The online food delivery firm Ocado is expected to post losses this week despite a landmark deal with supermarket Morrisons that investors hope will be a turning point for the business.
Analysts believe the business will make a loss of £2.3 million in the first-half to May 19 after managing to make a profit in the same period for the past two years. Last year it made £1.8 million in the first-half but a full-year loss of £600,000.
Sales, including vouchers, are expected to have increased by 15 per cent to £382 million in the 24 weeks.
Last month it signed a £170 million, 25-year distribution deal with supermarket Morrisons. The Bradford-based chain will take over Ocado's second distribution centre in the Midlands which opened earlier this year.
The deal angered existing partner Waitrose but it boosted the share price and inspired investors who believe that Ocado may have similar deals in the pipeline. The firms has been linked to investment deals and partnerships with firms such as Amazon, France's Carrefour and Marks & Spencer.
Sunday, 30 June 2013
Glasses Direct Eyes £100 Million Stockmarket Float
The owner of internet delivery firm Glasses Direct has appointed advisers to look at options that could include floating shares on the London Stock Exchange.
The MyOptique group has appointed specialist technology advisers GP Bullhound to look at future strategic and fundraising options, according to the Sunday Telegraph.
The advisory firm is among the most active in the digital sector and also worked on deals including the sale of music streaming service We7 to Tesco and Figleaves to N Brown in 2010, the report said. It includes former UBM chief executive Lord Hollick among its partners.
Glasses Direct was founded by Jamie Murray Wells in 2004 while still at university. It has already raised £32 million from a series of funding rounds that have included Index Ventures and Highland Capital Partners.
The MyOptique group has appointed specialist technology advisers GP Bullhound to look at future strategic and fundraising options, according to the Sunday Telegraph.
The advisory firm is among the most active in the digital sector and also worked on deals including the sale of music streaming service We7 to Tesco and Figleaves to N Brown in 2010, the report said. It includes former UBM chief executive Lord Hollick among its partners.
Glasses Direct was founded by Jamie Murray Wells in 2004 while still at university. It has already raised £32 million from a series of funding rounds that have included Index Ventures and Highland Capital Partners.
Saturday, 29 June 2013
Report: Why Shoppers Aren't Buying On Smartphones
Screen size and security concerns have been highlighted as two of the main barriers to the growth in mobile commerce.
The issues mean that while consumers are increasingly using mobile for research the main purchase is being made on a desktop, laptop or tablet.
According to UK research firm Econsultancy, studies suggest that mobile traffic and search volumes are likely to overtake desktop in the next 12 months. However, 64 per cent of smartphone owners who don't use mobile commerce say they simply prefer shopping online using PCs or tablets.
The next biggest concern was the size of the screen, cited by 41 per cent of respondents, followed by 39 per cent with security concerns.
The issues mean that while consumers are increasingly using mobile for research the main purchase is being made on a desktop, laptop or tablet.
According to UK research firm Econsultancy, studies suggest that mobile traffic and search volumes are likely to overtake desktop in the next 12 months. However, 64 per cent of smartphone owners who don't use mobile commerce say they simply prefer shopping online using PCs or tablets.
The next biggest concern was the size of the screen, cited by 41 per cent of respondents, followed by 39 per cent with security concerns.
Friday, 28 June 2013
Luxury Lingerie Store Dolci Follie Relaunches Web Site
Luxury lingerie retailer Dolci Follie has relaunched its web site to better reflect the experience customers get in its Notting Hill, London store.
The site will serve as a platform to accelerate UK sales but also to target overseas customers including Japan.
Bolton-based Absolute Media were appointed to overhaul the site after being approached late last year. It was given a broad remit while also being asked to provide the same 'decadent shopping experience and high level of service' shoppers receive at the store.
Absolute said it aimed to ensure the customer's passage to purchase was as simple as possible through a clean and minimalist site. The existing catalogue was 'pulled apart' and re-organised across key departments - Lingerie, Loungewear, Hosiery, Clothing, Beachwear and Accessories - and then subdivided into range, type, colour and style.
The site will serve as a platform to accelerate UK sales but also to target overseas customers including Japan.
Bolton-based Absolute Media were appointed to overhaul the site after being approached late last year. It was given a broad remit while also being asked to provide the same 'decadent shopping experience and high level of service' shoppers receive at the store.
Absolute said it aimed to ensure the customer's passage to purchase was as simple as possible through a clean and minimalist site. The existing catalogue was 'pulled apart' and re-organised across key departments - Lingerie, Loungewear, Hosiery, Clothing, Beachwear and Accessories - and then subdivided into range, type, colour and style.
Microsoft Shelves Ecommerce Marketplace Plan 'Project Brazil'
Microsoft has shelved a plan that could have seen it launch an ecommerce 'marketplace' to rival Amazon and eBay.
According to reports, including the Wall Street Journal, the software giant even held discussions with tech firms and retailers about the platform that would have included a single shopping cart.
Other interesting aspects of the plan, code-named 'Project Brazil' were understood to be the broad range of shipping options and the possibility that it might have subsidised prices using a portion of advertising income merchants had spent on its Bing search engine. That would be similar to the way many large retailers already arrange deals with suppliers to promote or discount certain product lines.
The plan would have eventually seen the Microsoft marketplace be included with software packages on new computers, Xbox videogame consoles, smartphones and windows-powered tablets, sources told the newspaper.
According to reports, including the Wall Street Journal, the software giant even held discussions with tech firms and retailers about the platform that would have included a single shopping cart.
Other interesting aspects of the plan, code-named 'Project Brazil' were understood to be the broad range of shipping options and the possibility that it might have subsidised prices using a portion of advertising income merchants had spent on its Bing search engine. That would be similar to the way many large retailers already arrange deals with suppliers to promote or discount certain product lines.
The plan would have eventually seen the Microsoft marketplace be included with software packages on new computers, Xbox videogame consoles, smartphones and windows-powered tablets, sources told the newspaper.
Thursday, 27 June 2013
Debenhams Prepares Premium Delivery Service As Online Sales Rise 40%
Department store Debenhams said this morning that online sales grew 40 per cent in the past 16 weeks with market share in all categories growing 'strongly'.
Debenhams is also preparing to launch a premium next day delivery service in September to 'improve customer service and enable us to recover more of our fulfilment and delivery costs.'
The chain said online sales accounted for 14 per cent of sales in the period ending June 22 while online share of the clothing market increased 0.7 per cent to 3.7 percent. Its share of the online premium beauty market is 31.9 per cent, it said.
Visits via mobiles increased 85 per cent compared to the same period last year.
Debenhams is also preparing to launch a premium next day delivery service in September to 'improve customer service and enable us to recover more of our fulfilment and delivery costs.'
The chain said online sales accounted for 14 per cent of sales in the period ending June 22 while online share of the clothing market increased 0.7 per cent to 3.7 percent. Its share of the online premium beauty market is 31.9 per cent, it said.
Visits via mobiles increased 85 per cent compared to the same period last year.
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| Top Hat by Stephen Jones: Exclusive to Debenhams at £110 |
Free MP3s With CDs and Vinyl: Amazon AutoRip Arrives In The UK
It's Finally happened: Amazon has introduced its AutoRip service giving free MP3s with CDs and traditional vinyl music bought on Amazon.co.uk.
As a special present for music lovers the internet giant will automatically add MP3 versions of any music bought since 1999 - anytime in the past 14 years. AutoRip launched in the US about three months ago and its arrival in Europe has been hotly anticipated.
The service will allow customers to play the track straight from the Amazon Cloud Player or download them to their PCs or mobiles. The only snag is that the service only applies to products with the AutoRip tag (but we think this covers most things) and that your cloud player might get full pretty quickly at which point you might need to pay for additional space in the cloud.
Either way, it takes the sting out of buying a hard copy CD or your favourite vinyl and then having to wait until the finished product arrives and download it. It's there waiting instantly at 256 Kbps.
Music from the Cloud Player can obviously be played on most devices: PCs, or indeed any web browser, Kindle Fire, Android phones or tablets, iPhones, iPads etc.
As a special present for music lovers the internet giant will automatically add MP3 versions of any music bought since 1999 - anytime in the past 14 years. AutoRip launched in the US about three months ago and its arrival in Europe has been hotly anticipated.
The service will allow customers to play the track straight from the Amazon Cloud Player or download them to their PCs or mobiles. The only snag is that the service only applies to products with the AutoRip tag (but we think this covers most things) and that your cloud player might get full pretty quickly at which point you might need to pay for additional space in the cloud.
Either way, it takes the sting out of buying a hard copy CD or your favourite vinyl and then having to wait until the finished product arrives and download it. It's there waiting instantly at 256 Kbps.
Music from the Cloud Player can obviously be played on most devices: PCs, or indeed any web browser, Kindle Fire, Android phones or tablets, iPhones, iPads etc.
Wednesday, 26 June 2013
Dwell May Not Honour Gift Vouchers
Furniture chain and web site Dwell has finally been taken into the hands of administrators after weeks of speculation over the firm's future.
The demise of the business has angered customers who had placed orders with the chain not realising the chain's worsening financial position with suppliers.
An estimated £1 million orders are believe to be outstanding. Administrators from Duff & Phelps said they have not yet decided whether to honour vouchers - and are under no obligation to do so because voucher holders by law are only regarded as any other creditor.
Only customers that paid by credit card are likely to be able to get a full refund.
The collapse comes amid a tough week for the high street as clothing chains Internacionale, Ark, owned by Rett Retail Limited and ModelZone, owned by Lloyds Development Capital, are also understood to be heading for administration threatening 2,000 jobs in all, including Dwell.
The demise of the business has angered customers who had placed orders with the chain not realising the chain's worsening financial position with suppliers.
An estimated £1 million orders are believe to be outstanding. Administrators from Duff & Phelps said they have not yet decided whether to honour vouchers - and are under no obligation to do so because voucher holders by law are only regarded as any other creditor.
Only customers that paid by credit card are likely to be able to get a full refund.
The collapse comes amid a tough week for the high street as clothing chains Internacionale, Ark, owned by Rett Retail Limited and ModelZone, owned by Lloyds Development Capital, are also understood to be heading for administration threatening 2,000 jobs in all, including Dwell.
Tuesday, 25 June 2013
Waitrose Boss Takes A Breath In Spat With Ocado
Waitrose managing director Mark Price appears to have taken a breather in his war of words with online partner Ocado.
After setting his lawyers on a contract the online grocery delivery firm signed with Morrisons last month, he seems to have cooled off a little. He told the Sunday Telegraph: 'My hope is very much that we will see that contract through.'
Quite whether this sounds like something you would say through gritted teeth, we are not sure. Waitrose's contract supplying Ocado to deliver its groceries runs to 2020 but with a break clause in 2017. What we do know is that Waitrose is closing in on a number of online delivery warehouses in a bid to grow its in-house delivery service Waitrose.com. Whether, or how soon, this can take over from the Ocado agreement we do not know (although we suspect Mark Price does).
