A new coalition launches in Westminster today that will aim to provide independent shops across 200 towns with an avenue to sell online.
Target200 brings together MyHigh.St, marketplace Play.com, the British Independent Retailers Association, Action for Market Towns and the Association of Town and City Management.
BIRA said the MyHigh.St website allows shoppers to visit their local high street 'whatever the weather, any time of the day or night, via their PC, tablet, or mobile phone'. It says the service combines e-commerce, click & collect and an independent shop loyalty programme that enables shoppers to buy online whilst encouraging consumers to made visits to the stores themselves.
As an independent retailer, going online through the MyHigh.St marketplace has given us a cost effective and very straightforward way of raising our online presence and becoming transactional online at the same time, allowing us to have an online presence without any capital outlay,' said Michael Hughes, BIRA's national president.
He said: 'This is really important for independent retailers and will help us raise our profile and get our products and brand in front of consumers in a new way. I believe that with the expertise that the MyHigh.St team bring to the mix, the marketplace will really work for independent retailers.'
Loaye Agabani, co-founder of MyHigh.St, said: 'After numerous reviews, reports and pilots programmes, it’s time for action. Our website empowers independent retailers to fight back against the rise of online shopping from faceless warehouses, showing them that the internet, when used effectively, can boost their business and get money flowing back into their tills.'
Thursday, 31 October 2013
Ebay Demands Better Images On Its Marketplace
Ebay has issued new guidelines for the use of images on its site which came into effect yesterday.
The company wants all its sellers to have at least one picture as a minimum and has determined that must not be a 'stock' image from a catalogue but the actual item itself.
Ebay has also said sellers must abide by certain quality standards and that the picture must not have borders, text, artwork or other 'graffiti' on them. Since August 1, Ebay users have been able to upload up to 12 images free of charge.
Watermarks on pictures for the purpose of establishing ownership and identifying intellectual property are still permitted.
The site has also issued guidance on how to take better pictures and how to best optimise them for viewing on mobile devices.
The company wants all its sellers to have at least one picture as a minimum and has determined that must not be a 'stock' image from a catalogue but the actual item itself.
Ebay has also said sellers must abide by certain quality standards and that the picture must not have borders, text, artwork or other 'graffiti' on them. Since August 1, Ebay users have been able to upload up to 12 images free of charge.
Watermarks on pictures for the purpose of establishing ownership and identifying intellectual property are still permitted.
The site has also issued guidance on how to take better pictures and how to best optimise them for viewing on mobile devices.
Wednesday, 30 October 2013
Next Directory Sales Rise 10.7% As Next Raises Profit Forecast
Next said it expected higher profits this year after a boost from its Directory helped total sales rise 4.3 per cent.
Next Directory sales rose 10.7 per cent in the third quarter to October 26 amid 'volatile trading'. It said total sales at stores and the Directory business rose above its expectations of a rise between 1 and 4 per cent.
It said it now expected profit in the full year to January to be between £650 million and £680 million from previous guidance in September for profit between £635 million and £675 million.
Profit of 680 million would represent a rise of 9.4 per cent compared to last year.
Next Directory sales rose 10.7 per cent in the third quarter to October 26 amid 'volatile trading'. It said total sales at stores and the Directory business rose above its expectations of a rise between 1 and 4 per cent.
It said it now expected profit in the full year to January to be between £650 million and £680 million from previous guidance in September for profit between £635 million and £675 million.
Profit of 680 million would represent a rise of 9.4 per cent compared to last year.
Fab.com Pushing European Growth Again As It Acquires Parts Of French Home Decor Site MyFab
US e-commerce retailer Fab.com has agreed to invest in French-based myFab just months after axing 150 of its European workforce.
Fab.com is understood to have 'acquired assets' from myFab for around €3.1 million (£2.7 million) with possible additional payouts overtime, according to Techcrunch.com. MyFab was co-founded by Ning Li who left in 2009 and started Made.com in the UK in January 2010.
MyFab was previously 51 per cent owned by WebMediaGroup and 49 per cent by Alven Capital and BV Capital. It is not yet clear how the holdings have changed following the buy-in.
Fab.com, which is expanding into Europe alongside its fierce rival JustFab, told Techcrunch it has 'not bought the whole company'. Similar to Li's Made.com, myFab is based on the premise that shoppers buy straight from factories in China - cutting out suppliers and bricks and mortar retailers. The myFab site is currently down promising to be 'back soon'.
Fab.com said in July that it would shed 150 workers and its chief European officer in Germany Maria Molland apparently resigned the previous month. However, Fab.com also raised $150 million in June, at which point it was listed as worth £1 billion. That took its total funds raised to $336 million.
Fab.com is understood to have 'acquired assets' from myFab for around €3.1 million (£2.7 million) with possible additional payouts overtime, according to Techcrunch.com. MyFab was co-founded by Ning Li who left in 2009 and started Made.com in the UK in January 2010.
