Asos founder and chief executive Nick Robertson is in line for a £40 million windfall after hitting performance targets.
The online fashion retailer said two weeks ago that sales growth accelerated after a booming simmer sales and a concerted push into international markets, including Russia.
Total retail sales at Asos in the three months to August 31 increased 47 per cent to £207.9 million. That compares to a 40 per cent increase in the full-year to the same date.
Robertson can sell around 740,000 shares, worth more than £50 each, from today. The company is worth in excess of £4 billion.
Monday, 30 September 2013
Amazon UK Hiring 15,000 Staff For Christmas
Online retail giant Amazon is hiring more than 15,000 temporary staff across the UK to meet the demands of the Christmas rush.
Amazon said recruitment would be ongoing between now and the festive season. The staff will fill a variety of roles across its eight fulfilment centres and at its Edinburgh customer service centre. It said it expects hundreds of the staff to remain at the company on a permanent basis after the seasonal peak.
Amazon recently opened a 210,000 square foot office in central London as it prepares for further expansion and has more than 6,000 permanent employees in the UK.
'On our busiest shopping day last Christmas, customers ordered a total of 3.5 million items during one 24-hour period at a rate of 44 items a second. During the Christmas season, seasonal associates play a critical role in making sure we meet increased demand from customers,' said Catherine McDermott, director of operations at Amazon UK.
'As we continue to expand our UK operations, we expect many hundreds of these temporary associates to move into permanent positions as has been the case in previous years,' she said.
Last year it hired 10,000 seasonal staff in the run-up to the festive season and offered continuing roles to 1,000 temporary workers by the end of January, Amazon said.
Amazon's eight fulfilment centres are in Doncaster, Dunfermline, Gourock in Inverclyde, Hemel Hempstead, Milton Keynes, Peterborough, Rugeley in Staffordshire and Swansea Bay.
Amazon said recruitment would be ongoing between now and the festive season. The staff will fill a variety of roles across its eight fulfilment centres and at its Edinburgh customer service centre. It said it expects hundreds of the staff to remain at the company on a permanent basis after the seasonal peak.
Amazon recently opened a 210,000 square foot office in central London as it prepares for further expansion and has more than 6,000 permanent employees in the UK.
'On our busiest shopping day last Christmas, customers ordered a total of 3.5 million items during one 24-hour period at a rate of 44 items a second. During the Christmas season, seasonal associates play a critical role in making sure we meet increased demand from customers,' said Catherine McDermott, director of operations at Amazon UK.
'As we continue to expand our UK operations, we expect many hundreds of these temporary associates to move into permanent positions as has been the case in previous years,' she said.
Last year it hired 10,000 seasonal staff in the run-up to the festive season and offered continuing roles to 1,000 temporary workers by the end of January, Amazon said.
Amazon's eight fulfilment centres are in Doncaster, Dunfermline, Gourock in Inverclyde, Hemel Hempstead, Milton Keynes, Peterborough, Rugeley in Staffordshire and Swansea Bay.
Sunday, 29 September 2013
All Online Shopping Growth Coming From Mobile Devices, Says IMRG
Internet shopping from desktop and laptop computers has 'flat-lined' as consumers switch to shopping on their smartphones and tablet computers.
According to the research by internet retailers' association the IMRG and tech consultancy Capgemini, all online growth is now coming from mobile devices after the rapid uptake of gadgets like the iPad and the Kindle Fire over the past two years.
The IMRG said it had stripped out mobile shopping data (see graph below) and found that a 'tipping point' in consumer behaviour was reached in the second quarter this year - measured from May to July.
The research showed that 23 per cent of all online retail came from mobile, double the same period a year earlier. Close examination of the data and a recent acceleration in internet shopping since the end of July has prompted the IMRG and Capgemini to raise its forecast for 2013 from an increase of 12 per cent to 15 per cent.
That means the slowing growth seen in internet shopping over the past three years is set to reverse as online shopping becomes more accessible to more people more of the time.
The IMRG said smartphones have made the internet available to a wider demographic than laptops and desktops, and allowed faster and more convenient browsing. It added that retailers investment in mobile sites and provision of additional payment options have improved the experience.
Tablet sales currently account for 85 per cent of mobile sales in the year to date. But it appears smartphones have seen a greater rate of growth, increasing 210 per cent compared to 130 per cent for tablets in the second quarter.
But it said the lines between the two are becoming 'increasingly blurred' as tablets become smaller, phones become larger, and the production of laptops that can be converted to tablets.
'The latest findings, together with the continuing trend of triple-digit growth in mobile commerce, provide clear evidence of a culture change in digital shopping. Smartphones and tablets offer the kind of experience the modern consumer wants – quick access, wherever and whenever they want it. Second screening - using devices in front of the TV - has turned online shopping into a leisure activity that is fully compatible with our home entertainment lifestyles,' said Tina Spooner, chief information officer at the IMRG.
Chris Webster head of retail and technology at Capgemini: 'As e-retail becomes ubiquitous, the annual growth in the Index has been slowly declining - 18 per cent in 2010, 16 per cent in 2011 and 14 per cent in 2012. However, similar to the impact the introduction of broadband had on the Index in 2006, the access to new technology and connectivity has supported an increase in the rate of growth once again.'
However, he said retailers are only 'scratching the surface' of the ways in which mobile devices can be used to connect with consumers. He said the introduction of finger print technology on the latest smartphones, for example, will increase trust and personalisation of digital services.
Kate Smyth, director of e-commerce at shoe retailer Dune said: 'The findings from the IMRG study completely agree with what we have been seeing at Dune, mobile and tablets are becoming the dominant devices used to interact with a brand online. Mobile has been our priority for a while and the possibilities are really exciting. We have a mobile version of the site, developed content designed for touch and we use mobile technology in store to help locate stock and reduce queues - but the road map for mobile and tablets is key as the devices become part of every household.'
According to the research by internet retailers' association the IMRG and tech consultancy Capgemini, all online growth is now coming from mobile devices after the rapid uptake of gadgets like the iPad and the Kindle Fire over the past two years.
The IMRG said it had stripped out mobile shopping data (see graph below) and found that a 'tipping point' in consumer behaviour was reached in the second quarter this year - measured from May to July.
The research showed that 23 per cent of all online retail came from mobile, double the same period a year earlier. Close examination of the data and a recent acceleration in internet shopping since the end of July has prompted the IMRG and Capgemini to raise its forecast for 2013 from an increase of 12 per cent to 15 per cent.
That means the slowing growth seen in internet shopping over the past three years is set to reverse as online shopping becomes more accessible to more people more of the time.
The IMRG said smartphones have made the internet available to a wider demographic than laptops and desktops, and allowed faster and more convenient browsing. It added that retailers investment in mobile sites and provision of additional payment options have improved the experience.
Tablet sales currently account for 85 per cent of mobile sales in the year to date. But it appears smartphones have seen a greater rate of growth, increasing 210 per cent compared to 130 per cent for tablets in the second quarter.
But it said the lines between the two are becoming 'increasingly blurred' as tablets become smaller, phones become larger, and the production of laptops that can be converted to tablets.
'The latest findings, together with the continuing trend of triple-digit growth in mobile commerce, provide clear evidence of a culture change in digital shopping. Smartphones and tablets offer the kind of experience the modern consumer wants – quick access, wherever and whenever they want it. Second screening - using devices in front of the TV - has turned online shopping into a leisure activity that is fully compatible with our home entertainment lifestyles,' said Tina Spooner, chief information officer at the IMRG.
Chris Webster head of retail and technology at Capgemini: 'As e-retail becomes ubiquitous, the annual growth in the Index has been slowly declining - 18 per cent in 2010, 16 per cent in 2011 and 14 per cent in 2012. However, similar to the impact the introduction of broadband had on the Index in 2006, the access to new technology and connectivity has supported an increase in the rate of growth once again.'
However, he said retailers are only 'scratching the surface' of the ways in which mobile devices can be used to connect with consumers. He said the introduction of finger print technology on the latest smartphones, for example, will increase trust and personalisation of digital services.
Kate Smyth, director of e-commerce at shoe retailer Dune said: 'The findings from the IMRG study completely agree with what we have been seeing at Dune, mobile and tablets are becoming the dominant devices used to interact with a brand online. Mobile has been our priority for a while and the possibilities are really exciting. We have a mobile version of the site, developed content designed for touch and we use mobile technology in store to help locate stock and reduce queues - but the road map for mobile and tablets is key as the devices become part of every household.'
Saturday, 28 September 2013
Laura Ashley's Online Sales Dip For First Time As It Overhauls Systems For Growth
Internet sales at Laura Ashley have dropped for the first time after the company overhauled its systems as part of a turnaround plan.
E-commerce sales in the 26 weeks to July 27 declined 3.7 per cent to £19.7 million compared to an increase of 21.4 per cent in the same period the previous year.
Internet sales now represent 16.4 per cent of sales - more than most of its high street neighbours - compared to 16 per cent in the first-half last year.
'Significant systems enhancements in customer ordering were undertaken during the first half which naturally had some impact on operations but will improve the performance of the business and enhance the customer experience going forward,' the company said in a statement.
'Work also continues on website improvement and enhancement as we continue to implement our multi channel strategy,' it added.
E-commerce sales in the 26 weeks to July 27 declined 3.7 per cent to £19.7 million compared to an increase of 21.4 per cent in the same period the previous year.
Internet sales now represent 16.4 per cent of sales - more than most of its high street neighbours - compared to 16 per cent in the first-half last year.
'Significant systems enhancements in customer ordering were undertaken during the first half which naturally had some impact on operations but will improve the performance of the business and enhance the customer experience going forward,' the company said in a statement.
'Work also continues on website improvement and enhancement as we continue to implement our multi channel strategy,' it added.
Friday, 27 September 2013
Retailers Still 'Struggling' To Tackle Online, Says M&S Internet Chief
Retailers are still struggling to win on the internet because some main board directors 'haven't a clue' about online, according to the internet boss of Marks & Spencer.
Laura Wade-Gery, Marks & Spencer's multichannel director, said her equivalents in other businesses are struggling to get their voices heard with the executive board.
Other directors need to be 'sufficiently digitally literate' for multichannel directors to have a chance at winning them over, she said.
'I talk to some of the heads of online in other retailers and they’re struggling. They turn up in the boardroom and nobody really has any clue about what they’re talking about, and that matters,' she told Retail Week in an interview.
'It’s easier to get them to spend the money if you’re talking to a group of people who know what you’re taking about,' said Wade-Gery.
Laura Wade-Gery, Marks & Spencer's multichannel director, said her equivalents in other businesses are struggling to get their voices heard with the executive board.
