UPFRONT EOFY 2022 by frontlinestores

INSIDE: Supplier Milestones Member & Supplier Insights EOFY Divisional Wrap Ups

EOFY 2022

Kylie

Tricia

Travis

David

CEO UPDATE Glen McLeod (L), Darren Lee (R) Frontline co-CEO’S

Despite a tumultuous couple of years, Frontline has continued to demonstrate incredible resilience as an organisation proudly serving the independent retail sector in Australia. In fact, the full year results for the past two years have been above and beyond previous years – testament to a lot of hard work and innovative thinking by many. The first half of the year saw what we hope are the last of the COVID-19 lockdowns in Australia. The impact of these were significant for parts of our membership, particularly in the eastern states. After the Xmas/New Year period, supply chain disruptions led to some erratic results for the next few months which have since settled somewhat into a more orderly pattern. Our staff have done an incredible job once again to “keep the wheels turning”, having mastered the art of remote working in the past two years! This commitment by the Frontline Team has undoubtedly helped our Suppliers and Members through these times in one way or another. And an example of this is the support and backup our staff have provided to flood-affected Members and Suppliers in recent months. This support is ongoing, and we will continue to do whatever we can to help. With all states having progressively opened their borders during the year, it’s been great to be able to start reconnecting with our business partners face-to-face after being very limited in being able to do this for way too long.

FAREWELL KYLIE Following 12 years of impeccable service at Frontline, Kylie Smith left us in April, to take on a role in another membership-based company. During her tenure, she was responsible for Event Management and Retail Services, primarily, but was always eager to help out in other areas. We will miss her dedication and personality, as I’m sure many of you will, and wish Kylie all the very best for the future. A special note from Kylie: “I have enjoyed my time at Frontline over the last 12 years and have learnt a lot, which I will take away with me. I have especially loved getting to know the diverse people that make up our Membership.” We have taken the opportunity to promote from within: Tricia Nicolacopoulos has taken on the role of Event Management, along with her existing Office Management Role. Travis McKenzie has taken on Retail Services, in addition to his current role of Business Manager for Footwear & Lifestyle. David Sharp our Business Development Manager, has added Membership Manager to his portfolio, as he caretakes new stores into the Group, in addition to being our direct link with the Australia Retailers Association (ARA).

Please join us in congratulating Tricia, Travis and David on their new roles!

We look forward to reconnecting as much as possible in the year ahead as we continue to deliver high levels of professional service and support to all our valued business partners!

For More Information You Can Always Contact Us.

Best wishes to all for the year ahead!

tel: 03 9888 5766 | fax: 03 9888 5522

Level 1, 210 Canterbury Road, Canterbury VIC 3126

www.frontlinecentral.com.au

FAB Event 2022

FAB EVENT RETURNS! After 3 attempts that were thwarted by the pandemic and lockdowns, FAB Event made a return in March this year, co-located INSIDE the Melbourne Gift & Lifestyle Show. For the 3 events in between, we operated digitally, with e-FAB Event. These ran for 2 weeks and participating Suppliers showcased their latest ranges via catalogues and also featured specials. This was a way to stay in touch and view ranges within a timeframe.

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There is still nothing quite like touching product and seeing the sizing for yourself, so being able to finally run an in-person event was very much welcome. Over 3 days, our Members were able to view product from over 80 suppliers – in addition to over 60 in Gift & Lifestyle. Feedback from the event was positive, with most acknowledging that it was a step towards getting back on track again. Some opened new accounts with retailers and all appreciated reconnecting in a more leisurely way.

Another change was to the social event, which was replaced with a Happy Hour on the Saturday and Sunday afternoons – open to all in the halls – retailers and exhibitors. Again, it was an opportunity to catch up and make connections. We look forward to presenting the next FAB Event in February (4/5/6th) in conjunction with the Gift & Lifestyle at the MCEC.

FrontLine UPFRONT | EOFY 2022

Member Insight

HAVE YOU CHOSEN THE BEST ADVERTISING CHANNEL FOR YOUR BUSINESS? Sleep Doctor Campbelltown, NSW

As a business owner, I am constantly trying to squeeze the most out of our marketing dollar, and best position our business into the prying eye of the everdiscerning consumer. I also stay awake at night contemplating why Monday’s trade was busier than Sunday’s, why this month’s trade has been lower or higher than last month. It’s COVID-19, it’s the budget, it’s uncertainty. It’s MADENNING. All I need is consistency of traffic, but the big question looms: “Where do I spend my marketing dollars?” Just spending more on Adwords hasn’t worked. I’ve posted 811 Instagram posts, and still have only 1867 followers. I put an ad into the newspaper and no one came in. I spent $4000 on TV ads that really didn’t earn the $12000 to justify the spend.

What next? Getting back to basics. There is no such thing as a marketing channel anymore. Every business is both offline and online at the same time, and our customers are using multiple different methods to research us, our products, our ratings and our prices. Now, more than ever, relationships matter. Over the past two years, our Bedding and Homewares store has rewritten our rule book for marketing. We have looked for areas we can conserve and areas that we need to spend on to grow and I’ll go through some of the options we considered for you below. Electronic Direct Mail (EDM) are emails that are sent directly to existing clients, newsletter signups and other collected lists. Automating this process using systems like Klaviyo or MailChimp allow you to market to your lists automatically but more importantly, timely and relevantly. You can automate a series of emails based on them clicking online, purchasing in store, asking for a quote or any number of other triggers. For roughly $150 per month (if you have a list of about 5,000 email addresses), this type of marketing is your absolute best bang for buck.

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Google Adwords Cost Per Click (CPC) is paying for ads that show up at the top of a Google search. The more you pay, the higher up the rankings you go. This type of advertising is great to attract new customers at the time they are searching for the product or service you sell. Every key word has a different value depending on how popular it is, for example ‘mattress melbourne’ is very competitive and you will be paying more for each time you are shown or clicked on. If you have niche products however it can be very lucrative. Google Display Ads are ads that get shown via a banner or short video. These are bit more annoying, but can often be used to show up to a customer after they have already visited your site or searched for you, also known as re-marketing. Often a bit more expensive, however in the right circumstances can be very effective. Search Engine Optimisation (SEO) is the black magic of marketing. Essentially this is where your reputation is boosted. These are the PR guys of the internet. You pay for analysis of your website and online presence to help get you to the top of the search engine rankings for Google

Member Insight

or Bing. There are numerous ways they do this, but essentially you are trying to ensure your website is trusted by the search engines, and more relevant than your competitor to the search that a potential customer makes. You can start this process yourself and learn some methodology using programs like SEMRush - or you can engage a company (cautiously) to help out. Note that SEO takes months or years to really get going. Facebook/Instagram Marketing is also a pay per click type of arrangement but allows you to feed in your customers to Facebook, and then create an audience that looks like them to market to. This is a very effective way to advertise for many businesses, but can become costly depending on your industry. You have a lot of control over the target audience, and this is why it was used to segment America during the Trump elections. You can get yourself a Meta (the new name for Facebook) Business account and give it a try yourself, or engage a team to help out. Relationship building locally is a bit like SEO, it takes time but it’s much more beneficial and much cheaper than many

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other marketing options. Think of local charity involvement, the local football club, chamber of commerce, schools and any others where your clientele might be involved. Sell baby clothes, you might align with mother’s groups. Provide aged services, align with a local Rotary. Think outside the box on this one. Building relationships can also be done by word of mouth. Great customer service, going over and beyond is what spreads the word. Maybe by providing a bottle of wine or a small gift, it would be enough to ensure you have someone in the community speaking your praise. Get your website right. This might sound like a broken record, but getting your website firing on all cylinders is extremely important to all of the factors above. Websites build trust and they show the customers what type of business you are. Some little hints I live and die by are: • Use great photos and descriptions

• Pick 3 colours and stick with them • Make sure it’s fast! Essentially a good marketing strategy is going to encompass all of these in some capacity. At some stage however, the consistency of the message you put out and the regularity is going to give you that consistency of customers coming through the door. If you have any further questions about marketing your business, and which partners you can trust for things like SEO, Google Ads and Website builds, Frontline have an amazing team of professionals at the ready to point you in the right direction - or feel free to email me directly. I hope this helps out in some way to help grow your business. Ben Duggan Sleep Doctor – Campbelltown ben@allbeds.com.au

• Don’t push for quantity, go quality • No more than 3 clicks to find the right product