The supermarket appears to feel that Ocado has transgressed some part of the contract or else the spirit of the deal. It could also be that it feels uncomfortable that Ocado has somehow got its hands dirty dealing with what some of its customers might deem a lesser quality supermarket.
We understand that the Waitrose legal team still has some weeks before it comes to any conclusions. But with Ocado due to release first-half figures next week on July 2 we have no doubt there will be more to say before then.
Meanwhile, rumours persist over intellectual property deals, takeovers, partnerships between Ocado and the likes of Amazon, Marks & Spencer, Boots the Chemist, Carrefour - all depending on which day of the week it is.
After setting his lawyers on a contract the online grocery delivery firm signed with Morrisons last month, he seems to have cooled off a little. He told the Sunday Telegraph: 'My hope is very much that we will see that contract through.'
Quite whether this sounds like something you would say through gritted teeth, we are not sure. Waitrose's contract supplying Ocado to deliver its groceries runs to 2020 but with a break clause in 2017. What we do know is that Waitrose is closing in on a number of online delivery warehouses in a bid to grow its in-house delivery service Waitrose.com. Whether, or how soon, this can take over from the Ocado agreement we do not know (although we suspect Mark Price does).
The supermarket appears to feel that Ocado has transgressed some part of the contract or else the spirit of the deal. It could also be that it feels uncomfortable that Ocado has somehow got its hands dirty dealing with what some of its customers might deem a lesser quality supermarket.
We understand that the Waitrose legal team still has some weeks before it comes to any conclusions. But with Ocado due to release first-half figures next week on July 2 we have no doubt there will be more to say before then.
Meanwhile, rumours persist over intellectual property deals, takeovers, partnerships between Ocado and the likes of Amazon, Marks & Spencer, Boots the Chemist, Carrefour - all depending on which day of the week it is.
US Fashion Site Fab.com Valued at $1 Billion After Raising $150 Million
US furniture and design website Fab.com has raised additional funds of $150 million valuing the business at an estimated $1 billion.
The new funds take the total to more than £310 million raised so far. The previous funds have been used to expand and buy five other companies. Its acquisitions include FashionStake, Germany's Casacanda and the UK's Llustre.
The business will hit sales of $200 million to $300 million this year, its chief executive officer Jason Goldberg told Bloomberg in an interview. That's more than double last year's $120 million sales. Goldberg has said he wants to avoid competing directly with Amazon and instead focus on 'emotional' and aspirational products.
The latest, Series D, investment was led by Andreessen Horowitz, Atomico and Chinese internet giant Tencent. Tencent takes a seat on the board and will play an active role in the site's expansion into Asia. The investment is widely seen as a challenge by Tencent to Asian ecommerce success story Alibaba.
Other investors, all of which had taken part in previous rounds of funding, were Menlo Ventures, RTP Capital, Pinnacle Ventures, Lars Hinrichs and Docomo Capital. Japan's Itochu joins as a new investor.
The new funds take the total to more than £310 million raised so far. The previous funds have been used to expand and buy five other companies. Its acquisitions include FashionStake, Germany's Casacanda and the UK's Llustre.
The business will hit sales of $200 million to $300 million this year, its chief executive officer Jason Goldberg told Bloomberg in an interview. That's more than double last year's $120 million sales. Goldberg has said he wants to avoid competing directly with Amazon and instead focus on 'emotional' and aspirational products.
The latest, Series D, investment was led by Andreessen Horowitz, Atomico and Chinese internet giant Tencent. Tencent takes a seat on the board and will play an active role in the site's expansion into Asia. The investment is widely seen as a challenge by Tencent to Asian ecommerce success story Alibaba.
Other investors, all of which had taken part in previous rounds of funding, were Menlo Ventures, RTP Capital, Pinnacle Ventures, Lars Hinrichs and Docomo Capital. Japan's Itochu joins as a new investor.
Monday, 24 June 2013
Shop Direct Says Online Tax 'Penalises' Ecommerce
We discussed growing anger over the British Retail Consortium's push for an online sales tax yesterday - a tax supported by the likes of Justin King at Sainsbury's, Ian Cheshire at B&Q and former Tesco chief Sir Terry Leahy.
We first flagged this was on its way at the beginning of April but finally the online retail community seems to be getting its house in order and responding in kind.
Shop Direct chief executive Alex Baldock - whose brands include very.co.uk, isme.com and littlewoods.com - has became the latest to slam the suggestion.
He told Retail Week magazine: 'Any taxation must be fair, encourage growth and generate jobs. An online tax would fail on all three counts. And while property may be a higher cost for bricks and mortar retailers, so are distribution and returns for online retailers. Why penalise someone for their choice of business model?'
Retail Week, normally very much in tune with the BRC, carried the story at the bottom of page seven of the magazine so perhaps don't expect any reaction from the BRC just yet. But it illustrates the groundswell and the piece also said other online retailers including BrandAlley chief executive Rob Feldmann, and sex toy etailer Lovehoney - who described the BRC and Justin King as 'playground bullies' - supported the anti-BRC campaign.
We first flagged this was on its way at the beginning of April but finally the online retail community seems to be getting its house in order and responding in kind.
Shop Direct chief executive Alex Baldock - whose brands include very.co.uk, isme.com and littlewoods.com - has became the latest to slam the suggestion.
He told Retail Week magazine: 'Any taxation must be fair, encourage growth and generate jobs. An online tax would fail on all three counts. And while property may be a higher cost for bricks and mortar retailers, so are distribution and returns for online retailers. Why penalise someone for their choice of business model?'
Retail Week, normally very much in tune with the BRC, carried the story at the bottom of page seven of the magazine so perhaps don't expect any reaction from the BRC just yet. But it illustrates the groundswell and the piece also said other online retailers including BrandAlley chief executive Rob Feldmann, and sex toy etailer Lovehoney - who described the BRC and Justin King as 'playground bullies' - supported the anti-BRC campaign.
France's Rad Heads For Britain As It Gets €2.5 million
Online fashion etailer Rad, which specialises in limited-availability product, has received €2.5 million to fund expansion into the UK and Germany.
The funding, about £2.1 million, comes after just 11 months trading and with the release of figures that suggest the site will reach sales of €15 million (£12.8 million) in its first year.
Raaad.fr was founded and originally self-financed by David Smadja, Anthony Serero, Simon Amzalag and Julia Serero. It offers limited-time only sales of indie fashion, art and design products. The Series A funding was led by Index Ventures with the participation of angel investors including Nicolas Santi-Weil, a founding partner of ecommerce venture The Kooples who will also join Rad's board, and New York-based Vaizra Seed Fund.
Martin Mignot at Index Ventures explains his attraction to Rad here.
The money will be invested in new hires, logistics, production and marketing. It also has a target to reach €40 million a year in 2014. The site was set up as an alternative to Vente-Privee.com but with new collections from independent designers and labels. Rad investors are also behind the Business of Fashion magazine web site.
The funding, about £2.1 million, comes after just 11 months trading and with the release of figures that suggest the site will reach sales of €15 million (£12.8 million) in its first year.
Raaad.fr was founded and originally self-financed by David Smadja, Anthony Serero, Simon Amzalag and Julia Serero. It offers limited-time only sales of indie fashion, art and design products. The Series A funding was led by Index Ventures with the participation of angel investors including Nicolas Santi-Weil, a founding partner of ecommerce venture The Kooples who will also join Rad's board, and New York-based Vaizra Seed Fund.
Martin Mignot at Index Ventures explains his attraction to Rad here.
The money will be invested in new hires, logistics, production and marketing. It also has a target to reach €40 million a year in 2014. The site was set up as an alternative to Vente-Privee.com but with new collections from independent designers and labels. Rad investors are also behind the Business of Fashion magazine web site.
Asda Broadens Store Range With Internet Kiosks
Asda has introduced 20 internet kiosks to stores which allow shoppers to browse a larger range of non-food products.
Tesco and Marks & Spencer have trialed kiosks and Asda already has JML shopping channel kiosks in some of its supermarkets. Asda also has in store wi-fi in many shops to encourage shoppers to browse online.
Asda has said it will spend £700 million this year on new stores and investment in digital development. It is also using a click and collect ordering for its general merchandise ranges in about 20 stores.
Tesco and Marks & Spencer have trialed kiosks and Asda already has JML shopping channel kiosks in some of its supermarkets. Asda also has in store wi-fi in many shops to encourage shoppers to browse online.
Asda has said it will spend £700 million this year on new stores and investment in digital development. It is also using a click and collect ordering for its general merchandise ranges in about 20 stores.
Sunday, 23 June 2013
"Is the British Retail Consortium Insane?" The Online Retail Tax Debate Rages
We love a good headline, so we were instantly attracted to this one which sums up our feelings about the online sales tax proposed by the British Retail Consortium.
To bring everyone up to speed, Ian Cheshire, chairman of the BRC and chief executive of B&Q owner Kingfisher, Sainsbury's chief executive Justin King and former Tesco chief Sir Terry Leahy have all surfaced recently to argue the case for an online sales tax.
We believe that, in reality, most of online retailers actually pay quite a lot of tax already, face expenses that bricks and mortar retailers don't, and are normally in rapid growth phases that mature retail businesses are not. We also believe that the opportunity for job creation in low margin, fast growth businesses is something the government should take seriously.
Jobs need to come from somewhere especially when promises from supermarkets that they would soak up the public sector fall-out never materialised.
So, we've been burrowing down into the general concept to show the lie to their arguments. In fact, they have all been very vague about how it would work. But we believe the principle - that online retailers should pay more tax to bring them onto a level playing field with bricks and mortar retailers - conceals the real thrust of the argument - that they want a reduction in business rates.
We also think they are intentionally using public ire against tax avoiding multinationals such as Amazon, Google and Ebay to help their argument - and thus creating confusion between offshore tax avoidance and an online sales tax.
To bring everyone up to speed, Ian Cheshire, chairman of the BRC and chief executive of B&Q owner Kingfisher, Sainsbury's chief executive Justin King and former Tesco chief Sir Terry Leahy have all surfaced recently to argue the case for an online sales tax.
We believe that, in reality, most of online retailers actually pay quite a lot of tax already, face expenses that bricks and mortar retailers don't, and are normally in rapid growth phases that mature retail businesses are not. We also believe that the opportunity for job creation in low margin, fast growth businesses is something the government should take seriously.
Jobs need to come from somewhere especially when promises from supermarkets that they would soak up the public sector fall-out never materialised.
So, we've been burrowing down into the general concept to show the lie to their arguments. In fact, they have all been very vague about how it would work. But we believe the principle - that online retailers should pay more tax to bring them onto a level playing field with bricks and mortar retailers - conceals the real thrust of the argument - that they want a reduction in business rates.
We also think they are intentionally using public ire against tax avoiding multinationals such as Amazon, Google and Ebay to help their argument - and thus creating confusion between offshore tax avoidance and an online sales tax.
Saturday, 22 June 2013
Asos To Offer 15-Minute Delivery Slots From Monday
Online fashion retailer Asos will offer 15-minute delivery slots to customers from Monday as the delivery wars heat up.
The service will be free of charge and allow shoppers to track their parcels using the new service called Follow My Parcel.