Other directors need to be 'sufficiently digitally literate' for multichannel directors to have a chance at winning them over, she said.
'I talk to some of the heads of online in other retailers and they’re struggling. They turn up in the boardroom and nobody really has any clue about what they’re talking about, and that matters,' she told Retail Week in an interview.
'It’s easier to get them to spend the money if you’re talking to a group of people who know what you’re taking about,' said Wade-Gery.
Thursday, 26 September 2013
Moss Bros Plans Foreign Website Venture As Internet Sales Rise 164%
Menswear retailer Moss Bros said it plans to launch a series of overseas websites after a surge in sales at its internet business.
The retailer said it plans to launch 'a number' of country-specific websites in the second half of its financial year that will allow customers to pay in foreign currencies.
Total internet sales at the business increased 164 per cent in the six months to July 27 compared with an increase in 138 per cent in the first 18 weeks of the year, according to a statement this morning.
The increase followed the relaunch of the site in January but accelerated after it added a mobile friendly option in May, it said.
'The new retail website has seen significant increases in customer traffic flow and conversion rates from launch,' the company said in a statement this morning. The addition of the mobile-friendly site in May had 'an immediate impact' and already contributes 8 per cent of internet sales.
Moss Bros also plans to introduce a transactional website this month for its suit hire business - which contributes 17 per cent of total sales at the business. It will be launched with a full catalogue offer but will not be transactional until November, in time for the Christmas hire season and the 2014 wedding season.
Total sales at the business increased 1.2 per cent in the six month period and like-for-like sales at its retail business, excluding suit hire, increased 1.7 per cent. Overall like-for-like sales were level after a dip in demand during this year's wedding season hit its hire business.
Profit at continuing operations was level with last year at £2.2 million. But Moss Bros said it increased its dividend by 50 per cent to illustrate its confidence in its future trading plans, store refit programme and a more targeted marketing strategy.
The retailer said it plans to launch 'a number' of country-specific websites in the second half of its financial year that will allow customers to pay in foreign currencies.
Total internet sales at the business increased 164 per cent in the six months to July 27 compared with an increase in 138 per cent in the first 18 weeks of the year, according to a statement this morning.
The increase followed the relaunch of the site in January but accelerated after it added a mobile friendly option in May, it said.
'The new retail website has seen significant increases in customer traffic flow and conversion rates from launch,' the company said in a statement this morning. The addition of the mobile-friendly site in May had 'an immediate impact' and already contributes 8 per cent of internet sales.
Moss Bros also plans to introduce a transactional website this month for its suit hire business - which contributes 17 per cent of total sales at the business. It will be launched with a full catalogue offer but will not be transactional until November, in time for the Christmas hire season and the 2014 wedding season.
Total sales at the business increased 1.2 per cent in the six month period and like-for-like sales at its retail business, excluding suit hire, increased 1.7 per cent. Overall like-for-like sales were level after a dip in demand during this year's wedding season hit its hire business.
Profit at continuing operations was level with last year at £2.2 million. But Moss Bros said it increased its dividend by 50 per cent to illustrate its confidence in its future trading plans, store refit programme and a more targeted marketing strategy.
House Of Fraser Says Online Sales Rise Will Boost Profit
Online sales at House of Fraser are expected to contribute to a rise in profit this year after it added more brands and delivery options.
The company said online sales grew 57 per cent in the six months to July 27 as its Buy & Collect service boosted sales. It included new ordering choices over summer with a next evening delivery service and a seven day a week delivery or collection options.
It also launched new brands at its online shop including Superdry which has performed well for it in store.
The 60-store retailer said group like-for-like sales increased 3.3 per cent because of the rise in sales over the internet. It also said demand for its own label ranges boosted performance with sales of brands such as Linea, Label Lab and Howick up 13 per cent.
Adjusted profit before interest, tax, depreciation and amortisation was £7.5 million the same as last year, but management said earnings would grow in the coming months.
House of Fraser chief executive John King said: 'We took deliberate action to continue to invest in our multi-channel and House Brand businesses which has meant higher costs in the first half resulting in EBITDA being level. However, we expect that this investment will deliver growth for the second-half.'
He said: 'We remain confident that the Group's business model, with our premium brand positioning, growing House Brand mix and multi-channel operations, positions us strongly for the foreseeable future.
Like for like sales in the first eight weeks of its second-half to September 21 rose 1.1 per cent.
The company said online sales grew 57 per cent in the six months to July 27 as its Buy & Collect service boosted sales. It included new ordering choices over summer with a next evening delivery service and a seven day a week delivery or collection options.
It also launched new brands at its online shop including Superdry which has performed well for it in store.
The 60-store retailer said group like-for-like sales increased 3.3 per cent because of the rise in sales over the internet. It also said demand for its own label ranges boosted performance with sales of brands such as Linea, Label Lab and Howick up 13 per cent.
Adjusted profit before interest, tax, depreciation and amortisation was £7.5 million the same as last year, but management said earnings would grow in the coming months.
House of Fraser chief executive John King said: 'We took deliberate action to continue to invest in our multi-channel and House Brand businesses which has meant higher costs in the first half resulting in EBITDA being level. However, we expect that this investment will deliver growth for the second-half.'
He said: 'We remain confident that the Group's business model, with our premium brand positioning, growing House Brand mix and multi-channel operations, positions us strongly for the foreseeable future.
Like for like sales in the first eight weeks of its second-half to September 21 rose 1.1 per cent.
Wednesday, 25 September 2013
Cath Kidston Plans French Language Site To Grow European Business
Homewares and fashion designer Cath Kidston has relaunched her website to allow local payments and plans to introduce foreign language sites beginning later this year.
She has recently relaunched the site as part of its 20th anniversary celebrations and has also begun accepting euros and dollars. The site gives options to select delivery to more than 90 countries in Europe, the Middle East, Asia and the Americas.
So far few of the sites offer targeted product options or local currencies and none are translated to foreign languages. But the retailer will begin trading from a French language site by Christmas.
The new developments are part of a tie-up with BT Expedite which has introduced online ratings, reviews, wishlists, e-vouchers and a range of delivery options such as click and collect as part of the relaunch.
Cath Kidston announced in May that it had selected BT Expedite and Fresca to revamp the website following record online growth outside the UK, especially in the US and Australia.
The site is now integrated into the retailer’s call centre as part of an overhaul of the system that allows internet customers to manage their orders over the phone.
A mobile optimised site will go live in the coming weeks.
Amy Bastow, e-commerce director at Cath Kidston, said the recently relaunched site is 'trading well'.
She has recently relaunched the site as part of its 20th anniversary celebrations and has also begun accepting euros and dollars. The site gives options to select delivery to more than 90 countries in Europe, the Middle East, Asia and the Americas.
So far few of the sites offer targeted product options or local currencies and none are translated to foreign languages. But the retailer will begin trading from a French language site by Christmas.
The new developments are part of a tie-up with BT Expedite which has introduced online ratings, reviews, wishlists, e-vouchers and a range of delivery options such as click and collect as part of the relaunch.
Cath Kidston announced in May that it had selected BT Expedite and Fresca to revamp the website following record online growth outside the UK, especially in the US and Australia.
The site is now integrated into the retailer’s call centre as part of an overhaul of the system that allows internet customers to manage their orders over the phone.
A mobile optimised site will go live in the coming weeks.
Amy Bastow, e-commerce director at Cath Kidston, said the recently relaunched site is 'trading well'.
Tuesday, 24 September 2013
Ebay and Argos Make Click And Collect Pact
Ebay has agreed to trial a new service that will allow shoppers to pick up selected orders at Argos stores.
The agreement is a world first for eBay which said it had chosen the UK because the penetration of click and collect is higher than any of its other markets. It is also the first time a UK retailer has partnered with an online retailer in this way.
The scheme, between two retailers that many would consider rivals, is being piloted in around 150 of Argos' 700 shops. It includes at least 50 eBay merchants - which are expected to be named within the next month.
The tie up could challenge the CollectPlus service which is already used by Amazon, eBay and other online retailers. It could also overshadow Amazon's Locker scheme - a far less prolific proposition than CollectPlus that uses passcode lockers at local shops such as Spar convenience stores or Co-operative supermarkets.
Online retailers are desperately seeking ways to help customers avoid the growing headache of missing deliveries or the inflexibility of some delivery options.
It is expected that more such tie-ups between retailers and pure-play e-commerce retailers could be on the way - particularly if the eBay-Argos trial proves successful.
Argos has limited the trial to six months to ensure that can test whether the partnership will cannibalise its sales or disrupts its stores.
The Argos Check & Reserve service, launched back in the year 2000, currently accounts for about a third of the retailer's business. Argos managing director John Walden pointed out that Argos already partners with aBay by selling its products through the web site.
'We look forward to assessing the opportunity for Argos to provide fulfilment for eBay's merchants, including the operational requirements, attractiveness to sellers and consumers, and opportunity for increased customer footfall,' said Walden.
Ebay also said it plans to launch a one-hour delivery service in London next year. Ebay operates the 'eBay Now' service in New York and San Francisco that allows shoppers to receive orders from Toys R Us, Urban Outfitters, Home Depot and other local stores within an hour of completing their order for a $5 charge.
Ebay president of Marketplaces Devin Wenig said: 'Traditional retail isn't going away; it is transforming. Smart retailers are innovating, reimagining the store and what it means to shop. We're proud to join Argos on this journey. Their unique store network and operating model is fit for serving customers in a digital future.'
The agreement is a world first for eBay which said it had chosen the UK because the penetration of click and collect is higher than any of its other markets. It is also the first time a UK retailer has partnered with an online retailer in this way.
The scheme, between two retailers that many would consider rivals, is being piloted in around 150 of Argos' 700 shops. It includes at least 50 eBay merchants - which are expected to be named within the next month.
The tie up could challenge the CollectPlus service which is already used by Amazon, eBay and other online retailers. It could also overshadow Amazon's Locker scheme - a far less prolific proposition than CollectPlus that uses passcode lockers at local shops such as Spar convenience stores or Co-operative supermarkets.
Online retailers are desperately seeking ways to help customers avoid the growing headache of missing deliveries or the inflexibility of some delivery options.
It is expected that more such tie-ups between retailers and pure-play e-commerce retailers could be on the way - particularly if the eBay-Argos trial proves successful.
Argos has limited the trial to six months to ensure that can test whether the partnership will cannibalise its sales or disrupts its stores.
The Argos Check & Reserve service, launched back in the year 2000, currently accounts for about a third of the retailer's business. Argos managing director John Walden pointed out that Argos already partners with aBay by selling its products through the web site.