FrontLine UPFRONT | EOFY 2022

Member Insight

Before

During

MAKING THE MOST OF A MOVE Thompsons Menswear, Malvern, VIC

After 30 years in its second location on Glenferrie Road, Malvern, the business was forced into a very sudden move recently. With more than 6 months on the lease, the business was pushed out by a major chain wanting to expand. Owner Phil Levy sprang into action and looked for a new location. It needed to be nearby as it has a loyal base of customers and also services the nearby Cabrini Hospital. Luckily, a slightly smaller space was available across the street and only a few doors down, however, a renovation and fit-out was needed – and quickly. Phil sourced new flooring, lighting, air con (and ceiling fans) as well as fixturing from Shop For Shops. Their Max-E system was modern, flexible and could be installed quickly. Over a 2 week period, everything eventually came together – COVID-19 disruptions notwithstanding. A “move” date was set for Friday 11th March - the start of a long weekend in Melbourne – with a re-opening date

After

of the Tuesday following. A team of 8 including Miro and Travis from Head Office worked on the Friday (and thankfully in good weather!) to move every piece of stock and racking across the pedestrian lights and into the new location. Trolleys, rolling racks, tubs and bags were used to ferry the stock – with no breakages! By mid-morning, the point of sale had been moved, set up and the customer service continued – yes, the store remained open throughout the move! (Much to the amusement of some). Over the next 3 days, Phil and his team then finessed, tidied and cleaned to reopen on time, on Tuesday. The results speak for themselves, with a lighter, brighter and more modern store. Feedback from customers has been positive – many popping in just to say congratulations on the new look. Staff also feel re-energised and love the versatility of the new space. Knitwear and sleepwear both have storage underneath for excess stock, customer holds and catalogues – keeping everything neat in these top-selling categories. Phil is looking forward to receiving his winter ranges in, and some final tweaking of the space which

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includes whiter lights and enhanced visual merchandise points. Despite the initial upset and concern, Phil and his team now look forward to a new brighter future in the new site. It is great that Malvern has not lost another independent retailer through the actions of a major chain – and also that a business that is over 70 years old will still be around to service its customers (and hopefully some new ones) well into the future.

You could save on merchant fees^. With Commonwealth Bank, Frontline members can take advantage of preferential rates on credit and debit card merchant fees. Whether you’re a small or large business, the savings you could be making in merchant fees could be invested in other areas of your business, like purchasing equipment, employing staff or online marketing. How much could you save? When comparing credit and debit card merchant fee charges for Frontline members versus non-members, the savings can be surprising. We have reviewed our merchant base^ for the industry and found that on average, members processing less than $500,000 could save up to 31%.^ We can easily create a customised comparison for your business, by simply providing us your Merchant statement for one whole month. With Commonwealth Bank, Frontline can also take advantage of our latest technology with either an Essential Lite or Essential Plus device, no contracts and 24/7 support. Here for you, for however you do business. To find out how much you could save with Commonwealth Bank, please contact Travis McKenzie at Frontline Stores by emailing travis@frontlinestores.com.au or call 03 9888 5766 and they’ll put you in touch with a Commonwealth Bank Relationship Manager.

Things you should know: ^Data used represents the total credit and debit card merchant fees charged over a 12 month period to April 2022. Interchange fees are set by card schemes such as Mastercard® and Visa® for processing transactions between Commonwealth Bank and the cardholder’s bank and is subject to change, therefore, savings may vary. This information is for illustrative purposes only and has been prepared without considering your objectives, financial situation or needs, before acting on the information, you should consider its appropriateness to your circumstances. Different assumptions and estimates could result in materially different results. On this basis, no representation or warranty, expressed or implied, is made as to the accuracy of the information or projections contained in this example. Fees, charges, terms and conditions apply. For full Frontline member costs please email Travis McKenzie on travis@frontlinestores.com.au. Frontline may receive a fee for each successful referral. Please view our Merchant Agreement, Fi‐ nancial Services Guide and Operator and User Guides at our Merchant Support Centre. The target market for this product will be found within the product’s Target Market Deter‐ FrontLine | EOFY 2022 mination, available at commbank.com.au/tmd. Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and AustralianUPFRONT credit licence 234945.

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Supplier Insight

75 YEARS

Humphrey Law Humphrey Law started as a partnership between Sidney Humphrey and Albert Law in 1947. From the beginning they focussed on good customer relations and welcomed all customers large and small. Right from the start, the company committed to 100% Australian Made. At the time dyes were the only imported raw materials. Wool, cotton and synthetic yarns were all made in Australia. Another early idea was vertical integration, that is control the whole process by buying raw yarn and producing finished socks. So machines were purchased over time to twist yarns, knit socks, dye yarn and socks, press and label socks. The great advantage of vertical integration is that the company controlled all aspects of quality internally. The quality of our product is now more important than ever so we still keep all these processes in house as they were many years ago. From the start the company committed to using Australian wool. Some of the earliest socks were men’s sized pure wool with Lisle (mercerised cotton) or Rayon reinforcing in the heels and toes. These socks did not stretch – Lycra didn’t exist – so they had to be sold in sizes. Wool in 1947 was not shrink-proofed so socks had to be hand washed. In 1952 Humphrey Law was involved in CSIRO

tests for a new shrink-proofing process, this involvement with wool and Research & Development has continued through the whole life of the company. Today we buy bales of fine merino wool direct from the Wool Connect group of farmers in the Boorowa region of NSW to ensure we use the best quality fleece and we work with our machine suppliers to find the best ways to combine quality with efficient production. Evolution and research over the years saw a change from Wool/Polyester to wool/nylon socks for improved abrasion resistance, the use of Lycra (elastane) for stretch, the introduction of computers. We purchased our first computer in 1985 it had a green screen and 9 inch floppy disks for backup and cost around $20,000. It was a huge amount for a small company but it gave us the ability finally to control stock and predict what needed to be produced. The other huge change was from all mechanical knitting machines to partially and then fully electronic ones. This enabled more accurate sizing and more features and patterns in the socks. Still later came automatic toe closing on the knitting machine. Today just about every machine has some form of computer attached to it. These advances in machine electronics and robotics have helped make labour costs more comparable with imports and indicate that in the future, Australian manufacturing, helped along by the realisation of Australia’s lack of selfsufficiency during COVID-19, will ensure

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that Humphrey Law can continue to manufacture quality socks for another 75 years. The Team at Frontline wish to congratulate Humphrey Law on this fantastic milestone, and thank them for their business over the past 30+ years with us. We look forward to many more!

Supplier Insight

CELEBRATING 100 YEARS OF AUSTRALIAN MANUFACTURING

Proudly Australian Made

and teachers.

Buckle is committed to keeping production onshore, with more than 90% of its products made within its Stanmore facility.

Supporting the community and carrying out sustainable practices is part of Buckle’s vision forward.

This year, one of Australia’s largest belt and braces manufacturers, Buckle, celebrates 100 years of local manufacturing.

The production team have spent 100 years perfecting the handcrafted process. A leather belt undergoes 21 individual processes before it is ready to be shipped to the customer.

Buckle 1922

Not many Australian brands have been around for that long. However, Buckle has found that its core values of trust, heritage, and quality, outlast any season or trend. Our Story Buckle’s story is an old one. Established in Surry Hills in 1922, the company began as an importer of women’s undergarments, soon expanding into producing men’s braces and later, its signature leather belts. From humble beginnings, Buckle has continued to grow and evolve alongside its customers. Today, the company continues to handcraft its belts and braces in the Sydney suburb of Stanmore where it employs more than 30 staff members. Buckle not only supplies accessories to over 1200 independent retailers under its own brand, but has also built long lasting relationships with well-known labels and corporations, by producing belts and accessories on their behalf, under license.

