Freedom Furniture is a well-known Australian homewares retailer that’s been operating since 1981 and now has 47 stores across the country. But the merchant was suffering from a bit of an image problem that made it seem fusty and old-fashioned, a situation that led to a companywide turnaround plan initiated in 2020. In the words of Paula Mitchell, Digital General Manager, “We wanted consumers to think of Freedom not as ‘your mum’s brand’ but as ‘your best friend’s brand.’”
The modernization plan, which kicked off in December 2020, included a digital transformation with a vision for Freedom Furniture to be “omnichannel first,” Mitchell added in an interview with Retail TouchPoints. One of the key strategic goals was increasing online sales, which had previously accounted for approximately 6% of all sales.
First Step: Expanding the Online Offering
Part of the reason for that low number was the fact that the company’s website only featured a subset of products and minimal fulfillment capabilities. Working with SAP Commerce, Freedom Furniture first initiated “endless aisle” capabilities in 2020 that made all 10,000 Freedom products available both in-store and online.
Then, in 2022 the retailer debuted a dropship channel for online sales. “We moved from an endless aisle to endless choice with the addition of 40,000 third-party products into our online channel,” said Mitchell.
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Additionally, Freedom Furniture adopted an SAP Commerce selling module that’s accessible by store associates via store POS terminals, enabling customers to purchase these third-party products in stores and have them delivered directly to their home. “Freedom is the first omnichannel furniture and homewares retailer in Australia to allow customers to buy and return third-party items in-store,” Mitchell noted, adding that “the module’s motto is NLS: Never Lose a Sale.”
Enhancing Search Experience Boosts Interactions and AOV
The next big advance came late last year, when Freedom Furniture deployed a solution from Coveo that features AI-driven intelligent search, product recommendations and personalized merchandising based on real-time user behavior. Coveo took three months to implement the backend technology, which was in place by October 2024, and the solution went live for customers in December 2024. Since then, “we have shown a 15% increase in interaction with the search box, which has led to a 5.5% increase in AOV,” said Mitchell.
In its stores, the SAP module on the POS screens mimics the customer-facing website, giving associates the same enhanced search functionality as online shoppers. Additionally, Freedom is planning on iterating this module onto a customer-facing kiosk that the retailer will trial in store beginning in April 2025 to give shoppers omnichannel access to the enhanced product selection.
Freedom Furniture’s digital transformation is ongoing, and Mitchell said she values the contributions of the solution providers she works with: “Coveo has been an excellent partner,” she said. “Not only are they leaders in AI technology, but they also understand retail and the importance of a seamless customer experience. We are looking forward to the next phase of our implementation, which will involve generative AI and further personalization.”
