While UK retailers aim for the heady heights of next-evening delivery - or even same day - Amazon has taken the next step in its strategy to achieve the mammoth task of offering two-day delivery across the US.
It has issued a call for 5,000 new full-time workers to work at 10 new centres and 17 in all in Arizona, three in California, Delaware, two in Indiana, Kentucky, Pennsylvania, two in South Carolina, two in Tennessee, three in Texas and, finally, Virginia.
The hiring spree will increase the number of fulfillment centre staff by about 25 per cent on its existing 20,000. It's also recruiting about 2,000 additional customer service staff.
The online giant, which employs 97,000 staff, is offering what is says is 30 per cent more than traditional retail, full-time employment, stock options, healthcare and paying for education - whether it will contribute to the member of staff’s work at Amazon or not.
The announcement coincided with a visit by President Obama to one of its distribution centres.
The call for workers comes amid political moves - tacitly supported by Amazon - towards an online sales tax that will require internet sellers to fork out in the same way as bricks and mortar retailers.
The tax in the US is the same as VAT in the UK but many online retailers escpe paying because, through a quirk, it requires a physical presence in the state otherwise shoppers have to pay. Oddly for the US, shoppers get away with not bothering.
But new legislation being proposed means retailers will have to pay - most likely including UK retailers selling into the US. It is very different to the online tax proposed in the UK which would be on top of VAT and well beyond beyond the US demands.
But Amazon is supporting the strategy almost by default. It has laid down a blueprint for warehouses across the US that will mean it can deliver stock to customers in two days - its Amazon Prime, $79, promise.
It means the tax demand - which is still way off being implimented - would suit Amazon’s broader strategy and allow it to out-compete other online retailers, even though it would probably rather not pay it if the choice were offered.
'We’re focused on sustained innovation across Amazon and want to help our employees succeed - whether Amazon or elsewhere - so we offer programs like Career Choice, where we’ll pay for up to 90 per cent of eligible employees’ tuition regardless of whether the skills they learn are relevant to a career at Amazon,' said Dave Clark, vice president of worldwide operations and customer service at Amazon.
Wednesday, 31 July 2013
Tuesday, 30 July 2013
Success At Next Boosts Profits But Leaves It With Little Stock For Bargain Hunters
Clothing retailer Next said its profits were boosted by £10 million after sold more full price stock online and in its shops during the first half.
Directory sales increased 8.3 per cent in the 26 weeks to July 27. In the same period sales from stores dropped 0.9 per cent meaning total brand sales were 2.3 per cent higher than the same period the year before. It said 1.8 per cent of that was due to added shops.
The chain, who's chief executive's comments are increasingly seen as an economic bell weather, said it was difficult to read conditions on the high street at present amid so much volatility.
The company said: 'It would appear that consumers are becoming more spontaneous in their purchasing habits. As a result, weekly sales are more affected by short term events such as a change in the weather, the timing of Bank Holidays, school holidays, etc.
'We do not believe increased volatility has much effect on overall spending, but it does mean short term consumer trends are harder to read,' the company said.
The graph below was published by Next this morning and gives a weekly break-down of sales rises and falls compared to the previous year.
Directory sales increased 8.3 per cent in the 26 weeks to July 27. In the same period sales from stores dropped 0.9 per cent meaning total brand sales were 2.3 per cent higher than the same period the year before. It said 1.8 per cent of that was due to added shops.
The chain, who's chief executive's comments are increasingly seen as an economic bell weather, said it was difficult to read conditions on the high street at present amid so much volatility.
The company said: 'It would appear that consumers are becoming more spontaneous in their purchasing habits. As a result, weekly sales are more affected by short term events such as a change in the weather, the timing of Bank Holidays, school holidays, etc.
'We do not believe increased volatility has much effect on overall spending, but it does mean short term consumer trends are harder to read,' the company said.
The graph below was published by Next this morning and gives a weekly break-down of sales rises and falls compared to the previous year.
 |
| Next First-Half Weekly Sales Data |
Debenhams Online Boss Starts As Multichannel Sales Find Their Pace
Former Argos ecommerce chief Ross Clemmow has arrived at Debenhams to what is fast becoming one of the biggest jobs in UK online retailing.
Clemmow was appointed in March and, after more than three months gardening leave, this month took his position as divisional trading director ecommerce. He takes over from Simon Forster who left to take the role of multichannel director at luxury department store Selfridges.
Debenhams chief executive Michael Sharp has emphasised the importance of online selling in a 'challenging a competitive' first half.
The chain has increased market share and group like-for-like sales increased 3.1 per cent in the first half to March 2. But margins fell and spending at stores is falling despite the success of its ecommerce business this year.
Multichannel sales at Debenhams have exceeded last year's rate of growth rising at 43.9 per cent. Even if that slows amid the heatwave to merely match last year's 39.8 per cent, total multichannel sale sales will still top £350 million this year - from 1.1 per cent of sales five years ago to around 13 per cent today.
Clemmow was appointed in March and, after more than three months gardening leave, this month took his position as divisional trading director ecommerce. He takes over from Simon Forster who left to take the role of multichannel director at luxury department store Selfridges.
Debenhams chief executive Michael Sharp has emphasised the importance of online selling in a 'challenging a competitive' first half.
The chain has increased market share and group like-for-like sales increased 3.1 per cent in the first half to March 2. But margins fell and spending at stores is falling despite the success of its ecommerce business this year.
Multichannel sales at Debenhams have exceeded last year's rate of growth rising at 43.9 per cent. Even if that slows amid the heatwave to merely match last year's 39.8 per cent, total multichannel sale sales will still top £350 million this year - from 1.1 per cent of sales five years ago to around 13 per cent today.
Monday, 29 July 2013
Amazon Swings Back Into Favour After Investors Look On The Bright Side
Amazon watchers may have formed the impression last week that US investors were unhappy with its lacklustre results.
What a difference a day makes. After reporting a surprise $7 million ($4.6 million) on Thursday, the shares jumped back on Friday as investors seemed determined to look for the positives.
US investors were impressed by Amazon's performance in the US where sales jumped 30 per cent in the second quarter to $9.5 billion and operating profit jumped 19 per cent to $409 million.
Amazon's chief financial officer Tom Szkutak said sales of apparel and consumables are growing strongly prompting more frequent visits by shoppers to the site. He also said the Amazon Prime service, which promises two day delivery in the US, is performing strongly.
The stock jumped 2.7 per cent to $311.70 on Friday afternoon and shares hit a record 313.62 earlier in the day.
Amazon, which does not usually lower itself to dealing with investors' short-term profit concerns, appears to have gone on the offensive this time after the reaction to its performance.
The Seattle-based firm made a loss in its second quarter versus analysts projections of a $28.8 million profit. Total revenue was up 22 per cent to $15.7 billion.
The company has been spending money on its warehouse infrastructure in the US, digital content such as social reading site Goodreads - but it was its overseas expansion into countries such as India and China that seemed to be the real drag.
What a difference a day makes. After reporting a surprise $7 million ($4.6 million) on Thursday, the shares jumped back on Friday as investors seemed determined to look for the positives.
US investors were impressed by Amazon's performance in the US where sales jumped 30 per cent in the second quarter to $9.5 billion and operating profit jumped 19 per cent to $409 million.
Amazon's chief financial officer Tom Szkutak said sales of apparel and consumables are growing strongly prompting more frequent visits by shoppers to the site. He also said the Amazon Prime service, which promises two day delivery in the US, is performing strongly.
The stock jumped 2.7 per cent to $311.70 on Friday afternoon and shares hit a record 313.62 earlier in the day.
Amazon, which does not usually lower itself to dealing with investors' short-term profit concerns, appears to have gone on the offensive this time after the reaction to its performance.
The Seattle-based firm made a loss in its second quarter versus analysts projections of a $28.8 million profit. Total revenue was up 22 per cent to $15.7 billion.
The company has been spending money on its warehouse infrastructure in the US, digital content such as social reading site Goodreads - but it was its overseas expansion into countries such as India and China that seemed to be the real drag.
Entrepreneur Launches Tile Mountain To Ride Internet Boom
Entrepreneur Mo Iqbal has launched a website business six years after selling his Tile Giant business for 12 million.
Iqbal has appointed former Topps Tiles chief executive Nick Ounstead as a non-executive director and another former Topps director Jeremy Harris as commercial director.
Iqbal, who launched the site in June, told local Staffordshire newspaper The Sentinel he decided on the venture after watching his children using the internet.
'My 17-year-old daughter will go around the shops to see what she likes and then order it online because she doesn't want to carry the bags around. The market is changing and it being led by consumers,' he said.
The business sends samples out to consumers before they commit to buying. Iqbal said: 'The way we are doing things is much more efficient. We don't have to deal with distributors and the cost savings are passed on to the consumer.'
Iqbal sold his last business to Travis Perkins in 2007. His new business was registered in December as World Wide Tiles before he changed the name to Tile Mountain in February.
The business is based in Hanley near Stoke-on-Trent. It already employs 17 staff and also sells direct to consumers via a trade counter - a part of the business it may expand to other areas.
Iqbal has appointed former Topps Tiles chief executive Nick Ounstead as a non-executive director and another former Topps director Jeremy Harris as commercial director.
Iqbal, who launched the site in June, told local Staffordshire newspaper The Sentinel he decided on the venture after watching his children using the internet.
'My 17-year-old daughter will go around the shops to see what she likes and then order it online because she doesn't want to carry the bags around. The market is changing and it being led by consumers,' he said.
The business sends samples out to consumers before they commit to buying. Iqbal said: 'The way we are doing things is much more efficient. We don't have to deal with distributors and the cost savings are passed on to the consumer.'
Iqbal sold his last business to Travis Perkins in 2007. His new business was registered in December as World Wide Tiles before he changed the name to Tile Mountain in February.
The business is based in Hanley near Stoke-on-Trent. It already employs 17 staff and also sells direct to consumers via a trade counter - a part of the business it may expand to other areas.
