Ignoring valuation for a minute...the team at Adairs is just...

Ignoring valuation for a minute...the team at Adairs is just cracking on. They’ve really expanded the breadth of product in their online channel discernibly over the last few months.

Everyone thinking this is pandemic related etc , Jobkeeper etc is not actually focusing on the business and its underlying fundamentals.

They are now selling doormats for $40. They actually look pretty good believe it or not and I haven’t really seen the likes of these around elsewhere. Would be interested to hear your daughters thoughts on the expansion categories. from what I’ve gathered reading online reviews, Adairs seems to have a better product at a better price point for a lot of these categories and with the online channel growing stronger I anticipate further market share gains. Thinking about the customer experience, if they can get prompt delivery right for the online channel- with Adairs and Mocka between them they can really consolidate market share.

I very much hope that they decide to go for it internationally in FY22 after they’ve cleared the DC setup and the contingent consideration on Mocka as well. Business should be humming along by then and we may grasp how transient or permanent changes in consumer preferences are going to be. I have a feeling that there will be a meaningful shift away from leisure spend to durable consumer goods, which will favour brands that resonate with quality at a good price.