MyFab was previously 51 per cent owned by WebMediaGroup and 49 per cent by Alven Capital and BV Capital. It is not yet clear how the holdings have changed following the buy-in.
Fab.com, which is expanding into Europe alongside its fierce rival JustFab, told Techcrunch it has 'not bought the whole company'. Similar to Li's Made.com, myFab is based on the premise that shoppers buy straight from factories in China - cutting out suppliers and bricks and mortar retailers. The myFab site is currently down promising to be 'back soon'.
Fab.com said in July that it would shed 150 workers and its chief European officer in Germany Maria Molland apparently resigned the previous month. However, Fab.com also raised $150 million in June, at which point it was listed as worth £1 billion. That took its total funds raised to $336 million.
Fashion Retailer Oasis Launches One Hour Delivery Slots
Fashion retailer Oasis has launched one hour delivery time slots for its online service.
The service is available for same day delivery and is the latest push in parent group Aurora's multichannel strategy across its brands. Oasis has an existing option for delivery in 90 minutes of an order being placed, launched in 2011.
Both services are only available for selected postcodes and are fulfilled by delivery provider Shutl. The hourly service, which launched yesterday, is free for shoppers spending over £100 and is available on the day or purchase or the following three days.
Oasis chief operating officer Hash Ladha told the Retail Week E-commerce Summit yesterday he was 'thrilled to offer an innovative, time-sensitive, online delivery service - a first for a UK fashion brand.'
Customers will be able to track orders using GPS.
The service is available for same day delivery and is the latest push in parent group Aurora's multichannel strategy across its brands. Oasis has an existing option for delivery in 90 minutes of an order being placed, launched in 2011.
Both services are only available for selected postcodes and are fulfilled by delivery provider Shutl. The hourly service, which launched yesterday, is free for shoppers spending over £100 and is available on the day or purchase or the following three days.
Oasis chief operating officer Hash Ladha told the Retail Week E-commerce Summit yesterday he was 'thrilled to offer an innovative, time-sensitive, online delivery service - a first for a UK fashion brand.'
Customers will be able to track orders using GPS.
Tuesday, 29 October 2013
House Of Fraser's Multichannel Shoppers 'Worth Five Times More' Than Pure Online Customers
House of Fraser customers using three or more channels to shop at the chain are worth five times that of ordinary online shoppers.
According to e-commerce director Andy Harding said 'three-channel' shoppers using a mobile device, a PC and a store during the shopping process account for about 33 per cent of the chain sales.
Speaking at this morning's Retail Week E-commerce Summit, Harding said the trend was evidence of the future importance of stores. He said, of customers live near a store, 60 per cent of them would prefer to pick up their shopping rather than get it delivered.
He also dismissed the use of the word 'omnichannel' as 'unnecessarily confusing'. House of Fraser plans to add another 10 'click and collect-only' stores which act as hubs for shoppers to pick up orders.
The E-commerce Summit runs today and tomorrow at Etc Venues, 200 Aldersgate near St Paul's in London.
According to e-commerce director Andy Harding said 'three-channel' shoppers using a mobile device, a PC and a store during the shopping process account for about 33 per cent of the chain sales.
Speaking at this morning's Retail Week E-commerce Summit, Harding said the trend was evidence of the future importance of stores. He said, of customers live near a store, 60 per cent of them would prefer to pick up their shopping rather than get it delivered.
He also dismissed the use of the word 'omnichannel' as 'unnecessarily confusing'. House of Fraser plans to add another 10 'click and collect-only' stores which act as hubs for shoppers to pick up orders.
The E-commerce Summit runs today and tomorrow at Etc Venues, 200 Aldersgate near St Paul's in London.
HMV's New Site Download-Only And More 'Editorially Focused"
HMV has overhauled its online sites including an editorial-style main site and a separate downloading site.
The main portal HMV.com includes features of bands, films, DVDs and television and includes information about HMV events at key stores. It has a 'menu' link in the top right hand corner allowing users to access a separate downloading site hmvdigital.com which has a reasonably comprehensive roster of bands and genres.
It marks a 'major step' from what HMV has had online before and focuses on 'curation, content and editorial,' said Hilco Capital in a statement.
'Everything we’re doing with HMV is focused on engagement, content and curation - all the things that HMV lost sight of in recent years,' said Paul McGowan, chairman of HMV, which has 142 stores.
'The passion within the business for the products we sell, the specialist knowledge and ability to recommend and guide our customers – from store staff to the team in head office – is second to none and the new hmv.com brings that to the forefront,' he said.
The relaunch replaces a temporary site the store had used since it was acquired from administrators by Hilco Capital in April. It was created by Manchester-based agency Code Computerlove.
It is not yet clear whether HMV will begin selling CDs and DVDs online again.
The main portal HMV.com includes features of bands, films, DVDs and television and includes information about HMV events at key stores. It has a 'menu' link in the top right hand corner allowing users to access a separate downloading site hmvdigital.com which has a reasonably comprehensive roster of bands and genres.
