Company News in Brief
HomeChoice's consumer retail division plots aggressive expansion plan
The consumer retail division of HomeChoice International will expand aggressively across South Africa, with plans to nearly double its showroom store footprint to close to 60 stores by the end of the year.
Explaining the rationale for the expansion plans, the division, called homechoice, said on Tuesday that even while online shopping continued to grow in SA, there was a growing body of research indicating "brick-and-mortar stores still play a crucial role in driving sales and enhancing consumer experiences".
This had informed the homeware retailer's decision to expand its showroom store count from the current 37.
It noted how a study by the Harvard Business Review found that 37% of consumers reported they were more likely to buy a product after experiencing it in person. This highlighted the role physical stores in influencing buying behaviour, even if the eventual transaction took place online, said homechoice, which views itself as an omnichannel retailer.
"The same is true for South Africa. We know that our conversion rate in a showroom is higher than it is online."
The group says physical stores serve as vital components of omnichannel retailing strategies, adding that retailers are increasingly integrating "physical and digital experiences to create a seamless shopping journey".
HomeChoice International is a JSE-listed consumer fintech group. In recent years, it has transformed itself into a consumer services business in the fintech space, with its legacy home shopping business now accounting for only 5% of total sales.
-FIN24
The consumer retail division of HomeChoice International will expand aggressively across South Africa, with plans to nearly double its showroom store footprint to close to 60 stores by the end of the year.
Explaining the rationale for the expansion plans, the division, called homechoice, said on Tuesday that even while online shopping continued to grow in SA, there was a growing body of research indicating "brick-and-mortar stores still play a crucial role in driving sales and enhancing consumer experiences".
This had informed the homeware retailer's decision to expand its showroom store count from the current 37.
It noted how a study by the Harvard Business Review found that 37% of consumers reported they were more likely to buy a product after experiencing it in person. This highlighted the role physical stores in influencing buying behaviour, even if the eventual transaction took place online, said homechoice, which views itself as an omnichannel retailer.
"The same is true for South Africa. We know that our conversion rate in a showroom is higher than it is online."
The group says physical stores serve as vital components of omnichannel retailing strategies, adding that retailers are increasingly integrating "physical and digital experiences to create a seamless shopping journey".
HomeChoice International is a JSE-listed consumer fintech group. In recent years, it has transformed itself into a consumer services business in the fintech space, with its legacy home shopping business now accounting for only 5% of total sales.
-FIN24
