The bulk of sales, at 60 per cent, come through the wholesale channel, followed by 26 per cent online, according to KPMG’s sale flyer. Its 22-location retail network contributes only 14 per cent but clocks up about $11,000 in sales per square metre.
It has expanded well beyond its menswear roots, and womenswear now rings up 60 per cent of sales. Recently added lines across kids, accessories and homewares make up about 10 per cent, but are set up for rapid expansion with in-house design capability in place. Prices start at $30 for a basic tank top, climbing to $600 for a suede women’s jacket or $400 for a wool and cashmere version.
Eight new stores in three years
A peek inside the well-loved fashion label is exciting. But anyone thinking of mounting a bid would have their eye trained on future growth.
Having tested its design language and price points at home, Assembly Label wants to expand into overseas markets via both the wholesale and direct-to-customer channels. It has also penciled in eight new domestic store openings within the next three years. Sprucing up the website is on the to-do list as well.
KPMG’s bankers also offered up ways for a new owner to make Assembly Label’s already sticky customer base even stickier. The new owners could develop a loyalty program, and take steps to minimise stockouts that affect its popular core range.
The Assembly Label store on High Street, Armadale.
On the operational side, the business could do with an upgrade to its enterprise resource planning systems to underpin global expansion. The logistical backbone could also be tightened, including rightsizing the Sydney warehouse, switching to consolidated shipments from suppliers, and reducing double-handling of goods bound for New Zealand.
And in some bad news for Assembly Label’s fan base, the owners are thinking of adjusting prices on some ranges from July 1.
The company is majority-owned by Oliver and Horan, with chief executive Lee Thomas holding a 10 per cent stake. KPMG’s Melbourne-based retail specialist, Luke Lawrentschuk, is spearheading the sale.