It marks a 'major step' from what HMV has had online before and focuses on 'curation, content and editorial,' said Hilco Capital in a statement.
'Everything we’re doing with HMV is focused on engagement, content and curation - all the things that HMV lost sight of in recent years,' said Paul McGowan, chairman of HMV, which has 142 stores.
'The passion within the business for the products we sell, the specialist knowledge and ability to recommend and guide our customers – from store staff to the team in head office – is second to none and the new hmv.com brings that to the forefront,' he said.
The relaunch replaces a temporary site the store had used since it was acquired from administrators by Hilco Capital in April. It was created by Manchester-based agency Code Computerlove.
It is not yet clear whether HMV will begin selling CDs and DVDs online again.
Online Giant Shop Direct Posts First Profit For A Decade Amid Rumours It May Be Sold
Catalogue and online giant Shop Direct has posted its first ever pretax profit this morning prompting speculation the business may soon be sold.
The former Littlewoods and Argos Additions business was formed in a flurry of corporate activity in 2002 and 2003 and is owned by the reclusive Barclay Brothers.
The group, which owns littlewoods.com, isme,com and very.co.uk among other sites, said it made a pretax profit of £6.6 million in the year to June 30 compared to a loss of £57.7 million the previous year.
'Exceptional' restructuring costs were reduced from £46.2 million to £8.4 million which helped achieve the improvement.
'These results mark an important milestone in the journey of Shop Direct into a world class digital retailer. We're delighted to report a positive pretax profit for the first time in 10 years, giving us a solid platform from which to move forward,' said chief executive Alex Baldock.
Sources said the sudden improvement in pretax performance could indicate a preparation for an IPO or a sale of the business. Several other online retailers including boohoo.com, electricals site ao.com and The Hut are also rumoured to be preparing IPO or refinancing plans.
Online accounted for 78 per cent of the £1.69 billion sales compared to 75 per cent a year before. Over a quarter (27 per cent) of online sales were from mobiles.
The number of catalogues more than halved during the year from 8.2 million in 2012 to 4 million. Group sales increased 1 per cent.
The former Littlewoods and Argos Additions business was formed in a flurry of corporate activity in 2002 and 2003 and is owned by the reclusive Barclay Brothers.
The group, which owns littlewoods.com, isme,com and very.co.uk among other sites, said it made a pretax profit of £6.6 million in the year to June 30 compared to a loss of £57.7 million the previous year.
'Exceptional' restructuring costs were reduced from £46.2 million to £8.4 million which helped achieve the improvement.
'These results mark an important milestone in the journey of Shop Direct into a world class digital retailer. We're delighted to report a positive pretax profit for the first time in 10 years, giving us a solid platform from which to move forward,' said chief executive Alex Baldock.
Sources said the sudden improvement in pretax performance could indicate a preparation for an IPO or a sale of the business. Several other online retailers including boohoo.com, electricals site ao.com and The Hut are also rumoured to be preparing IPO or refinancing plans.
Online accounted for 78 per cent of the £1.69 billion sales compared to 75 per cent a year before. Over a quarter (27 per cent) of online sales were from mobiles.
The number of catalogues more than halved during the year from 8.2 million in 2012 to 4 million. Group sales increased 1 per cent.
Monday, 28 October 2013
Argos Hauls In Upmarket Ranges As M-Commerce Sales Rise
Argos says it will have add almost 4,000 'aspirational' products by early next year, boosting its appeal to the middle classes.
According to Argos managing director John Walden the chain has added more expensive electronics, kitchenware from Denby Pottery and cookers from Stoves that sell for £2,500.
'The offer was biased towards a less affluent shopper - from the product to the customer experience. But by early next year, we will have added about 8,000 new lines and about 40 or 50 per cent of that will be more aspitational products,' he said in an interview with the Mail on Sunday.
Walden said he decked out much of his house with Argos products when he relocated to London from the US two years ago inlcuding two Dysons vacuum cleaners and Habitat furniture.
Argos is testing stores where the catalogues on tables for browsing are being replaced by iPad-style tablet computers. A new store design will also aim to tempt more affluent shoppers into stores with 'fast lanes' for serving those in a hurry.
The retailer is one year into a five year 'digital transformation plan' and has hired a number of new directors to help push the plan.
Mobile commerce on tablets and smartphones at Argos more than doubled (124 per cent) in the first-half of its financial year and made up 16 per cent sales. It said 43 per cent of total sales were online including those through its 'Check & Reserve' service.
Multichannel sales represent 52 per cent of total Argos sales. Profit at the chain, which is owned by Homebase parent group Home Retail, more than doubled to 7.7 million in the first-half.
According to Argos managing director John Walden the chain has added more expensive electronics, kitchenware from Denby Pottery and cookers from Stoves that sell for £2,500.
'The offer was biased towards a less affluent shopper - from the product to the customer experience. But by early next year, we will have added about 8,000 new lines and about 40 or 50 per cent of that will be more aspitational products,' he said in an interview with the Mail on Sunday.