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While some of the processes involved in handcrafting a belt have been updated since the early days of production, many of the original processes - as well as the antique machinery - continue to stand the test of time. Sustainability Sustainability is essential to Buckle. By manufacturing in Australia, Buckle is able to minimise its environmental footprint by maintaining business onshore. Additionally, staff members engage with a recycling plan to ensure that waste and off-cuts are minimised and reused. For example, leather off-cuts are used to carefully create leather keepers for belts. This ensures that materials are sustainably utilised wherever they can be. For the past 10 years, Buckle has donated any leftover materials that cannot be used in the factory to Reverse Garbage in Marrickville to be repurposed for better use. These leather and metal parts are then picked up by kids, adults

100 Years, And Counting In it’s lifetime, Buckle has survived The Great Depression, World War II, the Global Financial Crisis and, most recently, a global pandemic. Moving forward, Buckle aims to keep up to date with new trends, maintain existing relationships with retailers, private label accounts and suppliers, whilst throwing support behind the local community. Reflecting on the brand’s heritage, Director, Melissa Gibson said: ‘Buckle is proud of where we have come from, and celebrating 100 years is a chance to reflect on our history through great and tough times, as well as on where we are going next. Our journey has been a long one but we still have so much more planned.’ ‘We’re celebrating our hundredth birthday, but we’re still young at heart.’ Buckle will hold its centenary celebration at the Museum of Contemporary Art on July 1st. Congratulations Buckle on your centenary, from the Team at Frontline! Queries: 02 9557 5688 | sales@buckle.com.au

FrontLine UPFRONT | EOFY 2022

Supplier Insight

DEVELOPING A SEASONAL RANGE

How far ahead do you work & what are you currently working on?

Bambury

As a valued Manchester supplier, the team at Bambury are constantly focussed on providing our Members with the latest contemporary Bedding and Décor options. Design Director, Amy Clarke who has been at Bambury for 11 years explains the processes behind the scenes to provide stores exciting new ranges each season. Who makes up the design team? Anna, Stephanie and I are the design team at Bambury. We put together the ranges and then we hand over our finished artwork, colour selections and any other specifications to the product developers: Ray, Angie and Olivia. The Product developers send our artwork to the suppliers and from there they discuss pricing, samples, time frames, compliance, testing and shipping.

We generally work about 12 months ahead of time. For example, this September we will be creating artwork for summer products for delivery into stores September 2023. Where do you get your inspiration/ direction for colours & designs? Inspiration comes from a range of sources. We follow trends from forecasters such as WGSN, online and on social media and in other areas of design such as fashion apparel. As a team we are in tune with where trends and colours are heading. Previous sales data can often influence the direction and choices we make such as repeating or expanding a range. We always include latest on-trend fashion colours (eg. currently it’s lilac). This gives the photographs personality and colour. We then always compliment the fashion colours with more neutral timeless colours such as white, beige, taupe and greys. Before the pandemic, we would travel overseas to visit suppliers, trade events

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and look at retail shops. To be honest I would often be left underwhelmed! I think Australian home decor is just as exciting and if not more, than overseas retailers. While there are some beautiful designer brands and shops overseas, I think Australian homes seem to be less traditional or bland, more willing to follow trends and more adventurous in their homes with colour, pattern and style. What are the key steps from design to shipment of stock? 1. Initial concepts – This Design team comes up with initial concepts and colours for the planned range. 2. Inventory review – Once we have a bit of an outline and a concept range, we meet other departments such as Finance, inventory control and Sales. We discuss what did and didn’t work previously & analysed facts and figures to make any adjustments. 3. Finished Artwork – Once the products are decided on the design team draws up artwork and instructions for the suppliers

Supplier Insight

and decide on manufacturers. Sometimes the artwork is quite simple, like picking colours for a blanket, and sometimes much more labour intensive, for example a quilt cover set that has been hand painted, the artwork needs to be transferred into a digital CAD file to send to the supplier. 4. Sampling phase – After the artwork is sent to a supplier, the product developers arrange lab dips and samples and confirm prices and timelines. Sampling works to strict deadlines as they are required for catalogue photoshoots. Sometimes colour lab dips or samples need to be redone if not quite right. 5. Photography & Catalogue – With the increase in online shopping and social media, the photographs of the products have become very important. Poor photos can affect how well a product sells. With two main product releases a year Summer and Winter, and two catalogues a year, photographs and catalogues are both very important marketing tools for Bambury.

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6. Manufacturing – Once samples are approved the suppliers start production. We then supply them with information for packaging and care labels. Manufacturing time is usually at least 90 days. Throughout this process we arrange compliance checks or testing, whether it is checking working conditions, ensuring chemicals are minimised during the process, or checking the performance of the fabric. For over 30 years Bambury has worked hard to establish strong relationships with a pool of great, reliable suppliers. 7. Shipping/Delivery – After manufacturing the products get loaded into containers ready to ship. Shipping continues to be a challenge. Times have blown out and costs have risen. Pre-pandemic we would usually allow about 4 weeks for shipping, but we are now dealing with ongoing delays. Once the container arrives into our nearest port in Fremantle, it then gets trucked to our warehouse in Bibra Lake, where it all gets scanned, counted, and entered into our computer systems.

Has COVID-19 created challenges or opportunities? From the business planning point of view and the product development, there have certainly been obstacles and delays through the manufacturing process. Couriers take much longer to deliver samples now, factories are forced to close due to COVID-19 restrictions and government policy, and shipping is much more expensive and slower. As designers our roles haven’t been impacted as badly. We ’ve just adapted by working remotely. There’s so much available online now, lots of tools at your fingertips and less pressure to travel to get inspiration and knowledge these days. Through all the challenges we have faced together, the team at Bambury are excited about our growing long-term relationship with Frontline and take pride in the products we strive to offer our Frontline customers. Amy Clarke | Design Director Phone: 1300 766762 Web www.bambury.com.au

FrontLine UPFRONT | EOFY 2022

Supplier Insight

STAYING ON TOP OF THE GAME Thomas Cook

Once again, THOMAS COOK has achieved the feat of being the top supplier in the Group this financial year. Not only were they number one (for the 4th year in a row with sales in excess of $6m), but they also saw considerable growth during a globally challenging period. But how? No doubt, there is a definite synergy between their stable of brands, and the customers of our Members. In that stable, they have Thomas Cook, Hard Slog, Froggers, Dux Bak, Pure Western, Boar Tearer, Bullzye and are the Licensees for Wrangler Western and Twisted X footwear. There is also a personalised level of service that starts with the reps doing the country miles to visit stores. They have a vast program of stock service products, ‘STOCKLINES’, which complements seasonal ranges and keeps retailers full of best-selling merchandise. The latest Thomas Cook Winter 2022 catalogue now covers 222 pages of product. But still, there is more. There’s a hunger – a hunger to continually grow and improve the business, seeing and taking opportunities when presented.

One case in point is the rapid expansion of the Thomas Cook rabbit fur felt hat program. With one major wholesaler struggling to supply, plans were made to offer a very high-quality alternative to allow our members to continue to have hats available for their customers. The introduction of rabbit fur felt is on top of their range of ‘Australian wool’ hats – and now sees a range of over 20 styles in a variety of colours. There is also brand acquisition. BULLZYE started in 1999 as a brand inspired by, and still celebrating the great outdoors, and all things Australian. It quickly grew from one small shopfront to a national presence in retail and online. A decision further down the line to pull out of wholesale and only go vertical (in 5 stores and online) nearly spelt the end of the brand. And this is where Thomas Cook stepped in… Recognising that the loyalty was still there, they acquired the brand in March 2020 and saw it as a great extension of their portfolio. The brand needed to get back in the hands of retailers – where it belonged. The first range consisted of 54 SKUs covering tees, caps and accessories. Now in its 5th season, the range has grown to a full collection of 207 SKUs across men’s, ladies’ and children’s wear. Another major factor was the commitment to relaunch the brand and only sell Bullzye via retailers

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and not sell online in competition with the local stores. Thomas Cook supports stockists to keep the money in the local towns and rural communities. At the end of the day, it’s not really a big surprise: listen to your customers and give them what they want! Now in their fourth generation and with their centenary coming up in 2024, Thomas Cook are looking well-positioned to not only stay IN the game, but stay on TOP of it. Congratulations! Queries: P 03 8872 7272 E enquiries@tcbac.com

Supplier Insight

NEW SUPPLIER

The company was forced to reassess its ranges and realign its product selections with a full focus on the domestic market.

magnets and other more traditional souvenirs, making this artwork accessible to all.

VISIT Brands is a proudly Australian owned business and Australia’s leading wholesale supplier of Licensed, Souvenir and Custom Promotional products.

The strength of our licensed brands along with location specific products, saw the business able to continue and as lockdowns eased, benefit from the national pride felt by domestic travellers, in seeking out products that represented the iconic features and locations of Australia.

A new addition to our licences is the work of artist Melanie Caple. Melanie’s youthful and unique take on Australian flora and fauna is bringing a whole new dimension to our product ranges.