Customers will be able to track the parcel from their mobile or desktop with a countdown facility and when the delivery gets closer they will be given a 15-minute window. The service will launch in partnership with logistics provider DPD.
Asos chief executive Nick Robertson has told Retail Week magazine the new service was part of a strategy to help the firm 'redefine the online retail experience.'
Dixons this week extended its next day delivery cut-off from 7pm to 10pm the night before. While House of Fraser also said it had extended its next-morning click and collect order cut-off from noon to 10pm the night before.
The service will be free of charge and allow shoppers to track their parcels using the new service called Follow My Parcel.
Customers will be able to track the parcel from their mobile or desktop with a countdown facility and when the delivery gets closer they will be given a 15-minute window. The service will launch in partnership with logistics provider DPD.
Asos chief executive Nick Robertson has told Retail Week magazine the new service was part of a strategy to help the firm 'redefine the online retail experience.'
Dixons this week extended its next day delivery cut-off from 7pm to 10pm the night before. While House of Fraser also said it had extended its next-morning click and collect order cut-off from noon to 10pm the night before.
Wal-Mart Raises Global Online Sales Target To $10 billion
The world's biggest retailer Wal-Mart has raised its online sales target this year after making an acquisition in China and now says it expects to reach $10 billion (£6.5 billion).
Wal-Mart Stores president and chief executive Mike Duke told the firm's shareholders meeting the increase from the previous target of $9 billion reflects the acquisition of China's ecommerce site Yihaodian.
But Wal-Mart's global sales were $469 billion (£304 million) last year which means ecommerce sales will be just 2.1 per cent of its total sales.
It also puts into perspective Wal-Marts position versus its chief online antagonist Amazon. It is estimated that Amazon's sales in the UK alone are about £8 billion when sales from its Marketplace are added. Amazon's global sales were $61.1 billion last year.
However, it probably means that Wal-Mart is the biggest multichannel retailer in the world by online sales.
Wal-Mart Stores president and chief executive Mike Duke told the firm's shareholders meeting the increase from the previous target of $9 billion reflects the acquisition of China's ecommerce site Yihaodian.
But Wal-Mart's global sales were $469 billion (£304 million) last year which means ecommerce sales will be just 2.1 per cent of its total sales.
It also puts into perspective Wal-Marts position versus its chief online antagonist Amazon. It is estimated that Amazon's sales in the UK alone are about £8 billion when sales from its Marketplace are added. Amazon's global sales were $61.1 billion last year.
However, it probably means that Wal-Mart is the biggest multichannel retailer in the world by online sales.
Friday, 21 June 2013
Amazon, Argos and Next Emerge As Best Mobile Sites
Amazon, Argos and Next have emerged as the UK's most visited mobile sites.
According to traffic figures compiled by Experian's Hitwise Amazon.co.uk and Amazon.com received more than 10 per cent of traffic visits followed by Argos with 2.3 per cent.
Mobile traffic now accounts for 20 per cent of the market compared to just 1 per cent in 2010 according to the IMRG who were also involved in the survey. About 60 per cent of the population has a smartphone, according to Experian.
Tina Spooner, chief information officer at the IMRG, said the shift 'reflects a changing attitude among consumers. Retailers that continue to invest in their mobile operations will no doubt continue to reap the rewards.
Others in the list, in order, were Next, Tesco, Debenhams, Marks & Spencer, Asos, John Lewis, New Look. While elsewhere in the list there were sharp rises from sites such as Zara (up 13 places), Boohoo and Boden (both up 11 per cent), Asos and Very (both up 3 places).
According to traffic figures compiled by Experian's Hitwise Amazon.co.uk and Amazon.com received more than 10 per cent of traffic visits followed by Argos with 2.3 per cent.
Mobile traffic now accounts for 20 per cent of the market compared to just 1 per cent in 2010 according to the IMRG who were also involved in the survey. About 60 per cent of the population has a smartphone, according to Experian.
Tina Spooner, chief information officer at the IMRG, said the shift 'reflects a changing attitude among consumers. Retailers that continue to invest in their mobile operations will no doubt continue to reap the rewards.
Others in the list, in order, were Next, Tesco, Debenhams, Marks & Spencer, Asos, John Lewis, New Look. While elsewhere in the list there were sharp rises from sites such as Zara (up 13 places), Boohoo and Boden (both up 11 per cent), Asos and Very (both up 3 places).
Germany's Rocket Internet Raises $100 Million To Lazada In Asia
German ecommerce giant Rocket Internet, the owner of Zalando, has raised $100 million to grow its general merchandise site Lazada in Southeast Asia.
The fund raising is Lazada's largest to date and comes from existing investors including Holtzbrinck Ventures, Kinnevik Investment, Summit Partners and Germany's Tengelmann retail group. New investor Verlinvest from Belgium also took part.
The company hopes to push the site's growth in countries such as Indonesia, Malaysia, the Philipines, Thailand and Vietnam where only about 1 per cent of shopping is done online. That compares to about 6 per cent in neighbouring China, according to Reuters.
Lazada CEO Maximilian Bittner said there was less money in the region than in some other areas but an 'enthusiasm' for online shopping that was producing positive growth trends. He said the money would be spent on logistics and improving the service from the site.
It competes with Amazon in the region which recently said it was going to ship products from the US to India and Singapore for free. Lazada claims 90 per cent of its items are dispatched the same day.
Rocket Internet has launched a number of sites in emerging markets such as Zando and Jumia in Africa and Dafiti in Brazil. Lamoda, a Russian version of Rocket's highly successful Zalando, secured $130 million in funding from investors including Summit and Tengelmann earlier this month.
The fund raising is Lazada's largest to date and comes from existing investors including Holtzbrinck Ventures, Kinnevik Investment, Summit Partners and Germany's Tengelmann retail group. New investor Verlinvest from Belgium also took part.
The company hopes to push the site's growth in countries such as Indonesia, Malaysia, the Philipines, Thailand and Vietnam where only about 1 per cent of shopping is done online. That compares to about 6 per cent in neighbouring China, according to Reuters.
Lazada CEO Maximilian Bittner said there was less money in the region than in some other areas but an 'enthusiasm' for online shopping that was producing positive growth trends. He said the money would be spent on logistics and improving the service from the site.
It competes with Amazon in the region which recently said it was going to ship products from the US to India and Singapore for free. Lazada claims 90 per cent of its items are dispatched the same day.
Rocket Internet has launched a number of sites in emerging markets such as Zando and Jumia in Africa and Dafiti in Brazil. Lamoda, a Russian version of Rocket's highly successful Zalando, secured $130 million in funding from investors including Summit and Tengelmann earlier this month.
Online Sales Boosted Retail Spending Last Month
Online sales increased 10.3 per cent last month boosting total retail spending.
Retail sales increased 3.1 per cent in May compared to a year earlier in what has been read as a further sign of economic recovery in the UK.
The Office of National Statistics said a price war at supermarkets had helped boost spending across the sector as shoppers took to the high street again after a freezing Spring. The figures indicate volumes increased 1.9 per cent, which was ahead of analysts expectations. Volumes were boosted by a 19 per cent rise in volumes from the internet and other direct sales channels such as catalogues.
Online spending now accounts for 9.7 per cent of spending in the sector, excluding fuel.
Retail sales increased 3.1 per cent in May compared to a year earlier in what has been read as a further sign of economic recovery in the UK.
The Office of National Statistics said a price war at supermarkets had helped boost spending across the sector as shoppers took to the high street again after a freezing Spring. The figures indicate volumes increased 1.9 per cent, which was ahead of analysts expectations. Volumes were boosted by a 19 per cent rise in volumes from the internet and other direct sales channels such as catalogues.
Online spending now accounts for 9.7 per cent of spending in the sector, excluding fuel.
Thursday, 20 June 2013
H&M Plans Long-Awaited Internet Push In US
Swedish clothing company Hennes & Mauritz plans to launch a long-awaited internet site in the US this August.
The decision comes amid a global sales push that will also see H&M extend its presence in China. The company said online stores help boost sales volumes in markets where it is already present on the internet.
The plan was confirmed after much speculation over when the chain would launch an internet business in the US. The FT reported its chief executive Karl-Johan Persson saying the internet presents 'enormous potential.'
But the Wall Street Journal said the company has been concerned that huge sales volumes in the US would make the operation difficult to set up.
The decision comes amid a global sales push that will also see H&M extend its presence in China. The company said online stores help boost sales volumes in markets where it is already present on the internet.
The plan was confirmed after much speculation over when the chain would launch an internet business in the US. The FT reported its chief executive Karl-Johan Persson saying the internet presents 'enormous potential.'
But the Wall Street Journal said the company has been concerned that huge sales volumes in the US would make the operation difficult to set up.
Dixons Says Multichannel Rises 25% In Six Months
Dixons Retail said this morning that multichannel sales rose 25 per cent at its UK and Ireland business in the second half of the financial year.
The boost helped increase like-for-like sales at stores by 7 per cent in the full-year to the end of April, an acceleration on the increase of 3 per cent in the first half. The surge in store sales followed the demise of Comet which collapsed at the beginning of November and led to a fire sale of goods.
Like-for-like sales in the final quarter of the year increased 13 per cent in the UK and Ireland, it said.
Multichannel growth appeared to slow compared to the first six months when the retailer said sales at Currys and PC World increased 29 per cent and 38 per cent respectively.
However, the company said: 'This year we have invested in improving our multichannel offer in all of our core markets. The has involved expanding and enriching the ways in which customers can shop with us improving the link between the store experience and the online experience to make the transition as simple and seamless as possible.'
'We also believe that our online proposition, particularly on mobile devices, is one of the best in the market and have radically overhauled the way in which we communicate with customers away from traditional advertising methods,' it said.
Group sales increased 4 per cent to £8.21 billion. Underlying profit increased 15 per cent to £94.5 million. Underlying profit growth in the UK increased 39 per cent to £113.3 million. Group losses were £115.3 million, about the same as last year, as it wrote off the cost of exiting non-core businesses.
The boost helped increase like-for-like sales at stores by 7 per cent in the full-year to the end of April, an acceleration on the increase of 3 per cent in the first half. The surge in store sales followed the demise of Comet which collapsed at the beginning of November and led to a fire sale of goods.
Like-for-like sales in the final quarter of the year increased 13 per cent in the UK and Ireland, it said.
Multichannel growth appeared to slow compared to the first six months when the retailer said sales at Currys and PC World increased 29 per cent and 38 per cent respectively.
However, the company said: 'This year we have invested in improving our multichannel offer in all of our core markets. The has involved expanding and enriching the ways in which customers can shop with us improving the link between the store experience and the online experience to make the transition as simple and seamless as possible.'
'We also believe that our online proposition, particularly on mobile devices, is one of the best in the market and have radically overhauled the way in which we communicate with customers away from traditional advertising methods,' it said.
Group sales increased 4 per cent to £8.21 billion. Underlying profit increased 15 per cent to £94.5 million. Underlying profit growth in the UK increased 39 per cent to £113.3 million. Group losses were £115.3 million, about the same as last year, as it wrote off the cost of exiting non-core businesses.
