not just a pandemic success story. They have increased their sales every year for the last 10 years. They received a big boost from the pandemic, but they still managed to grow sales in 2022 albeit at a more modest rate of 4%, but off a much higher base.
Shaver Shop commenced in Melbourne in 1986. They have gradually built a network of stores across Australia and New Zealand which currently stands at 121.
Total network sales have grown at over 10% per annum for the last 15 years. (Note, network sales include sales from franchise stores. As of FY22 there are no longer any franchise stores as the final six were bought back. All stores are now corporate owned.)
Source: 2022 AGM Presentation, 10/11/22
The question now becomes can they continue to grow as the pandemic abates. The addressable market for health, beauty and personal care products is estimated to be $10B+ in Australia and New Zealand. Currently Shaver Shop only account for about 3% of that.
Source: 2022 AGM Presentation, 10/11/22
Whilst their store network in Australia is fairly mature, with limited opportunities for new locations, there is still a large opportunity…