'We look forward to assessing the opportunity for Argos to provide fulfilment for eBay's merchants, including the operational requirements, attractiveness to sellers and consumers, and opportunity for increased customer footfall,' said Walden.
Ebay also said it plans to launch a one-hour delivery service in London next year. Ebay operates the 'eBay Now' service in New York and San Francisco that allows shoppers to receive orders from Toys R Us, Urban Outfitters, Home Depot and other local stores within an hour of completing their order for a $5 charge.
Ebay president of Marketplaces Devin Wenig said: 'Traditional retail isn't going away; it is transforming. Smart retailers are innovating, reimagining the store and what it means to shop. We're proud to join Argos on this journey. Their unique store network and operating model is fit for serving customers in a digital future.'
Monday, 23 September 2013
The Tesco Tablet: Misguided Gimmick Or New Dawn In Digital Era
Tesco is poised to take a step ahead of rivals in the digital battleground with the launch of a new £119 tablet computer called Hudl.
The grocery giant wants to use the device to help alter customer perceptions and transform itself into the go-to point of contact for digital products and services.
The 7 inch tablet, due to launch a week today online and in larger stores, will compete with better known iPad, Samsung and Kindle devices while also aiming to hook customers to its own brand products and services.
Although it controls half the grocery delivery market, its online non-food business has floundered in relative terms and until the past two years it was falling behind in other aspects of the digital market. But it has also invested heavily since then to provide other online services.
The device will be available to Clubcard users for half price through an enhanced points scheme offer and is specifically aimed at providing entertainment and online shopping. A launch button takes customers to its digital services, including online shopping and banking, Blinkbox films and TV streaming and Clubcard TV.
Tesco, which last year issued its first profit warning since most people can remember - at least 20 years - says the device will make tablet technology more affordable to the three-quarters of British households that do not own a tablet. It has been tested on as many as 100 customers in its beta stage.
Amazon's 7 inch Kindle Fire retails at £99 but has less memory and a slower processor. The Hudl, built by Taiwanese manufacturer Wistron, has 16GB of memory, dual band WiFi and uses Google's Android system. Apple's Ipad mini costs at least £269.
Tesco chief information officer Mike McNamara said the tablet's specifications 'beat similarly priced products on the market hands down'.
Ofcom says a quarter of UK households owned a tablet computer as of March this year when ownership doubled compared to the previous year.
However, Tesco is likely to face problems in the technological race against hardware specialists such as Apple and the likes of Amazon which has shown it is willing to dig deep to develop new products and services and put rivals in the shade.
Tesco will be hoping it can continue to produce a cheap alternative that will appeal to financially hard-pressed families that are willing to dispense with cutting edge functionality for access to the technology.
Holders of a Clubcard will be able to double the value of the loyalty reward vouchers which means they could purchase the device for £60, Tesco says.
Whether they oblige the supermarket giant by following though and purchasing its goods and services in return remains to be seen.
The grocery giant wants to use the device to help alter customer perceptions and transform itself into the go-to point of contact for digital products and services.
The 7 inch tablet, due to launch a week today online and in larger stores, will compete with better known iPad, Samsung and Kindle devices while also aiming to hook customers to its own brand products and services.
Although it controls half the grocery delivery market, its online non-food business has floundered in relative terms and until the past two years it was falling behind in other aspects of the digital market. But it has also invested heavily since then to provide other online services.
The device will be available to Clubcard users for half price through an enhanced points scheme offer and is specifically aimed at providing entertainment and online shopping. A launch button takes customers to its digital services, including online shopping and banking, Blinkbox films and TV streaming and Clubcard TV.
Tesco, which last year issued its first profit warning since most people can remember - at least 20 years - says the device will make tablet technology more affordable to the three-quarters of British households that do not own a tablet. It has been tested on as many as 100 customers in its beta stage.
Amazon's 7 inch Kindle Fire retails at £99 but has less memory and a slower processor. The Hudl, built by Taiwanese manufacturer Wistron, has 16GB of memory, dual band WiFi and uses Google's Android system. Apple's Ipad mini costs at least £269.
Tesco chief information officer Mike McNamara said the tablet's specifications 'beat similarly priced products on the market hands down'.
Ofcom says a quarter of UK households owned a tablet computer as of March this year when ownership doubled compared to the previous year.
However, Tesco is likely to face problems in the technological race against hardware specialists such as Apple and the likes of Amazon which has shown it is willing to dig deep to develop new products and services and put rivals in the shade.
Tesco will be hoping it can continue to produce a cheap alternative that will appeal to financially hard-pressed families that are willing to dispense with cutting edge functionality for access to the technology.
Holders of a Clubcard will be able to double the value of the loyalty reward vouchers which means they could purchase the device for £60, Tesco says.
Whether they oblige the supermarket giant by following though and purchasing its goods and services in return remains to be seen.
Sunday, 22 September 2013
Boden Executives Get £9.8 million Bonus
The founder of Boden will get the lions share of s £9.8 million dividend payment after a jump in profit at the business.
Sales in the year to December increased 8 per cent to £265 million following success overseas in countries such as the US and Germany/ Profit rose by a third to £24.3 million.
Founder Johnnie Boden is expected to get the majority of the dividend while other executives including chief executive Julian Glanville will receive a share.
Glanville said there was potential to capitalise on the brand's 'uplifting British values' abroad. He said: 'The British consumer is squeezed, fundamentally. But there is beginning to be a sense of optimism about a gradual improvement in the economy,' the Sunday Times said.
Sales in the year to December increased 8 per cent to £265 million following success overseas in countries such as the US and Germany/ Profit rose by a third to £24.3 million.
Founder Johnnie Boden is expected to get the majority of the dividend while other executives including chief executive Julian Glanville will receive a share.
Glanville said there was potential to capitalise on the brand's 'uplifting British values' abroad. He said: 'The British consumer is squeezed, fundamentally. But there is beginning to be a sense of optimism about a gradual improvement in the economy,' the Sunday Times said.
Ocado 'Has Held Talks With Carrefour and Safeway'
Ocado has held preliminary talks with at least two overseas retailers over potential licensing deals, according to the Sunday Times newspaper.
Chief executive Tim Steiner told city analysts last week the delivery firm has 'held talks with various overseas retailers' but cautioned that it is currently focusing its efforts on launching its service with Morrisons by January, the newspaper said.
The report said the retailers are understood to include France's Carrefour and Safeway in the US.
It also said Steiner, who founded the business 13 years ago, is expected to benefit from a £20 windfall from an executive bonus set up before the 2010 stock market float. The plan allowed him to buy more than 10 million shares at £2 each.
Last week Ocado shares hit a record 435p before closing at 402.4p. Steiner, who also owns 5 per cent of the delivery firm worth £115 million, can cash in 7.5 million of the shares straight away and can exercise the rest in January.
The surge in the share price is in part due to revised perceptions of the firm following its talks with retailers other than its existing sole client Waitrose. In May it announced a partnership with Morrisons to launch a delivery service for the grocer by January.
Chief executive Tim Steiner told city analysts last week the delivery firm has 'held talks with various overseas retailers' but cautioned that it is currently focusing its efforts on launching its service with Morrisons by January, the newspaper said.
The report said the retailers are understood to include France's Carrefour and Safeway in the US.
It also said Steiner, who founded the business 13 years ago, is expected to benefit from a £20 windfall from an executive bonus set up before the 2010 stock market float. The plan allowed him to buy more than 10 million shares at £2 each.
Last week Ocado shares hit a record 435p before closing at 402.4p. Steiner, who also owns 5 per cent of the delivery firm worth £115 million, can cash in 7.5 million of the shares straight away and can exercise the rest in January.
The surge in the share price is in part due to revised perceptions of the firm following its talks with retailers other than its existing sole client Waitrose. In May it announced a partnership with Morrisons to launch a delivery service for the grocer by January.
Saturday, 21 September 2013
'More Enjoyable' Internet Shopping Will Rise To £50 billion
British consumers are turning their backs on days out at the shops helping push online sales towards an estimated £50 billion over the next five years.
Only 4 per cent more people now say physical shopping is more enjoyable than internet shipping compared to a difference of 25 per cent last year, according to a survey of 10.000 shoppers by Verdict.
The advantage in 'enjoyment' previously held by physical retailers seems to be losing its advantage among both men and among 35 to 54 year olds, who are already finding online shopping more enjoyable.
'Shops need to work harder to give people reasons to enter their stores, through improved customer service, events and engaging shopping environments,' the Verdict report said.
Verdict estimates internet shopping will rise by almost 50 per cent from a forecast £34 billion this year. It expects retail sales to increase 12 per cent this year as orders from more accessible and cheaper tablets surged over the past two years, overtaking those from smartphones.
The proportion of online shopping bought on tablets is 11.7 per cent compared to 6 per cent on smartphones.
The survey also illustrates how regularly people interact with the online world, including the rise of 'second screening' - browsing while watching TV - with 67 per cent saying they had shopped from their living room.
'Together with the ability to browse on smartphones wherever you are, and social media, has made online shopping a much more immersive and interactive experience than it was only a few years ago, when more shoppers tended to be restricted to desktops typically located away from the living room,' Verdict said.
However, the study also dismisses the 'showrooming myth' that smartphone users are shopping at rival internet sites while in store, said Verdict lead analyst Patrick O'Brien. He said only 2 per cent of online shoppers have bought while at a retail premises compared to 97 per cent at home and 15 per cent at work.
'Rather than making consumers agnostic about where they make their purchases, smartphones and tablets are used in stores mainly to check prices and product details,' said O'Brien.
That directly contradicts research published earlier this week from internet consultancy Omnico from more than 1,300 shoppers that suggested 10 per cent have indulged in showrooming.
'Shopping has always been a form of entertainment and this is becoming more apparent as the technology that supports online shopping improves and develops,' said Shingo Murakami, managing director of Rakuten’s Play.com, commenting on Verdict's research.
'For many years retailers have struggled to bring the personalised and engaging experience of the bricks-and-mortar shop on to their website, but the balance is now shifting with the digital experience rivalling and sometimes even surpassing the in-store. With Christmas on the horizon, retailers will need to go the extra mile to ensure that the Christmas shopping list doesn’t become a chore - providing a fun and fulfilling experience will be the key to encouraging customers to return in 2014,' he said.
Only 4 per cent more people now say physical shopping is more enjoyable than internet shipping compared to a difference of 25 per cent last year, according to a survey of 10.000 shoppers by Verdict.
The advantage in 'enjoyment' previously held by physical retailers seems to be losing its advantage among both men and among 35 to 54 year olds, who are already finding online shopping more enjoyable.