Sunday, 28 July 2013
Ocado: 'Don't Penalise Britain's Growth Sector With Online Tax'
Ocado chief executive Tim Steiner said today that the Government should not 'penalise' one of Britain's few growth sectors by heaping taxes upon it.
In the latest round of the online tax spat, Steiner admitted that he and his new business partner Morrisons were in disagreement over the subject. But he said the idea of taxing a growth sector is 'foolish' and suggested that the argument has become confused by drawing in Amazon.
He told the Mail on Sunday: 'There is clearly a debate to be had in Government over large multinationals and the amount of tax they pay. But its not an online-offline debate. Amazon has been used as an example of an online retailer that should pay more tax but Starbucks has also been talked about and it has hundreds of stores in the UK.'
He said Amazon is being 'incorrectly used' as an example of an online retailer that does not pay the same level of tax as UK-based firms in order 'to penalise a growth sector'.
He said 'Why online? Why not big, out-of-town stores?'
He said he and his new business partners at Morrisons did not share the same views on tax. But he said they 'did not have to' share the same views on everything.
In the latest round of the online tax spat, Steiner admitted that he and his new business partner Morrisons were in disagreement over the subject. But he said the idea of taxing a growth sector is 'foolish' and suggested that the argument has become confused by drawing in Amazon.
He told the Mail on Sunday: 'There is clearly a debate to be had in Government over large multinationals and the amount of tax they pay. But its not an online-offline debate. Amazon has been used as an example of an online retailer that should pay more tax but Starbucks has also been talked about and it has hundreds of stores in the UK.'
He said Amazon is being 'incorrectly used' as an example of an online retailer that does not pay the same level of tax as UK-based firms in order 'to penalise a growth sector'.
He said 'Why online? Why not big, out-of-town stores?'
He said he and his new business partners at Morrisons did not share the same views on tax. But he said they 'did not have to' share the same views on everything.
Wool And The Gang Prepares For £1.8 Million Global Expansion
Hand-knitted fashion label Wool and the Gang has raised $2.8 million (£1.8 million) and is preparing for a global growth of its production network.
The Dalston, East London company has 10 casual knitters in London and a network of home-based laborers in Peru. However, the company wants to extend its London network to at least 50 producers by September as it prepares to test a model for global expansion.
The London network will be used to launch The Gang Collection to be sold through the web site as it focuses more heavily on sales to consumers over the internet rather than its wholesale division. The collection is already for sale with a main launch in September.
Wool and the Gang raise the money from London-based Index Ventures, who have previously invested in Net-a-Porter and also have stakes in London Stock Exchange-listed Asos and privately-owned craft marketplace Etsy, as well as investors Wellington Partners and MMC Ventures.
Canadian-born chief executive Lisa Rodwell arrived earlier this year to assist designers Aurelie Popper and Jade Harwood in the next phase of growth. Rodwell was previously chief revenue and marketing officer at Moo.com where she worked for six years in total and before that at eBay and Yahoo.
The company's aim is to have a global network of knitters producing for shoppers in different territories and to avoid using factory produced designs. The system works by selling the raw materials to the producer and then wholesaling the designs or, increasingly frequently, selling them direct online providing the producer with a chunk of the mark-up.
The Dalston, East London company has 10 casual knitters in London and a network of home-based laborers in Peru. However, the company wants to extend its London network to at least 50 producers by September as it prepares to test a model for global expansion.
The London network will be used to launch The Gang Collection to be sold through the web site as it focuses more heavily on sales to consumers over the internet rather than its wholesale division. The collection is already for sale with a main launch in September.
Wool and the Gang raise the money from London-based Index Ventures, who have previously invested in Net-a-Porter and also have stakes in London Stock Exchange-listed Asos and privately-owned craft marketplace Etsy, as well as investors Wellington Partners and MMC Ventures.
Canadian-born chief executive Lisa Rodwell arrived earlier this year to assist designers Aurelie Popper and Jade Harwood in the next phase of growth. Rodwell was previously chief revenue and marketing officer at Moo.com where she worked for six years in total and before that at eBay and Yahoo.
The company's aim is to have a global network of knitters producing for shoppers in different territories and to avoid using factory produced designs. The system works by selling the raw materials to the producer and then wholesaling the designs or, increasingly frequently, selling them direct online providing the producer with a chunk of the mark-up.
Saturday, 27 July 2013
Amazon Reports Loss As It Builds Its US Warehouse Infrastructure
Amazon said it made a loss in its second quarter as it continued to invest in growth at the expense of profit.
The Seattle-based firm posted a net loss of $7 million (£4.6 million) versus analysts projections of a $28.8 million profit. Total revenue was up 22 per cent to $15.7 billion.
The company has been spending money on its warehouse infrastructure in the US, digital content such as social reading site Goodreads and overseas growth in countries such as India.
'The clock is ticking for Amazon to show that it can sell its goods and services while making a profit that might start to justify its market capitalisation,' Colin Gillis, an analyst at BGC Partners in New York, told Bloomberg.
The company is investing in infrastructure in the US to enable it to deliver products across the country in shorter time frames of two days or less.
The Seattle-based firm posted a net loss of $7 million (£4.6 million) versus analysts projections of a $28.8 million profit. Total revenue was up 22 per cent to $15.7 billion.
The company has been spending money on its warehouse infrastructure in the US, digital content such as social reading site Goodreads and overseas growth in countries such as India.
'The clock is ticking for Amazon to show that it can sell its goods and services while making a profit that might start to justify its market capitalisation,' Colin Gillis, an analyst at BGC Partners in New York, told Bloomberg.
The company is investing in infrastructure in the US to enable it to deliver products across the country in shorter time frames of two days or less.
John Lewis Online Sales Recover As Britons Get Used To The Heatwave
Department store John Lewis said its online sales recovered as Britons got used to the hot weather conditions and consumers responded to summer clothing promotions.
Sales through Johnlewis.com increased 8.9 per cent in the week to July 20. That compared to the previous week where sales growth almost ground to a halt, by John Lewis' standards at least, with a rise of 3.2 per cent.
Online sales in the 25 weeks to the same day increased 16.9 per cent.
The store said it womenswear and electricals led the rally with a notable interest in branded fashions and promoted items, it said.
Total sales at the department store business fell for the second week in a row. But the drop of 1.2 per cent was less dramatic than the 8.7 per cent decline the previous week.
Total sales in the 25 weeks have increased 6.3 per cent. Total sales at sister chain Waitrose, including petrol, increased 11.8 per cent in the week to July 20 and 8.9 per cent in the 25 week period to the same day.
Sales through Johnlewis.com increased 8.9 per cent in the week to July 20. That compared to the previous week where sales growth almost ground to a halt, by John Lewis' standards at least, with a rise of 3.2 per cent.
Online sales in the 25 weeks to the same day increased 16.9 per cent.
The store said it womenswear and electricals led the rally with a notable interest in branded fashions and promoted items, it said.
Total sales at the department store business fell for the second week in a row. But the drop of 1.2 per cent was less dramatic than the 8.7 per cent decline the previous week.
Total sales in the 25 weeks have increased 6.3 per cent. Total sales at sister chain Waitrose, including petrol, increased 11.8 per cent in the week to July 20 and 8.9 per cent in the 25 week period to the same day.
Friday, 26 July 2013
Ebay Tests 'Local Hire' Site In The UK Offering Personal Trainers To Antique Valuers
Ebay is testing a new service-based market place in the UK which lists local tradesmen for hire from courier services, music teachers and antiques valuation experts.
The site called ebayHire works by submitting a form directly to the provider with details about what service is needed and the expert sends a quote or calls you. The transaction is then completed directly with the service provider.
On the beta test site each provider has a page with photographs and some personal details. Most of the examples list prices and some details of the different services available.
The site is apparently being tested in the UK first and there is, as yet, no US equivalent. The site states: 'eBay Hire is a pilot being run by a few folks at eBay in the UK. It is a separate business to eBay, but is part of the eBay, Inc. family.'
It appears to work as a 21st century Yellow Pages. It also develops ideas that have long been flirted with by companies such as B&Q trying to link home improvement needs with local tradesmen.
Clearly the success of the site will be in how many service providers it can attract to enable national coverage for different services. It will also depend on how it deals with complaints, poor service and possibly even unpopular customers.
The site called ebayHire works by submitting a form directly to the provider with details about what service is needed and the expert sends a quote or calls you. The transaction is then completed directly with the service provider.
On the beta test site each provider has a page with photographs and some personal details. Most of the examples list prices and some details of the different services available.
The site is apparently being tested in the UK first and there is, as yet, no US equivalent. The site states: 'eBay Hire is a pilot being run by a few folks at eBay in the UK. It is a separate business to eBay, but is part of the eBay, Inc. family.'
It appears to work as a 21st century Yellow Pages. It also develops ideas that have long been flirted with by companies such as B&Q trying to link home improvement needs with local tradesmen.
Clearly the success of the site will be in how many service providers it can attract to enable national coverage for different services. It will also depend on how it deals with complaints, poor service and possibly even unpopular customers.
Click and Collect To Surge To More Than £4 Billion In Next Five Years
Click and collect purchases will rise to more than £4 billion in the UK by 2018, according to research firm Verdict.
The rise of more than 60 per cent from today's levels will come from increasing demand for the service as more retailers make it available to customers.
Verdict said home delivery and pureplay retailers were responding to services offered by bricks and mortar retailers by providing more collection points at convenience stores, lockers, same day delivery to collection points, narrower delivery times slots and improved tracking of delivery transport and arrival.
In the survey of 10,000 online shoppers, 27 per cent said they expected to increase their use of click and collect.
However, that will still only make it worth about 8 per cent of sales by 2018 and 1.2 per cent of retail sales.
The rise of more than 60 per cent from today's levels will come from increasing demand for the service as more retailers make it available to customers.
Verdict said home delivery and pureplay retailers were responding to services offered by bricks and mortar retailers by providing more collection points at convenience stores, lockers, same day delivery to collection points, narrower delivery times slots and improved tracking of delivery transport and arrival.
In the survey of 10,000 online shoppers, 27 per cent said they expected to increase their use of click and collect.
However, that will still only make it worth about 8 per cent of sales by 2018 and 1.2 per cent of retail sales.