VISIT Brands

The name VISIT has been synonymous with travel, souvenirs, attractions, promotions and events for more than 80 years. Our customers are a diverse array of retailers, but we specialise in ensuring that they are supplied with the products they need to align with their unique customer demographic. Our Nation-wide family of clients benefit from stocking our popular product ranges which deliver high margins, at competitive RRP’s. With a Head Office based in Mulgrave Victoria and a dedicated National network of experienced Account Managers, all of whom have many years in the business, VISIT has extensive market knowledge. We offer the customer a stock range of products featuring dynamic graphic designs, illustrations, photography and innovative products. Licensed brands are also a very important part of our product offering. The onset of COVID-19 in 2020, had a devastating impact on Tourism with a sudden halt to International Tourists, who were the largest consumer of our products up until that time.

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VISIT value all things Australian and are very proud to be a licensed partner with Bega, offering Vegemite merchandise. This icon of Australia is represented across a full range of products which always prove to be best sellers. In addition we have an association covering more than 30 years with the Worimi People through the Foster Local Aboriginal Land Council trading as Tobwabba. VISIT are very proud of this association and also that we are members of the Indigenous Arts Code. The Worimi people are Aboriginal Australians from the eastern Port Stephens and Great Lakes regions of coastal NSW.

We are always excited to partner with and promote our local artists. VISIT also specialise in providing custom product. Customers provide us with their images and logos, or alternately a design brief and we work with our design team and suppliers to produce product unique to their business. With very low minimums, this is an option for even smaller stores. We are very excited to have now partnered with Frontline and very much look forward to bringing our products to a new group of customers. For more information: Phone: 1800 807 053 or Local (03) 8558 4800 Email: customerservice@visit.com.au Web: www.visitonline.com.au

Before contact with settlers their people extended from Port Stephens in the south to Foster / Tuncurry in the north and as far west as Gloucester. The beautiful colours and magical stories told by their artwork have been tastefully displayed on products ranging from silk scarves, jewellery through to gallery

FrontLine UPFRONT | EOFY 2022

Give your customers a better way to pay.

57%

of customers would switch to a business that offers Afterpay.^

Put your business in front of 3.6 million active customers. Scan now to unlock an exclusive rate.

^ Source: AlphaBeta Analytics for Afterpay, March 2021.

WHY DID YOU CHOOSE TO HAVE AFTERPAY FOR YOUR STORE?

HAS THE FEEDBACK FROM YOUR CUSTOMERS BEEN POSITIVE?

WOULD YOU SUGGEST OTHER FRONTLINE STORES USE AFTERPAY?

Sportfirst Epping

Sportfirst Lake Haven

Sportfirst Epping

Afterpay just takes all the stress from the customer, as many of our customers are waiting for pay day to purchase. This way they can get what they want when they want it, rather than having to wait for pay day.

Yes, the customers like that they can use it, especially for big purchases.

I think it’s a great alternative to a credit card for our customers.

Sportfirst Corio

Sportfirst Geelong

We see it as a great way to upsell to our customers. If they can use Afterpay, they are less worried about the total cost, as they know they can pay it off, rather than having to pay for it all now.

It’s been great for our younger customers who seem to already use it with other retailers, so it’s easy for us to use it as a payment option for them.

Yes, we find it as a great way to increase add-on sales, or to increase the total purchase value, as customers know they can pay it off over time.

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Supplier Insight

THE ECO MOVE TO PAPER Bee Dee Bags

Since 1974, Bee Dee Bags have serviced retail stores with their packaging requirements, commencing operations in Wagga Wagga. Now nearly 50 years later, and having experienced many changes in the retail landscape, they are still based there, with offices also in metro-Melbourne, Sydney and Brisbane. Interestingly, even the USA and New Zealand operations are also run from Wagga Wagga! The business has taken over the whole street, and employs 59 full time staff, as well as 26 full time reps. Their clients cover a vast array of businesses, with 70% being owner operators (like Frontline Members), and 30% being chains, and the scope of product now also includes wrapping paper, tissue and food packaging right through to bespoke items, often handmade. While in the past, the majority of business has been plastic bags, things are changing… Western Australia is the first state to ban single-use plastic bags, with the mandate taking effect on July 1 of this year. Other states are expected to follow in time, but have not yet announced legislation. As lead times are up to 12 weeks, retailers will need to factor this in when ordering prior to expected mandates in other states.

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Cain Gawne, General Manager at Bee Dee Bags explains: “ While stores have wanted to move away from plastic for some time, the cost has been prohibitive, coming in at almost double”. Soon though, there will be no choice, though Cain is campaigning for government assistance in partially subsidising this move. The restrictions mean that handles will need to be either cotton, or paper twist in order to comply. Ink for printing has no restrictions at this stage, though Bee Dee Bags uses soy or water-based options. The paper is FSC-approved, meaning it comes from sustainable forests, not rain forests.

service of gift-wrapping for online sales, Bee Dee Bags will be able to help you out – and offer you discounted rates by being a Member of Frontline. They are, in fact, the biggest services supplier in the Group! For more information: Phone: ( 03) 9415 9377 Email: info@beedeebags.com.au Web: www.beedeebags.com.au

A point to note, Cain says is that “while this option is more environmentallyfriendly, by being biodegradable (or recyclable), there is less strength than in a plastic bag and it cannot be re-used as often. Also, retailers need to be aware that the cubic measurement is up to 4 times that of plastic. This impacts the freight cost and space needed for storage”. A common fallacy is also the cost of printing. “The main cost is in the bag itself, not the printing, so adding a few extra colours will not add that many more cents per bag – but really help it to stand out in the street. Being a full service company, we can even design a logo or image for your bag!” Whether you are wishing to convert earlier and offer your customers an option that is better for the planet, or offer an additional

FrontLine UPFRONT | EOFY 2022

Business Developement Insight

BUSINESS DEVELOPMENT IN FOCUS The Business Development role at Frontline is responsible for helping grow our membership numbers by finding new retail opportunities, researching retail segments, establishing relationships with potential new Members and presenting a solid case for a potential new store to join Frontline. Increasingly, the role has also had to focus on retaining Members who have sold their business. This role of member retention has become more important as the effects of the pandemic on business becomes more and more apparent. While the number of new stores joining Frontline during the last year and over the period of the pandemic have been lower than in previous years, the quality of these stores has lifted, and their spend has increased. Frontline has been able to attract higher turnover Members and in certain cases new businesses that are in different retail market segments than the traditional shopping centre/strip storefronts. We have seen some long time Frontline Members leave the group due to retirement and the call of new opportunities in their life. Some of these members have sold their business to a new owner, while some unfortunately have had to close their stores because a buyer could not be found. This subject of succession planning is important to any business or organisation, but never so much as at this time of the changing face of the retail environment.

In business development we should be ready to accommodate all manner of change in order to achieve the best results. Every approval or disapproval is a learning experience, better preparing us for the next challenge. It’s no secret that the retail industry has gone through massive changes in recent years. The bulk of those changes can be traced back to the advent of online shopping and of course in very recent times COVID-19 has changed the world of shopping. Many insiders have long predicted the death of retail stores because of it. However, at least so far, we haven’t seen those predictions come true. But we have certainly seen some rationalisation in retail numbers both in suburban areas and regional towns. In fact, retail sales are still strong and continuing to forge ahead. The research shows that many Millennials and Gen Yers do their shopping online. That’s why it’s important for your retail business to make a concerted effort to continue growing and find new ways to appeal to these customers. Whatever retail sector you operate in, getting creative and understanding your customers’ needs are some of the most important aspects of expanding your product line and growing your retail business. Improve Your Shopping Experience Shopping for products online is incredibly easy. Customers can buy what they want and review multiple offerings with just a few clicks. Retail stores need to respond to this by optimising themselves for an ideal purchasing experience. This starts with providing excellent customer service. You may want to create a training program

www.frontlinecentral.com.au

for your staff so that they understand your expectations and offer uniform results during all business hours. You can also use this opportunity to provide your in-store customers with experiences that make them want to return to your store. This could be as simple as playing catchy music while they shop or providing them with samples of your best products. If a customer has one positive experience in your retail store, then they’re more likely to visit it again in the future. Know That Growth Is Still Possible The bottom line is that growing your retail business is still absolutely achievable. Achieving this may just require you to update the strategies that you’re using. Online shopping has introduced a new threat that you should deal with intelligently. By thinking outside the box and getting creative, your retail store could experience the growth you been working toward in no time. With all this in mind it is still really important for Frontline to grow and attract new Members to its ranks. We must be able to evolve, develop more relevant initiatives and provide our Members with the tools they require to move their business forward in what is a challenging environment. We need to work together as a team to respond to a shopping culture that is constantly changing and evolving. Frontline is here for you, the Members, but we need your feedback and leads to keep our business model relevant and vibrant to cope with these ongoing challenges. David Sharp | Business Development & Membership Manager 0429 897 776 DavidS@frontlinestores.com.au

