The online retailer Pierce, that runs the online stores 24MX, XLMOTO and Sledstore continued its growth in the third quarter of 2020. Net Revenues of 329 MSEK grew by 13 percent, corresponding to 17 percent in local currencies, compared to the same period of 2019.
The third quarter was challenging due to Covid-19 reasons in the form of significantly lower availability of goods in the market. The combination of strong sales in the second quarter, and production- and inbound delivery challenges during the pandemic, has led to a decrease in availability of products from both external and private brands.
– The product availability was significantly lower than normal in several categories in the third quarter. This was mainly related to external brands in general, as well as products within the Parts category, where our stock in periods has been empty. Despite this, the growth continued also in the third quarter, although at a slower pace compared to the first and the second quarter, says Henrik Zadig, CEO of Pierce AB.
In the first 9 months of 2020 Net Revenues grew by 23 percent to 1 109 MSEK, an increase of 210 MSEK.
– In recent years we have successfully built a customer base and a strong position in the European markets through rapid growth. Since the end of 2019 we have focused on increased profitability in combination with a more balanced growth level and improved operational cash flow. We have also reduced our costs compared to the same period last year. Overall, the developments in this year’s third quarter were strong, says Henrik Zadig, CEO of Pierce AB.
Focus on Black Friday in the fourth quarter
Current focus for Pierce is to prepare for one of the online retailer highlights of the year: the campaign season, starting off with Black Friday followed by Christmas sales.
– The organization is working intensively and is fully focused on improving the product availability from both private- and external brands, so that we stand ready with a strong customer offering in November. The fourth quarter also means the start of the season for our online store Sledstore, which offers accessories, gear and parts for snowmobile riders. We hope this winter season will bring lots of snow, so that riders can enjoy the snowmobile trails, says Henrik Zadig, CEO of Pierce AB.