Defying tough retail conditions, CatchOfTheDay has already more than doubled its 2010-11 revenue of $120 million as it projects that it will deliver revenue of $250 million in the 2011-12 financial year.
The company, which operates Scoopon.com.au, Groceryrun.com.au and CatchOfTheDay.com.au, celebrated five years in business with its strongest September quarter on record, reporting year-to-date group revenues up 100 percent on September 2010 figures.
Co-founder Gabby Leibovich said the company experienced strong sales growth across all businesses.
“It’s amazing when you think that we are on track to post revenues of $250 million, which is more than a quarter of what Target recently reported ($835 million),” he said..
“Not bad for an online retailing site started five years ago by two brothers. Just goes to show that often the simple ideas are often the strongest.”
The e-commerce group is also seeing a steady increase in new members, with approximately 4,000 customers signing up each day. Collectively the group has more than 1.5 million members, with an item being purchased every 3 seconds 24 hours a day/ 7 days a week
“Five years ago we set out on a mission: to give Australians of all walks of life a reason to visit our site once per day by offering unbelievable bargains in every possible category. This year we've approached that goal faster than any previous year,” Leibovich said.
In June 2011, the group secured $80 million in funding for a 40 per cent share of the business from a consortium of investors including James Packer's CPH, Tiger Global and Andrew Basset from Seek.
In September 2011, the group launched its much-anticipated online supermarket, groceryrun.com.au. In its 5 weeks of operation, GroceryRun has delivered average revenues around $1.5M per week for the 2 day sale, with an average 20,000 orders being placed per week comprising an average 18 items.
Leibovich also said the company intends to explore a number of new markets in the coming year with the first new site to be launched being Brandstreet.com.au, which will offer branded fashion apparel and footwear.
“Investments have been geared towards improving service delivery and ensuring we have in place the people, infrastructure and technology platform to support our next phase of growth,” he said.
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