Member Retention Project

ARE YOU THINKING OF SELLING YOUR BUSINESS? Your Frontline membership is a valuable asset when selling your retail business. Being associated with such a well-respected national retail group that capitalises on the buying power of over 600 independent retailers should be promoted when transferring the ownership of your business. Make sure you keep us informed so that you can seamlessly transfer your membership to the approved new owner. If you are selling your business, make sure you:

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Inform Frontline of the new owners – their contact details. What date will the transfer of membership take place – to ensure that you are not liable for new transactions. Print out a new Frontline Membership Application form for the new owner from Frontline Central. Contact David Sharp - Frontline’s Business Development & Membership Manager on 0429 897 776 – he will then work with Tony D’Alessandro - our Credit Controller to assist with the transition to the approved new member to ensure you are not liable for any transactions moving forward.

ARE YOU THINKING ABOUT BUYING A NEW BUSINESS OR EXPANDING YOUR EXISTING BUSINESS? Are you thinking about opening another business or maybe a new branch of your existing business? Let Frontline assist you to ensure that you capitalise on the discounts and benefits from your first day of operation. If you are expanding your business or purchasing a new one, make sure you:

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Inform Frontline of the new business contact details. Inform us as to the date the new addition to Membership will commence – make sure you take advantage of the Frontline Discounts from Day 1. Contact David Sharp - Frontline’s Business Development & Membership Manager on 0429 897 776 – to assist with the application process and new membership launch..

FrontLine UPFRONT | EOFY 2022

Retail Services Overview

RETAIL SERVICES The Retail Services category has seen fantastic growth over the last year. Overall, the category has seen double digit growth breaking the $1m revenue ceiling this last financial year! With fantastic growth in our major Suppliers, we have seen our Members really lean into our services category to take advantage of the great pricing and fantastic service. As the post pandemic environment settles, and we start to reinvest ourselves into our stores and businesses, there’s a great opportunity to look at how you can work smarter and not just harder. With the full menu of retail services available, you can really start to let Frontline help you free up some much-needed time to focus on family, friends and importantly yourselves. Frontline Head Office has worked hard over the past couple of years to piece together a selection of great Suppliers that can cater to all of your needs as a retailer and a retail business. From the EFTPOS rolls to your stationery supplies, from your display stands and racks to a full fit out for a new store. Frontline has also tried to focus heavily on the back office to try and reduce the time spent on your business once you turn the lights off in the store. With this in mind we have a desire to provide you with real time saving services that will help you enjoy your nights and weekends so much more. The services division is dominated by a few key Suppliers namely Bee Dee Bags, Shop for Shops, Officeworks, BP, Afterpay and SoleMate, along with the great rates offered by CBA to our network. It’s fantastic to have nationally recognised brands available at great rates to our network and dedicated to growing with Frontline. The great thing about our member services is that for some like BP, JB HiFi and CBA, there are benefits that can provide real advantages outside of your businesses.

Some of our key Suppliers are listed below with some commentary around their performance but also what they are hoping to provide for our Members;

expensive or overpriced products that will be cumbersome and inefficient. This is one Supplier that we feel is underutilised by our Members.

Afterpay has seen great success with our Sportfirst stores, with many of them using Afterpay as an enticement for customers to buy now and pay later without any risk or exposure to the business. Even better for our stores is that the fees are all rolled into your monthly statement from Frontline.

Commonwealth Bank (CBA) are also working hard to provide fantastic business (and personal) finance solutions for our Members. Primarily our Members are using CBA for their great eftpos rates and terminal solutions. There is so much potential with CBA and what they could mean to our Members from both a business and personal perspective. CBA is another nationally recognised Supplier who want to be the bank of choice for the independent/small business market in Australia. They have a whole assortment of packages to help retailers consolidate and streamline their finances. Along with support from Frontline CBA can help maximise your turnover and build a stronger more independent and secure future. It’s also exciting to hear the large amount of investment they wish to make in supporting our network with initiatives and sponsorship of key events into the future.

Bee Dee Bags continues to be the go-to Supplier for all your bagging and packaging requirements. Bee Dee Bags has seen 30% growth from an already strong base. This is great in a couple of ways, one it means Members are taking advantage of the great pricing but also that, two, you are all selling more product to put into the bags!! Shop for Shops has also seen fantastic growth with many Members either giving their stores a facelift or opening new stores with all new fit outs. Shop for Shops is up 47% on last year which shows just how much our Members are investing in their stores post pandemic, and how providing a world class instore shopping experiences for their customers is a primary focus. Shop for Shops is eager to grow with our network. They are looking to assist our stores with refreshes and updates, new window displays, instore theming, and a multitude of other services. Officeworks is another service that is keen to grow with our network. Officeworks has been developing a whole new area of their market offer, specifically for the Australian independent/small business market. Officeworks offers a full range of solutions for you to save money on business stationery, back-office supplies and fixtures as well as everyday electronics and business assets that will save you money and time. A key focus for them is to make sure you are not buying

www.frontlinecentral.com.au

With some fantastic services already available, this will be a growth category for the business going forward. Frontline sees huge potential in what advantages this could mean to our Members. We welcome all suggestions on what services we can add in the future as we want to make Frontline your first point of contact for all of your day-to-day business requirements. We look forward to what this category can become for our retail network, and we hope to see more and more of our Members enjoying the benefits of the retail services Frontline provide. Travis McKenzie Business Manager Footwear, Youth/Lifestyle & Retail Services 0420 886 784 travis@frontlinestores.com.au

6 STEPS FOR ONLINE SUCCESS

Marketing & Digital Tips

We all know that the web provides plenty of opportunity for exposure, but getting the right message to the right people in the right places can sometimes be tricky.

reconcile who you are, with what they are looking for. Are you professional? Friendly? Luxurious? Inexpensive? Local/national/ global?

This article will give you a high-level guide to spreading the word about your business online.

Having a clearly defined understanding of your business will help keep your business, branding and communications clear and targeted for your customers.

1. Know your audience Marketers use a practice called customer profiling as a first essential step in any marketing campaign. But this isn’t something you need a marketing degree to do at a basic level for your business. Start by asking yourself questions like: Who is your ideal customer?

3. Know your competition It’s one thing to have the only shoe store in town, but when it comes to selling online you are competing with every similar online store in world. This might sound daunting but that is why it’s important to know your competition. This will help you figure out how to stand out from the others, which products and services you can focus on and what your unique offering might be.

What is their gender? What is their age range? Where are they located? What do they enjoy? What they dislike? Where do they spend their time online? The answers to these questions will form the basis for all your marketing efforts and communications, as you will now be speaking directly to your ideal customers. 2. Know yourself Knowing your business will help you craft the right message for your audience and

MARKETING IN THE COMMUNITY This year has come with a huge increase in Members requesting marketing support. As part of your Membership, we help you to brainstorm some marketing ideas, to help increase foot traffic and increase sales. Some Members’ successes in this past year has been: 1. Sponsorship Programs. Stores are creating sponsorship programs with their local clubs. We have assisted them with marketing materials to go with them. This includes vouchers, vinyl banners, flyers and posters to go within a gift bag. This is a great way for your store to become recognised within your community.

