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· Posted on
February 21, 2024

Sofa so good for Temple & Webster as it announces a major ramp up in revenue

Temple & Webster's sales between July and November this year increased 27% compared to the same period last year.

What's the key learning?

  • Temple & Webster was able to drop their prices because shipping costs have dropped dramatically.
  • During the COVID pandemic, shipping costs skyrocketed and forced retailers to increase the price of products.
  • Cargo transportation has dropped by as much as 90% since early 2022.

👉 Background: Temple & Webster is the online-only furniture retailer that sells everything from couches to tv consoles and even fake Christmas trees. Temple & Webster's share price has been on a rollercoaster since it went public in 2015. It listed at less than $1, jumped up to more than $13 during COVID, before dropping down to under $4.

👉 What happened: Just when everyone thought these cost-of-living-times would result in a consumer pull back, Temple & Webster pulls a rabbit out of their hat. Their sales between July and November this year increased 27% compared to the same period last year.

👉 What else: Temple & Webster was able to drop their prices because shipping costs have dropped dramatically.

What's the key learning?

💡In the cutthroat world of retail, mastering shipping costs can be the difference between thriving and barely surviving.

💡During the COVID pandemic, shipping costs skyrocketed and forced retailers to increase the price of products. The jump in shipping costs also ate into the margins of many retailers.

💡But cargo transportation has dropped by as much as 90% since early 2022, and this allows retailers to either pass on part of the benefit to consumers... or keep it for themselves (which many seem to do).

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