In the battle between online and bricks and mortar retailers, its clear the direction the world is heading. Kogan is now worth more than Myer. Yep, crazy right.
While many still enjoy browsing the isles and getting hands-on with products before making their final buying decisions, it seems increasingly consumers are comfortable buying online.
Yesterday Myer’s CEO, Richard Umbers resigned (was fired) for poor performance. Despite the 118 year old business having more than 67 retail locations, 14,000 employees, the company now has a market cap of just A$447.60 Million.
By comparison, online seller Kogan now has a market cap of A$629.95 Million, not bad for a company that started in 2006. This is another example of how a new, modern business can be nimble and better transition their product offering to meet the rapidly changing consumer demands. It also speaks to the overheads associated with retail that simply aren’t there with online retailers that import from the manufacturers, store products in warehouses and ship directly to customers.
Kogan continues to add product categories to its offerings, most recently announcing they’ll offer NBN services, adding to their mobile offering, on top of the ever expanding product portfolio available through kogan.com.au.