4. Define your message So now you know who you’re talking to, who you are and who your competition is. It’s time to use that information to craft a message that speaks to your audience, clearly portrays your business and sets you apart from the competition. What do you want to say? What makes you different? Why should your audience listen? Be enticing, set yourself apart. The internet is full of choices and so capturing 2. Shopping Centre Support Is your store within a shopping centre or distinct? Most shopping centres offer both complimentary and paid advertising options to promote your store.

attention in the midst of all the noise will come down to the quality of your message. 5. Spread the word Once you know your message you need to get it out there. So, ask yourself: where can you reach your ideal customers? Are they Millennials who use Facebook groups? Are they younger people who use Instagram and Tik Tok? Professionals on LinkedIn? Perhaps they use eBay or read your local newspaper? The answers to these questions will help you figure out where you should be spreading your message and promoting your business. 6. Re-engage Your goal should not be to sell products. It should be to create loyal customers. This is achieved by capturing your customers’ information and re-engaging them with your business. This may be with valuable follow-up content, special offers or more. It’s a lot easier to convert existing customers than new ones. If you’d like to discuss your online presence and marketing feel free to send an email to webhelp@frontlinestores.com.au. We’re here to help. create banners and ads to promote this as well as any discount vouches to give out as part of entry to the event. This is an idea to create fun within your community and it will create excitement for your store. 4. Letter Drops

Some requests that we received for this have been logos and ads for websites, social media, EDMs and banners and posters within the centre building. If you contact the customer support team at your centre, they will assist you with any complimentary or paid options that are available and we can help you with the artwork. The more you can get your store name out there the better. 3. Co-Branded Events It’s a great idea to work with other stores in your area to host events together. Some ideas include VIP nights, Catwalks, and fundraisers. We can help you to

If you are further away from any foot traffic or you want to stand out from other retailers, you can create flyers or catalogues to advertise your product and any sales. We can help arrange a letter drop of these to homes within your area to bring brand awareness. This will encourage those at home to come and see what you have to offer and purhaps purchase. If you need help to advertise your store, please don’t hesitate to reach out and ask for some help. Caitlin Ryan | Marketing Manager 0434029742 caitlin@frontlinestores.com.au

FL will design for you free of charge, but that printing, distribution etc would be an additional charge.

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FrontLine UPFRONT | EOFY 2022

Womens Apparel/Intimates/Childrenswear

WOMENS APPAREL, INTIMATES & KIDSWEAR This year has seen our Womenswear Division – both Apparel and Intimates – grow with the ongoing support of our Members. Apparel We are continuing to see apparel Suppliers that offer more casual styles rather than formal product. One of our newer Suppliers – Two T’s – has seen a significant increase in sales over the past twelve months. Their styling and colour ways are being well received by Members for a new fresh smart casual look. Several of our Suppliers were offering beautiful pastel colour palettes, with faux fur, leather-look product and tricked up basics. Oversized shirts, jumpers, jackets for that easy fit styling also seem to be selling well.

Members are expanding their ranges to offer their communities price pointed product and keep the business in their towns. Intimates We are continuing to see growth in the active leisure product ranges within our supplier base. Members also looking for Australian made product – which we have been able to introduce “Everyday Lingerie Co.” with a small range of Australian made underwear… hopefully we will be able to add more over the coming months. Suppliers showing significant growth over the past twelve months have included Berlei, Panache, Slim Form, Young Spirit (Magnolia Lounge), Triumph and Viceroy. New Suppliers included: Clementine Sleepwear for that better end style and Everyday Lingerie Co for Australian made underwear. Kidswear

Suppliers showing significant growth over the past twelve months include Cherry Lane, Bromley, Goondiwindi Cotton, Two T’s – along with the continuing strengths with Givoni, Sportswave and Ross Christie.

Kidswear is still proving to be difficult to fill on behalf of our stores – while we are receiving more than ever requests for kidswear merchandise, once again due to the closure of the Country Target stores, sourcing and securing suppliers in this category has its challenges.

This year saw an even larger increase in requests for product using natural fibres which has been a highly sought after across all categories. Linens, cottons and wool being the winners.

CherryLane have extended their kidswear offering – sizes 0-16 in basics including brushed fleece track pants, tops, hoodies – all at great prices.

We have been continuing to source product to fill the void being left by the Country Targets closing. Many of our

MeMaster continuing to grow with their range – and B Free now offering organic babywear.

Please let us know if you would like further information on these growing brands. Our FAB Event event held in March proved to be a winner with many of our Suppliers picking up new stockists. It was great to be able to meet with everyone again – and to touch & feel product! With a couple of our Suppliers not able to attend – we assisted with a stand with static product display on their behalf – which assisted in sales and gave Members more product to view. Please keep in mind that it is vital for the success of these events that we receive support from both our Members and Suppliers. With a tough year behind us – we are looking to a better- next twelve months, with feedback from Members that sales are starting to gain momentum as we all go in to a new normal. Certainly, we have been seeing increases in sales as the Winter chill has hit us. We would like to thank all the Members for their continued support – and feedback we receive. If there is anything we can help you with, please do not hesitate to contact us. Sam Glass | Business Manager Womens & Kids 0417 530 631 sam@frontlinestores.com.au Sharon Rodrigues | Menswear, Womenswear, Kids Co-ord. 0408 106 782 srodrigues@frontlinestores.com.au

END OF FINANCIAL YEAR WRAP UPS

Menswear

MENSWEAR For what can be a very traditional, staid category, Menswear has performed extremely well in the last 12 months, achieving budget with 4 weeks to go. This is in spite of lockdowns and losing RM Williams as a supply partner half way through the year. An early start to the winter season has also proven to be a blessing for those still sitting on a lot of “lockdown stock”, with fill-ins now taking place. We saw many businesses (thankfully) change owners rather than close – and these businesses have by and large thrived under new energy. Increased domestic tourism and support for local businesses also helped immensely. With a distinct lack of new, emerging trends from overseas (due to lack of travel) the only movement we saw was a “back to black” in formalwear, which caught many Suppliers by surprise. This, along with weddings catching up on the last 2 years of postponements has brought big dollars in. All of our tailoredwear Suppliers are well up. In fact, at time of writing, over 2/3 of the Menswear Suppliers are well up on last year. Not surprisingly, given our regional focus, country clothing continued to boom, with Thomas Cook once again being the top Supplier in Frontline, with double digit

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growth to take them over $6 million. New Zealand brand Swanndri is also gaining more and more stockists in the Group. Our top 5 suppliers for the year were: • Thomas Cook Boots & Clothing • (RM Williams) • Berkeley Apparel • Gloweave • J & T Knitting Mills With a full year now under their belt, Richard James performed well, picking up many of their previous stockists. A special mention should also be made of City Club who were completely flooded, but back invoicing in around 2 months. The support and patience of our Members towards them has been heartwarming - and appreciated. New Menswear collection Mechmoto has delivered its first season, and word is that has been selling well at retail. The second range saw a massive increase in stockists. As an independentonly brand, it is well worth checking out.

For the next year, we are cautiously optimistic. Yes, there will continue to be price rises and delivery issues for some time, but while overseas travel proves to be expensive and risky, local tourism is our best friend! Our fingers are crossed for a huge Spring Racing season – as well as more formals. Once more Suppliers head overseas, we will also see some much needed freshness in ranges – and this should spike consumer interest in the second half of the financial year. Miro Kroon | Business Manager Menswear 0417 899 729 MiroK@frontlinestores.com.au Sharon Rodrigues | Menswear, Womenswear, Kids Co-ord. 0408 106 782 srodrigues@frontlinestores.com.au

The March FAB Event was an opportunity for us to re-connect after 3 cancellations – to have relaxed conversations and again touch product. While certainly proving difficult, the support of future events depends on BOTH the support of our exhibitors and our Members in the orders they place.

FrontLine UPFRONT | EOFY 2022

Footwear/Lifestyle

FOOTWEAR The Australian footwear market has also seen some significant trend changes to a more casual styling and an explosion in the sneaker market. Footwear has become even more of a credibility statement with the younger consumer, and with business becoming more “business casual“, this trend is sure to grow. It’s also very exciting to announce the recent addition of Wild Rhino to the Preferred Supplier network. A well-known and highly valued brand in the Australian market, bringing Wild Rhino on board will be sure to boost sales and provide that smart casual look to our footwear ranges. They also have some fantastic accessories to complement. It is also great to see the immediate impact of new Suppliers like HOLSTER who have already found a solid footing with our Members in a very short period of time. Stalwarts in our footwear division Sfida and Florsheim have both had a solid year, Sfida especially capturing a large amount of the football boot opportunities provided by the global brands having no stock. Florsheim’s more street casual focus has certainly seen them reinstate their brand as a must have for our Members. Our top Suppliers for the year were: Brand Collective, Sfida, Fujian, Florshiem and Slatters. Growth in the division has also come from several of our non-footwear retailers adding a small range of footwear in their stores. Be it slippers or sandals, or dare I say it, Crocs (who every basketball, football or baseball player in the US seem

to be wearing post game now), adding these to their ranges is a way of keeping business in their regions and offering even more to their clientele. As we look forward to the next 12 months, we can see that the urban/street/casual trend will continue, but there is hope that we may actually have a strong events season, with some good weather and money to spend, all those brides to be, anniversaries, horse races and a litany of Spring/Summer festivals, we should see some great returns for all the incredible work of the last 2 years.

