‘We’re definitely seeing a pullback’: Pure-play online retailers squeezed as Covid bubble pops, digital ad costs ‘go through roof’, shoppers head back to stores; Alquemie-Mosaic chair plans physical stores for Surf Stich, tech stack overhaul to cross-sell General Pants, Lego, Noni B

Richard Facioni, chair of retail groups Alquemie and Mosaic Brands – with upwards of 1,000 stores and brands including Surf Stitch, General Pants, Lego Stores, Ginger & Smart, Noni B and Rivers – thinks ecom pure players may be in trouble. Shoppers have swung back to physical stores just as digital customer acquisition costs “are going through the roof”. If marketers turn off the taps, sales evaporate, which could spell danger for the likes of The Iconic and Adore Beauty. Versus last year, “we’re definitely seeing a pullback in online,” he says, with some brands back as much as 30 per cent. Meanwhile, retailers that stocked up to head off crunched supply chains may find themselves scrambling to offload in January as a “definite slowdown” bites. Facioni hates the word ‘omnichannel’, but says it’s the future of profitable retail – hence lining up a physical presence for $50m acquisition Surf Stich, currently an online pure-player. Fresh back from Dreamforce, Facioni’s helping steer both group’s commerce and ERP stacks, with a customer data platform likely to follow. He also predicts social commerce will be the next revenue frontier.See omnystudio.com/listener for privacy information.See omnystudio.com/listener for privacy information.