Celebrating the Slowest Growth Rate Since the Launch of Farrar & Tanner  

Growth of ecommerce stores in 2021 averaged a sluggish 2.1% in an industry which had grown to take a double digit growth as the standard. In fact 2021 was online retails slowest ever rate of growth. That's ever - since the internet was invented. Farrar & Tanner was no exception with a predicted financial year end of just 9% growth for 21-22. So - what and why are we celebrating? 

We have to look back to 2020 which saw a great year of growth for many ecommerce brands with consumer buying pivoting to new shopping behaviours due to the Covid-19 pandemic. Moving into 2021 the biggest question surrounding e-commerce brands was, would this continue? Or would the growth and demand for e-commerce drop back to how it was pre covid. Like many of us I am sure you have found over the last 2 years your shopping habits have changed and you find yourself browsing online for your next purchase, rather than visiting your local high street. The pandemic has undeniably had a huge effect on ecommerce brands and has likely changed our shopping habits for good. 

So we must view the slow growth within 2021 against a backdrop of increases of 35% across ecommerce overall, and 142% for Farrar & Tanner. With this in mind, we would see a growth of 153% 2022 vs 2019. In short fast track growth even in a high growth sector.

What is driving this change?  

The overall consumer buying trend has seen a decline in the number of consumers shopping for products in person, with people of all ages replacing the local high street or shopping malls with online stores from the comfort of their homes.  

Matt Farrar, Outdoor365 CEO-  “2020 caused a high level of disruption in terms of stock and operations but also elevated the predicted growth of Farrar and Tanner dramatically. With everyone isolating or working from home, online shopping became both essential but also a leisure activity for consumers. 2021 was no different with a further rise in sales as we entered another year of covid restrictions. As all Covid restrictions are now being lifted should we expect to see a decline in sales through 2022 or have we all got used to the convenience and choice which online shopping gives us?”   

Richard Tanner, Outdoor365 Executive Chairman - “Although the lockdowns have accelerated the ongoing trend towards online retail we have also been fortunate to be aligned with values that are increasingly important to customers. Sustainable products made by independent UK and European brands and our ability to personalise the products with the highest quality engaving as well as our commitment to sustainable packaging.”

Although the growth of the Farrar and Tanner brand has been positive, it hasn’t been without its challenges with issues surrounding staffing and supply chain. During 2019 the unemployment rate hit the lowest it has been in last 50 years, making filling temporary or part-time positions harder.  Although even with higher demand and less staff we were still able to hit our target delivery rates for customers receiving their parcels within the allocated period, making us a great option for last-minute gifts. 

Another issue faced by many businesses was the issues surrounding supply chain, with a combination of Brexit and the pandemic there was an enormous impact on supply chain across the world resulting in many suppliers being unable to meet demand and deliver on time. Farrar and Tanner works with many brands across the UK and Europe to find premium quality products, working with top brands including Barbour, Opinel, Burgon and Ball and L’Atelier Du Vin. With a vast selection of our products manufactured by European brands in countries such as France and Italy, Brexit has made it harder to ship products from abroad to the UK, creating delays in delivery times and manufacturing issues. Towards the end of 2021 there was a mass transportation issue, with drivers been stuck either end of the English border as well as a lack of driving staff to deliver the orders.

However, despite the challenges that Farrar and Tanner have faced over the last few years there have also been many positives. Due to the increase in demand, we have expanded our workforce providing many job opportunities including full-time and part-time positions in departments across the company, including Marketing, Accounts, Customer Service, and the Warehouse. This has meant that not only have we been able to offer jobs to more people, but it has allowed us to improve our shopping experience for our customers.    

Last year we became a little short on space and as a result we have added a new warehouse and office space to further our expansion. We are now holding at least 3 months’ worth of stock across the two warehouses whereas previously we were working on a month-by-month basis. Our new warehouse has created additional space,  making room for a broader range of products. We now have a total of 20,000 square feet across the two warehouses. Given that personalisation is a key USP within the Farrar and Tanner offering, it has been a great advantage to add additional engraving equipment, with two new engraving machines added in August 2021.  

Although without its challenges, and through a period of great uncertainty we have been able to build on Farrar and Tanner’s growth, and hope to continue providing a unique and bespoke product offering to our customers.