LIFESTYLE One of the best performing categories over the last 12 months for Frontline, our Lifestyle category has seen fantastic growth, with a real focus on less is more in our supplier base, to the explosion of new consumers buying into a more casual lifestyle both at work and/or at home. The Lifestyle category has certainly been helped by the dynamic change in the way people are working now post pandemic along with a younger generation shopping local. Our Members have done a fantastic job through the last 12-24 months in capturing a younger, more progressive, shopper who has either made the choice to shop local or needed to shop local due to restrictions, for their apparel and accessories.

The key drivers for this category for instore foot traffic has been newness and constant points of interest and interaction for the youth consumer. This along with an online presence is crucial to capturing that younger Lifestyle consumer. Having new and different brands from what they constantly see online also gives them a great sense of individuality within their “tribe” and provides them with some much sought-after street cred! For the year ahead we are very confident that the growth seen in the last year will only continue, as casual workwear attire is more widely accepted, street fashion and the sneaker subculture becoming mainstream and of course, more and more people working remotely or taking the great tree change. All these factors along with this category having a great resiliency against economic challenges, we still see room for significant growth. Travis McKenzie | Business Manager Footwear, Youth/Lifestyle & Retail Services 0420 886 784 travis@frontlinestores.com.au

With 60% of our Lifestyle Members having a positive year in revenue versus last year, it shows the success this category has seen, in spite of the obvious challenges. Our top Suppliers in this category were: Stage II, Sass, True Alliance, Unit & Broken Twill.

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Bedding/Furniture

SLEEP DOCTOR, BEDDING & FURNITURE Both areas dropped in sales as predicted, following a boom year previously. We have seen the lower end of pricepoints just drop away, and conversely the top end perform well. Although in store foot traffic has slowed down across the stores, the average sales dollars are up. Adjustable bed sales are performing well, as the stores are working closely with local Occupational Therapists through the NDIS alliance. Like most other areas of retail, we are experiencing delays in production and freight. Even though many mattresses are made domestically, some components are brought in from overseas, which are seeing huge delays. Keeping stock and meeting customer expectations are obvious challenges.

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Top suppliers for bedding this financial year: Slumbercare, Conforto Pty Ltd, Bed Master, Mlily Australia, Icare Medical Group. Furniture suppliers: Linksea, RZ Design, IQ Kids & Furniture, Pride Mobility Products, Coringle Furniture This year saw 2 new Preferred Suppliers added to the divisions: Forte Healthcare Solutions and Coringle Furniture. After a long and prosperous relationship, Preferred Supplier Bedmaster sold out to the Oscar Furniture Group in October 2020. The company relocated to a new premises with a large docking area and purpose-built offices and showroom. Bedmaster continued to manufacture through the pandemic with minimal supply interruptions to Sleep Doctor and still today remains one of our best performing suppliers in our Bedding category. The Sleep Doctor Group are looking forward to our first trade show since July 2019: the Australian International Furniture

Fair, to be held in Melbourne mid-July, where we can take the opportunity to visit some of the top Preferred Suppliers to look at what’s new for the coming season. Technological advancement in the bedding industry has come a long way in the last 2 years and keeping on top of it during lock downs has been difficult. It will be a welcome relief to be able to see and discuss these advancements with suppliers firsthand. It is just as important to keep up our supplier relationships we have not been able to conduct face-toface for over 2 years and thank them for their support during this time. To that end we will also be visiting some of the local factories on this visit. Many challenges and opportunities will be present for 2023, however the Sleep Doctor Group is looking forward to meeting them all. Deb Caldwell | General Manager Operations 0418 564 400 DebbieC@frontlinestores.com.au

FrontLine UPFRONT | EOFY 2022

Home Living

Home Living While the huge surge in home-based shopping has levelled off this financial year, category sales have remained strong in Cookware, Home Décor/Manchester and Crafts.

issues, we predict that the Christmas shopping boom will begin earlier than usual – so we look forward to seeing a continued uplift among our Members and Suppliers. Top 5 Suppliers for the year were:

With the end of lockdown, we were unsure of the impact on Home Living, but we are excited to see that the Homewares, Manchester and Haberdashery categories have all exceeded budget expectations.

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IsAlbi

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Donaldson

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DKSH

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Facklemann

Sales in Manchester and Haberdashery have still achieved more than 20% above their ‘pre-covid’ figures and Homewares sits at a whopping 60 % above the 18/19 results!

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Splosh

Homewares Like many divisions, the Homewares industry has faced a difficult trading environment over the last few years. However, many of our Members have used this time to embrace the change. We have seen members diversifying into wanted categories to cater for the consumer shift back to instore shopping. As stock flow into Australia remains slow and inconsistent, the industry has been faced with significant disruptions to the supply chain, resulting in both out of stocks and price increases. Our relationship with our key Suppliers has proven to yet again be paramount in this scenario. Working together, ahead of time, we have been able to overcome these issues with minimal disruption. With consumers aware of the supply

Manchester Over the last 12 months, some regional members have taken advantage of the changed retail environment, e.g the closure of over 50 Target Country stores. Members have also said that this has played in their favour by being able to change their product mix and fill the gaps left by these closures, particularly in Manchester. While customer demand for Manchester remains strong, the biggest challenge for members has been getting consistent supply. This has been an ongoing issue with suppliers juggling shipping delays and increased product & freight costs. Necessity often leads to positive outcomes for suppliers such as Purax (Feather Bedding), who have turned ‘waste into opportunity’ by using local duck feathers from food company ‘Luv a Duck’ rather than relying on Chinese supply. As an Australian made product it has now given them more flexibility and control over production and supply.

Preferred Suppliers who manufacture locally and use Australian content such as Tontine, Bambi, Wool Products Aust and Purax are now becoming a more reliable and popular alternative, particularly when imported product is so hard to find. Frontline Supplier Marbret, confirmed that they’ve experienced growing demand for their locally made sheets, which they manufacture on site to customer requirements, and can provide a solution to most difficult bedding challenges. Overall, we are still seeing quality as an important factor for customers rather than just purchasing based on price alone. Top Manchester suppliers for the year were: •

Legend

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Sheertex

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Bambury

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Linen House

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Sheridan

Dress Fabrics / Harberdashery Over the past two years, there’s been a groundswell towards valuing and appreciating ‘handmade’. Not only has this been due to people trying their hand at crafts and hobbies during lockdown, but more recently we have seen a growth in Farmers Markets, Art Expos and Makers Markets as people see the value in ‘buying local’ and supporting Artisans rather than mass produced imports. It is estimated that participation in crafts has increased from 10% of the population

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Home Living

in 2011 to nearly 30% in 2021 and while there has been a slight drop this year, crafts are still going strong in Regional Australia.

It was so exciting to catch up with our valued Members and Suppliers at the March FABE, run in partnership with the Gift & Lifestyle fair.

Haberdashery continues to perform as an important Frontline category and sits 26% above pre-covid figures.

While it is unfortunate that we won’t see our members in August, we are already working towards a FANTASTIC event with our Gift & Lifestyle partners again in February. It’s going to be a show not to be missed!

Top Dress Fabrics/Haberdashery suppliers for the year were: •

Birch

•

Sydney Sewing Supplies

•

Sullivans

Window Furnishings While we have seen a slowdown in spend at the luxury end of the market over the last 12 months, people are still looking to update and freshen their homes in cost effective ways, including cushions, throws, prints and ready-made curtains. Ready-made curtains continue to be a profitable low fuss category for many of our country members who provide a ‘one stop’ shop for their customers. While we unfortunately said farewell to Basford Brands earlier this year, we still have great supplier partners such in Aus Elegance, who offer members a contemporary well priced selection of ready-made curtains. They continue to support and showcase their range to members at all our FAB events. Top Window Furnishings suppliers for the year are: •

Charles Parsons

•

Aus Elegance

•

Hoad Fabrics

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In wrapping up the year, we’ve certainly faced some challenges, including the terrible floods endured by some of our ‘Frontline Family’. But the worst of times, brings out the best in people, including amazing offers of support from Suppliers-both large and small. A special mention should be made on behalf of Daleys in Lismore for Classic Quilts (small family-owned business) who sent product at well below cost, to restock their shelves. Tontine went ‘above and beyond’ by donating pallets of free quilts with free freight to Daleys to be given to flood victims!