Walden said he decked out much of his house with Argos products when he relocated to London from the US two years ago inlcuding two Dysons vacuum cleaners and Habitat furniture.
Argos is testing stores where the catalogues on tables for browsing are being replaced by iPad-style tablet computers. A new store design will also aim to tempt more affluent shoppers into stores with 'fast lanes' for serving those in a hurry.
The retailer is one year into a five year 'digital transformation plan' and has hired a number of new directors to help push the plan.
Mobile commerce on tablets and smartphones at Argos more than doubled (124 per cent) in the first-half of its financial year and made up 16 per cent sales. It said 43 per cent of total sales were online including those through its 'Check & Reserve' service.
Multichannel sales represent 52 per cent of total Argos sales. Profit at the chain, which is owned by Homebase parent group Home Retail, more than doubled to 7.7 million in the first-half.
Sunday, 27 October 2013
Tesco MyStore App Will Speed Up Shopping Trips, Says Supermarket
Tesco is poised to launch an in-store app that will allow customers write up their shopping lists and navigate the shop.
An iOS version of the app, dubbed 'MyStore', has just received approval from Apple's App Store team and will be tested in Tesco's Chelmsford store from later this month. Marketing Week said it would be tested for three to four months.
Customers will gather their shopping lists using the app either while at home or when out and about and it will also help them navigate to the items when they arrive in store. Other functions will be added and in the future and an Android version will be launched after the current version has been tested.
Hilda Jenkins, Tesco.com's head of mobile, is reported by the magazine to have said at the Apps World Europe Conference: 'At Tesco, we're already looking at what the store of the future will look like. We're looking at the customer's journey... and thinking how can we make that easier.'
An iOS version of the app, dubbed 'MyStore', has just received approval from Apple's App Store team and will be tested in Tesco's Chelmsford store from later this month. Marketing Week said it would be tested for three to four months.
Customers will gather their shopping lists using the app either while at home or when out and about and it will also help them navigate to the items when they arrive in store. Other functions will be added and in the future and an Android version will be launched after the current version has been tested.
Hilda Jenkins, Tesco.com's head of mobile, is reported by the magazine to have said at the Apps World Europe Conference: 'At Tesco, we're already looking at what the store of the future will look like. We're looking at the customer's journey... and thinking how can we make that easier.'
Saturday, 26 October 2013
Comment: M&S Edges Into The Online Food Market Through The Back Door
Marks & Spencer has expanded its Food To Order online offer in a move that appears to be pushing the business slowly but surely into the online food market.
More than 50 meat and dish products have been added to its online party food offer mainly consisting of sandwiches, cakes, sausages rolls and mini-burgers.
The range now includes a £52 Aberdeen Angus rolled beef sirloin that serves 10, four sirloin steaks at £42 and £35 Turkey crowns - clearly still for the entertaining market. But there is also a £7 beef lasagne and £9 beef chilli con carne that could clearly satisfy families for a few evening meals.
From next month the online offer will also include pheasant, wood pigeon and rabbit.
The food is prepared by M&S's chefs and then sent to the most convenient store - customers still have to go to stores to pick up their orders on a 'click and collect' basis.
M&S last week insisted that it would not be heading wholesale into the online grocery business as others like Sainsbury's and Waitrose have done. And this current strategy clearly targets a very specific market.
But, as we said earlier this month, is will be interesting to see how long it can ignore the online and where the pain barrier exists that others like Morrisons have clearly felt in the face of rampant competition. Morrisons agreed a deal with Ocado in May that will see it launch a full online service in January.
But even as it drags its heels, the Food To Order business will provide M&S with a convenient beachhead that will allow it to push and test the market using the right technology and systems that could one day form the bedrock of larger online ordering business.
More than 50 meat and dish products have been added to its online party food offer mainly consisting of sandwiches, cakes, sausages rolls and mini-burgers.
The range now includes a £52 Aberdeen Angus rolled beef sirloin that serves 10, four sirloin steaks at £42 and £35 Turkey crowns - clearly still for the entertaining market. But there is also a £7 beef lasagne and £9 beef chilli con carne that could clearly satisfy families for a few evening meals.
From next month the online offer will also include pheasant, wood pigeon and rabbit.
The food is prepared by M&S's chefs and then sent to the most convenient store - customers still have to go to stores to pick up their orders on a 'click and collect' basis.
M&S last week insisted that it would not be heading wholesale into the online grocery business as others like Sainsbury's and Waitrose have done. And this current strategy clearly targets a very specific market.
But, as we said earlier this month, is will be interesting to see how long it can ignore the online and where the pain barrier exists that others like Morrisons have clearly felt in the face of rampant competition. Morrisons agreed a deal with Ocado in May that will see it launch a full online service in January.
But even as it drags its heels, the Food To Order business will provide M&S with a convenient beachhead that will allow it to push and test the market using the right technology and systems that could one day form the bedrock of larger online ordering business.