Thursday, 25 July 2013
Net-a-Porter Throws Its Weight Behind Campaign Rejecting Calls For An Online Sales Levy
Online luxury goods retailer Net-a-Porter has confirmed its support for a campaign rejecting calls from supermarket bosses for an online sales tax.
The online retailer joins others such as Ocado, Boden, Shop Direct and N Brown who oppose Morrisons, Sainsbury's, B&Q owner Kingfisher and former Tesco chief executive Sir Terry Leahy who have all called for the imposition of a tax to 'level the playing field' between on and offline retailers.
According to Marketing magazine Net-a-Porter chief executive Mark Sebba has confirmed his support. The magazine said he was listed as a signatory on a draft version of the letter but his name was not included in the final version because senior management were travelling in the US at the time the letter was being put together late last week.
Net-a-Porter was said to considering signing the letter in an article in a Sunday newspaper.
The online retailer joins others such as Ocado, Boden, Shop Direct and N Brown who oppose Morrisons, Sainsbury's, B&Q owner Kingfisher and former Tesco chief executive Sir Terry Leahy who have all called for the imposition of a tax to 'level the playing field' between on and offline retailers.
According to Marketing magazine Net-a-Porter chief executive Mark Sebba has confirmed his support. The magazine said he was listed as a signatory on a draft version of the letter but his name was not included in the final version because senior management were travelling in the US at the time the letter was being put together late last week.
Net-a-Porter was said to considering signing the letter in an article in a Sunday newspaper.
Screwfix Sales Rocket As It Adds Catalogue Stores
Sales at online and catalogue retailer Screwfix have increased 17.8 per cent as it expanded the business by adding more stores.
Parent Kingfisher, which also owns DIY giant B&Q, increased like-for-like sales - sales at parts of the business open at least a year - by 6.6 per cent in the 10 weeks to July 13.
Kingfisher said the group was boosted by an increase in sales of seasonal products at B&Q which increased by 20 per cent compared to a year earlier and accounted for 40 per cent of sales.
Total UK and Ireland sales, including Screwfix and B&Q, increased 3.6 per cent and like-for-like sales increased 2.5 per cent. Sales at B&Q alone increased 1.7 per cent or 1.9 per cent on a like-for-like basis.
Parent Kingfisher, which also owns DIY giant B&Q, increased like-for-like sales - sales at parts of the business open at least a year - by 6.6 per cent in the 10 weeks to July 13.
Kingfisher said the group was boosted by an increase in sales of seasonal products at B&Q which increased by 20 per cent compared to a year earlier and accounted for 40 per cent of sales.
Total UK and Ireland sales, including Screwfix and B&Q, increased 3.6 per cent and like-for-like sales increased 2.5 per cent. Sales at B&Q alone increased 1.7 per cent or 1.9 per cent on a like-for-like basis.
'Strong Performance' At Express Gifts As Sales Rise 8%
Home shopping firm Express Gifts increased sales by 8 per cent in the past four months as existing customers spent more with the business.
Parent group Findel described the increase over the 16 weeks to July 23 as a 'strong performance' contributing to an overall rise in group turnover of 3.9 per cent compared to a year earlier.
'Customer numbers continue to grow as we move towards Express Gifts' peak sales period leading up to Christmas, with the majority of the sales growth coming from existing customers and retention rates improved by 5 per cent,' the company said.
Express Gifts runs a number of websites including Studio and Ace which sell fashion, home furnishings, gifts and electrical products.
Parent group Findel described the increase over the 16 weeks to July 23 as a 'strong performance' contributing to an overall rise in group turnover of 3.9 per cent compared to a year earlier.
'Customer numbers continue to grow as we move towards Express Gifts' peak sales period leading up to Christmas, with the majority of the sales growth coming from existing customers and retention rates improved by 5 per cent,' the company said.
Express Gifts runs a number of websites including Studio and Ace which sell fashion, home furnishings, gifts and electrical products.
Wednesday, 24 July 2013
Hike In UK Customers Searching For Goods At Overseas Retail Sites
The number of UK customers browsing on overseas sites has jumped in the past three months as shoppers become more confident using foreign sites.
Total search volumes increased 51 per cent in the second quarter compared to the same period last year, according to the British Retail Consortium-Google online retail monitor. The BRC said the increase was an indication of changing behaviour and would benefit UK sites as traffic flowed in the other direction.
'The considerable increase this month in the number of UK consumers searching overseas retailers show that barriers are increasingly being broken down. UK retailers are already responding well to these changes and will be keen to continue seeing equivalent increases in overseas customers searching them out,' said BRC director general Helen Dickinson.
Analysis of the figures revealed that interest in US brands and web sites boosted the number of overseas searches while demand from fast growing regions such as South America and Asia boosted UK retailers.
Total search volumes increased 51 per cent in the second quarter compared to the same period last year, according to the British Retail Consortium-Google online retail monitor. The BRC said the increase was an indication of changing behaviour and would benefit UK sites as traffic flowed in the other direction.
'The considerable increase this month in the number of UK consumers searching overseas retailers show that barriers are increasingly being broken down. UK retailers are already responding well to these changes and will be keen to continue seeing equivalent increases in overseas customers searching them out,' said BRC director general Helen Dickinson.
Analysis of the figures revealed that interest in US brands and web sites boosted the number of overseas searches while demand from fast growing regions such as South America and Asia boosted UK retailers.
Amazon Imposes Minimum Order For Free Delivery - But Excludes Music, Books and Games
Amazon has imposed a minimum order value of |£10 for its free delivery service as more retailers look for ways to cover the cost of shipping.
The online retailers said it would impose the restrictions with immediate effect on all items excluding books, music, DVDs, video games and disc-based software. It will also include orders that include any of these items and another product that would normally be chargeable, such as a DVD and an HDMI cable.
Amazon explained: 'Whilst the change will affect only a very small proportion of orders, it will allow us to offer you a significantly expanded selection of lower priced products.'
However, other retailers have been seeking ways to cover the cost of deliveries such as including express services or next day guarantees.
One blogger said: 'It’s a blow for consumers, but one that will likely have little effect on its popularity. There’s no word on a similar change for the company’s policy in the United States, but that could only be a matter of time.'
The online retailers said it would impose the restrictions with immediate effect on all items excluding books, music, DVDs, video games and disc-based software. It will also include orders that include any of these items and another product that would normally be chargeable, such as a DVD and an HDMI cable.
Amazon explained: 'Whilst the change will affect only a very small proportion of orders, it will allow us to offer you a significantly expanded selection of lower priced products.'
However, other retailers have been seeking ways to cover the cost of deliveries such as including express services or next day guarantees.
One blogger said: 'It’s a blow for consumers, but one that will likely have little effect on its popularity. There’s no word on a similar change for the company’s policy in the United States, but that could only be a matter of time.'
Tuesday, 23 July 2013
Tesco Accelerates 'Dark Store' Delivery Plan With Second Warehouse This Year
Tesco will open its sixth 'Dark Store' in October as demand from time-poor shoppers for online food delivery takes hold.
The 'store' - actually delivery warehouses - will be Tesco's second in a year after the last outlet in Crawley in West Sussex officially began delivering in January.
That followed sites in Enfield, North London last year; Greenford, Middlesex in 2010; Ayelsford, Kent in 2008; and Croydon, South London - which opened in 2006.
According to figures released by the Office of National Statistics last week, online food sales in June increased 17.5 per cent and accounted for 3.3 per cent of total food market sales.
Tesco this week started recruiting 650 staff for the centre. The stores are actually delivery warehouses nicknamed dark stores because they are laid out like supermarkets to make it easier for staff to pick the stock.
However, over time they have become more automated and less like the stores they originally mimicked as the process of delivering online food has become more demanding and required greater efficiency.
Most of Tesco food deliveries are made from its supermarkets where shopping is manually picked from shelves by staff.
Former multichannel director at Tesco Laura Wade-Gery said in 2009 that she expected dark stores to fulfill 15 per cent of online orders by 2014.
The 'store' - actually delivery warehouses - will be Tesco's second in a year after the last outlet in Crawley in West Sussex officially began delivering in January.
That followed sites in Enfield, North London last year; Greenford, Middlesex in 2010; Ayelsford, Kent in 2008; and Croydon, South London - which opened in 2006.
According to figures released by the Office of National Statistics last week, online food sales in June increased 17.5 per cent and accounted for 3.3 per cent of total food market sales.
Tesco this week started recruiting 650 staff for the centre. The stores are actually delivery warehouses nicknamed dark stores because they are laid out like supermarkets to make it easier for staff to pick the stock.
However, over time they have become more automated and less like the stores they originally mimicked as the process of delivering online food has become more demanding and required greater efficiency.
Most of Tesco food deliveries are made from its supermarkets where shopping is manually picked from shelves by staff.
Former multichannel director at Tesco Laura Wade-Gery said in 2009 that she expected dark stores to fulfill 15 per cent of online orders by 2014.
Fat Face Web Sales Rise 27%
Casual clothing retailer Fat Face said sales over the internet increased 27 per cent over the past year as it invested in better products.
Total sales at the company, which opened 10 stores in the year, increased 12 per cent to £179 million in the 12 months to June 1. The company said it plans to open stores in the US and confirmed February's announcement that Sir Stuart Rose would be instated as chairman on July 26.
Fat Face chief executive Anthony Thompson said the 210-store chain had benefited from 'continued investment in product, service and store environment'. It relocated six stores in the year and refitted nine.
'It's been a good year for Fat Face. We have seen record sales, improved earnings and created a firm foundation for continued growth,' he said. He said consumer sentiment appears to be 'more optimistic' than 12 months ago.
Profit, measured as earnings before interest, tax, depreciation and amortisation, increased 35 per cent to £31.2 million.
Total sales at the company, which opened 10 stores in the year, increased 12 per cent to £179 million in the 12 months to June 1. The company said it plans to open stores in the US and confirmed February's announcement that Sir Stuart Rose would be instated as chairman on July 26.
