RunwaySale, a local online fashion that began in an apartment more than eight years ago, has received a R100m investment from Spear Capital, a global private equity firm.
Hammerschmidt believes that even in the subdued SA economy his company can grow. With online retail forming such small percentage of clothing sales, the company has to steal only a little market share from in-store to expand.“We are a few months behind the rest of the market but it doesn’t seem to matter. Consumers prefer value over the absolute latest trends.”
The growth in online sales in SA has spiked during the coronavirus pandemic as people stay at home. Hammerschmidt says sales in May this year were better than the same month in 2019. Mainstream clothing retailers often treat online sales as an add-on or afterthought, and few have an effective clothing return mechanisms if the item bought doesn't fit or look good.This gives online clothing retailers a big advantage.