Friday, 25 October 2013
Asos Bosses Cash in £94 Million Shares
Asos chief executive Nick Robertson and his management team have cashed in £94.1 million shares after stellar results that have set them on course to reach £1 billion in sales next year.
Its sales rose 39 per cent to £769.4 million in the year to the end of August and pre-tax profit rose 37 per cent to £54.7 million. Shares in Asos have more than doubled in the past 12 months, reaching a peak of £57 last month.
Robertson plans to give £2.8 million to Asos's 1,300 staff as a one-off bonus.
He said this week that the success of online shopping was in part because 20-somethings 'could not think of anything worse' than shopping on Oxford Street on a Saturday afternoon. He described Asos as the 'gateway' to the 20-somethings market for other retailers and insisted it was 'not a threat'.
He added that the firm was still evaluating the results of its online trial with Primark earlier this year but held concerns that the product value was too low to cope with the cost of postage and returns.
Its sales rose 39 per cent to £769.4 million in the year to the end of August and pre-tax profit rose 37 per cent to £54.7 million. Shares in Asos have more than doubled in the past 12 months, reaching a peak of £57 last month.
Robertson plans to give £2.8 million to Asos's 1,300 staff as a one-off bonus.
He said this week that the success of online shopping was in part because 20-somethings 'could not think of anything worse' than shopping on Oxford Street on a Saturday afternoon. He described Asos as the 'gateway' to the 20-somethings market for other retailers and insisted it was 'not a threat'.
He added that the firm was still evaluating the results of its online trial with Primark earlier this year but held concerns that the product value was too low to cope with the cost of postage and returns.
A Third Of Shoppers Checking Prices Online Before They Go Food Shopping
Five times as many people are hunting for bargains online before they embark on supermarket shopping trips to discover which stores are offering the best deals.
Almost a third of shoppers, 30 per cent, are 'online cherry picking' in advance of journeys to the shops, up from 6 per cent in 2010. The portion rises to 41 per cent for 18-24 year olds, according to the survey from grocery industry body the IGD.
A third, 32 per cent, also said they would like to be alerted to deals when passing a grocery store.
When using technology, including searching on price comparison sites and looking for recipes online, 74 per cent said it saved time, 69 per cent said it saved money and 49 per cent said it allowed them to follow a healthier diet.
The IGD says it expects online grocery shopping to double from £6.5 billion now to £14.6 billion by 2018.
IGD chief executive Joanne Denney-Finch, said: 'Online retailing in food and consumer goods is growing at a phenomenal rate. Technology is empowering people, fundamentally changing the way they buy groceries.'
She added: 'Since the start of the recession, shoppers have become much more savvy, regularly hunting around for the best deals. These behaviours have now become much more established and an everyday norm for many shoppers. Technology is making it even easier for people to do this online, saving time before setting out on their journey.'
Thursday, 24 October 2013
Debenhams Online Sales Surge 46% To £366 Million
Department store Debenhams said its online sales have soared 46.2 per cent in the past year to £366.3 million.
The company said online sales in the year to August were 13.2 per cent of the group's £2.7 billion sales. The number of visitors to Debenhams.com increased 36 per cent to 241 million and mobile visits increased 200 per cent and now account for a quarter of sales.
Debenhams said profit at the business as a whole fell 2.7 per cent to £154 million in a competitive market. But the chain said it managed to increase market share in the period and group like-for-like sales over the year increased 2 per cent.
'We are working hard to ensure our UK stores adapt to the challenge of their changing role in a multichannel world,' said chief executive Michael Sharp.
'More widely, whilst consumer confidence may be showing signs of improvement, we expect that household incomes will remain under pressure from inflation growing ahead of wages. With this in mind, we remain cautious about the strength and pace of any consumer recovery in 2014 and expect the marketplace to remain highly competitive,' he said.
Debenhams, which has 156 UK stores, said its online service now operates in 67 countries.
The company said online sales in the year to August were 13.2 per cent of the group's £2.7 billion sales. The number of visitors to Debenhams.com increased 36 per cent to 241 million and mobile visits increased 200 per cent and now account for a quarter of sales.
Debenhams said profit at the business as a whole fell 2.7 per cent to £154 million in a competitive market. But the chain said it managed to increase market share in the period and group like-for-like sales over the year increased 2 per cent.
'We are working hard to ensure our UK stores adapt to the challenge of their changing role in a multichannel world,' said chief executive Michael Sharp.
'More widely, whilst consumer confidence may be showing signs of improvement, we expect that household incomes will remain under pressure from inflation growing ahead of wages. With this in mind, we remain cautious about the strength and pace of any consumer recovery in 2014 and expect the marketplace to remain highly competitive,' he said.
Debenhams, which has 156 UK stores, said its online service now operates in 67 countries.
Wednesday, 23 October 2013
Asos Says Chinese Language Site Will Be Launched 'Imminently'
Asos said today its Chinese language site will be launched 'imminently' and is now in its final phase of testing.
