Godfreys pledges store support with turnaround campaign
Ailing vacuum retailer Godfreys has announced an aggressive campaign advertising major discounts as a part of its ‘turnaround campaign’.
The discounts are an effort reduce warehouse stock levels and bring customers back to the iconic retailer, according to a release from the company.
In May, Godfreys blamed its previous television ads for a dive in sales that saw the brand cut its full-year earnings guidance for the second time in two weeks.
For potential franchisees, the iconic bowling ball ads have featured as a major drawcard in the company’s franchising model however John Hardy, Godfreys managing director, noted the update was vital in generating excitement among customers as the turnaround process gathers pace.
“Godfreys previous advertising campaign was designed to increase the company’s profile,” he said.
“However, it did not reflect in sales. This one is about encouraging people back into our stores.
Hardy noted the retailer would be increasing their offerings with a new stick vac range, and a new cleaner that picks up “36 per cent more dust from carpets than the biggest selling bagless cleaner”, while teasing a revolutionary steam cleaner coming soon.
“The convenience that mass merchandisers and electronics and appliance specialist retailers provide is important to consumers as they prefer to shop through retailers that offer a wide range of products at various price points,” said Ben Ingram, communications executive at Euromonitor International.
“Godfreys main challenge is to continue to put themselves back into the consumers’ mind as the leading destination for vacuum cleaners.
“The retailer has to not only bring new and innovative models into their storefront, but also utilise effective marketing to better promote their product ranges in their bid to regain foot traffic.
Ingram also said the retailer would increase other key areas to support operations in the company’s over 200 stores, around one third of which are franchisese owned.
“Godfreys should also aim to improve their website and in-store experience to better showcase the features of their ranges of vacuum cleaners.”
The retailer is currently the subject of a takeover bid by its founder, John Johnston.
Johnston, via Arcade Finance, has control of more than 91 per cent of shares and will commence compulsory acquisition on June 27.
Arcade Finance is planning to de-list Godfreys from the ASX to be run as a private company.