Wednesday, 19 June 2013
Boohoo's Founders Mull Sale
UPDATE: See our review of the Boohoo.com business, out on Wednesday November 13
Fashion etailer Boohoo is considering a sale after its founders appointed Zeus Capital to explore possible strategic options.
The advisers have already made contact with possible buyers or investors who may be interested in acquiring a stake, it is understood.
Boohoo's founders Mahmud Kamani and Carol Kane set up the business in 2006. Zeus Capital's private equity arm is thought to be a shareholder in Boohoo.
The most recent available accounts show that sales at Boohoo owner Wasabi Frog Limited increased to 18 per cent to £29 million in the year to February 2012. Profit in the year to February increased 79 per cent to £248,790.
Boohoo, which also has a US-facing site, is the main subsidiary of Wasabi Frog Limited. The Manchester firm employs about 500 people.
Fashion etailer Boohoo is considering a sale after its founders appointed Zeus Capital to explore possible strategic options.
The advisers have already made contact with possible buyers or investors who may be interested in acquiring a stake, it is understood.
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| Boohoo.com's Selma Sequin Dress: £35 |
The most recent available accounts show that sales at Boohoo owner Wasabi Frog Limited increased to 18 per cent to £29 million in the year to February 2012. Profit in the year to February increased 79 per cent to £248,790.
Boohoo, which also has a US-facing site, is the main subsidiary of Wasabi Frog Limited. The Manchester firm employs about 500 people.
Online Sales At House Of Fraser Soar - But Profits Don't
House of Fraser has reported an acceleration of online sales increasing total sales at the chain in the first quarter.
The department store said online sales in the three months to the end of April increased 62 per cent contributing to a 4.8 per cent overall sales increase. Online sales in the full-year to the end of January increased 53 per cent.
However, gross profit increased 3.9 per cent to £84.8 million suggesting that the retailer is struggling to translate strong sales growth to profit.
The UK clothing industry was exceptionally promotional in Spring because of unseasonably cold weather. However, some traditional retailers are also struggling to integrate new internet businesses into their systems.
One analyst said the rise of click and collect was an example of how difficult it was to translate online success to the bottom line. 'Click and collect is being touted as the next big thing by retailers but the items often have to be delivered to stores individually - at a cost which is very difficult to pass on to consumers,' he said.
House of Fraser parent Highland Group Holdings recently published accounts that showed sales in the year to January increased 1.4 per cent to £695.5 million. Pre-tax profit in the year was £8.2 million compared to a loss of £18.3 million the previous year. Operating profit increased 9 per cent to £20.6 million. Gross sales, including concessions run by brands within stores, are about £1.2 billion.
Online sales accounted for 11 per cent of group sales last year rising to about 20 per cent in womenswear. About a third of internet sales come from 'click and collect'.
The department store said online sales in the three months to the end of April increased 62 per cent contributing to a 4.8 per cent overall sales increase. Online sales in the full-year to the end of January increased 53 per cent.
However, gross profit increased 3.9 per cent to £84.8 million suggesting that the retailer is struggling to translate strong sales growth to profit.
The UK clothing industry was exceptionally promotional in Spring because of unseasonably cold weather. However, some traditional retailers are also struggling to integrate new internet businesses into their systems.
One analyst said the rise of click and collect was an example of how difficult it was to translate online success to the bottom line. 'Click and collect is being touted as the next big thing by retailers but the items often have to be delivered to stores individually - at a cost which is very difficult to pass on to consumers,' he said.
House of Fraser parent Highland Group Holdings recently published accounts that showed sales in the year to January increased 1.4 per cent to £695.5 million. Pre-tax profit in the year was £8.2 million compared to a loss of £18.3 million the previous year. Operating profit increased 9 per cent to £20.6 million. Gross sales, including concessions run by brands within stores, are about £1.2 billion.
Online sales accounted for 11 per cent of group sales last year rising to about 20 per cent in womenswear. About a third of internet sales come from 'click and collect'.
Consumers Blame The Internet For High Street Demise - But Do They Care?
Almost half of consumers blame the internet for the demise of the high street - well above the number that blame the proliferation of out of town shopping centres and retail parks.
In a survey by brand consultants Live & Breathe, 48 per cent of people said the increase of shopping on the internet was to blame while 32 per cent blamed out of town shopping. A whopping 44 per cent said parking was difficult and too expensive, 32 per cent said it was the wrong sort of shops - perhaps reflecting the demise of traditional retailing and the rise of betting shops, money shops and charity shops.
A total of 43 per cent said they 'cared a lot' about the decline of the high street while 30 per cent were moved to say they cared 'a little'. Put another way, however, more than half only care a little bit, not at all or don't seem to have an opinion either way.
It also reported that 55 per cent of people said they buy things from the high street whereas for many others its was more of a social experience or somewhere to pass the time. A third said they eat out there, 28 per cent said they window shop and a similar number said they go there to 'get some fresh air'.
In a survey by brand consultants Live & Breathe, 48 per cent of people said the increase of shopping on the internet was to blame while 32 per cent blamed out of town shopping. A whopping 44 per cent said parking was difficult and too expensive, 32 per cent said it was the wrong sort of shops - perhaps reflecting the demise of traditional retailing and the rise of betting shops, money shops and charity shops.
A total of 43 per cent said they 'cared a lot' about the decline of the high street while 30 per cent were moved to say they cared 'a little'. Put another way, however, more than half only care a little bit, not at all or don't seem to have an opinion either way.
It also reported that 55 per cent of people said they buy things from the high street whereas for many others its was more of a social experience or somewhere to pass the time. A third said they eat out there, 28 per cent said they window shop and a similar number said they go there to 'get some fresh air'.
Ocado Would Be 'Perfect Fit' For Amazon
British food delivery service Ocado would be the perfect fit for Amazon as its seeks to extend its reach into the grocery business, a leading analyst has said.
Cantor Fitzgerald technology analyst Youssef Squali said a purchase or joint venture could help Amazon in its new plan to introduce a delivery service into parts of the US and possibly Europe.
His comments come amid a surge in the Ocado share price and rumours that others, including Carrefour and Boots, may be eyeing up a deal or partnership with the firm.
Cantor Fitzgerald technology analyst Youssef Squali said a purchase or joint venture could help Amazon in its new plan to introduce a delivery service into parts of the US and possibly Europe.
His comments come amid a surge in the Ocado share price and rumours that others, including Carrefour and Boots, may be eyeing up a deal or partnership with the firm.
Tuesday, 18 June 2013
BRC's Online Tax Demands Branded 'Hypocritical'
Clearly no one is fighting the online corner hard enough when it comes to the issue of tax - but one ecommerce retailer, at least, has taken matters into their own hands.
In a letter sent to the Government and to the British Retail Consortium, the etailer Sofa.com has branded suggestions of an online tax levy as 'self-interested' and 'hypocritical' and said they could 'hit at the heart of the UK's world-leading online retail industry.'
The online furniture store said the expansion of out-of-town shopping centres and hypermarkets was the 'greatest negative' to the high street and has dealt the biggest blow to traditional retail - not the growth of online.
Many campaigners say the Government still does little to prevent the expansion of retail out-of town, which continues apace. They say high street retailers have had to cope with a maelstrom of out-of-town expansion, rising rents, business rates and the internet.
But former Tesco boss Sir Terry Leahy and Sainsbury's chief executive Justin King have both stepped forward over the past week to say greater tax levies should be placed on online retailers. Meanwhile, the British Retail Consortium has called for an overhaul of the UK tax system (see below: Furore Breaks Out Over Online Sales Tax Demands) to provide a level-playing field for its membership - which is dominated by 'bricks and mortar' retailers.
Pat Reeves and Rohan Blacker, co-founders of Sofa.com, said in a letter to chief secretary to the Treasury Danny Alexander that their business 'like all profitable online retailers pays significant corporation tax and VAT while it also pays national insurance for employees'.
It said that the 'greatest negative' for the UK high street was the growth of out-of-town retailing which had drawn shoppers away from town centres. 'It seems somewhat hypocritical that retailers like Sainsbury's and B&Q - significant proponents of out-of-town shopping centres - are now championing themselves as 'defenders of the high street'.
B&Q is owned by DIY conglomerate Kingfisher whose chief executive Ian Cheshire is also chairman of the BRC.
The letter says: 'Online businesses often fail. Online isn't some magical way of beating the high street, only the best businesses survive and as such, it's absurd to imply that online retail has an inherent advantage over traditional shops.'
Sofa.com was created when the founders bought the domain name in 2005 for $215,000. It was launched in September 2006 and great to £10 million sales in the year to February 2011. The following year, the latest for which figures are available, sales were £13 million.
In a letter sent to the Government and to the British Retail Consortium, the etailer Sofa.com has branded suggestions of an online tax levy as 'self-interested' and 'hypocritical' and said they could 'hit at the heart of the UK's world-leading online retail industry.'
The online furniture store said the expansion of out-of-town shopping centres and hypermarkets was the 'greatest negative' to the high street and has dealt the biggest blow to traditional retail - not the growth of online.
Many campaigners say the Government still does little to prevent the expansion of retail out-of town, which continues apace. They say high street retailers have had to cope with a maelstrom of out-of-town expansion, rising rents, business rates and the internet.
But former Tesco boss Sir Terry Leahy and Sainsbury's chief executive Justin King have both stepped forward over the past week to say greater tax levies should be placed on online retailers. Meanwhile, the British Retail Consortium has called for an overhaul of the UK tax system (see below: Furore Breaks Out Over Online Sales Tax Demands) to provide a level-playing field for its membership - which is dominated by 'bricks and mortar' retailers.
Pat Reeves and Rohan Blacker, co-founders of Sofa.com, said in a letter to chief secretary to the Treasury Danny Alexander that their business 'like all profitable online retailers pays significant corporation tax and VAT while it also pays national insurance for employees'.
It said that the 'greatest negative' for the UK high street was the growth of out-of-town retailing which had drawn shoppers away from town centres. 'It seems somewhat hypocritical that retailers like Sainsbury's and B&Q - significant proponents of out-of-town shopping centres - are now championing themselves as 'defenders of the high street'.
B&Q is owned by DIY conglomerate Kingfisher whose chief executive Ian Cheshire is also chairman of the BRC.
The letter says: 'Online businesses often fail. Online isn't some magical way of beating the high street, only the best businesses survive and as such, it's absurd to imply that online retail has an inherent advantage over traditional shops.'
Sofa.com was created when the founders bought the domain name in 2005 for $215,000. It was launched in September 2006 and great to £10 million sales in the year to February 2011. The following year, the latest for which figures are available, sales were £13 million.
Furore Breaks Out Over Online Sales Tax Demands
An online retail tax could damage small businesses, stifle innovation and would fail to curb tax avoidance strategies by multinational firms, experts have warned.
Ecommerce lobby firm the IMRG joined online retailers and business analysts to say that attempts to shift the burden of businesses rates from bricks and mortar retailers and onto online retailers would be misguided.
