Kogan’s inventory was sitting at $98.3 million at the end of December,down from $159.9 million at June 30 of last year.
Ruslan Kogan said the business had taken the pain of selling products at a loss to boost the sustainability of the company,and was optimistic it could now capitalise on value-focused shoppers.
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“It’s pretty tough on the consumer at the moment. We sit at the value end of the equation... there is always going to be someone at that part of the market.”
“[Shoppers are thinking] ‘maybe I won’t just buy the big brand item from one of the big stores. Maybe I’ll have a look at this Kogan dishwasher’.”
The company had returned to profitability in January,with adjusted earnings of $1.5 million for the month as conditions stabilised.
But Kogan acknowledged that inflationary pressures were impacting operations,forcing a coming price increase for the group’s membership program,Kogan First,from $79 a year to $99.