The site, which analysts expect to launch by the end of this month, will open Asos up to the sizable but competitive Chinese market. Asos said today its full-year profit increased 23 per cent to £54.7 million.
The websites retail revenues increased 40 per cent to £753.8 million. International sales increased 34 per cent to £276 million and UK sales increased 44 per cent to £477.8 million.
Asos said it would focus its efforts over the next six months on growing revenue in China, Russia, where a local language site launched in May, the UK, the US, France, Germany and Australia.
Chief executive Nick Robertson said: 'Our £1 billion sales target is now firmly in our sights and we have stepped up our investment in people, technology, logistics and marketing to support the significant global potential of the ASOS business.'
The site, which analysts expect to launch by the end of this month, will open Asos up to the sizable but competitive Chinese market. Asos said today its full-year profit increased 23 per cent to £54.7 million.
The websites retail revenues increased 40 per cent to £753.8 million. International sales increased 34 per cent to £276 million and UK sales increased 44 per cent to £477.8 million.
Asos said it would focus its efforts over the next six months on growing revenue in China, Russia, where a local language site launched in May, the UK, the US, France, Germany and Australia.
Chief executive Nick Robertson said: 'Our £1 billion sales target is now firmly in our sights and we have stepped up our investment in people, technology, logistics and marketing to support the significant global potential of the ASOS business.'
Alibaba's $60 Billion Listing May Head For London
Chinese e-commerce giant Alibaba has held preliminary meetings with representatives from the London Stock Exchange over a potential UK listing.
The online giant is considering listing $25 billion ($15 billion) worth of shares. Meetings over the possibility of accommodating the plan in London were held last week in Hong Kong with UK officials who there as part of Mayor of London Boris Johnson's visit to the city, said the Financial Times.
The Hong Kong exchange has already rejected the company on corporate governance grounds relating to the structure of its board and voting rights. Nasdaq and the New York Stock Exchange are understood to have said they would approve a listing of the company's shares, which would be the biggest since Facebook last year.
Yahoo wants to off-load its 24 per cent stake in Alibaba and, according to contracts, that must be done through Hong Kong or the US. However, it does not rule out a secondary listing in London, the FT said.
There is no formal timetable yet and no underwriters have been selected, a London-based Alibaba spokesperson told the Daily Telegraph newspaper.
The online giant is considering listing $25 billion ($15 billion) worth of shares. Meetings over the possibility of accommodating the plan in London were held last week in Hong Kong with UK officials who there as part of Mayor of London Boris Johnson's visit to the city, said the Financial Times.
The Hong Kong exchange has already rejected the company on corporate governance grounds relating to the structure of its board and voting rights. Nasdaq and the New York Stock Exchange are understood to have said they would approve a listing of the company's shares, which would be the biggest since Facebook last year.
Yahoo wants to off-load its 24 per cent stake in Alibaba and, according to contracts, that must be done through Hong Kong or the US. However, it does not rule out a secondary listing in London, the FT said.
There is no formal timetable yet and no underwriters have been selected, a London-based Alibaba spokesperson told the Daily Telegraph newspaper.
Ebay Acquires UK Same Day Courier Service Shutl As It Prepares Super Fast Delivery Options
Ebay has acquired UK-based same-day delivery service Shutl as it prepares to extend its 'one hour' service to international markets next year.
Ebay launched its 'Ebay Now' service in Chicago yesterday and plans to begin operating the one hour delivery service in 25 cities, including London, by the end of next year.
Devin Wenig, president of eBay Marketplaces, said: 'The world is changing, with the lines between online and offline commerce blurring and the expectations of buyers and sellers rising rapidly. With eBay's latest steps, we are bringing together the best of what people need from a shopping experience - speed and convenience - with things people love about shopping, like discovery and inspiration.'
Ebay Now was launched a year ago. News that it is heading for the UK follows the firms agreement with Argos to allow some products bought from its Marketplace available for pick up in the chain's shops.
Ebay is also planning to launch a scheduled delivery service for Ebay Now that allows shoppers to buy something on the site and arrange a time for delivery that best suits them.
Ebay launched its 'Ebay Now' service in Chicago yesterday and plans to begin operating the one hour delivery service in 25 cities, including London, by the end of next year.
Devin Wenig, president of eBay Marketplaces, said: 'The world is changing, with the lines between online and offline commerce blurring and the expectations of buyers and sellers rising rapidly. With eBay's latest steps, we are bringing together the best of what people need from a shopping experience - speed and convenience - with things people love about shopping, like discovery and inspiration.'
Ebay Now was launched a year ago. News that it is heading for the UK follows the firms agreement with Argos to allow some products bought from its Marketplace available for pick up in the chain's shops.
Ebay is also planning to launch a scheduled delivery service for Ebay Now that allows shoppers to buy something on the site and arrange a time for delivery that best suits them.
Al-Fayed's Flash Sale Site Cocosa Closing Down For Good
Mohamed Al-Fayed's flash sale site Cocosa.com is closing down over the next few months as larger competitors such as Vente-Privee begin to crowd the market.