Former Tesco chief executive Sir Terry Leahy echoed demands from Sainsbury's chief executive Justin King last week that there should be a 'level playing field' on tax. Leahy told The Mail on Sunday that tax levies unfairly burden retailers and should be more evenly spread among telecoms firms, satellite broadcasters and online retailers.
Retailers have campaigned for years arguing for cuts in business rates. Over the past three years rates have increased by 13 per cent crippling struggling retailers and the British Retail Consortium recently relaunched its push for a business rate cut as a demand for an overhaul of the tax system.
But one online director, speaking on the understanding of anonymity, told us: 'The tax debate is about off-shore tax avoidance - not about taxing online businesses. It's crazy that retailers should be demanding that online retailers be more heavily taxed when that is where their growth is going to come from in the next few years.'
The IMRG told The Mail on Sunday that it is becoming increasingly difficult to separate online and off-line as most big ecommerce operators also have shops. Next and John Lewis both have online sales - combined with catalogue sales in the case of Next - of more than £1 billion.
IMRG chairman James Roper said a blanket tax would damage fledgling ecommerce entrepreneurs and prevent small shops diversifying online. His members include big names such as Amazon, eBay, Google, Tesco and Sainsbury's but also hundreds of smaller online firms.
'We've been anticipating this for ten or 15 years. It's right and proper than companies pay their taxes and its clear the whole Government machine has not got in tune with the online world yet,' he told the Mail. 'But there are something like 170,000 small e-commerce business turning over up to £100,000 a year and an online tax could well kill those businesses off.'
Retail analyst Bryan Roberts at Kantar said taxing online firms 'risks missing the point'. He said the more fundamental issue was the use of tax havens by multinational firms. He said an online tax would be a 'blunt instrument' to help bricks and mortar retailers cope with rate rises.
Ecommerce lobby firm the IMRG joined online retailers and business analysts to say that attempts to shift the burden of businesses rates from bricks and mortar retailers and onto online retailers would be misguided.
Former Tesco chief executive Sir Terry Leahy echoed demands from Sainsbury's chief executive Justin King last week that there should be a 'level playing field' on tax. Leahy told The Mail on Sunday that tax levies unfairly burden retailers and should be more evenly spread among telecoms firms, satellite broadcasters and online retailers.
Retailers have campaigned for years arguing for cuts in business rates. Over the past three years rates have increased by 13 per cent crippling struggling retailers and the British Retail Consortium recently relaunched its push for a business rate cut as a demand for an overhaul of the tax system.
But one online director, speaking on the understanding of anonymity, told us: 'The tax debate is about off-shore tax avoidance - not about taxing online businesses. It's crazy that retailers should be demanding that online retailers be more heavily taxed when that is where their growth is going to come from in the next few years.'
The IMRG told The Mail on Sunday that it is becoming increasingly difficult to separate online and off-line as most big ecommerce operators also have shops. Next and John Lewis both have online sales - combined with catalogue sales in the case of Next - of more than £1 billion.
IMRG chairman James Roper said a blanket tax would damage fledgling ecommerce entrepreneurs and prevent small shops diversifying online. His members include big names such as Amazon, eBay, Google, Tesco and Sainsbury's but also hundreds of smaller online firms.
'We've been anticipating this for ten or 15 years. It's right and proper than companies pay their taxes and its clear the whole Government machine has not got in tune with the online world yet,' he told the Mail. 'But there are something like 170,000 small e-commerce business turning over up to £100,000 a year and an online tax could well kill those businesses off.'
Retail analyst Bryan Roberts at Kantar said taxing online firms 'risks missing the point'. He said the more fundamental issue was the use of tax havens by multinational firms. He said an online tax would be a 'blunt instrument' to help bricks and mortar retailers cope with rate rises.
Profit At The Hut Ignites IPO Speculation
The Hut Group, the online conglomerate that counts Sir Stuart Rose and Sir Terry Leahy among its shareholders, said it moved back into profit last year prompting rumours it may be preparing to sell shares on the stock exchange.
Pretax profit was £300,000 in the year to December 31 compared to a £12.7 million loss a year earlier. The Hut has long considered floating on the stock market to allow founder Matthew Moulding to release equity. But it abandoned plans in 2011 amid turbulent market conditions.
However, this year has seen a surge in share prices opening a possible window for a share sale.
The company sells products on 15 web sites including Zavvi.com, Mybag.com and Probikekit.com. Products also include health and beauty, sports supplements and clothing. Sales at the group increased 30.4 per cent to £145.3 million as it acquired its own brands and extended operations in overseas markets. Profit, measured as earnings before interest, tax, depreciation and amortisation, increased 130 per cent to £10.1 million.
'I am pleased to report another strong set of trading results for the group. The growth in both our own branded products as well as our rapid expansion overseas is presenting the group with some significant opportunities in our principal operating categories of Lifestyle, and Health and Beauty,' chief executive Moulding said.
The company said 35 per cent of sales are from brands owned by the Hut and 36 per cent of sales are international.
In March The Hut announced it had appointed former Morrisons finance director Richard Pennycook as chairman replacing Angus Monro. Monro will remain as a non-executive director and is a shareholder. Former Debenhams chief executive Terry Green is also a shareholder.
Pretax profit was £300,000 in the year to December 31 compared to a £12.7 million loss a year earlier. The Hut has long considered floating on the stock market to allow founder Matthew Moulding to release equity. But it abandoned plans in 2011 amid turbulent market conditions.
However, this year has seen a surge in share prices opening a possible window for a share sale.
The company sells products on 15 web sites including Zavvi.com, Mybag.com and Probikekit.com. Products also include health and beauty, sports supplements and clothing. Sales at the group increased 30.4 per cent to £145.3 million as it acquired its own brands and extended operations in overseas markets. Profit, measured as earnings before interest, tax, depreciation and amortisation, increased 130 per cent to £10.1 million.
'I am pleased to report another strong set of trading results for the group. The growth in both our own branded products as well as our rapid expansion overseas is presenting the group with some significant opportunities in our principal operating categories of Lifestyle, and Health and Beauty,' chief executive Moulding said.
The company said 35 per cent of sales are from brands owned by the Hut and 36 per cent of sales are international.
In March The Hut announced it had appointed former Morrisons finance director Richard Pennycook as chairman replacing Angus Monro. Monro will remain as a non-executive director and is a shareholder. Former Debenhams chief executive Terry Green is also a shareholder.
Monday, 17 June 2013
Barclaycard Says Online Sales Rise 12%
Barclaycard said Britons spending online increased 12 per cent last month as overall spending rose.
The firm said total spending increased 4.1 per cent compared to a year earlier as shoppers spent more money at restaurants, cinemas and vacation breaks. It was the second time in four months that the increase in spending hit 4 per cent or more.
'Sentiment is clearly still fragile but the better performance we're seeing across a wide range of sectors suggests that the green shoots of a sustainable recovery may finally be taking hold,' said Barclaycard chief executive Valerie Keating.
The firm said total spending increased 4.1 per cent compared to a year earlier as shoppers spent more money at restaurants, cinemas and vacation breaks. It was the second time in four months that the increase in spending hit 4 per cent or more.
'Sentiment is clearly still fragile but the better performance we're seeing across a wide range of sectors suggests that the green shoots of a sustainable recovery may finally be taking hold,' said Barclaycard chief executive Valerie Keating.
M&S Online Boss Wade-Gery Among Speakers at Internet Retailing Conference in October
Marks & Spencer's online boss Laura-Wade Gery and the firm's former chief executive Sir Stuart Rose will be among the speakers at the Internet Retailing Conference in October.
Rose, currently chairman at Ocado, will be the first speaker on the day followed by Wade-Gery and a series of break out streams. Other speakers at the event on October 16 include New Look multi-channel director Shivani Tejuja, Play.com marketing director Adam Stewart and panelists from Alliance Boots, Shop Direct, Schuh and Fatface.
Meanwhile, the Internet Retailing Awards take place next week on June 26.
Rose, currently chairman at Ocado, will be the first speaker on the day followed by Wade-Gery and a series of break out streams. Other speakers at the event on October 16 include New Look multi-channel director Shivani Tejuja, Play.com marketing director Adam Stewart and panelists from Alliance Boots, Shop Direct, Schuh and Fatface.
Meanwhile, the Internet Retailing Awards take place next week on June 26.
Lifestyle Etailer Achica Poaches B&Q Director
Lifestyle etailer Achica has appointed B&Q customer director Steve Robinson as chief operating officer.
Robinson joined B&Q in the interim role of multichannel director in February last year before promoting him in June. He was proviously chief executive of sportswear site M and M Direct and head of Tesco Direct before that, the supermarket's online non-food business.
He will report to Achica chief executive Will Cooper as the members-only site seeks to expand overseas. Cooper said: 'We are very pleased that Steve is joining our team at this exciting stage in our development. Achica continues to grow strongly both in the UK and across key markets in Europe and so we feel that this is the right time to bring someone of Steve's operational background into the business.
'Steve has a proven track record in developing corporate strategy and growing organisations whiel overseeing on-going operations,' he said.
Robinson joined B&Q in the interim role of multichannel director in February last year before promoting him in June. He was proviously chief executive of sportswear site M and M Direct and head of Tesco Direct before that, the supermarket's online non-food business.
He will report to Achica chief executive Will Cooper as the members-only site seeks to expand overseas. Cooper said: 'We are very pleased that Steve is joining our team at this exciting stage in our development. Achica continues to grow strongly both in the UK and across key markets in Europe and so we feel that this is the right time to bring someone of Steve's operational background into the business.
'Steve has a proven track record in developing corporate strategy and growing organisations whiel overseeing on-going operations,' he said.
Sunday, 16 June 2013
Littlewoods Launches Mark Wright Collection This Week
Online and catalogue retailer Littlewoods is preparing to launch its first menswear range with The Only Way Is Essex star Mark Wright this week.
The 25-piece collection for Littlewoods own brand Goodsouls was unveiled on Friday in a media launch on Savile Row, London. It will be available from June 20 and will include suits, retro cardigans and polo shirts as well as shoes, accessories and nightwear.
It follows a successful partnership Littlewoods, which describes itself as a digital department store, with Myleene Klass since last summer. Her range became the fastest selling celebrity line in the company's 80-year history, Littlewoods parent Shop Direct said.
Last year 26-year old Wright launched his own fragrance line and plans to join Klass as a brand ambassador for Littlewoods. He also has a radio show on Heart FM, appeared on I'm a celebrity. Get Me Out Of Here! in 2011, when he came second, and presented dating spin off show Take Me Out: The Gossip last year. He is currently filming new series International Party Liaison for ITV2.
The 25-piece collection for Littlewoods own brand Goodsouls was unveiled on Friday in a media launch on Savile Row, London. It will be available from June 20 and will include suits, retro cardigans and polo shirts as well as shoes, accessories and nightwear.
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| Wright Launched The Collection On Friday |
Last year 26-year old Wright launched his own fragrance line and plans to join Klass as a brand ambassador for Littlewoods. He also has a radio show on Heart FM, appeared on I'm a celebrity. Get Me Out Of Here! in 2011, when he came second, and presented dating spin off show Take Me Out: The Gossip last year. He is currently filming new series International Party Liaison for ITV2.
