The Swedish online footwear retailer has more or less doubled the number of countries that its customers can order from to 23. The new countries where the e-retailer started operating in October are Belgium, Estonia, Ireland, Italy, Latvia, Lithuania, Luxembourg, Portugal, Slovakia, Slovenia, Spain and the Czech Republic.
Footway was already selling in Sweden as well as in Austria, Denmark, Finland, France, Germany, the Netherlands, Norway, Poland, Switzerland and the U.K.
The e-retailer is now preparing to enter more markets in the next six months. Work is underway to “standardize internal processes and prepare for an international logistics solution through ongoing procurement,” says the company in a report.
In a press release, the shoe retailer indicates that “since the company's inception, it has focused on simplicity to build an efficient organization with a scalable infrastructure” in order to be able to expand internationally at low start-up costs.
Virtually all the decisions related to countries are computer-driven and automatic, says the company. The optimization of pricing, assortment and marketing take place automatically in each market, creating the conditions to grow profitably with controlled risk, said Gustaf Sköld, head of business development, in an interview with the Swedish fashion newspaper, Habit.
The logistics for the new markets are handled from the company's Swedish warehouse in Helsingborg and other functions are handled from the head office in Stockholm. The cost of the expansion amounts to approximately 2 million Swedish kronor (€0.19m-$0.21m), half of which was charged to the third quarter.
Footway's sales in the third quarter came to SEK 228.6 million (€21.9m-$24.3m), which was an increase of 22.6 percent from the year-ago period. Operating profit nearly doubled to SEK 9.7 million (€0.93m-$1.03m) during the quarter. The growth rate during the quarter was affected by a lack of capacity in the warehouse, which resulted in 10.2 per cent of stock footwear models not being offered for sale, the company writes in the report.
The e-retailer attracted 11.4 million visitors during the quarter, including an estimated 150,000 new customers.
Between January and September, sales increased by 37.7 percent to SEK 682.5 million (€65.3m-$72.6m).
Footway was founded in 2010 by Daniel Mühlbach, Louise Liljedahl, Sara Wimmercranz and Sten Dahlstrand.