The Al-Fayed Group, whose owner previously controlled Harrods, said it was 'conducting an orderly wind down of the business in the months ahead.'
'Cocosa is stable, is expressly not being placed in administration and the owners have fully committed to funding the wind-down of the business,' the group said in a statement.
Al-Fayed purchased Cocosa in 2011 but believed the cost of building the brand into market leadership would be too high. Al-Fayed also divested his interest in Fulham Football Club in July, where he was chairman, and sold luxury department store Harrods to Qatar Holdings in 2010.
When he sold Fulham, Al-Fayed said it was the 'right time for me to retire'. It comes as Paris-based flash sales website Vente-Privee.com, which has a turnover of £1.2 billion through operations in various European countries, sets its sights on dominating the UK market.
Most unsold UK high street clothing is currently disposed of through outlet centres, through stores like TK Maxx or in overseas markets. Like many flash sales sites, Vente-Privee uses a membership-only scheme to prevent items being easily search for off the site, which it says better protects brands.
It puts individual brands on sale for a restricted period across a small number of dates each year before shipping two weeks later.
The Al-Fayed Group, whose owner previously controlled Harrods, said it was 'conducting an orderly wind down of the business in the months ahead.'
'Cocosa is stable, is expressly not being placed in administration and the owners have fully committed to funding the wind-down of the business,' the group said in a statement.
Al-Fayed purchased Cocosa in 2011 but believed the cost of building the brand into market leadership would be too high. Al-Fayed also divested his interest in Fulham Football Club in July, where he was chairman, and sold luxury department store Harrods to Qatar Holdings in 2010.
When he sold Fulham, Al-Fayed said it was the 'right time for me to retire'. It comes as Paris-based flash sales website Vente-Privee.com, which has a turnover of £1.2 billion through operations in various European countries, sets its sights on dominating the UK market.
Most unsold UK high street clothing is currently disposed of through outlet centres, through stores like TK Maxx or in overseas markets. Like many flash sales sites, Vente-Privee uses a membership-only scheme to prevent items being easily search for off the site, which it says better protects brands.
It puts individual brands on sale for a restricted period across a small number of dates each year before shipping two weeks later.
Apple Throws HMV App Off iTunes Despite Approving It A Week Ago
Apple has removed HMV's new app from its iTunes store despite approving it for release only a month ago.
HMV confirmed that Apple had 'temporarily' removed the app - which is a rival to its own store - after only a few days in service after last week's launch. The HMV iOS app allows users to buy tracks from the retailer and then download them straight into iTunes.
Those who have already downloaded the app will be able to continue using it and it has been 'very successful in only a few short days,' according to HMV chairman Paul McGowan.
Music Week said the app, which it said has been downloaded 10,000 times across iOS and Android, could be in breach of Apple's guidelines banning apps enabling users to 'purchase physical goods or goods and services used outside of the application.'
McGowan said : 'We are unable to explain the change in Apple's position as we have been given no explanation by them as to any difference they view between the approved version and the one suspended.'
He said it had been approved on the 15th of September. The main HMV.com store will launch tomorrow.
HMV confirmed that Apple had 'temporarily' removed the app - which is a rival to its own store - after only a few days in service after last week's launch. The HMV iOS app allows users to buy tracks from the retailer and then download them straight into iTunes.
Those who have already downloaded the app will be able to continue using it and it has been 'very successful in only a few short days,' according to HMV chairman Paul McGowan.
Music Week said the app, which it said has been downloaded 10,000 times across iOS and Android, could be in breach of Apple's guidelines banning apps enabling users to 'purchase physical goods or goods and services used outside of the application.'
McGowan said : 'We are unable to explain the change in Apple's position as we have been given no explanation by them as to any difference they view between the approved version and the one suspended.'
He said it had been approved on the 15th of September. The main HMV.com store will launch tomorrow.
Retail Searches On PCs Decline 10% As Tablets Take Over….
The number of shopping searches made on desktop PCs declined 10 per cent in the past three months as consumers switched to smartphones and tablets.
A quarterly survey by the British Retail Consortium and Google showed that searches on tablets doubled in the period taking the total growth in 'retail' searches, as categorised by Google, to 12 per cent. Smartphone searches increased 58 per cent.
Searches on terms like 'Fifa 14', 'Grand Theft Auto 5' and 'iPad mini' indicated consumers were comparing prices on new technology releases.
Google retail director Peter Fitzgerald said: 'The glorious summer weather that extended into July at times proved tough for online trading, as customers opted to enjoy the sunshine. However, the last two months of the quarter saw a drop in temperatures and led to overall queries growing at 12 per cent in the third quarter.'
He said: 'Again the DIY and gardening sectors were able to take advantage of the weather, with 'garden furniture' one of the most popular retail searches this quarter.'
A quarterly survey by the British Retail Consortium and Google showed that searches on tablets doubled in the period taking the total growth in 'retail' searches, as categorised by Google, to 12 per cent. Smartphone searches increased 58 per cent.