Appliances Online Sweeps Up At Paypal Etail Awards
Appliances Online collected three separate awards at the Paypal Etail Awards last week including the Overall Award For Excellence.
It also collected the Best Large Pure-Play Etailer and the Best Use of Social Media after its strategy increased sales 48 per cent last year.
The site attracted 10.4 million visitors and increased sales by 52 per cent according to Retail Week magazine on Friday, which helped organise the awards. In the second half of 2012 500,000 people 'liked' Appliances Online's Facebook web site in five months which directly contributed to the surge in sales.
The site is owned by Bolton-based DRL limited which says on its corporate web site that it has 50,000 products in stock at its 250,000 sq ft warehouse and 4,000 in its range. DRL also owns appliance-reviews.co.uk and appliancedeals.co.uk. DRL was founded in 2000 by John Roberts, who remains chief executive, and provides third party fulfilment for orders to other sites such as Boots, B&Q, Argos and Next.
The winners were as follows (with 'Highly Recommended' mentions in brackets):
Best Redesign or Relaunch: Dune
Digital Marketing Campaign: Very (Chocolate Clothing)
Best Use Of Innovation: TopShop
Best App: Mothercare
Best Use of Social Media: Appliances Online
Best Mobile Optimised Site: John Lewis (Reiss)
Best Customer Experience: Morrisons (Schuh)
Best Pure-Play Etailer - Small: Loaf
Best Pure-Play Etailer - Large: Appliances Online
Best Multichannel Retailer - Small: Childrensalon (Mish)
Best Multichannel Retailer - Large: Argos (Tesco)
Consumer Choice Award: Amazon
Overall Award For Excellence: Appliances Online
It also collected the Best Large Pure-Play Etailer and the Best Use of Social Media after its strategy increased sales 48 per cent last year.
The site attracted 10.4 million visitors and increased sales by 52 per cent according to Retail Week magazine on Friday, which helped organise the awards. In the second half of 2012 500,000 people 'liked' Appliances Online's Facebook web site in five months which directly contributed to the surge in sales.
The site is owned by Bolton-based DRL limited which says on its corporate web site that it has 50,000 products in stock at its 250,000 sq ft warehouse and 4,000 in its range. DRL also owns appliance-reviews.co.uk and appliancedeals.co.uk. DRL was founded in 2000 by John Roberts, who remains chief executive, and provides third party fulfilment for orders to other sites such as Boots, B&Q, Argos and Next.
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| Appliances Online Collect The Award For Excellence |
Best Redesign or Relaunch: Dune
Digital Marketing Campaign: Very (Chocolate Clothing)
Best Use Of Innovation: TopShop
Best App: Mothercare
Best Use of Social Media: Appliances Online
Best Mobile Optimised Site: John Lewis (Reiss)
Best Customer Experience: Morrisons (Schuh)
Best Pure-Play Etailer - Small: Loaf
Best Pure-Play Etailer - Large: Appliances Online
Best Multichannel Retailer - Small: Childrensalon (Mish)
Best Multichannel Retailer - Large: Argos (Tesco)
Consumer Choice Award: Amazon
Overall Award For Excellence: Appliances Online
Reiss Ecommerce Director Goes to Hunter
Hunter, manufacturer of the iconic wellington boot, has hired Reiss ecommerce director Dan Lumb as its global online director.
Lumb was at Reiss for two years where he relaunched the site and grew overall sales from 5 per cent to 17 per cent of company turnover and increased international online sales 150 per cent last year.
Hunter is owned by investment firm Searchlight and its boots are favoured by the likes of the Duchess of Cambridge. Lumb has been charged with developing the online business in the UK and overseas, particularly in the US, as the brand prepares to launch new product categories.
He was also formerly ecommerce director at Boux Avenue and Schuh.
Lumb was at Reiss for two years where he relaunched the site and grew overall sales from 5 per cent to 17 per cent of company turnover and increased international online sales 150 per cent last year.
Hunter is owned by investment firm Searchlight and its boots are favoured by the likes of the Duchess of Cambridge. Lumb has been charged with developing the online business in the UK and overseas, particularly in the US, as the brand prepares to launch new product categories.
He was also formerly ecommerce director at Boux Avenue and Schuh.
Saturday, 15 June 2013
Charles Tyrwhitt Poaches Top Boden Executive
Fast growing online clothing retailer Charles Tyrwhitt has poached one of Boden's key executives Cathy Carrington-Birch, we can exclusively reveal.
Carrington-Birch spent more than 13 years at Boden and was most recently buying and merchandising director across womenswear, menswear and Mini Boden.
We reported last month that she had left Boden. She has spent the past six months on gardening leave and has now started her new job as chief product officer at the men's and women's shirt retailer.
Clearly both Boden and Charles Tyrwhitt have leaders in the online revolution. Charles Tyrwhitt, run by Nick Wheeler, has emerged as one of the most well crafted an innovative online businesses beginning as a catalogue retailer before heading online and opening a number of shops with the intention of supporting the distance selling business.
It is not yet clear what new strategic directions the retailer will be taking following Carrington-Birch's appointment but her experience will allow the retailer to continue its innovative drive and improve and expand ranges.
Carrington-Birch spent more than 13 years at Boden and was most recently buying and merchandising director across womenswear, menswear and Mini Boden.
We reported last month that she had left Boden. She has spent the past six months on gardening leave and has now started her new job as chief product officer at the men's and women's shirt retailer.
Clearly both Boden and Charles Tyrwhitt have leaders in the online revolution. Charles Tyrwhitt, run by Nick Wheeler, has emerged as one of the most well crafted an innovative online businesses beginning as a catalogue retailer before heading online and opening a number of shops with the intention of supporting the distance selling business.
It is not yet clear what new strategic directions the retailer will be taking following Carrington-Birch's appointment but her experience will allow the retailer to continue its innovative drive and improve and expand ranges.
Online Group The Hut Makes Surprise Acquisition of Coggles
Independent fashion retailer Coggles has been bought by ecommerce group the Hut, according to clothing industry magazine Drapers.
The upmarket retailer, which has spent the last few years expanding the business online and sells brands including Vivienne Westwood, Marc By Marc Jacobs, Religion and Barbour, was placed in administration on May 7.
The magazine said on its web site that neither party has confirmed the deal officially but a source confirmed the rescue. It is thought the deal was completed in the past two days.
Prior to its collapse Coggles had been seeking about £4 million to continue its growth after raising £3 million in 2011 from Manchester Square Enterprises, a subsidiary of brands group Pentland.
The upmarket retailer, which has spent the last few years expanding the business online and sells brands including Vivienne Westwood, Marc By Marc Jacobs, Religion and Barbour, was placed in administration on May 7.
The magazine said on its web site that neither party has confirmed the deal officially but a source confirmed the rescue. It is thought the deal was completed in the past two days.
Prior to its collapse Coggles had been seeking about £4 million to continue its growth after raising £3 million in 2011 from Manchester Square Enterprises, a subsidiary of brands group Pentland.
Argos Hires Tesco Director In Transformation Push
Multichannel retailer Argos has hired former Tesco.com business programme director to help sharpen its customer ordering and availability in stores.
Andy Brown will become head of fulfilment, retail operations, at Argos owner Home Retail Group. He will be responsible for improving fulfilment and offering customers a wider range of same day and next day delivery to stores.
His appointment is part of a transformation plan at Argos to enable it to improve sales and profit as more rivals replicate its click and collect model.
His responsibilities at Tesco included working at Tesco Direct and Tesco.com and introducing the sites marketplace.
Andy Brown will become head of fulfilment, retail operations, at Argos owner Home Retail Group. He will be responsible for improving fulfilment and offering customers a wider range of same day and next day delivery to stores.
His appointment is part of a transformation plan at Argos to enable it to improve sales and profit as more rivals replicate its click and collect model.
His responsibilities at Tesco included working at Tesco Direct and Tesco.com and introducing the sites marketplace.
Friday, 14 June 2013
Amazon Launches Indian Site - In English
Amazon has launched an Indian web site amid predictions that ecommerce in the country is set to soar.
The site - completely in English - offers seven million books and 12,000 movies and TV shows. It will add consumer electronics such as mobile phones and cameras in the coming weeks.
The site is a version of Amazon's marketplace format because strict laws in the country restrict the activity of foreign firms.
A report by retail consultancy Technopak estimated ecommerce in the country was worth $0.6 billion last year. However, it suggested that could increase to $76 billion by 2021 as tech-savvy youngsters shop online. The forecast is based on the increasing access to broadband.
It is already estimated that 12 per cent of people in India have access to the internet in some form. Penetration is less than in China but the size of the population, with around 150 million having online access, makes it the world's third largest market.
The site - completely in English - offers seven million books and 12,000 movies and TV shows. It will add consumer electronics such as mobile phones and cameras in the coming weeks.
The site is a version of Amazon's marketplace format because strict laws in the country restrict the activity of foreign firms.
A report by retail consultancy Technopak estimated ecommerce in the country was worth $0.6 billion last year. However, it suggested that could increase to $76 billion by 2021 as tech-savvy youngsters shop online. The forecast is based on the increasing access to broadband.
It is already estimated that 12 per cent of people in India have access to the internet in some form. Penetration is less than in China but the size of the population, with around 150 million having online access, makes it the world's third largest market.
Thorntons Brings The Internet Into Stores
Thorntons is testing online ordering terminals in stores offering a range of personalised chocolate products.
Stores at Meadowhall and Fargate in Sheffield and Derby Westfield are also using the kiosks to help sell items which are difficult to stock such as their hampers range but available in an more extensive range on the chains web site.
The service will offer free delivery and on a specified day. Products include personalised products such as Alphabet Truffles which allow customers to create a bespoke message of up to 33 characters and the chocolate models range where shoppers have a name or message iced directly onto the chocolate.
Examples of the products are displayed alongside the SmartPod terminals which been developed in partnership with retail technology consultancy One iota.
'We know a significant proportion of our customers already shop as multichannel and we're hoping that these new SmartPods will make this even easier,' said Thorntons retail director Geoff Kershaw.
Stores at Meadowhall and Fargate in Sheffield and Derby Westfield are also using the kiosks to help sell items which are difficult to stock such as their hampers range but available in an more extensive range on the chains web site.
The service will offer free delivery and on a specified day. Products include personalised products such as Alphabet Truffles which allow customers to create a bespoke message of up to 33 characters and the chocolate models range where shoppers have a name or message iced directly onto the chocolate.
Examples of the products are displayed alongside the SmartPod terminals which been developed in partnership with retail technology consultancy One iota.
'We know a significant proportion of our customers already shop as multichannel and we're hoping that these new SmartPods will make this even easier,' said Thorntons retail director Geoff Kershaw.
Thursday, 13 June 2013
Orders From Mobile Devices Boost Argos Sales
Sales at Argos rose in the past three months after traffic to the web site was boosted by orders from mobile devices.