Thank You Tontine! We often say that the Members and Suppliers of Frontline represent more than just business relationships and thought of as our special ‘Frontline Family’, supporting each other through good times and challenges. Tontine showed a great example of this support during recent flood challenges faced by our some of our Members and their communities. We were truly overwhelmed by the fast & generous response by Tontine, shipping pallets of quilts to Daleys Homewares in Lismore at no cost! These have been donated to hundreds of families who have lost everything including their homes and will make such a difference to those dealing with a tough winter in tents. We just wanted to take this opportunity to say a special ‘Thank You’ to acknowledge Tontine as a truly valued Frontline Preferred Supplier!

We love working with our valued Members and are looking forward to sharing an exciting 12 months ahead, full of fresh beginnings and new opportunities! Rachel Dobson | Home Living Business Manager – Homewares 0430 913 456 Rachel@frontlinestores.com.au Sharon Hall | Home Living Business Manager – Manchester, Haby, Soft Furnishings 0416 190 259 sharon@frontlinestores.com.au

FrontLine UPFRONT | EOFY 2022

Workwear/Outdoor

OUTDOOR The Outdoor division really benefitted from the local and international border restrictions experienced in the past 12 months. Local regional travel resulted in the Outdoor Members capitalising on increased sales in the 4WD category and consumers shopping locally and holidaying in the ‘great outdoors’. The division has seen a huge move towards supporting preferred suppliers who focus on the independent market. Historical brand loyalty has been overshadowed by members supporting suppliers who focus on independent retailers who can differentiate between the product offerings for the ‘majors’ and the regional independent members. This has seen terrific growth with brands such as Australian Consumer Products (30.9% UP) and locally owned Aquayak. (7% Up) Our strongest performing suppliers: • Oztrail & Companion (Adventure Trading) • ACP

• Sea To Summit

• Supex

• Aquayak

In March, it was great to attend the Australian Adventure Expo 2022 held in Surfers Paradise. Many of our preferred suppliers attended the event where we could discuss their sales and marketing plans for the forthcoming year. Traditionally, the Blue Sky Group have used this event as a vehicle to get together and discuss group strategies for the next 12 months. We look forward to next year’s event to be held in Sydney where it will be terrific to get the members back together again. The Outdoor division’s team is really

looking forward to the next 12 months. With all national borders open again, our Members will reap the benefits of localised holidaying and consumers purchasing from the outdoor stores. With the addition of several new members combined with some key suppliers targeting our group and working closer with us, we can all look forward to a really exciting, yet challenging, 12 months ahead!

WORKWEAR The Corporate Workwear division defied an expected downturn in turnover and registered the biggest result the division has seen in over a decade. Members have generally consolidated the number of stocked Preferred Suppliers in store and maintained their retail footprint through the implementation of competitive pricepoints and executing targeted marketing campaigns. The increase of local and state-wide infrastructure has ensured that members have experienced a competitive retail environment with strong local consumer support across all states. In the last 12 months, the division has seen a distinct move towards the major suppliers as stock availability became a concerning issues for all suppliers. There was also a move away from pack order requirements in the price pointed categories that really benefitted the brands such as Ritemate, JB’s and Fashion Biz who all experienced double figure growth.

Our Strongest Performing Suppliers: • Ritemate

• Bisley

• JB’s

• Fashion Biz

• Yakka In terms of our marketing strategies, particularly for the Workwear First Members, we will continue to refine the programs to make them as relevant and cost effective as possible. I would like to express thanks to all members who have provided us with specific information about their businesses. By using this information we can further refine our strategies and develop programs even more relevant to your business needs – regardless of your geographical location The Corporate Workwear team is really excited about what lies ahead in the next 12 months. While the retail environment will continue to challenge us all, the business model we have implemented will continue to support generic and branded Members in a way that ensures all Members and Suppliers will experience another successful year ahead. David Woods | Business Manager Outdoor & Workwear 0409 899 895 david@frontlinestores.com.au

Workwear First (WWF) continues to be well supported by the Core Suppliers with well supported group buys and quarterly promotions. It’s exciting to see that several new brands are keen on being involved with the Core Supplier program and offering the group even greater discounts and special buys in the next financial year.

END OF FINANCIAL YEAR WRAP UPS

Sport/Leisure

A NEW DIRECTION Whilst everybody has had to navigate through COVID-19, sport has certainly been one of the big growth categories – especially womens apparel. We’ve seen an increase with consumers working at home in certain high population areas, which played a pivotal role in the way people exercised and spent more time in sporting apparel and footwear. Whilst stores in the southern states in particular had to adapt to click’n’collect, social media posts and other online options, it also changed the way the global brands did and are now doing business. We saw the expectations of our brand partners changing rapidly as they brought forward, future global policies and expectations of their retail partners - our Members. The expectations of our brand partners with our Members remains a constant in their communication with us - that our Members continue with disciplines of the new look store presentation as they open for the first time, and members signing new leases in existing locations undertaking the new look as that takes place. The outcome of this is expected to be that Member stores not only strengthen, but also present to the consumer in a certain standard as we continue to fight for market share in today’s modern way of retailing - for both the consumer and supplier partners. They are constantly pushing to our business that all Members present to the consumer in the same way as they themselves present to the consumer as part of their global expectations with retail partners. We are also now seeing the major brands only approve new accounts for distribution with nationally branded operators, are no longer wanting to deal with independent sports store operators. They have phased most of these accounts out over

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the past couple years by closing their accounts down when opportunity to do so presented itself to them. The brands have also started to enforce minimum spend requirements for each store as they work to continue to reduce their distribution points across the country, so branding disciplines will continue to be critical for our members into the future. This oddly will only continue to assist the growth and development of our business as a fully branded and disciplined operation, and although we still have a way to go, we are a long way down the road with so many stores now trading with the new look and disciplines. We look forward to assisting our Members that are yet to fully align in the not too distant future. Our stores continue to sell performance footwear and we extremely lucky we have worked hard on that segment of the market. Those product lines with our brand partners continue to grow. We also see great opportunities with kids as a growth category as well as seeing opportunities with sports such as basketball, cricket and netball.

also don’t see those buy days returning anytime soon as the brands have now implemented new processes. The Zoom and online buying trend will continue as brands have been able to continue to see growth in their businesses with this process, and have indicated that this is their future way rather than reinvest in historical methods. We have also seen, a reduction in staffing numbers by Suppliers, so unfortunately there are less reps in the market. Online methods continue to work efficiently for our supplier partners. Additionally, samples with Suppliers are becoming less and less available due to lead times being a lot tighter for ordering. As our market continues to align to global ordering, the brands are finding it more effective doing buy-ins on their B2B systems.

We have seen the opening of new stores who have all hit the ground running with our modern look and presentation : Lake Haven, Erina Fair, Karingal, Chirnside Park, Geelong, Melton, Epping & Point Cook.

Sportfirst as a business has positioned itself to be in the thick of it with our brand partners, so we as a collective group can continue to receive maximum benefit of what the brand partners bring to our business. We will see continued investment by our business in the digital space so we continue to provide and grow our Members’ businesses in line with supply partner expectations. We will see social media and EDM marketing change in the coming period and we can expect to see increased activity in this space. A change in how we conduct our e-commerce solutions to the consumer will be required, (which is also being pushed strongly by our supplier partners), and we remain enthusiastic about meeting those new challenges and changes to further strengthen our Members’ business offerings to the consumer.

Due to COVID-19, unfortunately our historical buy days haven’t happened, and we are seeing a real shift by the brands to the way they conduct sell ins. We

For more information: Phone: (03) 9888 5766 Email: jenny@frontlinestores.com.au Web: www.sportfirst.com.au

The past 12 months has again seen a huge growth with key international brand partners Asics, Adidas, Puma & New Balance - along with niche brands such as NAR – (Mitchell and Ness, MLB), and Brooks (who are doing very well globally).

FrontLine UPFRONT | EOFY 2022

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