PACK & SEND has reported global system-wide sales of AUD $20.5 million in its first fiscal quarter (Jul-Sep) of FY2020/21 – representing a 28% growth on the same period last year. Sales growth was strong in all countries in which the brand operates (Australia, UK & New Zealand).Average daily shipping volume across all sales channels (Service Centre and Online) experienced strong increases in the first quarter. Notably, ecommerce shipment volumes through PACK & SEND’s shipping technology platforms in Australia rose by 241%.
Franchisee profits in Australia increased strongly as same-store sales grew 28% on a business model with relatively fixed operating costs.
The technology driven logistics enterprise states that the strong rising franchisee profits were contributed by growing demand for ecommerce order fulfillment solutions (store, pick, pack, send), significantly improved labour productivity with PACK & SEND’s proprietary Point-of-Sale technology and a 110% increase in the passive income stream received by franchise owners through PACK & SEND’s ecommerce shipping technology.
In Australia, 9 franchises were sold in the first quarter of 2020/21, including 5 territories sold to existing franchisees who invested in their second or third franchise service centre. More franchises agreements are scheduled to be signed in the second quarter, including further franchisees acquiring their second outlet.
CEO & Founder Michael Paul said the company has been riding the ecommerce wave, and the results were also an indication of the strength of the PACK & SEND business model during the challenging global economic period.
“Ecommerce has always been on a growth trajectory, and the pandemic in 2020 has resulted in growth that was anticipated over a few years occurring in a few months. Our strong growth is a consequence of the strategic course we set before COVID-19, which includes over AUD $5.2 million in technology investments. Essentially the market has accelerated to meet our existing strategy” said Paul.
Paul believes the growth trajectory of ecommerce is permanent. “We are seeing retailers switch to online, and they have no intention of switching back. We are forecasting continued strong growth in the second quarter as we enter the peak parcel season. This will certainly be a peak like no other, and we are busy opening up our new Service Centres ahead of Christmas to further exploit the growing parcel demand”.
PACK & SEND’s strong growth is even more notable given the temporary loss of some reliable parcel and freight income streams in the tourism and tradeshow industries due to coronavirus restrictions. The return of these markets in a post-lockdown environment places the company in an even stronger position.
PACK & SEND’s customer centric focus has the company continuing to invest in its Service Centre network, people, and proprietary technology solutions to offer even more value and choice to customers as the demand for ecommerce propels skyward.
Current projects include introducing a range of new flexible B2C value add services in 2021. Paul said “One focus is building more technology to help us win more sales in the high growth ecommerce order fulfilment market including having our stores act as local fulfilment centres. This will give customers the option to hold stock throughout the PACK & SEND network, enabling consumers to have same day delivery or pick up after placing an order on a web store”.
“Commerce and consumer behaviour have fundamentally changed and PACK & SEND is well positioned to leverage its assets to add value in the last mile delivery of ecommerce purchases. This will add value to our franchisee businesses and has driven the current strong interest in franchisees becoming multi-unit owners” said Paul.
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