The firm said demand for tablet computers in the first quarter of its financial year helped increase sales in its electronics and electricals division. Like-for-like sales in the 13 weeks to June 1 increased 1.9 per cent.
'Argos has delivered a good start to the year driven by continued success in consumer electronics,' said Terry Duddy, chief executive at Argos parent Home Retail. He said the increase was 'supported by growing internet and mobile commerce sales.'
According to Reuters analysts had predicted sales would rise by about 3 per cent but bad weather affected sales more than anticipated. Sales at Argos sister chain Homebase increased 1.4 per cent, better than expected, however the chain was forced to cut prices to cope with unseasonable weather.
The firm said demand for tablet computers in the first quarter of its financial year helped increase sales in its electronics and electricals division. Like-for-like sales in the 13 weeks to June 1 increased 1.9 per cent.
'Argos has delivered a good start to the year driven by continued success in consumer electronics,' said Terry Duddy, chief executive at Argos parent Home Retail. He said the increase was 'supported by growing internet and mobile commerce sales.'
According to Reuters analysts had predicted sales would rise by about 3 per cent but bad weather affected sales more than anticipated. Sales at Argos sister chain Homebase increased 1.4 per cent, better than expected, however the chain was forced to cut prices to cope with unseasonable weather.
Sainsbury's Chief Calls For New Online Sales Tax
Sainsbury's chief executive Justin King has called for an online sales tax that he says will create a level playing field between traditional retailers and ecommerce.
As we've been predicting for the last couple of months, this idea has found its feet in the US in the guise of the Marketplace Fairness Act and has made its way to Britain.
King referred to the Act yesterday in a conference call to journalists and his words follow calls from the British Retail Consortium urging the Government to reform the tax system in the UK.
'The burden of tax falls on bricks and mortar retailers and I think we need to rebalance the burden,' he said.
King was far from clear how this would play out and it sounded, to us at least, that he was asking for a fundamental tax reduction. To our minds traditional retailers make up a pretty big chunk of online sales - Tesco, Asda and Sainsbury's included so it is difficult to see how it would work to his plan or how it would work for food delivery, for example.
In the US the problem is much more straightforward. Individual states miss out when sales tax isn't paid so they simply had to think of a way to tax the transaction. The new system, if it is voted through, will mean retailers have to collect the tax when the sale is made and deliver it to the state where the customer lives.
In Britain, all retailers pay VAT no matter whether they are on or off-line. The problem is that business rates - a significant burden for most retailers - are charged on property, ie shops. The problem is compounded because shop leases can be anything from three, five, 10 to 25 years (the latter being the standard, believe it or not, when most established retailers expanded in the 1990s) long so retailers can escape them very easily.
We think the government should look at how it can recondition Britain's failing high streets but giving in to the tax demands of supermarkets is another thing altogether. And taxing one of the few industries where Britain is proving more innovative and developing a strong skills base to feed into the global race online is ludicrous.
As we've been predicting for the last couple of months, this idea has found its feet in the US in the guise of the Marketplace Fairness Act and has made its way to Britain.
King referred to the Act yesterday in a conference call to journalists and his words follow calls from the British Retail Consortium urging the Government to reform the tax system in the UK.
'The burden of tax falls on bricks and mortar retailers and I think we need to rebalance the burden,' he said.
King was far from clear how this would play out and it sounded, to us at least, that he was asking for a fundamental tax reduction. To our minds traditional retailers make up a pretty big chunk of online sales - Tesco, Asda and Sainsbury's included so it is difficult to see how it would work to his plan or how it would work for food delivery, for example.
In the US the problem is much more straightforward. Individual states miss out when sales tax isn't paid so they simply had to think of a way to tax the transaction. The new system, if it is voted through, will mean retailers have to collect the tax when the sale is made and deliver it to the state where the customer lives.
In Britain, all retailers pay VAT no matter whether they are on or off-line. The problem is that business rates - a significant burden for most retailers - are charged on property, ie shops. The problem is compounded because shop leases can be anything from three, five, 10 to 25 years (the latter being the standard, believe it or not, when most established retailers expanded in the 1990s) long so retailers can escape them very easily.
We think the government should look at how it can recondition Britain's failing high streets but giving in to the tax demands of supermarkets is another thing altogether. And taxing one of the few industries where Britain is proving more innovative and developing a strong skills base to feed into the global race online is ludicrous.
Shop Direct's Basnett Poached By Yodel
Shop Direct executive Keith Basnett has been poached by parcel delivery firm Yodel to be its chief operating officer.
Basnett held the same position at Shop Direct, the countries biggest online and catalogue-only retailer, where he has spent eight years. Yodel said Basnett played a key role in integrating Littlewoods Home Shopping and the former GUIS business and has expertise in running a complex logistics operation and customer service.
He has also held positions at online and catalogue businesses N Brown and Freemans, Hutchison Telecoms and American Express.
Dick Stead, Yodel's executive chairman, said: 'As internet retailing and home shopping continue to show significant growth, Keith is perfectly positioned to help us navigate an ever changing industry.'
Basnett held the same position at Shop Direct, the countries biggest online and catalogue-only retailer, where he has spent eight years. Yodel said Basnett played a key role in integrating Littlewoods Home Shopping and the former GUIS business and has expertise in running a complex logistics operation and customer service.
He has also held positions at online and catalogue businesses N Brown and Freemans, Hutchison Telecoms and American Express.
Dick Stead, Yodel's executive chairman, said: 'As internet retailing and home shopping continue to show significant growth, Keith is perfectly positioned to help us navigate an ever changing industry.'
Furniture Retailer Dwell On Brink Of Administration
Dwell, the upmarket furniture chain and web site that began as a catalogue, is expected to appoint administrators at Duff & Phelps as soon as today.
The collapse follows speculation that the chain could be rescued after it appointed Argyll Partners to seek new funds. Around 200 jobs at the 24-store chain are understood to be at risk.
Sources to us the products have increasingly seemed overpriced to consumers as the chain sought to expand from its central London heartland. Last year the firm said it wanted 100 stores but the race for space and the increasingly squeezed consumer proved too much.
It seems it also belatedly remembered its roots - putting internet kiosks int stores last year and appointing a multichannel boss.
The collapse follows speculation that the chain could be rescued after it appointed Argyll Partners to seek new funds. Around 200 jobs at the 24-store chain are understood to be at risk.
Sources to us the products have increasingly seemed overpriced to consumers as the chain sought to expand from its central London heartland. Last year the firm said it wanted 100 stores but the race for space and the increasingly squeezed consumer proved too much.
It seems it also belatedly remembered its roots - putting internet kiosks int stores last year and appointing a multichannel boss.
Wednesday, 12 June 2013
Asos Says International Accounts For 67% Of Sales
Online fashion retailer Asos said this morning that international sales now account for 67 per cent of spending at the business - more than twice that in the UK.
As we predicted yesterday, the company said this morning that sales in the three months to the end of May increased 45 per cent. UK sales rose 39 per cent, continuing the much stronger growth than last year as the retailer invested in improved prices. But international sales surged ahead, with an increase of 48 per cent.
The growth illustrates the switch in spending online from the high street where retailers continue to struggle.
'I am pleased to report another strong trading period,' said chief executive Nick Robertson.
He said a dedicated Russian site launched on May 1. Asos also has country teams in the US, France, Germany and Australia as well as shipping to 240 countries from the UK.
As we predicted yesterday, the company said this morning that sales in the three months to the end of May increased 45 per cent. UK sales rose 39 per cent, continuing the much stronger growth than last year as the retailer invested in improved prices. But international sales surged ahead, with an increase of 48 per cent.
The growth illustrates the switch in spending online from the high street where retailers continue to struggle.
'I am pleased to report another strong trading period,' said chief executive Nick Robertson.
He said a dedicated Russian site launched on May 1. Asos also has country teams in the US, France, Germany and Australia as well as shipping to 240 countries from the UK.
Russia's Lamoda Gets Country's Biggest Ever Investment In Ecommerce
Russian oil oligarch Leonard Blavatnik's Access Industries has contributed to a $130 million (£83 million) funding in the country's online fashion and beauty retailer Lamoda.
The cash-for-equity investment is the largest fund raising in a Russian ecommerce site to date. It exceeds 2011's $100 million fund raising by Ozon, the largest Russian online retailer and which sells books, music, DVDs and electronics.
US investment firm Summit Partners and German retailer Tengelmann also contributed to the fund raising. Blavatnik, the London-based US citizen, sold his stake in Russian oil giant TNK-BP in March for $7 billion. Access Industries also completed a purchase of Warner Music Group in 2011.
Lamoda will use the money to expand in Russia and establish its next-day delivery service. Other earlier investors in the firm include Germany's Rocket Internet, JPMorgan Chase and Swedish investment firm AB Kinnevik.
The cash-for-equity investment is the largest fund raising in a Russian ecommerce site to date. It exceeds 2011's $100 million fund raising by Ozon, the largest Russian online retailer and which sells books, music, DVDs and electronics.
US investment firm Summit Partners and German retailer Tengelmann also contributed to the fund raising. Blavatnik, the London-based US citizen, sold his stake in Russian oil giant TNK-BP in March for $7 billion. Access Industries also completed a purchase of Warner Music Group in 2011.
Lamoda will use the money to expand in Russia and establish its next-day delivery service. Other earlier investors in the firm include Germany's Rocket Internet, JPMorgan Chase and Swedish investment firm AB Kinnevik.
Tesco Appoints First Group Digital Officer
Tesco has appointed Blinkbox founder Michael Cornish to the newly created role of group digital officer.
Cornish, previously chief executive of Tesco's digital entertainment, will oversea Tesco's multi-channel strategy and draw-up a customer-led approach to products and services.
Tesco acquired Blinkbox in 2011 and Cornish will continue to head the online books and music services following the grocer's purchases of We7 and Mobcast last year. But he will now share the responsibilities of chief marketing officer Matt Atkinson who was previously the most senior digital executive at the firm.
Cornish and his team of about 150 staff are based in Tesco's new central London 'digital campus' in Shoreditch which will open this Autumn.
In November, Tesco rebranded all its digital entertainment platforms under the Blinkbox name.
Earlier this year Tesco appointed Sainsbury's head of digital and cross-channel at rival Sainsbury's Mark Bennett to take the role of managing director of Blinkboxmusic, which was created following the acquisition of We7 in June last year. Gavin Sathianathan, Facebook's head of retailer for Europe, Middle East and Africa, was appointed managing director for Blinkboxbooks - created last year following the acquisition of Mobcast in September.
Cornish, previously chief executive of Tesco's digital entertainment, will oversea Tesco's multi-channel strategy and draw-up a customer-led approach to products and services.
Tesco acquired Blinkbox in 2011 and Cornish will continue to head the online books and music services following the grocer's purchases of We7 and Mobcast last year. But he will now share the responsibilities of chief marketing officer Matt Atkinson who was previously the most senior digital executive at the firm.
Cornish and his team of about 150 staff are based in Tesco's new central London 'digital campus' in Shoreditch which will open this Autumn.
