Temple & Webster Launch Online Home Improvement Website
- Home improvement market estimated at $26B annually across 9 million dwellings
- Target market is renovators, builders and tradies as well as homeowners
- Aiming for material Revenue and EBITDA positive business in FY26
- Positive trading update with revenue up 23 percent in four months to 30 April
- Increased share of wallet spend in the home supports continuing growth momentum.
Temple & Webster Group Limited (Temple & Webster or the Group) is an Australian homewares and furniture retailer, with a deliberate focus on technology as a key enabler to drive operational and working capital efficiency, within a ‘capital-lite’ business model. The primary driver of this capital-efficient balance sheet is the internet, in conjunction with data analytics and Artificial Intelligence (‘AI’).
The brand was founded in 2011 and listed on the ASX as Temple & Webster Group in December 2015. The float followed the acquisition of two other businesses, the Australian operation of Wayfair and Milan Direct.
Launch of DIY online Home Improvement Website
Temple & Webster have today launched a new online store aimed at DIY home renovators. To be known as The Build (www.thebuild.com.au), the focus is on the home improvement market, estimated at $26 billion nationally, according to IBISWorld Industry Reports. Renovators, builders and tradespeople are the target market, along with digitally native customers.
The market potential is reinforced by more than 9 million owner-occupied dwellings in Australia, where 40 to 60 percent of homeowners undertake or plan to undertake a design project each year. Projects include minor repairs, painting, new bathrooms and kitchens, and redecorating to complete or build home extensions. According to ABS data (based on Council approvals), it is estimated that more than $1 billion in approved renovations occur each month nationally.
The Group has currently 16 fulltime employees as its initial team, comprising buyers and merchandisers, with 200 suppliers providing 20,000 products live on the website across 39 categories. The Group is targeting a material revenue and EBITDA positive business in FY26.
The Group continues to trade well with revenue up 23 percent for the four months to 30 April, compared to the comparable period in 2021 and up 116 percent compared to 2020. The full-year EBITDA margin has been reaffirmed at approximately 3 percent, which is consistent with the 2-4 percent EBITDA margin range anticipated at the beginning of the financial year.
The Group’s diversified supply chain continues to hold up well, ensuring it is well stocked and in a strong position to meet growth in demand going into the fourth quarter of the 2022 financial year.
Temple & Webster continue to invest in the Group’s future. This includes investing in data analytics, data personalisation and supply chain management, to support accurate and timely forecasting of optimum inventory levels to reliably fulfil anticipated customer demand. The Group has over 200,000 products on sale from hundreds of suppliers and successful execution of critical success factors such as stock availability is supporting consistent earnings growth in the current market.
Launch of The Build is a natural growth path for Temple & Webster supported by the obvious cross-sell opportunities between home improvement and furniture and homewares. Significantly, Temple & Webster have stated that the long-term margin profile is expected to be superior to that of Furniture and Homewares. Capturing a greater share of wallet spend in the home at a time of rapid adoption of online purchasing, is certain to maintain the Group’s growth momentum well into the future.