'Shops need to work harder to give people reasons to enter their stores, through improved customer service, events and engaging shopping environments,' the Verdict report said.
Verdict estimates internet shopping will rise by almost 50 per cent from a forecast £34 billion this year. It expects retail sales to increase 12 per cent this year as orders from more accessible and cheaper tablets surged over the past two years, overtaking those from smartphones.
The proportion of online shopping bought on tablets is 11.7 per cent compared to 6 per cent on smartphones.
The survey also illustrates how regularly people interact with the online world, including the rise of 'second screening' - browsing while watching TV - with 67 per cent saying they had shopped from their living room.
'Together with the ability to browse on smartphones wherever you are, and social media, has made online shopping a much more immersive and interactive experience than it was only a few years ago, when more shoppers tended to be restricted to desktops typically located away from the living room,' Verdict said.
However, the study also dismisses the 'showrooming myth' that smartphone users are shopping at rival internet sites while in store, said Verdict lead analyst Patrick O'Brien. He said only 2 per cent of online shoppers have bought while at a retail premises compared to 97 per cent at home and 15 per cent at work.
'Rather than making consumers agnostic about where they make their purchases, smartphones and tablets are used in stores mainly to check prices and product details,' said O'Brien.
That directly contradicts research published earlier this week from internet consultancy Omnico from more than 1,300 shoppers that suggested 10 per cent have indulged in showrooming.
'Shopping has always been a form of entertainment and this is becoming more apparent as the technology that supports online shopping improves and develops,' said Shingo Murakami, managing director of Rakuten’s Play.com, commenting on Verdict's research.
'For many years retailers have struggled to bring the personalised and engaging experience of the bricks-and-mortar shop on to their website, but the balance is now shifting with the digital experience rivalling and sometimes even surpassing the in-store. With Christmas on the horizon, retailers will need to go the extra mile to ensure that the Christmas shopping list doesn’t become a chore - providing a fun and fulfilling experience will be the key to encouraging customers to return in 2014,' he said.
Friday, 20 September 2013
Online Sales Riding High at 22.5% In August, Says ONS
Online sales in August surged 22.5 per cent in August after customers returned to the internet to buy their goods.
The increase was flattered by a slow July when a heatwave encouraged many shoppers to visit the high street which resulted a swing back to the internet last month at many retailers, such as John Lewis.
There was also a lull during an 'unusually low' online shopping traffic month in August last year during the London Olympics which helped cause this year's spike, according to the Office of National Statistics.
Total sales over the internet reached £579.6 million per week or 9.7 per cent of total retail sales, excluding fuel. The biggest jump was at department stores with a 30 per cent rise in online sales and now accounting for 8.3 per cent of total sales.
The amount of food sold online increased 15.6 per cent and now accounts for 3.2 per cent of sales in the grocery sector.
The total quantity bought in the retail sector increased 2.1 per cent, continuing the underlying pattern of growth seen since April, the ONS said.
Despite strong growth online, the ONS said there was considerable 'downward pressure' from the grocery sector where consumers are studying bills and seeking ways to cut back.
The increase was flattered by a slow July when a heatwave encouraged many shoppers to visit the high street which resulted a swing back to the internet last month at many retailers, such as John Lewis.
There was also a lull during an 'unusually low' online shopping traffic month in August last year during the London Olympics which helped cause this year's spike, according to the Office of National Statistics.
Total sales over the internet reached £579.6 million per week or 9.7 per cent of total retail sales, excluding fuel. The biggest jump was at department stores with a 30 per cent rise in online sales and now accounting for 8.3 per cent of total sales.
The amount of food sold online increased 15.6 per cent and now accounts for 3.2 per cent of sales in the grocery sector.
The total quantity bought in the retail sector increased 2.1 per cent, continuing the underlying pattern of growth seen since April, the ONS said.
Despite strong growth online, the ONS said there was considerable 'downward pressure' from the grocery sector where consumers are studying bills and seeking ways to cut back.
Barefaced Cheek Or The New Frontier? One In Ten Shoppers Buy Goods From Rivals In Store
One in ten shoppers have bought a product from a rival retailer's website while 'showrooming' in store.
The number rose to 15 per cent for 16-24 year olds, according to the survey of more than 1,300 UK consumers, says online strategy consultant Omnico.
Almost a third of shoppers, 29 per cent, said they had used their smartphones to compare prices while 23 per cent said they looked at product reviews to inform a decision.
'Showrooming is here to stay, whether retailers like it or not. Some retailers try to stop it, by ignoring consumers’ desire for free wi-fi or even blocking mobile signals, but this is a short sighted view. Instead, it can be embraced, by offering assisted selling and integrating their mobile and web channels to offer genuine omni-channel retail,' said Steve Thomas, chief information officer at Omnico.
The survey showed that 15 per cent said they had checked the retailer's own website while standing in a store to compare shelf prices to those on its internet site and to check stock availability for online ordering.
The survey is published as Dixons prepares to launch an app to promote showrooming at its Currys and PC World stores.
Thomas said: 'Yes, price is very important, but there are many other factors that encourage loyalty to a brand and omni-channel, such as convenience and quality of service. Consumers are using their smartphones to join up channels their own way, and this means often going to retailers’ competitors to get advice and find the best deal.'
The number rose to 15 per cent for 16-24 year olds, according to the survey of more than 1,300 UK consumers, says online strategy consultant Omnico.
Almost a third of shoppers, 29 per cent, said they had used their smartphones to compare prices while 23 per cent said they looked at product reviews to inform a decision.
'Showrooming is here to stay, whether retailers like it or not. Some retailers try to stop it, by ignoring consumers’ desire for free wi-fi or even blocking mobile signals, but this is a short sighted view. Instead, it can be embraced, by offering assisted selling and integrating their mobile and web channels to offer genuine omni-channel retail,' said Steve Thomas, chief information officer at Omnico.
The survey showed that 15 per cent said they had checked the retailer's own website while standing in a store to compare shelf prices to those on its internet site and to check stock availability for online ordering.
The survey is published as Dixons prepares to launch an app to promote showrooming at its Currys and PC World stores.
Thomas said: 'Yes, price is very important, but there are many other factors that encourage loyalty to a brand and omni-channel, such as convenience and quality of service. Consumers are using their smartphones to join up channels their own way, and this means often going to retailers’ competitors to get advice and find the best deal.'
Thursday, 19 September 2013
Asos Sales Accelerate As International Push Bears Fruit
Sales at online fashion phenomenon Asos have accelerated after booming summer sales and following a push into new markets including Russia.
Total retail sales in the past three months to August 31 increased 47 per cent to £207.9 million. That compared to a 40 per cent increase in the full-year to the same date.
In the quarter, UK retail sales increased by 49 per cent, Europe grew by 73 per cent, the US rose 59 per cent and the rest of the world by 26 per cent.
Nick Robertson, founder and chief executive described the performance as a 'strong finish to the financial year'. Asos said profit for the year would be 'marginally above expectations.'
Annual sales were boosted by a 57 per cent rise in US sales to £77.7 million and a 51 per cent increase in Europe to £177.7 million.
UK sales grew 34 per cent to £276 million. The rest of the world, which grew at a similar rate as the UK over the year, accounts for £222.4 million.
Asos said international sales growth continues to be driven by countries in which it has dedicated websites and in-country teams - which includes much of Europe. It said it was particularly strong in Europe driven by France, Italy and Spain. Outside Europe growth was driven by the US and Russia following the launch of its dedicated Russian website earlier this year.
It plans to launch a Chinese website next month.
Sales in the quarter outside the UK accounted for 64 per cent of group revenue. That compares to 65 per cent in the same period last year reflecting the strong performance of the UK over summer.
Margins in the quarter increased 4.6 percentage points after last year's price investments in discounts annualised, it said.
Total retail sales in the past three months to August 31 increased 47 per cent to £207.9 million. That compared to a 40 per cent increase in the full-year to the same date.
In the quarter, UK retail sales increased by 49 per cent, Europe grew by 73 per cent, the US rose 59 per cent and the rest of the world by 26 per cent.
Nick Robertson, founder and chief executive described the performance as a 'strong finish to the financial year'. Asos said profit for the year would be 'marginally above expectations.'
Annual sales were boosted by a 57 per cent rise in US sales to £77.7 million and a 51 per cent increase in Europe to £177.7 million.
UK sales grew 34 per cent to £276 million. The rest of the world, which grew at a similar rate as the UK over the year, accounts for £222.4 million.
Asos said international sales growth continues to be driven by countries in which it has dedicated websites and in-country teams - which includes much of Europe. It said it was particularly strong in Europe driven by France, Italy and Spain. Outside Europe growth was driven by the US and Russia following the launch of its dedicated Russian website earlier this year.
It plans to launch a Chinese website next month.
Sales in the quarter outside the UK accounted for 64 per cent of group revenue. That compares to 65 per cent in the same period last year reflecting the strong performance of the UK over summer.
Margins in the quarter increased 4.6 percentage points after last year's price investments in discounts annualised, it said.
Half of Shoppers Abandon Carts Because Of Tiresome Form Filling And Identity Checks
Almost half of adults in the UK have abandoned an online transaction after becoming frustrated with the length and complexity of the subsequent identity and security checks.
Experian, the global information services firm, said it had calculated that the number of shoppers that have abandoned online purchases due to the length of the form filling process has cost firms a total of £2.3 billion.
Of the 45 per cent that said they had dumped shopping carts, 47 per cent said they took their customer to a rival after becoming irritated with the process. One in five gave up completely while one in six tried again later.
The survey found that those in the 'Elderly Needs' demographic profile - characteristically pensioners in their 70s, 80s and 90s are the most patient with only 32 per cent having completely left a transaction in the past 12 months.
In contrast, the 'Upper Floor Living' group, typically young, single adults on limited incomes, was found to be the least patient with 43 per cent saying they had abandoned one or two deals due to lengthy security checks, and 16 per cent admitting to having done so ‘frequently’.
One in two UK adults believe transactions are becoming increasingly time consuming (49 per cent) and complicated (53 per cent). The 'Rural Solitude' group, typically those living in small, isolated villages with poor access to broadband, were most frustrated, with three quarters (72 per cent) believing verification processes are becoming more complex, significantly higher than the national average.
'Identity verification is becoming an increasingly important part of an organisation’s operations, particularly as the process of dealing with consumers face-to-face is becoming less commonplace. However time-consuming they appear, identity checks are in all our interests, not only protecting businesses from fraud but also individuals,' said Nick Mothershaw, director of identity and fraud at Experian.
