Shaver Shop expands private label range
The AFR reported that the Shaver Shop is stepping up a push into private label products to try and lift profit margins and attract more female customers. The retailer, which has 115 bricks and mortar outlets, is preparing to introduce a new range of hair dryers, hair straighteners and curlers under the new Flair brand it has set up, mirroring a strategy by big supermarket chains Woolworths and Coles. The goal is to increase private label sales from 2% of total sales to 5-10% to try to drive its share price up from 43c back towards the issue price of $1.05 in 2016. This sounds like a solid strategy for the business, as long as it keeps in mind the rule of thumb that once private label sales increase beyond 30% you can lose the support of your other suppliers.