During the first half of 2022, Showroomprivé, the e-commerce clearance site, faced a significant drop in sales. However, the SRP Group, the website’s owner, announced that despite this decline, the company remained profitable, reporting a slight profit of €1.6 million. This is in stark contrast to the net profit of €20.6 million recorded in the same period last year.

The company had already anticipated a decrease in revenue given the uncertain geopolitical context, as mentioned in its annual results published in March 2022. The CEO of the SRP Group, David Dayan, acknowledged the challenging operating environment, highlighting disruptions in brands’ production and supply chains, as well as concerns about customers’ purchasing power, as contributing factors to the drop in sales. The group also mentioned that an unfavorable comparable base influenced the decline in sales.

Gross merchandise volume (GMV), which is an important indicator of e-commerce activity, also experienced a significant decline of 18.2% to €431.9 million. GMV measures sales made on third-party online marketplaces and other services and revenues.

Despite these challenging conditions, Dayan expressed confidence in Showroomprivé’s ability to recover in the medium and long term. He specifically mentioned the growth drivers within the group, especially in the travel and ticketing sectors, which are currently undergoing development.

Dayan emphasized the importance of maintaining a resilient cost structure to navigate the current circumstances. Customers are demanding higher discounts due to inflationary pressures, putting additional pressure on prices. As a result, careful cost management, particularly in transportation costs, is crucial to maintaining profitability.

In April, the SRP Group acquired a majority stake in The Bradery, a high-end event-driven retailer targeting young female consumers, for €10.2 million. This acquisition also includes an option to purchase the remaining 49% by 2026. The Bradery has partnerships with approximately 400 brands and has gained a significant following of 200,000 regular shoppers and 300,000 Instagram followers. Dayan stated that The Bradery is close to reaching financial break-even.

Although Showroomprivé experienced a decline in sales in the first half of 2022, the company remains optimistic about its future prospects. By focusing on cost management and integrating new growth drivers, Showroomprivé aims to navigate the challenging operating environment and achieve sustainable long-term growth.

Useful links:

Showroomprivé Group
The Bradery website