Retail, where shoppers typically endure a five minute checking out process, was second only to online gambling where impatience rules with only a 4 minute journey. Both categories were more tolerant by a minute than in 2011.
Consumers were most tolerant when completing a mortgage or insurance where the wait is 10 minutes and 9 minutes respectively.
Experian, the global information services firm, said it had calculated that the number of shoppers that have abandoned online purchases due to the length of the form filling process has cost firms a total of £2.3 billion.
Of the 45 per cent that said they had dumped shopping carts, 47 per cent said they took their customer to a rival after becoming irritated with the process. One in five gave up completely while one in six tried again later.
The survey found that those in the 'Elderly Needs' demographic profile - characteristically pensioners in their 70s, 80s and 90s are the most patient with only 32 per cent having completely left a transaction in the past 12 months.
In contrast, the 'Upper Floor Living' group, typically young, single adults on limited incomes, was found to be the least patient with 43 per cent saying they had abandoned one or two deals due to lengthy security checks, and 16 per cent admitting to having done so ‘frequently’.
One in two UK adults believe transactions are becoming increasingly time consuming (49 per cent) and complicated (53 per cent). The 'Rural Solitude' group, typically those living in small, isolated villages with poor access to broadband, were most frustrated, with three quarters (72 per cent) believing verification processes are becoming more complex, significantly higher than the national average.
'Identity verification is becoming an increasingly important part of an organisation’s operations, particularly as the process of dealing with consumers face-to-face is becoming less commonplace. However time-consuming they appear, identity checks are in all our interests, not only protecting businesses from fraud but also individuals,' said Nick Mothershaw, director of identity and fraud at Experian.
Retail, where shoppers typically endure a five minute checking out process, was second only to online gambling where impatience rules with only a 4 minute journey. Both categories were more tolerant by a minute than in 2011.
Consumers were most tolerant when completing a mortgage or insurance where the wait is 10 minutes and 9 minutes respectively.
The Hut Looks To Possible Stock Market Float Early Next Year
Online retail group The Hut is preparing for a stock market listing early next year as it rides a wave of acquisitions and the uptick in consumer spending.
The float is likely to value the business at about £350 million and would net founder and majority owner Matthew Moulding with a significant windfall.
The Financial Times said the estimated value was about 25 times this year's expected ebitda. The newspaper quoted Moulding saying he was 'seriously considering' the plan.
Other shareholders include former Matalan cjhief executive Angus Monro, former Tesco chief executive Sir Terry Leahy, former Marks & Spencer boss Sir Stuart Rose and recently appointed chairman Richard Pennycook, previously finance director at supermarket Morrisons.
Investors, which also include prolific internet investor Balderton Capital, have contributed £68 million since 2010.
It will be the biggest listing for an internet retailer since Ocado. Online white goods seller Appliances Online, which recently rebranded as AO, has already appointed JP Morgan and Jefferies to advise it on a potential £300 million float later this year.
The Hut, which owns 15 websites, previously abandoned plans to float the business in 2011. Barclays is expected to act as adviser to the float which is expected to take place in April or May if it goes ahead.
Last year the group reported its first pretax profit following a shift into higher margin clothing, health and beauty products and away from relying on CDs and DVDs. In the first half of this year sales at The Hut increased 30.3 per cent to £77.1 million. It said profit growth was 'significantly ahead' of sales growth.
Full-year sales are expected to be £190 million with ebitda of £15 million.
Own brand sales now represent 39 per cent of sales and international orders make up 37 per cent of group sales. It also provides technology services to other firms including Unilever.
The Hut's sites include music site Zavvi.com, gadget seller iWantOneOfThose.com, luxury and clothing sites MyBag.com, AllSole.com and Coggles.com; cosmetics sites BeautyExpert.com, LookFantastic.com and Mankind.com and supplements sites MyVitamins.com and MyProtein.com.
The Hut has agreed a £24 million facility with Barclays amid suggestions it may seek more acquisitions before a possible float. It has also hired former Amazon, eBay and Last FM executive Phil Wilson as chief technology officer.
Moulding said of the results: '2013 has witnessed another step-change in the group’s data driven retailing capabilities. Our continued investment in both people and technology is a key driver behind the continued high levels of growth in sales, profitability and cash-flow across the group.
'The progress we've made puts us on target for delivering at least 50% of the group’s sales from both our own lifestyle and health and beauty brands as well as from international markets in 2014. To assist us in reaching this goal, we will continue to focus on attracting elite talent to the group as well as on-going investment to enhance our proprietary technology platform.' he said.
But the Financial Times said the site may aggravate luxury clothes and cosmetics suppliers with its discount focused model. It also said The Hut is in a dispute with former MyProtein.com owner Oliver Cookson over 'representations made before the sale.'
Cookson sold his business to The Hut in 2011 for £58 million and took a 10 per cent stake in the group as part of the deal. He resigned from the board last year to set up a rival company.
The float is likely to value the business at about £350 million and would net founder and majority owner Matthew Moulding with a significant windfall.
The Financial Times said the estimated value was about 25 times this year's expected ebitda. The newspaper quoted Moulding saying he was 'seriously considering' the plan.
Other shareholders include former Matalan cjhief executive Angus Monro, former Tesco chief executive Sir Terry Leahy, former Marks & Spencer boss Sir Stuart Rose and recently appointed chairman Richard Pennycook, previously finance director at supermarket Morrisons.
Investors, which also include prolific internet investor Balderton Capital, have contributed £68 million since 2010.
It will be the biggest listing for an internet retailer since Ocado. Online white goods seller Appliances Online, which recently rebranded as AO, has already appointed JP Morgan and Jefferies to advise it on a potential £300 million float later this year.
The Hut, which owns 15 websites, previously abandoned plans to float the business in 2011. Barclays is expected to act as adviser to the float which is expected to take place in April or May if it goes ahead.
Last year the group reported its first pretax profit following a shift into higher margin clothing, health and beauty products and away from relying on CDs and DVDs. In the first half of this year sales at The Hut increased 30.3 per cent to £77.1 million. It said profit growth was 'significantly ahead' of sales growth.
Full-year sales are expected to be £190 million with ebitda of £15 million.
Own brand sales now represent 39 per cent of sales and international orders make up 37 per cent of group sales. It also provides technology services to other firms including Unilever.
The Hut's sites include music site Zavvi.com, gadget seller iWantOneOfThose.com, luxury and clothing sites MyBag.com, AllSole.com and Coggles.com; cosmetics sites BeautyExpert.com, LookFantastic.com and Mankind.com and supplements sites MyVitamins.com and MyProtein.com.
The Hut has agreed a £24 million facility with Barclays amid suggestions it may seek more acquisitions before a possible float. It has also hired former Amazon, eBay and Last FM executive Phil Wilson as chief technology officer.
Moulding said of the results: '2013 has witnessed another step-change in the group’s data driven retailing capabilities. Our continued investment in both people and technology is a key driver behind the continued high levels of growth in sales, profitability and cash-flow across the group.
'The progress we've made puts us on target for delivering at least 50% of the group’s sales from both our own lifestyle and health and beauty brands as well as from international markets in 2014. To assist us in reaching this goal, we will continue to focus on attracting elite talent to the group as well as on-going investment to enhance our proprietary technology platform.' he said.
But the Financial Times said the site may aggravate luxury clothes and cosmetics suppliers with its discount focused model. It also said The Hut is in a dispute with former MyProtein.com owner Oliver Cookson over 'representations made before the sale.'
Cookson sold his business to The Hut in 2011 for £58 million and took a 10 per cent stake in the group as part of the deal. He resigned from the board last year to set up a rival company.
Selfridges Aims Higher As International Markets Buzz Over Its New Website
Luxury department store giant Selfridges is expected to widen its international delivery plans after the huge success of its initial launch.
The London-based store group began delivering to 12 countries in Europe on August 28 and plans to extend that to 40 countries including the US, South America and Australia next month.
However, after beating initial sales forecasts by 1,000 per cent it now plans to roll out to more countries, including China, at the same time, according to Retail Week.
More than 25 per cent of the retailer's traffic arrives from overseas, particularly countries such as the Middle East, the Far East and the US. It's newly adapted site has simplified duty, delivery and refunds VAT to shoppers outside the EU immediately.
Since the European launch Sweden has been the most popular market.
The London-based store group began delivering to 12 countries in Europe on August 28 and plans to extend that to 40 countries including the US, South America and Australia next month.
However, after beating initial sales forecasts by 1,000 per cent it now plans to roll out to more countries, including China, at the same time, according to Retail Week.
More than 25 per cent of the retailer's traffic arrives from overseas, particularly countries such as the Middle East, the Far East and the US. It's newly adapted site has simplified duty, delivery and refunds VAT to shoppers outside the EU immediately.
Since the European launch Sweden has been the most popular market.
Wednesday, 18 September 2013
Asos Redraws Buying And Merchandising Teams As Part Of Latest Reshuffle
Asos has promoted three of its key executives as part of its ongoing reorganisation to prepare for significant overseas growth.
The newly defined structure will see all the functions of men's and womenswear buying, merchandise and design split with both divisions reporting to the new position of retail director.
Maria Hollins has been promoted to retail director from trading director. She joined Asos in November 2011 after one-year stints as an interim director at Fenn Wright Manson and Whistles. Before that she was at Arcadia group for 19 years, rising through the ranks to become merchandise director.
She takes full responsibility for merchandising, design, sourcing and production across both men's and women's product.
The reshuffle comes as Asos prepares to announce a surge in international sales of around 50 per cent tomorrow as well as solid domestic growth.
Stefan Pesticcio and Nick Loveday will continue to report to Hollis as part of the restructure with each promoted to retail director - menswear and retail director - womenswear respectively.
Pesticcio, a former head buyer for menswear at Debenhams, has been at Asos since 2006, the company said. Loveday was also formerly at Arcadia Group until he joined Asos in September 2012 as merchandise director.
Louise Jenkins-Yates, previously head of merchandising - womenswear rejoins Asos from maternity leave as retail director - outlet, another newly created role.
The newly defined structure will see all the functions of men's and womenswear buying, merchandise and design split with both divisions reporting to the new position of retail director.
Maria Hollins has been promoted to retail director from trading director. She joined Asos in November 2011 after one-year stints as an interim director at Fenn Wright Manson and Whistles. Before that she was at Arcadia group for 19 years, rising through the ranks to become merchandise director.
She takes full responsibility for merchandising, design, sourcing and production across both men's and women's product.
The reshuffle comes as Asos prepares to announce a surge in international sales of around 50 per cent tomorrow as well as solid domestic growth.