Fat Face chief executive Anthony Thompson said the 210-store chain had benefited from 'continued investment in product, service and store environment'. It relocated six stores in the year and refitted nine.
'It's been a good year for Fat Face. We have seen record sales, improved earnings and created a firm foundation for continued growth,' he said. He said consumer sentiment appears to be 'more optimistic' than 12 months ago.
Profit, measured as earnings before interest, tax, depreciation and amortisation, increased 35 per cent to £31.2 million.
Monday, 22 July 2013
Letter To The Treasury From Ocado, Boden and Shop Direct Brands Online Tax Idea 'Nonsense'
Online retailers including Ocado, Boden and Shop Direct plan to write to the Chancellor over online tax branding the idea as 'nonsense'.
News of the letter, which broke over the weekend, comes after Next chief executive Simon Wolfson branded the tax 'anti-competitive.'
The letter says the tax would 'kill entrepreneurial spirit' in the fast growing online sector. The letter claims such a tax would have a knock-on effect on supporting industries in the technology, manufacturing, logistics and marketing sectors.
'Online is a rare an precious success story for the UK and one that we should take pride in. At a time when SMEs in these sectors are attempting to deliver innovation, growth and jobs they should not be choked off by the unintended consequences of an unfair tax,' says the letter which is printed in full on The Times web site today.
The letter has also been signed by catalogue and online giant N Brown and Appliances Online.
News of the letter, which broke over the weekend, comes after Next chief executive Simon Wolfson branded the tax 'anti-competitive.'
The letter says the tax would 'kill entrepreneurial spirit' in the fast growing online sector. The letter claims such a tax would have a knock-on effect on supporting industries in the technology, manufacturing, logistics and marketing sectors.
'Online is a rare an precious success story for the UK and one that we should take pride in. At a time when SMEs in these sectors are attempting to deliver innovation, growth and jobs they should not be choked off by the unintended consequences of an unfair tax,' says the letter which is printed in full on The Times web site today.
The letter has also been signed by catalogue and online giant N Brown and Appliances Online.
Next's Boss Slams Calls For An Online Tax
Groups opposing calls for an online tax in the UK have found a champion in the form of Next's chief executive Simon Wollfson.
Wolfson operates a chain of more than 500 shops and has a Directory business that brings in more than £1 billion sales a year, an rising, almost a third of the group's turnover. It could be argued that gives him as balanced a view as you are going to get in the retailer sector.
Wolfson told The Mail on Sunday yesterday that supermarket call for an online tax were 'protectionist,' would most likely lead to prices rises for consumers and were unlikely ever to be traded in for a cut in business rates - as has been suggested by proponents of the online tax.
Sainsbury's chief executive Justin King, Morrisons chief executive Dalton Philips and Sir Terry Leahy, who previously held the same position at Tesco, have all called for a reform of the tax regime to rebalance business rates and impose and tax on sales over the internet.
Wolfson, a prominent Conservative peer and a former business and economic adviser to the party, told thje newspaper: 'It seems to me that the motivation is to stop intenet retailers growing rather than to help the high street.'
'It's a protectionist argument that says 'please tax my competitor to give me an advantage. For a country that is at the forefront of the internet revolution it would be an extremely backward step,' he said.
Wolfson operates a chain of more than 500 shops and has a Directory business that brings in more than £1 billion sales a year, an rising, almost a third of the group's turnover. It could be argued that gives him as balanced a view as you are going to get in the retailer sector.
Wolfson told The Mail on Sunday yesterday that supermarket call for an online tax were 'protectionist,' would most likely lead to prices rises for consumers and were unlikely ever to be traded in for a cut in business rates - as has been suggested by proponents of the online tax.
Sainsbury's chief executive Justin King, Morrisons chief executive Dalton Philips and Sir Terry Leahy, who previously held the same position at Tesco, have all called for a reform of the tax regime to rebalance business rates and impose and tax on sales over the internet.
Wolfson, a prominent Conservative peer and a former business and economic adviser to the party, told thje newspaper: 'It seems to me that the motivation is to stop intenet retailers growing rather than to help the high street.'
'It's a protectionist argument that says 'please tax my competitor to give me an advantage. For a country that is at the forefront of the internet revolution it would be an extremely backward step,' he said.
Discounts Boost As Online Sales Reach Strongest Growth For Two Years, Says IMRG
Online sales rose 20 per cent in June amid as discounts attracted shoppers an amid signs of economic recovery.
The increase was the strongest rise for two years, according to the IMRG Capgemini e-Retail Sales Index. The combined effect prompted a 2.4 per cent rise between from May to June, the first time the index has seen an increase in that period for five years.
Retailers have been forced to clear unsold stock left over from an unseasonably cold spring leading to stock backlogs both on and offline.
But consumers still appear to be under some pressure as inflation outstrips wage growth and average basket size fell 9 per cent to £79 from £87 a year earlier - which suggests consumers are spending less in one trip but making more frequent purchases.
Online clothing sales rose 29 per cent in June and sales of home and garden products increased 35 per cent as both sectors caught up after the cold start to the season. The value of travel bookings grew 15 per cent.
The increase was the strongest rise for two years, according to the IMRG Capgemini e-Retail Sales Index. The combined effect prompted a 2.4 per cent rise between from May to June, the first time the index has seen an increase in that period for five years.
Retailers have been forced to clear unsold stock left over from an unseasonably cold spring leading to stock backlogs both on and offline.
But consumers still appear to be under some pressure as inflation outstrips wage growth and average basket size fell 9 per cent to £79 from £87 a year earlier - which suggests consumers are spending less in one trip but making more frequent purchases.
Online clothing sales rose 29 per cent in June and sales of home and garden products increased 35 per cent as both sectors caught up after the cold start to the season. The value of travel bookings grew 15 per cent.
Sunday, 21 July 2013
Shop Direct ‘Heavy Lifting’ Complete, Says New Boss Baldock
The chief executive of Shop Direct says the decade-long restructuring of the firm is now behind the firm and it is ready to move on to the next stage - making the company profitable.
Speaking to trade magazine Retail Week, he said: ‘We plan to make money as a business and we have a plan that I am confident will realise significant value. What we have given this business in the past nine months is a very strategic direction.’
The ‘heavy lifting’ to restructure two ailing business Littlewoods, acquired in 2002, and GUS Home Shopping, bought the year after, has been completed under former chief executive Mark Newton-Jones who left the business at the end of last month, he said.
Baldock arrived in September as the £1.7 billion turnover firm reported a pre-tax loss of £57.7 million. He said the group would concentrate on its core UK customer and for the time being was ‘not interested in international’. He said it would close its fledgling US Very business launched in 2011.
Speaking to trade magazine Retail Week, he said: ‘We plan to make money as a business and we have a plan that I am confident will realise significant value. What we have given this business in the past nine months is a very strategic direction.’
The ‘heavy lifting’ to restructure two ailing business Littlewoods, acquired in 2002, and GUS Home Shopping, bought the year after, has been completed under former chief executive Mark Newton-Jones who left the business at the end of last month, he said.
Baldock arrived in September as the £1.7 billion turnover firm reported a pre-tax loss of £57.7 million. He said the group would concentrate on its core UK customer and for the time being was ‘not interested in international’. He said it would close its fledgling US Very business launched in 2011.
Online Fashion Retailer Asos Loses Second Director In A Week
The second director in a week is leaving online fashion retailer Asos after human resources director Michelle Emmerson resigned.
She is understood to have signed her compromise agreement with the firm as recently as last week. It follows the resignation of executive director product and trading Kate Bostock which was announced by the company on Tuesday last week.
Emmerson joined two years ago in July 2011. She sat on the senior management board, the level below the executive board, so the company does not have to make a stock exchange announcement.
Chief executive Nick Robertson responded to suggestions by the Sunday Times that Emmerson’s departure reflected an erosion of talent by saying: ‘If it appears there is a lot going on, there is. We have employed 400 people in the past 18 months.’
She is understood to have signed her compromise agreement with the firm as recently as last week. It follows the resignation of executive director product and trading Kate Bostock which was announced by the company on Tuesday last week.
Emmerson joined two years ago in July 2011. She sat on the senior management board, the level below the executive board, so the company does not have to make a stock exchange announcement.
Chief executive Nick Robertson responded to suggestions by the Sunday Times that Emmerson’s departure reflected an erosion of talent by saying: ‘If it appears there is a lot going on, there is. We have employed 400 people in the past 18 months.’
Tesco Installs Web Terminals For Clothing Ranges In Store
Supermarket Tesco has launched web terminals in three of its stores to give customers access to its full clothing range online.
The kiosks have been installed in stores in Coventry, Woolwich in South London and Pitsea in Essex and will give shoppers the option of home delivery or collection in store at a later date.
The kiosks are being powered by digital commerce specialist Venda and linked to a chip and pin card payment to allow shoppers to pay at the terminal.
Tesco says the trial will allow customers to find promotional offers and see the full range of its F&F Clothing stock without leaving the shop.
The kiosks have been installed in stores in Coventry, Woolwich in South London and Pitsea in Essex and will give shoppers the option of home delivery or collection in store at a later date.
The kiosks are being powered by digital commerce specialist Venda and linked to a chip and pin card payment to allow shoppers to pay at the terminal.
Tesco says the trial will allow customers to find promotional offers and see the full range of its F&F Clothing stock without leaving the shop.
 |
| F&F Embelished Cuff Blouse in Orange at £18 |
Saturday, 20 July 2013
John Lewis Online Sales Hit By Heat Wave
Sales growth at John Lewis online almost ground to a halt this month as customers preferred sunbathing and sport to shopping.
Despite demand for hot weather clothes and accessories, online sales increased by only 3.2 per cent in the week to July 13 compared to a 17.3 per cent rise in the 24 week period to the same day.
The week included the start of the heat wave that has led to the longest hot spell since 2006 according to the Met Office.
Overall sales at the department store chain fell 8.7 per cent compared to a rise of 6.7 per cent in the 24 weeks.
Worst hit stores included Trafford Centre in Manchester, where sales fell 24.4 per cent, High Wycombe, with a decline of 24.6 per cent, and Tunbridge Wells 25.2 per cent.
