It has been a very busy two weeks at Harris Technology (ASX: HT8) but I am pleased to report that we have completed our facilities upgrade by consolidating three warehouses in Victoria, into one large complex.
This facilities upgrade signals the next phase of growth for Harris Technology as the only ASX-listed pure play online tech retailer that continues to capitalise on the cultural shift towards online shopping as the preferred retail medium.
Our new facility comes with at least 50% more inventory capacity than our old warehouses combined. This capacity provides Harris Technology with greater flexibility and buying power relative to volume deals.
The move comes just in time for the busy upcoming retail season which kicks off today commencing a period of pronounced mainstream media advertising from our marketplace partners in the lead up to Black Friday on November 26 and Cyber Monday on November 28, helping to drive traffic to Harris Technology embedded stores.
Whilst these retail events are still largely new in Australia, they are a massive hit in the United States where they originated and the trend is catching on fast locally. The timing, (around Thanksgiving) a month before Christmas is what has made them so popular amongst customers affording them the convenience of having all their Christmas shopping delivered to their door.
Technology products in particular are heavily promoted where Harris Technology has retained its position as the Number 1 ranked seller on Amazon Australia since July 2020.
To highlight how quickly Black Friday and Cyber Monday are growing: In 2020, independent sellers on Amazon generated more than USD $4.8 billion in worldwide sales from Black Friday through Cyber Monday, a 60% increase on 2019, and a trend which is expected to accelerate.
Preparing for heightened online traffic, we have increased product listings for the promotional period that will leverage our high seller ratings on each marketplace. This spike in online traffic should create new opportunities for Harris Technology to benefit from basket bundling and one-click checkouts supported by healthy stock holding.
Per ourSeptember Quarter Reportour inventory holding was $12.6M (+18% QoQ ) funded from free cash flow whilst also delivering a $500K positive net cash flow for the Quarter.
Thank you for your interest in Harris Technology and I look forward to bringing you more news soon
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