ShowroomPrivé posts 51% revenue rise in Q1
French event sales website Showroomprivé has announced it generated a net revenue of €178.4 million in Q1 2021, closed at the end of March. The result is equivalent to a 51% increase over the first three months of 2020, which offer a favourable basis for comparison owing to the strategic reorganization then already under way.
The site’s online sales in France were worth €147 million in the quarter, a 51.8% rise that was due chiefly to the development of a strong media strategy and the deployment of a new online marketplace, which is set to play a central role in Showroomprivé’s growth. Online sales outside France generated €29.5 million and were up 64.1%, thanks especially to the positive results posted by the Saldi Privati site.
Showroomprivé said that in Q1 it continued to transition its business model towards drop shipping, which allows orders to be fulfilled directly through the inventory of the site’s partner brands. Drop shipping accounted for 25% of Showroomprivé’s sales in the quarter, a four-point increase. At the same time, the company continues to take advantage of one-off opportunities in terms of outright purchases of product stock from partner brands, said co-founders Thierry Petit and David Dayan, saluting the promising start to the year.
“In Q1 we benefited from a favourable comparison basis, but crucially we are capitalising on the intense work we have done in recent months, work that has enabled us to add to our range of premium brands, and to fully meet the expectations of our ever-growing customer base,” they said. “We are attracting scores of new members, more than 620,000 of them in Q1, with a particularly high conversion rate, in what is an increasingly favourable business context. We are gaining market share and all our operational indicators are positive, including those relating to profitability, since the activity levels we recorded enabled us to comprehensively absorb fixed costs in Q1. ShowroomPrivé is set to continue to reap the rewards of its operational optimization, and to bolster its profitable growth trend,” added Dayan and Petit.
In Q1, ShowroomPrivé recorded an average purchase basket of €44.7, up by 13.9%, while the average number of purchases per customer increased from 2.2 to 2.4. The number of orders rose by 35.8% to reach 3.6 million.
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