MONTREAL, Sept. 3, 2020 /CNW/ - LXRandCo, Inc. ("LXRandCo" or the "Company") (TSX: LXR) ( TSX: LXR.WT), a North American omni-channel retailer of branded vintage luxury handbags and accessories, today announced the hiring of Ms. Ashley LaMontagne as its Head of E-Commerce and the move by the Company to a digital-led omni-channel strategy. Effective immediately, LXR's e-commerce priorities, under the leadership of Ashley, will include: accelerating the growth of the Company's digital web presence through its LXRCO.com site, leveraging the Company's business activities through third-party e-commerce platforms, vintage-focused marketplaces and affiliate relationships, and assisting with the expansion of e-commerce opportunities for our retail channel partners either directly or on a white-label basis.
"The core of LXR's mission is to serve its customers with an assortment of trusted and curated, quality vintage products through whatever distribution channels of their choosing, which includes mobile and desktop online channels, and experience sites through our key retail partner store locations" said Cam di Prata, the Company's interim Chief Executive Officer. "Everything we do going forward will reflect our commitment to sustainability and embody a 'digital-first' mindset. To better reflect the changing behavioural needs of our consumers, our goal is to fundamentally shift the channel mix of our business, and as we invest in the next phase of our growth, our e-commerce team will expand commensurately over time to reflect this strategic objective."
Between 2016 and 2019, LXR's e-commerce business grew at a compound annual growth rate of 52%. In 2019, LXR's e-commerce revenue was $3.7 million (2018—$2.4 million), an increase of 53% above that of 2018, and generated an average order value ("AOV") of $834 per transaction. For the six-months ending June 30, 2020, and despite the adverse impact of the COVID-19 outbreak (which temporarily disabled the Company's ability to ship online orders due to warehouse lock-downs), e-commerce revenue was $1.8 million, an increase of 20% over the comparable period in 2019. AOV for the six-months ended June 30, 2020 was $913, an increase of 9.5% versus the comparable period in 2019. In 2019, e-commerce penetration reached an all-time high of 9.3% of total Company revenue. The Company's goal is to have e-commerce revenue exceed 50% of total Company revenue by 2022.
"In these challenging times, what defines us as a company is not solely the products we sell, but our commitment to doing so in a sustainable and ethical manner and by our ability to adapt to changes in collaboration with our partners. In the last several months, we have experienced not only the intense pressure of COVID-19 on our business model, but the strength and determination of our employees in the face of adversity," added Cam. "As we get through this period, we will continue to adapt and rethink how to best grow our Company with our core values reflected in everything we do."
About LXRandCo
LXRandCo is a North American omni-channel retailer of branded vintage luxury handbags and other personal luxury products. LXRandCo sources and authenticates high-quality, pre-owned products from iconic brands such as Hermès, Louis Vuitton, Gucci and Chanel, among others, and sells them at attractive prices through a retail network of stores located primarily in major department stores in the United States and Canada, wholesale operations primarily in the United States, and its own e-commerce website, www.lxrco.com, as well as the e-commerce platforms of its partners.
SOURCE LXRandCo, Inc.
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