Despite demand for hot weather clothes and accessories, online sales increased by only 3.2 per cent in the week to July 13 compared to a 17.3 per cent rise in the 24 week period to the same day.
The week included the start of the heat wave that has led to the longest hot spell since 2006 according to the Met Office.
Overall sales at the department store chain fell 8.7 per cent compared to a rise of 6.7 per cent in the 24 weeks.
Worst hit stores included Trafford Centre in Manchester, where sales fell 24.4 per cent, High Wycombe, with a decline of 24.6 per cent, and Tunbridge Wells 25.2 per cent.
Friday, 19 July 2013
Boden Appoints Former Advertising Executive As Global Brand Director
Online and catalogue retailer Boden has appointed former advertising executive Penny Herriman to be its first global brand director.
Boden said Herriman will join the six-strong executive board this Autumn with responsibility for all aspects of the Boden brand and 60 staff. It said she would help create a 'truly international brand'.
Herriman spent over ten years at Bartle Bogle Hegarty working with clients including Unilever, Levi's, Barnardo's and Vodafone. She most recently worked at digital and creative marketing agency Isobar as chief executive.
'I am delighted to have this opportunity to help take Boden to the next level. This is a wonderfully ambitious and creative business, a British success story that has exported its success and subsequently already generates more than half its sales outside the UK. That is a great platform on which to build,' she said.
Last year Boden sales increased 6 per cent to £245.9 million. Online sales accounted for 80 per cent of the business. Boden said German sales increased 21 per cent in the year and US sales grew 9 per cent.
Boden said Herriman will join the six-strong executive board this Autumn with responsibility for all aspects of the Boden brand and 60 staff. It said she would help create a 'truly international brand'.
Herriman spent over ten years at Bartle Bogle Hegarty working with clients including Unilever, Levi's, Barnardo's and Vodafone. She most recently worked at digital and creative marketing agency Isobar as chief executive.
'I am delighted to have this opportunity to help take Boden to the next level. This is a wonderfully ambitious and creative business, a British success story that has exported its success and subsequently already generates more than half its sales outside the UK. That is a great platform on which to build,' she said.
Last year Boden sales increased 6 per cent to £245.9 million. Online sales accounted for 80 per cent of the business. Boden said German sales increased 21 per cent in the year and US sales grew 9 per cent.
Online Spending In The UK Rises 18.3% As Fashion And Food Surge
Online spending increased 18.3 per cent in June as UK consumers spend more of their income on grocery deliveries and clothes shopping.
Spending on the internet accounted for 9.7 per cent of all sales or £586.9 million on average each week during the month, according to the Office of National Statistics. The number excludes fuel spending which is included in the total ONS retail spending figure.
Online food sales increased 17.5 per cent and accounted for 3.3 per cent of food market sales while textile, clothing and footwear increased 20.1 per cent and making up 9.3 per cent of that market.
The survey of 5,000 retailers reveal that spending rose 3.8 per cent in June compared to a year earlier taking the total rise over three months to 3 per cent. The increase has been seen as a firm sign that economic recovery is underway.
But spending has been encouraged by heavy discounting and PwC said 85 per cent of high street retailers were on sale or advertising promotions in their shop window in June.
Spending on the internet accounted for 9.7 per cent of all sales or £586.9 million on average each week during the month, according to the Office of National Statistics. The number excludes fuel spending which is included in the total ONS retail spending figure.
Online food sales increased 17.5 per cent and accounted for 3.3 per cent of food market sales while textile, clothing and footwear increased 20.1 per cent and making up 9.3 per cent of that market.
The survey of 5,000 retailers reveal that spending rose 3.8 per cent in June compared to a year earlier taking the total rise over three months to 3 per cent. The increase has been seen as a firm sign that economic recovery is underway.
But spending has been encouraged by heavy discounting and PwC said 85 per cent of high street retailers were on sale or advertising promotions in their shop window in June.
Thursday, 18 July 2013
Sports Direct Web Sales Rise 52%
Sports clothing and equipment retailer Sports Direct said today sales through its website have increased 52.1 per cent over the past year to £264.6 million.
Online now accounts for 15 per cent of its Sports Retail division, from 11.6 per cent last year. The chain's online sales include all sales via its web business which ships to the UK and overseas - separate to its main international division.
The retailer increased the size of its Sportsdirect.com catalogue during the year to 1,092 pages, an increase of 50 per cent on the year before. It distributed 2 million copies in store and with online orders.
Total sales in the year to April at its Sports Retail division, which excludes wholesale and international stores, increased 17.3 per cent to £1.57 billion. Total revenue at the group rose 22.9 per cent to £2.19 billion.
Underlying profit before tax increased 40 per cent to £207.2 million.
Online now accounts for 15 per cent of its Sports Retail division, from 11.6 per cent last year. The chain's online sales include all sales via its web business which ships to the UK and overseas - separate to its main international division.
The retailer increased the size of its Sportsdirect.com catalogue during the year to 1,092 pages, an increase of 50 per cent on the year before. It distributed 2 million copies in store and with online orders.
Total sales in the year to April at its Sports Retail division, which excludes wholesale and international stores, increased 17.3 per cent to £1.57 billion. Total revenue at the group rose 22.9 per cent to £2.19 billion.
Underlying profit before tax increased 40 per cent to £207.2 million.
Iceland Food Chain Lines Up Electricals Website
The Iceland food chain is preparing to sell kitchen appliances such as fridges, freezers, washing machines and cookers on its web site.
The site will form part of its main food delivery site which was part-launched in May and is currency being tested in parts of the country. The white goods offer, which will be fulfilled by online delivery firm Appliances Online, is expected to launch later this summer as part of the trial.
The chain previously sold electricals goods in some stores but the business was ditched in favour of additional groceries when founder Malcolm Walker returned to overhaul the chain, Iceland director of delivered sales John Mackie told to Retail Week.
However, the firm sees the launch of its website in May as a way to explore new opportunities in non-food categories and is understood to be in talks with suppliers of other general merchandise categories. The appliances service is expected to offer next day delivery.
The site will form part of its main food delivery site which was part-launched in May and is currency being tested in parts of the country. The white goods offer, which will be fulfilled by online delivery firm Appliances Online, is expected to launch later this summer as part of the trial.
The chain previously sold electricals goods in some stores but the business was ditched in favour of additional groceries when founder Malcolm Walker returned to overhaul the chain, Iceland director of delivered sales John Mackie told to Retail Week.
However, the firm sees the launch of its website in May as a way to explore new opportunities in non-food categories and is understood to be in talks with suppliers of other general merchandise categories. The appliances service is expected to offer next day delivery.
 |
| Iceland plans to sell kitchen appliances on its website |
Online Wine Retailer Slurp.co.uk Rescued
Online wine retailer Slurp.co.uk has been rescued by family owned wine merchants SH Jones.
The website was bought for an undisclosed amount after it collapsed into administration through lack of funds.
Slurp.co.uk managing director Jeremy Howard told Decanter magazine that despite 'dramatic sales growth' between 2009 and 2013 the site failed to make a consistent profit and that rapid expansion proved a drain on cash.
SH Jones, established in Banbury in 1848, also has three high street shops and one cellar store and plans to combine 'cutting-edge online retail and the more traditional hand-sell high street model,' it said in a release on the Slurp.co.uk web site.
Slurp.co.uk launched nine years ago and has been developing an international business in recent years. It is the second acquisition by SH Jones this year after the purchase of Hawkshead Wines in January. The main proportion of the SH Jones business is supplying pubs, hotels and restaurants.
The website was bought for an undisclosed amount after it collapsed into administration through lack of funds.
Slurp.co.uk managing director Jeremy Howard told Decanter magazine that despite 'dramatic sales growth' between 2009 and 2013 the site failed to make a consistent profit and that rapid expansion proved a drain on cash.
SH Jones, established in Banbury in 1848, also has three high street shops and one cellar store and plans to combine 'cutting-edge online retail and the more traditional hand-sell high street model,' it said in a release on the Slurp.co.uk web site.
Slurp.co.uk launched nine years ago and has been developing an international business in recent years. It is the second acquisition by SH Jones this year after the purchase of Hawkshead Wines in January. The main proportion of the SH Jones business is supplying pubs, hotels and restaurants.
Wednesday, 17 July 2013
Shock As Kate Bostock Leaves Asos With Immediate Effect
Asos executive director of product and trading Kate Bostock has left the company with immediate effect.
Asos chief executive Nick Robertson and Bostock released a statement broadly suggesting that her departure was by mutual consent and that there were no ill feelings.
However, the explanation that Asos 'is not the right platform for her talent'. But, perhaps revealingly, that her role 'will be fulfilled by existing members of the team until it decides 'whether there is a need to seek a replacement for Kate'..
One newspaper described the explanation as 'woolly' and was 'crafted to be obscure'. One analyst described the situation as 'embarrassing for both parties'.
Asos chief executive Nick Robertson and Bostock released a statement broadly suggesting that her departure was by mutual consent and that there were no ill feelings.
However, the explanation that Asos 'is not the right platform for her talent'. But, perhaps revealingly, that her role 'will be fulfilled by existing members of the team until it decides 'whether there is a need to seek a replacement for Kate'..
One newspaper described the explanation as 'woolly' and was 'crafted to be obscure'. One analyst described the situation as 'embarrassing for both parties'.
House of Fraser Launches 'Ground Breaking' Next Evening Delivery Service
Department store House of Fraser plans another overhaul of its online service next month that will allow customers to receive deliveries the following evening.
The service will enable customers to order as late as midnight and receive goods 'guaranteed' between 6pm and 10pm the next day.
The latest overhaul of the House of Fraser strategy will implement a 7-day service that will also let customers order before 11 am and collect in store the same day after 5pm any day of the week.
The department store said the service will allow it to deliver ‘the best customer service in the market’ It has already extended a 3pm cut-off for 'pre-noon' next day collection, launched in 2010, to 10pm earlier this year.
The service will enable customers to order as late as midnight and receive goods 'guaranteed' between 6pm and 10pm the next day.
