Typically known for specialising in furniture and homewares, Temple & Webster is now set to expand into the hardware market with the launch of its new online offer, ‘The Build’.
The online business is expected to steal market share from Bunnings and hardware independents with the ‘The Build’ tapping specifically into the Aussie home renovations market – valued at $12.3 billion last year alone, a recent Channel News report has said.
Temple & Webster Chief Executive Officer, Mark Coulter said in the report that the move from loose furnishings to fixed wall and floor products is a natural extension of the business.
“Bunnings and Mitre 10 are great retailers. Bunnings has done an amazing job to educate Australians about the benefits of DIY, renovating or doing design jobs – big or small. The market is very big.”
“It is still growing. There is definitely room for an online-only player which has the breadth of what we are planning across multiple categories to really be that first-stop shop, and provide customers with the convenience and value that the online channel has over stores,” Mr Coulter said in the report.
Costing over $2 million in launch costs so far, ‘The Build’ is expected to attract consumers who became more comfortable with online shopping throughout COVID.
“That underlying trend of the shift from offline to online is really driven by consumer preferences that are independent of those macro factors. There may be a period of potential inflation or slowing year-on-year growth. However, that underlying trend of people wanting to shop online, that is not going anywhere. We are really building as a business for the next generation to shop,” he said in the report.
The launch comes as Temple & Webster shares dropped by over 60 per cent since an August 30 high of $14.71. Despite the drop, Mr Coulter pointed out that he “stopped trying to understand the market many, many years ago” regarding the share woes.
“We are still delivering profitable growth. We have got a really great brand. We stand for something more than just price. I think this is about fundamentals, and you build a sustainable business, and I think the market will follow,” he said.