Stefan Pesticcio and Nick Loveday will continue to report to Hollis as part of the restructure with each promoted to retail director - menswear and retail director - womenswear respectively.
Pesticcio, a former head buyer for menswear at Debenhams, has been at Asos since 2006, the company said. Loveday was also formerly at Arcadia Group until he joined Asos in September 2012 as merchandise director.
Louise Jenkins-Yates, previously head of merchandising - womenswear rejoins Asos from maternity leave as retail director - outlet, another newly created role.
August Online Sales Grew 18%, Says IMRG
Online sales rose back to normal levels in August after the summer heatwave prompted a mini-boom for the high street the previous month.
The data from internet trade body the IMRG, which includes clicks and bricks retailers, indicate that sales in July increased 18 per cent compared to the same month the previous year - double the growth rate of July.
The figures confirm data from other bodies such as Barclaycard and our analysis last month that online ales in the first half of August had already rebounded from the lows of July.
The IMRG-Capgemini e-Retail sales index recorded an increase of 9 per cent in July when shoppers opted not to shop online amid the summer heatwave and instead flocked to high street stores.
The online sales increase in August was split between pure-play e-commerce retailers which saw a 19 per cent increase and clicks and bricks retailers whose sales increased 17 per cent on average. It also said that mobile sales increased 133 per cent in the month.
The IMRG has recorded a 15 per cent growth so far this year over the same period a year ago.
Tina Spooner, chief information officer at the IMRG, said: 'As retailers gear up for the lucrative festive trading period, we anticipate that the UK online retail sector will maintain double-digit growth during the fourth quarter, unseasonal heatwaves permitting.'
Home and garden retailers were again among those who benefited most with online sales up 25 per cent. Electrical sales increased 18 per cent, clothing sales rose 18 per cent. Average basket sizes increased from £72 to £77 - a rise of 6.9 per cent.
The data from internet trade body the IMRG, which includes clicks and bricks retailers, indicate that sales in July increased 18 per cent compared to the same month the previous year - double the growth rate of July.
The figures confirm data from other bodies such as Barclaycard and our analysis last month that online ales in the first half of August had already rebounded from the lows of July.
The IMRG-Capgemini e-Retail sales index recorded an increase of 9 per cent in July when shoppers opted not to shop online amid the summer heatwave and instead flocked to high street stores.
The online sales increase in August was split between pure-play e-commerce retailers which saw a 19 per cent increase and clicks and bricks retailers whose sales increased 17 per cent on average. It also said that mobile sales increased 133 per cent in the month.
The IMRG has recorded a 15 per cent growth so far this year over the same period a year ago.
Tina Spooner, chief information officer at the IMRG, said: 'As retailers gear up for the lucrative festive trading period, we anticipate that the UK online retail sector will maintain double-digit growth during the fourth quarter, unseasonal heatwaves permitting.'
Home and garden retailers were again among those who benefited most with online sales up 25 per cent. Electrical sales increased 18 per cent, clothing sales rose 18 per cent. Average basket sizes increased from £72 to £77 - a rise of 6.9 per cent.
Tuesday, 17 September 2013
Debenhams Grows Online Share With 46.2% Sales Rise
Department store Debenhams has increased its online market share after growth in sales over the internet rose at three times the market rate.
The chain said this morning that online sales increased 46.2 per cent in the year to August 31. Debenhams said that compared to an increase of 14.4 per cent in fashion sales in the 24 weeks to August, according to Kantar Worldpanel.
Mobile revenue surged 128 per cent after visits increased 72 per cent. Total online market share increased 0.5 percentage points to 3.7 per cent of the market.
But chief executive Michael Sharp said that, despite online growth, he did not believe a consumer recovery was imminent.
'Looking forward, we are confident in our strategy but are not expecting any rapid recovery in consumer sentiment and the marketplace remains highly competitive,' he said.
Group like-for-like increased 2 per cent. Sharp said of the overall performance: 'We have succeeded in growing both like-for-like sales and market share in a competitive market where consumers’ disposable income remains under pressure. I am particularly pleased with the growth of our online business.'
'While the return to more seasonal weather conditions over the summer has been helpful, the main factor behind this performance has been the relentless focus of everyone at Debenhams on implementing the four pillars of our strategy to create a leading international, multi-channel brand,' he said.
The chain said this morning that online sales increased 46.2 per cent in the year to August 31. Debenhams said that compared to an increase of 14.4 per cent in fashion sales in the 24 weeks to August, according to Kantar Worldpanel.
Mobile revenue surged 128 per cent after visits increased 72 per cent. Total online market share increased 0.5 percentage points to 3.7 per cent of the market.
But chief executive Michael Sharp said that, despite online growth, he did not believe a consumer recovery was imminent.
'Looking forward, we are confident in our strategy but are not expecting any rapid recovery in consumer sentiment and the marketplace remains highly competitive,' he said.
Group like-for-like increased 2 per cent. Sharp said of the overall performance: 'We have succeeded in growing both like-for-like sales and market share in a competitive market where consumers’ disposable income remains under pressure. I am particularly pleased with the growth of our online business.'
'While the return to more seasonal weather conditions over the summer has been helpful, the main factor behind this performance has been the relentless focus of everyone at Debenhams on implementing the four pillars of our strategy to create a leading international, multi-channel brand,' he said.
Monday, 16 September 2013
Dixons New Apps Will Promote 'Showrooming' Says Boss
Currys and PC World owner Dixons plans to launch a mobile app that chief executive Sebastian James says will debunk the perception that online rivals are cheaper.
The app, to launch later this month, will encourage shoppers to compare prices with online rivals such as John Lewis and Amazon.
James told Retail Week that shoppers would compare prices anyway but having their own app would give customers 'total transparency'.
'It’s all about trust. When you look at our actual prices compared to Argos, Tesco and John Lewis we are considerably cheaper. Customers think Amazon is dramatically cheaper but they are not, on many items we are flat against them or cheaper,' he said.
The app, to launch later this month, will encourage shoppers to compare prices with online rivals such as John Lewis and Amazon.
James told Retail Week that shoppers would compare prices anyway but having their own app would give customers 'total transparency'.
'It’s all about trust. When you look at our actual prices compared to Argos, Tesco and John Lewis we are considerably cheaper. Customers think Amazon is dramatically cheaper but they are not, on many items we are flat against them or cheaper,' he said.
Sunday, 15 September 2013
Argos Appoints 'Voice Of The Customer'
Argos has appointed a marketing director that it says will be the 'voice of the customer' as part of its digital transformation plan.
The chain, which has over 700 shops, said Stephen Vowles will take responsibility of the customer experience across the omnichannel business, analysing customer demands and behaviour and personalised marketing. He joins September 30.
Vowles joins from Ladfbrokes where he was customer experience director. He resigned in May saying it was the 'natural time to move on' after restructuring the marketing functions of the business.
He was chief marketer at Ahold's Stop and Shop chain in the US prior to that and also worked at Sainsbury's, Thmoas Cook and held various roles within Proctor and Gamble prior to that.
'Stephen is a great addition to a strong leadership team. He will play a pivotal role within the leadership team as the ‘voice of the customer’ within Argos, leading the drive to become a more consumer centric company and the repositioning of the brand and customer experience to be a universally appealing digital retail leader,' said Argos managing director John Walden.
Vowles said: 'It’s a great time to be joining Argos, when the company is undertaking such significant transformation, supported by a strong and well-funded plan. I’m looking forward to being part of that step-change, building on the existing customer base and a unique position in the market to open up a better way of shopping to a much broader audience.'
The chain, which has over 700 shops, said Stephen Vowles will take responsibility of the customer experience across the omnichannel business, analysing customer demands and behaviour and personalised marketing. He joins September 30.
Vowles joins from Ladfbrokes where he was customer experience director. He resigned in May saying it was the 'natural time to move on' after restructuring the marketing functions of the business.
He was chief marketer at Ahold's Stop and Shop chain in the US prior to that and also worked at Sainsbury's, Thmoas Cook and held various roles within Proctor and Gamble prior to that.
'Stephen is a great addition to a strong leadership team. He will play a pivotal role within the leadership team as the ‘voice of the customer’ within Argos, leading the drive to become a more consumer centric company and the repositioning of the brand and customer experience to be a universally appealing digital retail leader,' said Argos managing director John Walden.
Vowles said: 'It’s a great time to be joining Argos, when the company is undertaking such significant transformation, supported by a strong and well-funded plan. I’m looking forward to being part of that step-change, building on the existing customer base and a unique position in the market to open up a better way of shopping to a much broader audience.'
Saturday, 14 September 2013
Tesco Poaches Key John Lewis Online Executive
Tesco has appointed a new multichannel strategy director in the latest move to help improve its online strategy.
Karen Dracou, formerly head of omnichannel at John Lewis, will report into group multichannel director Robin Terrell who the supermarket recruited from department store House of Fraser earlier this year.
Dracou had reported into Andrea O'Donnell until her departure to Hong Kong department store Lane Crawford and had temporarily reported to John Lewis managing director Andy Street.
In January, John Lewis appointed head of online Mark Lewis who was previously chief executive of delivery firm CollectPlus.
Tesco boss Philip Clarke is reorganising the supermarket and trying to improve its online offer.
Karen Dracou, formerly head of omnichannel at John Lewis, will report into group multichannel director Robin Terrell who the supermarket recruited from department store House of Fraser earlier this year.
Dracou had reported into Andrea O'Donnell until her departure to Hong Kong department store Lane Crawford and had temporarily reported to John Lewis managing director Andy Street.
In January, John Lewis appointed head of online Mark Lewis who was previously chief executive of delivery firm CollectPlus.
Tesco boss Philip Clarke is reorganising the supermarket and trying to improve its online offer.
Friday, 13 September 2013
Friday Comment: British Retailers Seizing The Online Gauntlet Thrown By Amazon While US Firms Fumble
If there was a watershed year for large UK retailers and e-commerce, 2013 is it.
UK bricks and mortar retailers appear to be holding there own against the rising tide when compared to large US rivals, whose innovation and ideas our retailers have previously long followed rather than led.
But here, for once, the UK has led the global market place. The evidence comes from a report in the Wall Street Journal which says the US market watchdog the SEC has called on major firms to justify claims about their internet businesses.
The article itself makes for fascinating reading but we'll be bringing the focus back to the UK lower down by comparing the findings to our own data on some of the largest UK retail businesses.
The first fact to crunch, the Journal says, comes from the US magazine Internet Retailer which has calculated Amazon’s sales are greater than the online sales of its next twelve retail rivals combined. That includes Wal-Mart, Dell, Apple, Sears, Best Buy and Staples.