The latest overhaul of the House of Fraser strategy will implement a 7-day service that will also let customers order before 11 am and collect in store the same day after 5pm any day of the week.
The department store said the service will allow it to deliver ‘the best customer service in the market’ It has already extended a 3pm cut-off for 'pre-noon' next day collection, launched in 2010, to 10pm earlier this year.
Tuesday, 16 July 2013
Online Tax Debate Flares Up Once More Despite British Retail Consortium's Calls For Cool Heads
A second major supermarket has called for the imposition of an online tax despite calls from the industry's trade association to bosses for less conflict.
Morrisons chief executive Dalton Philips, who has just signed a 25-year deal with Ocado to establish an online grocery business, told the Daily Telegraph that the high street is at a 'massive disadvantage' to internet retailers and said 'we've all got to contribute'.
'We're moving into the online space so we'll have to pay our contribution. I'm not into intervention for intervention's sake but you've got to have a level playing field. As more and more sales migrate online it seems to me intuitive that you would tax the online channels as well. It's an issue we're going to have to face,' he told the newspaper.
He said there was no longer any logic in business rates going 'up and up' and town centre shops could not cope.
Morrisons chief executive Dalton Philips, who has just signed a 25-year deal with Ocado to establish an online grocery business, told the Daily Telegraph that the high street is at a 'massive disadvantage' to internet retailers and said 'we've all got to contribute'.
'We're moving into the online space so we'll have to pay our contribution. I'm not into intervention for intervention's sake but you've got to have a level playing field. As more and more sales migrate online it seems to me intuitive that you would tax the online channels as well. It's an issue we're going to have to face,' he told the newspaper.
He said there was no longer any logic in business rates going 'up and up' and town centre shops could not cope.
Thorntons Reveals Online Sales Fall As It Restructures
Chocolate retailer Thorntons has dismissed an sudden drop in online sales as part of a strategic shift to rely more on wholesale custom.
The retailer has been closing stores to reduce costs and growing its commercial division which sells products via other retailers. But it has also been developing online strategies including testing kiosks in stores.
Sales through Thorntons Direct, its online business, fell from £0.9 million to £0.8 million - more than 10 per cent - in the 10 weeks to June 29 compared with a year earlier. The quarter is the retailer's quietest. Online sales in the Christmas quarter were five times that size.
Retail sales fell 2.8 per cent in the period as the chain closed 34 stores. Like-for-like store sales increased 0.5 per cent. Total company sales increased 5.6 per cent as commercial sales increased 11.8 per cent to 9.2 million.
Thorntons chief executive Jonathan Hart said the firm had shown 'further encouraging progress' and that profit before one-off costs would be ahead of expectations in the full year as the retailer predicted in a statement two weeks ago. He expects the wholesale business to exceed the retail division and aims to have a chain of about 180 to 200 shops.
The retailer has been closing stores to reduce costs and growing its commercial division which sells products via other retailers. But it has also been developing online strategies including testing kiosks in stores.
Sales through Thorntons Direct, its online business, fell from £0.9 million to £0.8 million - more than 10 per cent - in the 10 weeks to June 29 compared with a year earlier. The quarter is the retailer's quietest. Online sales in the Christmas quarter were five times that size.
Retail sales fell 2.8 per cent in the period as the chain closed 34 stores. Like-for-like store sales increased 0.5 per cent. Total company sales increased 5.6 per cent as commercial sales increased 11.8 per cent to 9.2 million.
Thorntons chief executive Jonathan Hart said the firm had shown 'further encouraging progress' and that profit before one-off costs would be ahead of expectations in the full year as the retailer predicted in a statement two weeks ago. He expects the wholesale business to exceed the retail division and aims to have a chain of about 180 to 200 shops.
Chemist Direct Reports Massive Hike In Affiliate Revenue
Chemist Direct has reported a 350 per cent increase in revenue it receives from affiliate marketing firms.
It appointed Optimus Performance Marketing in February to help improve communication with affiliate sites that recommend and review its products. The step has significantly increased traffic via the third party sites, it said.
Innovations included a weekly newsletter sent to affiliates to highlighting overs and discount codes and direct communication between Optimus Performance and affiliates to raise the firm's profile.
'The increased and regular communication with Optimus has helped our affiliates become more familiar with the Chemist Direct brand, gain us more visibility and exposure as well as help grow revenue for the long tail affiliates,' said Chemist Direct marketing manager Harvey Bahia.
It appointed Optimus Performance Marketing in February to help improve communication with affiliate sites that recommend and review its products. The step has significantly increased traffic via the third party sites, it said.
Innovations included a weekly newsletter sent to affiliates to highlighting overs and discount codes and direct communication between Optimus Performance and affiliates to raise the firm's profile.
'The increased and regular communication with Optimus has helped our affiliates become more familiar with the Chemist Direct brand, gain us more visibility and exposure as well as help grow revenue for the long tail affiliates,' said Chemist Direct marketing manager Harvey Bahia.
Monday, 15 July 2013
Indian Amazon Rival Flipkart Raises $200 Million
Indian general merchandise retailer Flipkart has raised $200 million (£131 million) for a number of private equity funds.
Reuters reported that the fund raising could be the largest ever in the country for an ecommerce company.
South African tech group Naspers and private equity funds Tiger Global and Accel Partners all provided funds, according to a company statement. The three are all existing investors.
The funds will be used for investing in technology and strengthening the supply chain, it said. The company is six years old and offers products from clothing, watches and jewellery to mobile phones.
Reuters reported that the fund raising could be the largest ever in the country for an ecommerce company.
South African tech group Naspers and private equity funds Tiger Global and Accel Partners all provided funds, according to a company statement. The three are all existing investors.
The funds will be used for investing in technology and strengthening the supply chain, it said. The company is six years old and offers products from clothing, watches and jewellery to mobile phones.
Ocado Posts Terms Of 'Terminal Clauses' In Morrisons Deal
Delivery firm Ocado has listed a number of conditions and targets that could prompt Morrisons to break its contract with the firm that include failure to provide adequate service levels.
Ocado has posted a 60-page document on the stock exchange that lists the 'termination rights'
and targets relating to their joint venture Last Mile Developments.
Although academic at present, the contract includes obligations from both Morrisons and Ocado on targets that need to be achieved that also include provision of consistently up-to-date technology. Morrisons also has a number of obligations including the achieve sales of £100 million in three years and £300 million in five years.
The 60-page document, which can be found here, also lists a number of 'adverse' impacts of the agreement that include the potential commitment of management time to the Morrisons agreement and the potential impact of a takeover of either firm.
Ocado has posted a 60-page document on the stock exchange that lists the 'termination rights'
and targets relating to their joint venture Last Mile Developments.
Although academic at present, the contract includes obligations from both Morrisons and Ocado on targets that need to be achieved that also include provision of consistently up-to-date technology. Morrisons also has a number of obligations including the achieve sales of £100 million in three years and £300 million in five years.
The 60-page document, which can be found here, also lists a number of 'adverse' impacts of the agreement that include the potential commitment of management time to the Morrisons agreement and the potential impact of a takeover of either firm.
M and M Direct Reverses Profit Decline After New Boss Joins
Online casual and sportswear retailer M and M Direct has seen sales and profit increase, reversing a decline over the previous two years.
Operating profit at the retailer increased 66 per cent to 6.4 million in the year to February 28 and sales grew 7.4 per cent to £113.4 million, according to trade magazine Retail Week. Retail week said pre-tax profit increased about three fold to just over £6 million.
That reverses the declines for the previous two years when pre-tax profit dropped to just over £2 million, a quarter of their 2010 levels, and sales slid.
M and M poached John Lewis online boss as chief executive last year. He replaced former Argos and Tesco online executive Steve Robinson.
Operating profit at the retailer increased 66 per cent to 6.4 million in the year to February 28 and sales grew 7.4 per cent to £113.4 million, according to trade magazine Retail Week. Retail week said pre-tax profit increased about three fold to just over £6 million.
That reverses the declines for the previous two years when pre-tax profit dropped to just over £2 million, a quarter of their 2010 levels, and sales slid.
M and M poached John Lewis online boss as chief executive last year. He replaced former Argos and Tesco online executive Steve Robinson.
Sunday, 14 July 2013
Morrisons Missing Out On £700 Million Online Delivery Sales, says chief
Morrisons chief executive Dalton Philips says the supermarket is missing out on £700 million of online sales by not being in the market.
The chain, which plans to launch an online service in January, has calculated the size of the opportunity relative to its larger peers, Tesco, with food delivery sales of over £2 billion, and Asda and Sainsbury's, both of which have sales of about £1 billion.
The supermarket has agreed a 25 year partnership with delivery specialists Ocado and has leased the online firm's distribution centre in Dordon, Warwickshire. The deal has been calculated to cost Morrisons £216 million but Philips said over 25 years the firm would spend more than that on tires for its distribution lorries.
Morrisons is planning a limited test of the service to a number of customers in the Midlands today according to The Mail on Sunday's financial pages today. The trial will take place around the Midlands and will be designed to test the new web site and the distribution centre's systems.
Morrisons has bought the warehouse and is leasing half the warehouse back to Ocado for its own service. The half it still owns will give Morrisons capacity for £500 million online orders per year. Once the centre is at full capacity the two firms will open more sites.
Philips said this week he would develop a London 'spoke' from the Dordon centre, that would include using Ocado's existing satellite centres such as West Byfleet in Surrey, that would allow it to service the lucrative London market.
Morrisons only has a market share of about 6.5 per cent in London - less than half its national share of the grocery market - but online and convenience stores will help increase that, he said.
Ocado is providing the technology, warehouse, staff and vans but the service will feature all the Morrisons branding and only delivery Morrisons food. Ocado has said its existing service with Waitrose would be unaffected.
However, Waitrose managing director Mark Price has said he is uneasy about the Morrisons agreement and asked his lawyers to examine the situation for potentialk breaches of contract. Ocado has agreed to delivery Waitrsoe products until 2020 but there is a break clause at 2017. Waitrose also runs itsa own separate service from stores and internet-only warehouses - the same strategy as Tesco, Asda and Sainsbury's.
