Ash Hardwick, co-founder of the Australian fashion brand Cotton On, is steadfast in his belief in the brick-and-mortar retail model for their brand. He recently emphasized in a podcast interview that shopping centers will remain their primary sales channel, even in the face of the growing e-commerce and online retail landscape.
Hardwick discussed Q1 financial results as of October 15, highlighting the strong retail sales performance in Western Australia, South Australia, and Queensland. However, he acknowledged that these results might be influenced by variations in the number of stores across different states. Nevertheless, he underlined the continued growth of their physical stores, while online and wholesale channels faced more challenges over the past months and year.
To illustrate the importance of shopping centers, Hardwick cited the example of a resilient 22-year-old customer who consistently drives sales for the brand, emphasizing that these physical retail locations are integral to Cotton On.
While recognizing the impact of technology and the rise of online retail, Hardwick expressed unwavering confidence in the enduring relevance of shopping centers, provided that physical stores continue to evolve. In terms of online sales, Hardwick noted steady growth despite the challenges, especially considering that it was a relatively new channel for Cotton On before the COVID-19 pandemic, which necessitated the temporary closure of their global stores. He stressed their commitment to a multi-channel approach for the future, avoiding a repeat of the closure of 1,500 stores across 22 countries.