We're pretty sure that could not be said about UK retailers - but more on that below.
Further examination of the situation reveals that most of the US firms in question appear to be failing to keep pace with online growth relative to total sales. The US Commerce Department says online accounted for 5.8 per cent of retail sales in the three months to June.
That compares to 5.1 per cent a year earlier. Few of the bigger retailers would be able to boast such relative online scale in their own businesses, from what we have discovered.
The Journal says that American retail giants have been asked to justify boasts about their online prowess by the country's stock market watchdog - but many have fallen far short of living up to their claims.
The demand from the US Securities and Exchange Commission comes amid suspicions that some of America's largest retailers have exaggerated their internet selling performance to impress investors.
Wal-Mart casually revealed in June - having been contacted by the SEC - that it expects global online sales this year to reach $10 billion. Based on last year's group sales, that is just 0.021 per cent of total sales, our own calculations show.
One of the cases that surprised us a little was Target, which we have always thought of as one of the more innovative of the online giants.
Last month it reported that its online sales had grown by double digit percentages - a familiar vague expression to anyone that has listened in to any US investor calls. It added that it is 'moving quickly to ensure we stay relevant in an increasingly digital marketplace.'
But it said in June, again, following contact with the SEC, that 'digital sales represented an immaterial amount of total sales'.
The graph below is originally from Internet Retailer data and the original of which can be found on the Wall Street Journal's web site here:
We still think US retailers and UK plc's big opportunity is a global one. Not only for retail but to build our experiences and skills into a global industry. There is a window of opportunity here: we wonder which retailers will seize it and whether then country can follow suit.
UK bricks and mortar retailers appear to be holding there own against the rising tide when compared to large US rivals, whose innovation and ideas our retailers have previously long followed rather than led.
But here, for once, the UK has led the global market place. The evidence comes from a report in the Wall Street Journal which says the US market watchdog the SEC has called on major firms to justify claims about their internet businesses.
The article itself makes for fascinating reading but we'll be bringing the focus back to the UK lower down by comparing the findings to our own data on some of the largest UK retail businesses.
The first fact to crunch, the Journal says, comes from the US magazine Internet Retailer which has calculated Amazon’s sales are greater than the online sales of its next twelve retail rivals combined. That includes Wal-Mart, Dell, Apple, Sears, Best Buy and Staples.
We're pretty sure that could not be said about UK retailers - but more on that below.
Further examination of the situation reveals that most of the US firms in question appear to be failing to keep pace with online growth relative to total sales. The US Commerce Department says online accounted for 5.8 per cent of retail sales in the three months to June.
That compares to 5.1 per cent a year earlier. Few of the bigger retailers would be able to boast such relative online scale in their own businesses, from what we have discovered.
The Journal says that American retail giants have been asked to justify boasts about their online prowess by the country's stock market watchdog - but many have fallen far short of living up to their claims.
The demand from the US Securities and Exchange Commission comes amid suspicions that some of America's largest retailers have exaggerated their internet selling performance to impress investors.
Wal-Mart casually revealed in June - having been contacted by the SEC - that it expects global online sales this year to reach $10 billion. Based on last year's group sales, that is just 0.021 per cent of total sales, our own calculations show.
One of the cases that surprised us a little was Target, which we have always thought of as one of the more innovative of the online giants.
Last month it reported that its online sales had grown by double digit percentages - a familiar vague expression to anyone that has listened in to any US investor calls. It added that it is 'moving quickly to ensure we stay relevant in an increasingly digital marketplace.'
But it said in June, again, following contact with the SEC, that 'digital sales represented an immaterial amount of total sales'.
The graph below is originally from Internet Retailer data and the original of which can be found on the Wall Street Journal's web site here:
 | |
|
US retailers, it seems, prefer to stick to those percentage figures which make the picture much more rosy. Gap recently said its online sales increased by 20 per cent and footlocker said their growth was 27 per cent.
In the UK, the most recent data we have is that Amazon's sales are about $8 billion split roughly half and half between its own sales and its Marketplace sales.
So how do UK retailers measure up? Here's our back of the fag packet analysis. Argos is the biggest online retailer after Amazon, we think - and we're excluding Ebay. Argos has multichannel sales of about half its total sales at £2 billion. We estimate Shop Direct's online sales are about £1.2 billion but closer to £1.6 if we include its catalogues.
Next is not far off £1.1 billion, through its catalogue and online business, and John Lewis' online sales are about £800 million.
That's roughly £5.5 billion before we've even started on Currys and PC World (together owned by Dixons Retail and accounting for an estimated £1 billion - roughly a quarter of total UK sales) M&S (at around £650 million) Tesco Direct (we still think is only at around £500 million).
That's eight retailers (even counting PC World and Currys separately) and we're pretty much there. And we're not counting Tesco's massive food delivery business that would easily add on another £3 billion or so. Not to mention Ocado, Sainsbury's and Asda which togtether would add a similar amount.
We have obviously cut some corners here (for example, Next's online and catalogue sales are difficult to separate but like Argos are probably 'multichannel' with one relying heavily on the other). But the picture is far more impressive.
The overall picture is even rosier. Online sales account for more than 10 per cent of total retail sales according to the Office of National Statistics - around double the rate of the US - where the geographies involved might leave you thinking online shopping would be a far more attractive opportunity.
In fact, many retailers are emerging to say their online sales are blooming. We're prepared to take this with a pinch of salt because they will include the fast growing click and collect channels and even, we suspect, click and reserve where the transaction doesn't even take place until the shopper reaches the store.
But fashion retailer New Look says online sales account for 7.5 per cent and rising fast - not bad for a clothing-only retailer that has only just grasped the online nettle.
House of Fraser says online sales accounted for 11 per cent of group rising to about 20 per cent in womenswear, adding that about a third of their internet sales come from e-commerce.
Debenhams has just reached its year end but we estimated back in April ('Cracking Online Fashion's Middle Market') that it would achieve online sales of £350 million this year, about 13 per cent from 1.1 per cent five years ago.
Next, frankly, leaves everyone else in the dust with its multi-channel approach and John Lewis is a comfortable second among the major retailers.
What we find interesting about this is how far advanced the UK market is than the US on so many levels. We suspect the big supermarkets seriously lag in terms of non-food but they are well ahead in food delivery (even though this is a more decisive issue where we think margins and benefits are more questionable).
And with Amazon saying second quarter group sales are rising 30 per cent, we wonder if US retailers are even keeping pace with developments as they are in the UK.
The proof is in this article.
In the UK, the most recent data we have is that Amazon's sales are about $8 billion split roughly half and half between its own sales and its Marketplace sales.
So how do UK retailers measure up? Here's our back of the fag packet analysis. Argos is the biggest online retailer after Amazon, we think - and we're excluding Ebay. Argos has multichannel sales of about half its total sales at £2 billion. We estimate Shop Direct's online sales are about £1.2 billion but closer to £1.6 if we include its catalogues.
Next is not far off £1.1 billion, through its catalogue and online business, and John Lewis' online sales are about £800 million.
That's roughly £5.5 billion before we've even started on Currys and PC World (together owned by Dixons Retail and accounting for an estimated £1 billion - roughly a quarter of total UK sales) M&S (at around £650 million) Tesco Direct (we still think is only at around £500 million).
That's eight retailers (even counting PC World and Currys separately) and we're pretty much there. And we're not counting Tesco's massive food delivery business that would easily add on another £3 billion or so. Not to mention Ocado, Sainsbury's and Asda which togtether would add a similar amount.
We have obviously cut some corners here (for example, Next's online and catalogue sales are difficult to separate but like Argos are probably 'multichannel' with one relying heavily on the other). But the picture is far more impressive.
The overall picture is even rosier. Online sales account for more than 10 per cent of total retail sales according to the Office of National Statistics - around double the rate of the US - where the geographies involved might leave you thinking online shopping would be a far more attractive opportunity.
In fact, many retailers are emerging to say their online sales are blooming. We're prepared to take this with a pinch of salt because they will include the fast growing click and collect channels and even, we suspect, click and reserve where the transaction doesn't even take place until the shopper reaches the store.
But fashion retailer New Look says online sales account for 7.5 per cent and rising fast - not bad for a clothing-only retailer that has only just grasped the online nettle.
House of Fraser says online sales accounted for 11 per cent of group rising to about 20 per cent in womenswear, adding that about a third of their internet sales come from e-commerce.
Debenhams has just reached its year end but we estimated back in April ('Cracking Online Fashion's Middle Market') that it would achieve online sales of £350 million this year, about 13 per cent from 1.1 per cent five years ago.
Next, frankly, leaves everyone else in the dust with its multi-channel approach and John Lewis is a comfortable second among the major retailers.
What we find interesting about this is how far advanced the UK market is than the US on so many levels. We suspect the big supermarkets seriously lag in terms of non-food but they are well ahead in food delivery (even though this is a more decisive issue where we think margins and benefits are more questionable).
And with Amazon saying second quarter group sales are rising 30 per cent, we wonder if US retailers are even keeping pace with developments as they are in the UK.
The proof is in this article.
We still think US retailers and UK plc's big opportunity is a global one. Not only for retail but to build our experiences and skills into a global industry. There is a window of opportunity here: we wonder which retailers will seize it and whether then country can follow suit.
Waitrose Doubles London Capacity With Second Warehouse In The Capital
Waitrose plans to open a second London warehouse for its food delivery service after a hike in sales.
The ‘dark’ store - so named because they are laid out similar to stores but only service delivery vans - will open in the second half of next year. It will more than double the capacity of Waitrose’s London food delivery business, the supermarket said.
Waitrose said delivery sales increased 40.6 per cent in the first half of its financial year to July 27 as it continued to invest in the capacity of stores to fulfil orders. Waitrose, owned by the John Lewis Partnership, said the investment has meant a 40 per cent increase in online delivery time slots available to customers nationwide.
The growth figures coincide with a report from the IGD predicting the online market will grow 123.7 per cent in the next five years from £6.5 billion to April this year, reaching £14.6 billion in 2018.
It said that would make it similar in size to the discount grocery market which it forecast would grow from £9.5 billion to £18.6 billion. The IGD said the total grocery market would grow 21.3 per cent in the same period, from £169.7 billion to £205.9 billion with superstores and hypermarkets accounting for just £6 billion of the growth.
The ‘dark’ store - so named because they are laid out similar to stores but only service delivery vans - will open in the second half of next year. It will more than double the capacity of Waitrose’s London food delivery business, the supermarket said.
Waitrose said delivery sales increased 40.6 per cent in the first half of its financial year to July 27 as it continued to invest in the capacity of stores to fulfil orders. Waitrose, owned by the John Lewis Partnership, said the investment has meant a 40 per cent increase in online delivery time slots available to customers nationwide.