Philips said at a press conference last week that the chain has spent about £300 million hauling the IT systems 'into the 21st century'.
He said in some stores cash was still being counted by hand at the end of the day and stock was being checked using pen and paper. But he said these were in the process of being phased out by January next year in favour of electronic counting machines and iPads.
He said it was the only retailer of its size in the world still using paper to manually check stock in stores and monitor empty shelves.
The chain, which plans to launch an online service in January, has calculated the size of the opportunity relative to its larger peers, Tesco, with food delivery sales of over £2 billion, and Asda and Sainsbury's, both of which have sales of about £1 billion.
The supermarket has agreed a 25 year partnership with delivery specialists Ocado and has leased the online firm's distribution centre in Dordon, Warwickshire. The deal has been calculated to cost Morrisons £216 million but Philips said over 25 years the firm would spend more than that on tires for its distribution lorries.
Morrisons is planning a limited test of the service to a number of customers in the Midlands today according to The Mail on Sunday's financial pages today. The trial will take place around the Midlands and will be designed to test the new web site and the distribution centre's systems.
Morrisons has bought the warehouse and is leasing half the warehouse back to Ocado for its own service. The half it still owns will give Morrisons capacity for £500 million online orders per year. Once the centre is at full capacity the two firms will open more sites.
Philips said this week he would develop a London 'spoke' from the Dordon centre, that would include using Ocado's existing satellite centres such as West Byfleet in Surrey, that would allow it to service the lucrative London market.
Morrisons only has a market share of about 6.5 per cent in London - less than half its national share of the grocery market - but online and convenience stores will help increase that, he said.
Ocado is providing the technology, warehouse, staff and vans but the service will feature all the Morrisons branding and only delivery Morrisons food. Ocado has said its existing service with Waitrose would be unaffected.
However, Waitrose managing director Mark Price has said he is uneasy about the Morrisons agreement and asked his lawyers to examine the situation for potentialk breaches of contract. Ocado has agreed to delivery Waitrsoe products until 2020 but there is a break clause at 2017. Waitrose also runs itsa own separate service from stores and internet-only warehouses - the same strategy as Tesco, Asda and Sainsbury's.
Philips said at a press conference last week that the chain has spent about £300 million hauling the IT systems 'into the 21st century'.
He said in some stores cash was still being counted by hand at the end of the day and stock was being checked using pen and paper. But he said these were in the process of being phased out by January next year in favour of electronic counting machines and iPads.
He said it was the only retailer of its size in the world still using paper to manually check stock in stores and monitor empty shelves.
Saturday, 13 July 2013
My-Wardrobe Founder Leaves Just A Month After Another Key Director
Sarah Curran, the founder of My-Wardrobe.com, is leaving the business just one month after another key director was poached by Harrods.
PR director Lauren Stevenson had been with My-Wardrobe since 2008 and left a month ago to become head of PR and communications at Harrods. Stevenson was widely credited with raising the brand's profile compared to its actual size and revenue.
In a statement to the Financial Times Curran said she was stepping down as a board member. But she said she was 'extremely proud' of what she had achieved with the business which is 'considered a respected global online retailer.
However, the departures raise questions for the firm whose sales in 2011, the most recent figures available, are £13 million. In January it was rumoured that My-Wardrobe was working with advisory firm Hawkwood to consider options for new funding partners and an additional £3 million, which prompted speculation it may be sold.
Curran founded the site in 2006 when she identified a gap for 'every day luxury' above the Asos target market and more affordable than Net-a-Porter. She was awarded an MBE in June for her services to fashion and will continue to retain a stake in My-Wardrobe.
In June 2010 internet investors Balderton Capital invested £6 million in the business and existing investors injected an additional £2.3 million. It appointed David Worby, director of Harrods direct, as chief executive last year.
PR director Lauren Stevenson had been with My-Wardrobe since 2008 and left a month ago to become head of PR and communications at Harrods. Stevenson was widely credited with raising the brand's profile compared to its actual size and revenue.
In a statement to the Financial Times Curran said she was stepping down as a board member. But she said she was 'extremely proud' of what she had achieved with the business which is 'considered a respected global online retailer.
However, the departures raise questions for the firm whose sales in 2011, the most recent figures available, are £13 million. In January it was rumoured that My-Wardrobe was working with advisory firm Hawkwood to consider options for new funding partners and an additional £3 million, which prompted speculation it may be sold.
Curran founded the site in 2006 when she identified a gap for 'every day luxury' above the Asos target market and more affordable than Net-a-Porter. She was awarded an MBE in June for her services to fashion and will continue to retain a stake in My-Wardrobe.
In June 2010 internet investors Balderton Capital invested £6 million in the business and existing investors injected an additional £2.3 million. It appointed David Worby, director of Harrods direct, as chief executive last year.
Waitrose Online To Launch Chilled Lockers For Customer Collection
Supermarket Waitrose is testing temperature controlled lockers that will allow customers to pick up food orders placed online without going into stores.
The fully-automated collection lockers are part of a plan to expand the grocery chain's click and collect offer and are being tested by staff at the Waitrose head office in Bracknell.
It is expected the chilled, frozen and ambient lockers will be rolled-out to branches next year. Customers will be receive a text message containing a PIN number, drive to the lockers and collect their shopping.
The service will be free with orders over £50 and will be available the next day if placed before 11.45am.
The fully-automated collection lockers are part of a plan to expand the grocery chain's click and collect offer and are being tested by staff at the Waitrose head office in Bracknell.
It is expected the chilled, frozen and ambient lockers will be rolled-out to branches next year. Customers will be receive a text message containing a PIN number, drive to the lockers and collect their shopping.
The service will be free with orders over £50 and will be available the next day if placed before 11.45am.
Friday, 12 July 2013
Superdry Web Sales Rise 28% After International Expansion
Superdry owner Supergroup said internet sales increased 27.8 per cent in the past year after it added 10 new international sites.
Online sales now account for 11.2 per cent of group sales compared to 10 per cent of group sales the previous year. Total group sales increased 14.9 per cent to £360.4 million in the year to April 28 and retail store like-for-like sales increased 5.7 per cent.
During the year the group added 10 local language sites in Canada, with English and French versions, Denmark, Finalnd, Italy, Norway, Sweden and Switzerland, in French and German. Supergroup said sales of its Superdry brand are now made through 16 web sites to 122 territories.
It said it will continue to launch new overseas sites this year including one in China which will be tested in 2014 and represents an 'exciting opportunity'.
Online sales now account for 11.2 per cent of group sales compared to 10 per cent of group sales the previous year. Total group sales increased 14.9 per cent to £360.4 million in the year to April 28 and retail store like-for-like sales increased 5.7 per cent.
During the year the group added 10 local language sites in Canada, with English and French versions, Denmark, Finalnd, Italy, Norway, Sweden and Switzerland, in French and German. Supergroup said sales of its Superdry brand are now made through 16 web sites to 122 territories.
It said it will continue to launch new overseas sites this year including one in China which will be tested in 2014 and represents an 'exciting opportunity'.
Appliances Online Considers Stock Market Float
Online white goods specialist Appliances Online plans to talk to advisers in the coming weeks about future options that could include a sale of shares to the stock market.
The award winning Bolton-based firm is understood to have been valued at around £300 million - although some experts said that could undervalue the firm at its current rate of growth.
Sales in the year to March 2012 increased 82 per cent to £274 million but the business is also understood to have benefited from the demise of Comet last year. Figures for the latest financial year have not been disclosed.
A decision could be made as soon as this Autumn and could net John Roberts, founder of parent group DRL, £60 million. Appliances Online accounts for about three quarters of DRL's sales with the remainder from third party fulfilment it provides to other retailers including Next, Argos and Boots.
The award winning Bolton-based firm is understood to have been valued at around £300 million - although some experts said that could undervalue the firm at its current rate of growth.
Sales in the year to March 2012 increased 82 per cent to £274 million but the business is also understood to have benefited from the demise of Comet last year. Figures for the latest financial year have not been disclosed.
A decision could be made as soon as this Autumn and could net John Roberts, founder of parent group DRL, £60 million. Appliances Online accounts for about three quarters of DRL's sales with the remainder from third party fulfilment it provides to other retailers including Next, Argos and Boots.
Value Retailer Poundstretcher Takes On The Web
Value chain Poundstretcher has launched a transactional web site for a second time as it tries to stack up low product values with delivery costs.
The retailer has 'soft launched' the site selling 300 mainly seasonal products but including general merchandise and home textiles ranges, according to trade magazine Retail Week's web site.
Mandi Ramoutar, a consultant working across the retailer's online and social networking operations, said the chain would extend product ranges and categories once it tests what customers want.
The firm is offering next day delivery for £6.50 which has prompted higher transaction values as customers spend more to justify the cost, said the magazine. Other value retailers have shunned transactional web sites because they do not make economic sense.
The retailer has 'soft launched' the site selling 300 mainly seasonal products but including general merchandise and home textiles ranges, according to trade magazine Retail Week's web site.
Mandi Ramoutar, a consultant working across the retailer's online and social networking operations, said the chain would extend product ranges and categories once it tests what customers want.
The firm is offering next day delivery for £6.50 which has prompted higher transaction values as customers spend more to justify the cost, said the magazine. Other value retailers have shunned transactional web sites because they do not make economic sense.
Thursday, 11 July 2013
Luxury Brand Burberry Invests In Digital Revolution
Luxury clothing brand Burberry said an 'exceptional' performance at its retail division was partly helped by investment in digital and growth of its online business.
The London-based firm said in a London Stock Exchange announcement that retail revenue increased 18 per cent to £339 million in the 13 weeks to the end of June. Comparable store sales, those open at least a year, climbed 13 per cent.
Burberry said its stores benefited from well-received Spring and Summer ranges, broad-based growth across regions, offline and online; and its investment in its digital platform.
Its wholesale business fared less well in the period and revenues declined by about 10 per cent as economic conditions in some of its markets worsened.
The London-based firm said in a London Stock Exchange announcement that retail revenue increased 18 per cent to £339 million in the 13 weeks to the end of June. Comparable store sales, those open at least a year, climbed 13 per cent.
