The Memo prepares to open two new stores, defying retail doom and gloom
The Memo, a retailer serving both new and expectant parents, is looking past gloomy economic data to open not one, but two new bricks-and-mortar locations across Melbourne.
The Memo, a retailer serving both new and expectant parents, is looking past gloomy economic data to open not one, but two new bricks-and-mortar locations across Melbourne.
The brand, which operates an e-commerce operation and a physical store in the upmarket Armadale shopping district, last month revealed plans to open a store in Fitzroy in May.
On Monday, The Memo confirmed plans to open a location at the Highpoint shopping centre in June, significantly expanding its retail footprint in just a few weeks.
Fans and would-be customers have welcomed the expansion plans on social media, eager for what founders Kate Casey and Phoebe Simmonds have described as an alternative to the big-box baby retail experience.
Speaking to SmartCompany, Simmonds said the extended retail network has always been part of The Memo’s plan.
“We have been patient, waiting for the right spaces to become available,” Simmonds said.
While the brand remains immensely proud of its online offerings, a growing physical footprint will allow more parents to get a feeling for its product range and advisory services.
Physical retail “is a great opportunity to connect with our community [in real life], a place where they can touch, try and talk through the items they’re considering for life with a baby,” Simmonds said.
“It’s another meaningful way to share our brand and bring people together, through services and events that drive important conversations around parenting.
“We’ve always been more than just retail, and this is another way to express that.”
New stores arrive in tough retail environment
Although Simmonds, Casey, and Australian parents are energised by the planned openings, The Memo’s expansion arrives at a difficult point for retailers.
Retail businesses are facing significant hardship in the face of surging inflation, which is constraining their ability to trade, while also constricting the household budgets of would-be customers.
That hardship is flowing into spending data.
The latest retail spending figures from the Australia Bureau of Statistics (ABS), published Tuesday, show a 0.4% fall in retail turnover in March.
In a statement, Ben Dorber, ABS head of retail statistics, described the results as “the weakest growth on record when comparing turnover to the same time in the previous year” outside of the pandemic years and the introduction of the GST.
Spending in the household goods retailing sector fell 1.4%, surpassing the overall downward trend.
Business insolvency data from the Australian Securities and Investments Commission, published Monday, also shows 565 retail trade businesses have collapsed so far this financial year, the second-most of any industry category behind construction firms.
The Memo — a brand whose founding legend involves a literal memo of essential items for new mothers — offers non-discretionary goods for many young families.
Nevertheless, the decision to triple its physical footprint in the space of a few weeks is ambitious, and a clear statement of intent from the beloved challenger brand.
As a business that was “started and funded by two mums, we had to wait until we felt we had the support and confidence from the market, and the resources to expand,” Simmonds said.
“We’re ready, and the demand from our customers indicates they are too.”
Retailers champion physical space
The Memo’s expansion speaks to what some e-commerce experts have described as a likely trend for 2024: digital-first brands looking to solidify their presence through omnichannel retail, despite tricky economic conditions.
Brands like Adore Beauty, which have built an enormous online following, are considering what their own physical forays may look like.
“There is huge momentum and demand in the market for physical retail, and it’s an opportunity for brands to connect with their customers in real-time and offer experiences, more than just stuff to buy,” Simmonds continued.
“We believe for a brand like ours to remain sustainable and meaningful, we have to offer different ways to engage with our customers, and physical retail is one additional lever to do so.”
Comments