RYU Apparel Inc. (TSXV: RYU) (OTCQB: RYPPF) (FWB: RYAA) (“RYU” or the “Company“), a creator of award-winning urban athletic apparel, is pleased to provide an update on the execution of its omni-channel strategy – a key driver of the Company’s previously announced four-pillar growth model.
Led by a combined sales leadership team who have been instrumental in growing high-value consumer brands in the sports and lifestyle apparel sector, such as Under Armour (NYSE:UAA) Roxy, Quicksilver, Van’s, Outdoor Research and Saxx underwear, the company’s omni-channel strategy is driving brand and team activations with positive markers across RYU’s three locations (Toronto, Vancouver, and New York).
The Company’s four-pillar strategic growth strategy, set in motion under the guidance of COO Rob Blair, includes RYU’s governing mantra “Movement Matters” – an all-encompassing brand philosophy covering consumer facing assets as well as how the Company recruits talent and executes its vision. Under this brand and design ethos, RYU has now opened its Vancouver, Toronto and Williamsburg store locations, expanded its floor sales team and has begun piloting a new retail guest experience. At the first outset, and through the launch of its Premium Printed T-Shirt Collection, Golf Shirt and new Vapor Apparel collection as well as its recent “So Long To Summer” marketing campaign, retail has demonstrated positive success markers across channel.
Q3 to Q4 Performance Growth*
- Canadian retail point of sale (POS) is up 279%
- USA POS is up 287%
- Q3 ATV’S UP 12%
Alongside brick and mortars continued improvement, driven by 3:1 return on ad spend (ROAS) through new integrated campaigns, RYU’s eCommerce has recently experienced positive trends during the last 15-day period of Q3
- Ecommerce conversion rate is up 86%
- New customer acquisitions driven primarily by paid media channels is achieving 3:1 ROAS and hit a cost per customer acquisition milestone of $45.00
Led by newly hired Social Media Manager Travis Roberson, who has worked with world renowned brands such as Red Bull, Monster and social media star JustDustin, RYU’s own social media has seen engagement spikes across channel as well.
- Pinterest engagement is up 320%
- Facebook engagement is up 27%
- And Instagram interactions is up 66%
As RYU’s Omni-Channel trajectory continues, RYU remains focused on improving its go-to-market operational processes to increase speed and frequency of new product rollouts.
RYU’s eCommerce division is nearing completion of an in-depth audit and restructuring of key performance indicators on traffic, conversion rates, search engine optimization (SEO), and search engine marketing (SEM). With advanced analytics and through monitoring acquisition channels, sales funnels, and consumer behavior, the RYU team expects to meet and exceed brand and sales metrics moving forward.
The Company’s new retail strategy remains on path for a 2023 launch, with a smaller footprint experience that allows for a seamless omni-channel “click and collect” model. The model will allow for geographic customization in design from the consumer data collected via the Company’s eCommerce initiatives. This model is expected to increase productivity, targeting $1,500–$2,500 sales per sq. ft. with lower comparative overhead, placing the Company on a path to achieve its targets of >70% gross margins and a five-year CAGR of >80%.
Wholesale operations are also progressing with the onboarding of premier online boutique Flain, which serves the lively and culturally rich capital of Kuwait and will serve as a regional test to determine further expansion into the burgeoning fashion markets of the Middle East.
RYU has also expanded its distribution agreement with Toronto-based retailer, Altitude-Sports. Altitude-Sports.com is a premiere Canadian athletic apparel retailer, serving Canada with premium ski, snowboard, outdoor and sport apparel for over 35 years.
“I’m pleased with our tremendous progress on all fronts,” said RYU CEO Cesare Fazari. “The challenges of 2020 are in the rear-view mirror and positive momentum is growing as we build upon our past successes.”
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