In November, Tesco rebranded all its digital entertainment platforms under the Blinkbox name.
Earlier this year Tesco appointed Sainsbury's head of digital and cross-channel at rival Sainsbury's Mark Bennett to take the role of managing director of Blinkboxmusic, which was created following the acquisition of We7 in June last year. Gavin Sathianathan, Facebook's head of retailer for Europe, Middle East and Africa, was appointed managing director for Blinkboxbooks - created last year following the acquisition of Mobcast in September.
Tuesday, 11 June 2013
Angel Funding? It's Like Having Your Soul Ripped Out. Tips From The Internet Retailer Conference In Chicago
The effort start-ups face stalking angel investors sounds a lot like some of the online dating experiences we've come across.
A thousand emails, 75 meetings and countless pitches with endless repetition. Still, if the prize is a life-long lover - or in this case $1 million in investment capital then surely its all worth it?
That was the experience of Styleseek.com co-founder and chief executive Tyler Spalding. He told the Internet Retailer Conference's seminar 'A Date With An Angel - Finding Funding For Your Early Stage Retail Business' in Chicago: 'It's just really, really hard. Only a few percent of start-ups in ecommerce can get there. You just can't take it personally.'
It's understandable given the financial risk involved for the investors - and what they expect to get in return.
Angel investors tend to invest in start-up companies and Spalding, according the the Internet Retailing web site, Spalding said even success can be painful. Giving part of your business away is 'like having your soul ripped out,' he said.
Meanwhile, on the other side, Red Rocket Venture Consulting & Capital George Deeb said what to expect from the investors themselves. He suggested:
1) Bear in mind ecommerce can be more financially challenging on some levels than other industries for investors. The cost of acquiring new customers is high and inventory can be expensive and go out of date quickly.
2) Show that you can 'build a better mouse trap' to ensnare your customers. Demonstrate that you are doing things your rivals are not - assuming you are not a first mover, and few really are, he suggests. Show how this works on the balance sheet and have a 'master's knowledge' of your market.
3) Show how easily you can scale the business without costs at the same pace as sales.
4) Apply realistic marketing budgets into your business model. No one is going to be enthralled by a business that sees advertising and paying top rates for every customer - think of ways to grow those margins.
5) Approach investors when there is a 'road map toward profitability in a reasonable amount of time,' he said.
6) Bear in mind investors want 10 times their investment and within a five year horizon.
7) Spalding says consider - with the usual caveats - borrowing from family and friends. Or use business loans or investment from suppliers.
8) Shop locally and use networks, Spalding adds. The investment might come with a ready-made web of contacts from that network - lawyers for example - to hand when the need for such things arises.
A thousand emails, 75 meetings and countless pitches with endless repetition. Still, if the prize is a life-long lover - or in this case $1 million in investment capital then surely its all worth it?
That was the experience of Styleseek.com co-founder and chief executive Tyler Spalding. He told the Internet Retailer Conference's seminar 'A Date With An Angel - Finding Funding For Your Early Stage Retail Business' in Chicago: 'It's just really, really hard. Only a few percent of start-ups in ecommerce can get there. You just can't take it personally.'
It's understandable given the financial risk involved for the investors - and what they expect to get in return.
Angel investors tend to invest in start-up companies and Spalding, according the the Internet Retailing web site, Spalding said even success can be painful. Giving part of your business away is 'like having your soul ripped out,' he said.
Meanwhile, on the other side, Red Rocket Venture Consulting & Capital George Deeb said what to expect from the investors themselves. He suggested:
1) Bear in mind ecommerce can be more financially challenging on some levels than other industries for investors. The cost of acquiring new customers is high and inventory can be expensive and go out of date quickly.
2) Show that you can 'build a better mouse trap' to ensnare your customers. Demonstrate that you are doing things your rivals are not - assuming you are not a first mover, and few really are, he suggests. Show how this works on the balance sheet and have a 'master's knowledge' of your market.
3) Show how easily you can scale the business without costs at the same pace as sales.
4) Apply realistic marketing budgets into your business model. No one is going to be enthralled by a business that sees advertising and paying top rates for every customer - think of ways to grow those margins.
5) Approach investors when there is a 'road map toward profitability in a reasonable amount of time,' he said.
6) Bear in mind investors want 10 times their investment and within a five year horizon.
7) Spalding says consider - with the usual caveats - borrowing from family and friends. Or use business loans or investment from suppliers.
8) Shop locally and use networks, Spalding adds. The investment might come with a ready-made web of contacts from that network - lawyers for example - to hand when the need for such things arises.
Asos Sales Expected To Rise 45%
Asos is excpected to report a 45 per cent rise in sales tomorrow as 'outstanding' UK sales and as international sales surged.
Third quarter sales at the internet retailer increased as shoppers stayed in their homes to avoid freezing weather in the UK, which has had the coldest spring for 50 years. It has also seen huge growth in overseas sales which now double those in its home market.
Stockbroker Panmure Gordon estimated that international sales accounted for £130 million in the period compared to £65 million in the UK. It said UK sales have grown by 40 per cent but sales in Europe and the US have grown even faster.
John Stevenson at Peel Hunt said: 'The UK performance remains outstanding and other countries are driving local performance in the US, France and Germany.'
Analysts believe the headline-grabbing agreement to sell Primark clothes on Asos will drive traffic to the site.
Third quarter sales at the internet retailer increased as shoppers stayed in their homes to avoid freezing weather in the UK, which has had the coldest spring for 50 years. It has also seen huge growth in overseas sales which now double those in its home market.
Stockbroker Panmure Gordon estimated that international sales accounted for £130 million in the period compared to £65 million in the UK. It said UK sales have grown by 40 per cent but sales in Europe and the US have grown even faster.
John Stevenson at Peel Hunt said: 'The UK performance remains outstanding and other countries are driving local performance in the US, France and Germany.'
Analysts believe the headline-grabbing agreement to sell Primark clothes on Asos will drive traffic to the site.
Hobbs Says Online Accounts For A Fifth Of Sales
Online purchases from fashion retailer Hobbs now account for more than 20 per cent of its sales after it opened more overseas web sites.
Internet sales increased 52 per cent in the year to January 26 as group sales increased 11 per cent to £125.1 million. Profit before interest, taxes, depreciation and amortisation -the favoured way for private equity firms to release profit data - increased 1.3 per cent to £15.2 million.
The retailer has dedicated sites in Germany and Australia and will launch a US site in September. It is looking for shop locations in Hong Kong and China, it said.
The company's chief executive Nicky Dulieu told the Daily Telegraph that British brands are currently popular abroad and that Hobbs has benefited from the patronage of the Duchess of Cambridge who wears the chain's clothes.
Its chairman Ian MacRitchie said overseas web sites allow retailers to test the popularity of products with customers before opening stores. A £3 million investment in product had allowed the shops to sell more fashionable product. That has increased the popularity of the shops with younger customers who previously though the chain was for their 'mothers or grandmas', Hobbs said.
Internet sales increased 52 per cent in the year to January 26 as group sales increased 11 per cent to £125.1 million. Profit before interest, taxes, depreciation and amortisation -the favoured way for private equity firms to release profit data - increased 1.3 per cent to £15.2 million.
The retailer has dedicated sites in Germany and Australia and will launch a US site in September. It is looking for shop locations in Hong Kong and China, it said.
The company's chief executive Nicky Dulieu told the Daily Telegraph that British brands are currently popular abroad and that Hobbs has benefited from the patronage of the Duchess of Cambridge who wears the chain's clothes.
Its chairman Ian MacRitchie said overseas web sites allow retailers to test the popularity of products with customers before opening stores. A £3 million investment in product had allowed the shops to sell more fashionable product. That has increased the popularity of the shops with younger customers who previously though the chain was for their 'mothers or grandmas', Hobbs said.
Monday, 10 June 2013
UK's River Island Opens Australian Web Site In Overseas Push
Fashion retailer River Island last week launched a web site in Australia that will include products specifically designed for the country.
The plan is part of an overseas expansion push and it already has sites in France and the US and ships to 100 countries world wide. Australia is experiencing an online boom and has attracted the attention of other retailers such as Asos and Topshop to connect with its English speaking shoppers, a slice of whom have also lived or worked in the UK.
'Australia is a key market for River Island and in addition to our Northern Hemispere range we will be offering product designed for Australian Shoppers,' River Island chief executive Ben Lewis told Retail Week magazine.
River Island is opening stores at home and overseas and is understood to have a team in Australia. It has 40 franchise stores in Europe and the Middle East as well as 248 in the UK. It opened its largest store in Park House, Oxford Street on Saturday and will open an enlarged store in Liverpool City Centre on June 15 which will then become the largest at 23,463 sq ft.
The plan is part of an overseas expansion push and it already has sites in France and the US and ships to 100 countries world wide. Australia is experiencing an online boom and has attracted the attention of other retailers such as Asos and Topshop to connect with its English speaking shoppers, a slice of whom have also lived or worked in the UK.
'Australia is a key market for River Island and in addition to our Northern Hemispere range we will be offering product designed for Australian Shoppers,' River Island chief executive Ben Lewis told Retail Week magazine.
River Island is opening stores at home and overseas and is understood to have a team in Australia. It has 40 franchise stores in Europe and the Middle East as well as 248 in the UK. It opened its largest store in Park House, Oxford Street on Saturday and will open an enlarged store in Liverpool City Centre on June 15 which will then become the largest at 23,463 sq ft.
Fab.com To Open London 'Showrooming' Store
It may sound a little provocative to some traditional retailers.
But Fab.com, the designer fashion and furniture web site, plans to open stores in Europe that will actively encourage shoppers to 'showroom' - discover products in store and order them online.
The company's European chief Maria Molland told the Financial Times that shops in London and Berlin will let shoppers discover and feel the products first hand, then order them on their phones to be delivered.
It comes as complaints from traditional retailers over shoppers seeking out products in their shops then hitting other web sites to find a better price - often while still in the shop - reaches fever pitch.
Fab.com already has a store in Hamburg which it inherited when it purchased furniture maker MassivKonzept this year. The new stores are expected to be bigger, said the FT, and could include New York. Molland said she did not yet know how many she would open.
Fab.com originally started as a social networking site for gay men and became a retail site in 2011. It is expected to break even in Europe next year and will achieve sales of $100 million this year.
But Fab.com, the designer fashion and furniture web site, plans to open stores in Europe that will actively encourage shoppers to 'showroom' - discover products in store and order them online.
The company's European chief Maria Molland told the Financial Times that shops in London and Berlin will let shoppers discover and feel the products first hand, then order them on their phones to be delivered.
It comes as complaints from traditional retailers over shoppers seeking out products in their shops then hitting other web sites to find a better price - often while still in the shop - reaches fever pitch.
Fab.com already has a store in Hamburg which it inherited when it purchased furniture maker MassivKonzept this year. The new stores are expected to be bigger, said the FT, and could include New York. Molland said she did not yet know how many she would open.
Fab.com originally started as a social networking site for gay men and became a retail site in 2011. It is expected to break even in Europe next year and will achieve sales of $100 million this year.
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