Investment proposition
Lewis Group offers an attractive proposition to investors seeking exposure to the country’s retail sector or more particularly the highly competitive furniture retail industry.
The following points motivate an investment case for Lewis Group:
- Consistent and proven business model
- Focused on core business of furniture retailing
- Differentiated and exclusive merchandise ranges
- Lewis one of the country’s most recognisable furniture brands
- Primary focus is on high growth LSM 4 – 7 target market
- Store based customer focus
- Long-term customer relationships
- Integrated credit and marketing strategies
- High level of repeat business through re-serve programme
- Efficient cash collection process
- Credit offered across all brands
- Ability to sell insurance products to customer base
- Centralised credit approval and granting process
- Advanced application and behavioural risk scorecards
- Immediate response to credit applications
- Track-record of superior financial performance
- Historically high operating margins
- Low cost structure
- Generates strong cash flows
- Extensive store network
- Presence in all major metropolitan and rural areas
- Stores conveniently located for needs of target customers
- Positioned to benefit from competitor brand and store closures
- New format Lewis store creates further growth opportunities
- Highly experienced management team