The growth figures coincide with a report from the IGD predicting the online market will grow 123.7 per cent in the next five years from £6.5 billion to April this year, reaching £14.6 billion in 2018.
It said that would make it similar in size to the discount grocery market which it forecast would grow from £9.5 billion to £18.6 billion. The IGD said the total grocery market would grow 21.3 per cent in the same period, from £169.7 billion to £205.9 billion with superstores and hypermarkets accounting for just £6 billion of the growth.
Thursday, 12 September 2013
International Orders Boost Next's Directory Sales
International orders at clothing retailer Next have boosted Directory sales and will help lift full year profit, the retailer said this morning.
Directory directory business increased 8.3 per cent to 597.6 million. International sales contributed 2.9 per cent of the total rise, about a third of the growth, and overseas sales are expected to approach £100 million in the full year.
Online contributed to an overall sales rise of 2.2 per cent at the firm after one of the coldest Springs on record held back growth.
'International sales have taken a step forward in the last six months. Much of this improvement has been driven by our ability to reduce operating costs which have in turn been passed on to customers by way of price reductions. In the territories where we have reduced prices we have increased both sales and profits,' Next said in a statement.
The retailer said it has revised its estimate for full year international online sales from £75 million to £90 million (see graph below). It said net profit on international sales has been maintained at around 20 per cent of sales.
Next said pre-tax profit in the first half to July increased 8.2 per cent to £271.8 million.
Sales at its 541 stores declined 0.9 per cent in the period. Next said it expects to renew a large number of store leases with better terms in the coming years.
Directory directory business increased 8.3 per cent to 597.6 million. International sales contributed 2.9 per cent of the total rise, about a third of the growth, and overseas sales are expected to approach £100 million in the full year.
Online contributed to an overall sales rise of 2.2 per cent at the firm after one of the coldest Springs on record held back growth.
'International sales have taken a step forward in the last six months. Much of this improvement has been driven by our ability to reduce operating costs which have in turn been passed on to customers by way of price reductions. In the territories where we have reduced prices we have increased both sales and profits,' Next said in a statement.
The retailer said it has revised its estimate for full year international online sales from £75 million to £90 million (see graph below). It said net profit on international sales has been maintained at around 20 per cent of sales.
Sales at its 541 stores declined 0.9 per cent in the period. Next said it expects to renew a large number of store leases with better terms in the coming years.
Ocado Sales Rise As Customer Numbers Increase
Ocado said this morning that sales rose after growth in customer numbers increased orders at its website.
The retailer said gross sales, including vouchers and VAT, increased 18.8 per cent to £189.2 million in the 12 weeks to August 12. The number of orders increased 15.3 per cent to an average of 138,889 per week.
It said the amount spent on each order increased 1 per cent to £113.54 after it added 33,000 extra products.
Chief executive Tim Steiner said: 'We are encouraged by the continuing momentum in sales growth, reflecting an increase in both orders and basket size. We remain focused on improving the proposition to customers to make it easier for consumers to shop at Ocado, from an ever wider range, and at competitive prices. This should support further growth as the demand for online grocery shopping continues.'
The company confirmed its partnership with Morrisons resulted in payments of £138.3 million and the full repayment of the bank facility. Morrisons also confirmed today that it was on track to launch its food delivery service from Ocado's Dordon distribution facility by January.
The retailer said gross sales, including vouchers and VAT, increased 18.8 per cent to £189.2 million in the 12 weeks to August 12. The number of orders increased 15.3 per cent to an average of 138,889 per week.
It said the amount spent on each order increased 1 per cent to £113.54 after it added 33,000 extra products.
Chief executive Tim Steiner said: 'We are encouraged by the continuing momentum in sales growth, reflecting an increase in both orders and basket size. We remain focused on improving the proposition to customers to make it easier for consumers to shop at Ocado, from an ever wider range, and at competitive prices. This should support further growth as the demand for online grocery shopping continues.'
The company confirmed its partnership with Morrisons resulted in payments of £138.3 million and the full repayment of the bank facility. Morrisons also confirmed today that it was on track to launch its food delivery service from Ocado's Dordon distribution facility by January.
Wednesday, 11 September 2013
Asos Poaches Amazon's European Finance Chief As It Prepares For The Big Time
Internet fashion retailer Asos has poached Amazon Europe's finance boss in the latest of a series of executive hires as it plans for major expansion, according to Retail Week's website.
Shaun McCabe, who has been Amazon Europe's vice president for finance since late 2007, will join amid speculation that Amazon is preparing the way for entry into the FTSE 100. That would give it potential access to huge funds to aid its global growth plans.
Asos shares currently trade on the London Stock Market's Aim list which is normally the preserve of small, fast-growing firms. But our sources have said Asos has watched less focused rivals beyond the UK getting access to funds and it has realised it needs to elevate itself to the FTSE 100 to improve its status.
If Asos was on London's main list it would most likely be automatically promoted to the FTSE 100 in the next review given its current valuation of more than £4 billion.
McCabe's arrival will coincide with the departure of Jon Kamaluddin, Asos finance director since 2004 and international director since 2009, who announced his intention to leave in April. It is understood that McCabe may take on Kamaluddin's other responsibilities, according to Retail Week.
Last month Asos appointed former Marks & Spencer group finance director Ian Dyson as a non-executive director. It has since appointed Simon Platts as sourcing director from JD Sports Fashion's outdoor business. Former Amazon UK managing director Brian McBride, who drafted in McCabe to the US retailer, was appointed Asos chairman last year.
Asos, which now sells two-thirds of its goods outside the UK, is preparing to launch a Chinese site that would pit the firm against the country's giants such as Taobao.com.
Shaun McCabe, who has been Amazon Europe's vice president for finance since late 2007, will join amid speculation that Amazon is preparing the way for entry into the FTSE 100. That would give it potential access to huge funds to aid its global growth plans.
Asos shares currently trade on the London Stock Market's Aim list which is normally the preserve of small, fast-growing firms. But our sources have said Asos has watched less focused rivals beyond the UK getting access to funds and it has realised it needs to elevate itself to the FTSE 100 to improve its status.
If Asos was on London's main list it would most likely be automatically promoted to the FTSE 100 in the next review given its current valuation of more than £4 billion.
McCabe's arrival will coincide with the departure of Jon Kamaluddin, Asos finance director since 2004 and international director since 2009, who announced his intention to leave in April. It is understood that McCabe may take on Kamaluddin's other responsibilities, according to Retail Week.
Last month Asos appointed former Marks & Spencer group finance director Ian Dyson as a non-executive director. It has since appointed Simon Platts as sourcing director from JD Sports Fashion's outdoor business. Former Amazon UK managing director Brian McBride, who drafted in McCabe to the US retailer, was appointed Asos chairman last year.
Asos, which now sells two-thirds of its goods outside the UK, is preparing to launch a Chinese site that would pit the firm against the country's giants such as Taobao.com.
Mulberry Relaunches Website As It Prepares For Autumn Push
Mulberry, the luxury brand best known for its handbags, has relaunched its website as it aims to make it more usable across different technologies and for overseas shoppers.
The site provides a simple layout and greatly enhanced product details such as precise dimensions and multiple photographs to highlight product detail, interior and relative size.
Digital agency Poke directed the redesign and the launch with e-commerce consultancy Tacit Knowledge, which used Hybris software.
Mulberry is hoping to quickly capitalise on overseas demand while the brand remains hot in places it may not immediately be able to secure a full retail or wholesale presence.
Some users have spotted issues with the site - Econsultancy says the mobile experience can be unpredictable and a little frustrating, for example. But the site seems more straightforward than many of its peers and a step away from the traditional luxury approaches that hamper the user experience with unnecessary content and functionality.
The site provides a simple layout and greatly enhanced product details such as precise dimensions and multiple photographs to highlight product detail, interior and relative size.
Digital agency Poke directed the redesign and the launch with e-commerce consultancy Tacit Knowledge, which used Hybris software.
Mulberry is hoping to quickly capitalise on overseas demand while the brand remains hot in places it may not immediately be able to secure a full retail or wholesale presence.
Some users have spotted issues with the site - Econsultancy says the mobile experience can be unpredictable and a little frustrating, for example. But the site seems more straightforward than many of its peers and a step away from the traditional luxury approaches that hamper the user experience with unnecessary content and functionality.
Tuesday, 10 September 2013
Primark: We Will Not Launch Our Own Website
Value retail giant Primark has scotched rumours it plans to launch its own e-commerce site after pulling its fashion products from e-tailer Asos.
Primark said it would end the four month trial with Asos - which provided some wonderful publicity for both firms - in the next few weeks. It has also apparently dismissed rumours that it would launch its own site.
Primark said in June it hoped the trial would offer it some 'insight into online retailing'. The end of the trial has come as a surprise ahead of the key Christmas selling season and as other retailers wholeheartedly embrace online selling.
Middle market retailers including Marks & Spencer, John Lewis, Debenhams and House of Fraser have made online a key battle ground ahead of this Christmas.
At the same time, Primark confirmed plans to add another 1 million square feet of selling space and launch a store in Paris this December.
The decision seems to confirm the difficulties making money out of value fashion on the internet with the cost of postage and returns potentially wiping out margins. Primark may also be concerned that an online shop could cannibalise sales at stores with its brand so strong and still a key destination for most shoppers.
Primark said sales in the year to September increased 22 per cent. Like-for-like sales are about 5 per cent, well ahead of the market and despite a weak Spring when the weather in Britain was unseasonably cold.
Primark said it would end the four month trial with Asos - which provided some wonderful publicity for both firms - in the next few weeks. It has also apparently dismissed rumours that it would launch its own site.
Primark said in June it hoped the trial would offer it some 'insight into online retailing'. The end of the trial has come as a surprise ahead of the key Christmas selling season and as other retailers wholeheartedly embrace online selling.
Middle market retailers including Marks & Spencer, John Lewis, Debenhams and House of Fraser have made online a key battle ground ahead of this Christmas.
At the same time, Primark confirmed plans to add another 1 million square feet of selling space and launch a store in Paris this December.
The decision seems to confirm the difficulties making money out of value fashion on the internet with the cost of postage and returns potentially wiping out margins. Primark may also be concerned that an online shop could cannibalise sales at stores with its brand so strong and still a key destination for most shoppers.
Primark said sales in the year to September increased 22 per cent. Like-for-like sales are about 5 per cent, well ahead of the market and despite a weak Spring when the weather in Britain was unseasonably cold.
Subscribe to:
Posts (Atom)