Burberry said its stores benefited from well-received Spring and Summer ranges, broad-based growth across regions, offline and online; and its investment in its digital platform.
Its wholesale business fared less well in the period and revenues declined by about 10 per cent as economic conditions in some of its markets worsened.
Online Bike Boost for Halfords Pushes Web Sales Up 15.5%
Car and bike specialist Halfords said it received a boost over the past three months from sales of bikes and cycling accessories over the internet.
The retailer said internet sales increased by 15.5 per cent with half of all online revenue coning from sales at its cycling division.
Halfords has increased the number of cycling accessories and clothing available online following Britain's success last year at the Olympics and the Tour de France.
Total sales at Halfords increased 8.8 per cent, including revenue from its Autocentres business. Like-for-like sales at its Halfords stores also increased 8.8 per cent. Like-for-like sales at its cycling division increased 15.5 per cent boosted by online sales and a 32.1 per cent increase at its bike maintenance service.
The retailer said internet sales increased by 15.5 per cent with half of all online revenue coning from sales at its cycling division.
Halfords has increased the number of cycling accessories and clothing available online following Britain's success last year at the Olympics and the Tour de France.
Total sales at Halfords increased 8.8 per cent, including revenue from its Autocentres business. Like-for-like sales at its Halfords stores also increased 8.8 per cent. Like-for-like sales at its cycling division increased 15.5 per cent boosted by online sales and a 32.1 per cent increase at its bike maintenance service.
New York Lingerie Site Adore Me Raises $8.5 Million
The New York-based lingerie web site Adore Me has raised $8.5 million (£5.6 million) for expansion after significant growth since its launch last year.
The firm uses a subscription service, taking women's sizes and delivering a new set of underwear each month.
It is understood to have grown by 40-50 per cent month on month since from launch last year to the early part of this year and made its 100,000th shipment in less than a year, according to Techcrunch.
Investments from Upfront Ventures, Mousse Partners and Redhills Ventures take the total funds raised to $11.2 million.
The firm uses a subscription service, taking women's sizes and delivering a new set of underwear each month.
It is understood to have grown by 40-50 per cent month on month since from launch last year to the early part of this year and made its 100,000th shipment in less than a year, according to Techcrunch.
Investments from Upfront Ventures, Mousse Partners and Redhills Ventures take the total funds raised to $11.2 million.
Wednesday, 10 July 2013
BRC Calls Truce Over Online Tax Row
The British Retail Consortium has told its members to call a truce and cease the public row over calls for an online tax.
The group on Monday held a meeting of finance directors and other representatives from its 30 largest retailers to thrash out details of its proposal to the government on business rates.
However, the group is understood to have broadly agreed that a row over online tax has become increasingly 'damaging'. The BRC is now hoping to devise a proposal that will encompass online retailers - Asos, for example, is a member - rather than penalise them.
In a statement sent to the Guardian after the meeting, the BRC's director general Helen Dickinson said: 'There was consensus that the idea of seeing parts of the retail industry in conflict isn't in the interests of the industry and, most importantly, it isn't what customers want.'
The group on Monday held a meeting of finance directors and other representatives from its 30 largest retailers to thrash out details of its proposal to the government on business rates.
However, the group is understood to have broadly agreed that a row over online tax has become increasingly 'damaging'. The BRC is now hoping to devise a proposal that will encompass online retailers - Asos, for example, is a member - rather than penalise them.
In a statement sent to the Guardian after the meeting, the BRC's director general Helen Dickinson said: 'There was consensus that the idea of seeing parts of the retail industry in conflict isn't in the interests of the industry and, most importantly, it isn't what customers want.'
A Third Of Adults Selling Unwanted Goods Online To Bolster Finances
A third of adults sold unwanted belongings online last year to make cash and help bolster finances.
The number of adult that sold goods for the first time on sites like Ebay and Gumtree increased by 8 per cent or 3.5 million people taking the total to 31 per cent, according to a survey by Standard Life.
Just over one in four adults, or 29 per cent, bought second hand products such as furnityre, gadgets, clothes and cars to save money on purchases, Standard Life said.
The research found that households with children are much more likely to sell unwanted items (41 per cent) than those without (28 per cent). It also indicated that women are more likely to be cashing in on their old possessions (33 per cent) than men (28 per cent).
The number of adult that sold goods for the first time on sites like Ebay and Gumtree increased by 8 per cent or 3.5 million people taking the total to 31 per cent, according to a survey by Standard Life.
Just over one in four adults, or 29 per cent, bought second hand products such as furnityre, gadgets, clothes and cars to save money on purchases, Standard Life said.
The research found that households with children are much more likely to sell unwanted items (41 per cent) than those without (28 per cent). It also indicated that women are more likely to be cashing in on their old possessions (33 per cent) than men (28 per cent).
Film Star Will Smith And Others Invest $53 Million In The Fancy
New York-based crowd-sourced shopping site The Fancy has raised $53 million (£36 million) from investors including film star Will Smith.
The funding was also raised from Ukrainian-born, US investor Len Blavatnik and credit card company American Express valuing the company at $600 million. Fancy.com currently takes about $3 million sales a month, according to Bloomberg.
The site describes itself as 'part store, blog, magazine and wish list' and allows customers to buy or mark products they 'fancy' and the most fancied products get promoted to the top of the site.
New products can find their way onto the site because potential shoppers post photographs of products they would like to buy. The Fancy takes 10 per cent of the sale.
The funding was also raised from Ukrainian-born, US investor Len Blavatnik and credit card company American Express valuing the company at $600 million. Fancy.com currently takes about $3 million sales a month, according to Bloomberg.
The site describes itself as 'part store, blog, magazine and wish list' and allows customers to buy or mark products they 'fancy' and the most fancied products get promoted to the top of the site.
New products can find their way onto the site because potential shoppers post photographs of products they would like to buy. The Fancy takes 10 per cent of the sale.
Tuesday, 9 July 2013
M&S Says Online Sales Rise 30%
Stores giant Marks & Spencer said this morning that online clothing and home sales increased 29.9 per cent in the past three months despite a poor overall performance at its stores.
The company said that like-for-like sales in the 13 weeks to the June 29 increased 0.3 per cent. That included a 1.8 per cent increase in food and a decline of 1.6 per cent in general merchandise, which includes clothing and home.
'M&S.com had a very strong quarter, with customers responding well to the improvements made to the service proposition such as free next day delivery to stores,' the company said. It does not sell food online other than orders of party food to collect in store.
Chief executive Marc Bolland described the food performance as 'another excellent performance'. He added: 'In general merchandise we have seen some improvement, despite difficult trading conditions and further intensification of promotional activity in the market.'
The company said that like-for-like sales in the 13 weeks to the June 29 increased 0.3 per cent. That included a 1.8 per cent increase in food and a decline of 1.6 per cent in general merchandise, which includes clothing and home.
'M&S.com had a very strong quarter, with customers responding well to the improvements made to the service proposition such as free next day delivery to stores,' the company said. It does not sell food online other than orders of party food to collect in store.
Chief executive Marc Bolland described the food performance as 'another excellent performance'. He added: 'In general merchandise we have seen some improvement, despite difficult trading conditions and further intensification of promotional activity in the market.'
A Fifth Of Credit And Debit Card Spending Is Now Online As Internet Sales Surge In June
Spending on the internet surged in June as figures from Barclaycard and the British Retail Consortium suggest consumers are feeling more optimistic.
Barclaycard, which tracks about half of all spending, said online sales rose 12.5 per cent last month. According to the figures, released exclusively to the Mail on Sunday, almost one in five pounds spent last month by British consumers on their credit or debit cards was via the internet.
The newspaper said the dramatic impact of the web was most seen in the electronics sector where one third of all spending is now online.
Overall Barclaycard said consumer spending rose for its fastest rate in 18 months rising 5 per cent in June compared to the same month a year earlier. Total consumer spending was up 3.3 per cent in the first-half compared to the same period in 2012, it said.
Barclaycard, which tracks about half of all spending, said online sales rose 12.5 per cent last month. According to the figures, released exclusively to the Mail on Sunday, almost one in five pounds spent last month by British consumers on their credit or debit cards was via the internet.
The newspaper said the dramatic impact of the web was most seen in the electronics sector where one third of all spending is now online.
Overall Barclaycard said consumer spending rose for its fastest rate in 18 months rising 5 per cent in June compared to the same month a year earlier. Total consumer spending was up 3.3 per cent in the first-half compared to the same period in 2012, it said.
Indian Shoppers Get a Taste For Food Delivery
The Indian food delivery market is expected to grow 45 per cent in the next four years as shoppers in the country get a taste for buying food online.
Harminder Sahni, managing director of consultancy firm Wazir Advisers, told the Economic Times of India that the Indian grocery delivery market will grow from a small base of about $30 million (£20.1 million). That compares to a $370 billion food and grocery market across the country.
Sahni said to the newspaper there were reasons the market remained small compared to the size of the country. 'Indians have a habit of shopping daily for fresh produce, especially veggies, that they tend to pick and feel before purchasing. A reason why they would resist buying veggies and fruits online.'
However, several sites have appeared catering for the new trend including Grocerywaale.com, O!mart.com, Bigbasket.com, Mygrahak.com and ZopNow.com which are hoping to capitalise on the consumers fed up with making the traip to the shops.
Harminder Sahni, managing director of consultancy firm Wazir Advisers, told the Economic Times of India that the Indian grocery delivery market will grow from a small base of about $30 million (£20.1 million). That compares to a $370 billion food and grocery market across the country.
Sahni said to the newspaper there were reasons the market remained small compared to the size of the country. 'Indians have a habit of shopping daily for fresh produce, especially veggies, that they tend to pick and feel before purchasing. A reason why they would resist buying veggies and fruits online.'
However, several sites have appeared catering for the new trend including Grocerywaale.com, O!mart.com, Bigbasket.com, Mygrahak.com and ZopNow.com which are hoping to capitalise on the consumers fed up with making the traip to the shops.
Subscribe to:
Posts (Atom)