Searches on terms like 'Fifa 14', 'Grand Theft Auto 5' and 'iPad mini' indicated consumers were comparing prices on new technology releases.
Google retail director Peter Fitzgerald said: 'The glorious summer weather that extended into July at times proved tough for online trading, as customers opted to enjoy the sunshine. However, the last two months of the quarter saw a drop in temperatures and led to overall queries growing at 12 per cent in the third quarter.'
He said: 'Again the DIY and gardening sectors were able to take advantage of the weather, with 'garden furniture' one of the most popular retail searches this quarter.'
….. While UK Retailers Seize International Opportunities With Sharp Rise In Overseas Demand
UK retailers have seen demand from overseas visitors on their websites soar.
The number of searches for their products and brands increased 23 per cent in the third quarter this year. The increase was an acceleration on the 16 per cent rise in the second quarter.
The most international searches came from the Russian Federation, the Netherlands and South Korea, according to the BRC-Google Online Retail Monitor.
British Retail Consortium director general Helen Dickinson said: ‘These figures highlight the strong foothold that UK retailers have on the international stage, and the major potential for further growth. [The figures also] show the quality, range and accompanying service offered by 'Brand Britain' is something respected around the world.
'For the first time, we can also see which areas of UK retail rank most highly in these overseas searches, with clothing, beauty and department stores making up the top three. Retailers are continuing to invest significantly in their multichannel offer, so that they can provide customers fast and user-friendly ways to browse,' she said.
The number of searches for their products and brands increased 23 per cent in the third quarter this year. The increase was an acceleration on the 16 per cent rise in the second quarter.
The most international searches came from the Russian Federation, the Netherlands and South Korea, according to the BRC-Google Online Retail Monitor.
British Retail Consortium director general Helen Dickinson said: ‘These figures highlight the strong foothold that UK retailers have on the international stage, and the major potential for further growth. [The figures also] show the quality, range and accompanying service offered by 'Brand Britain' is something respected around the world.
'For the first time, we can also see which areas of UK retail rank most highly in these overseas searches, with clothing, beauty and department stores making up the top three. Retailers are continuing to invest significantly in their multichannel offer, so that they can provide customers fast and user-friendly ways to browse,' she said.
Tuesday, 22 October 2013
Argos Drafts In Marks & Spencer Director As Part Of Digital Transformation Team
Argos has recruited Adam Archer from Marks & Spencer to join its digital transformation team in the newly created role of head of commercial transformation.
Archer, a former Marks & Spencer director, will report to commercial director David Robinson. He will lead the overhaul of the information systems transformation programme within trading.
Argos said the role was 'key to bringing to life the strategic vision for Argos to be a digital leader'. Archer most recently ran Marks & Spencer's Chinese business and led the strategic planning team prior to that. He has also worked at Arcadia, Oasis, Miss Selfridge and Sears.
His experience will be critical as Argos invests in its information systems infrastructure across the business 'to join channels and improve the digital shopping experience for our customers,' said Robinson.
Robinson added: 'This role is critical to our transformation plans for our buying teams and we are delighted to welcome Adam to the business. Our product-based strategies are critical to our growth plans, which means offering customers more choice, available faster and extending our reach by offering a more universally appealing offer, including extended ranges of branded and own brand product.'
Archer, a former Marks & Spencer director, will report to commercial director David Robinson. He will lead the overhaul of the information systems transformation programme within trading.
Argos said the role was 'key to bringing to life the strategic vision for Argos to be a digital leader'. Archer most recently ran Marks & Spencer's Chinese business and led the strategic planning team prior to that. He has also worked at Arcadia, Oasis, Miss Selfridge and Sears.
His experience will be critical as Argos invests in its information systems infrastructure across the business 'to join channels and improve the digital shopping experience for our customers,' said Robinson.
Robinson added: 'This role is critical to our transformation plans for our buying teams and we are delighted to welcome Adam to the business. Our product-based strategies are critical to our growth plans, which means offering customers more choice, available faster and extending our reach by offering a more universally appealing offer, including extended ranges of branded and own brand product.'
A Third Of West End Retailers Failing On Multichannel And Technology
A third of retailers in London's key West End shopping zone have failed to take up the gauntlet of multichannel and have no technology at all as part of their customer experience.
The survey shows how far behind many retailers are falling on giving customers basic multichannel choices such as equipping staff with iPads (which only 8 per cent had done), having click and collect available in store (44 per cent) and not offering home delivery from the store (30 per cent).
Omnico surveyed 90 retailers in the Oxford Street and Regent Street and found even fewer, 19 per cent, offered delivery to another store. The software group and systems found there was a significant gulf forming between those that had adopted new technologies to provide customers with purchasing, ordering and delivery options.
The study found that mobile phone operators EE and Carphone Warehouse, department store John Lewis and Nike all offered six or more customer facing technologies which also included in-store video screens, used by 35 per cent, wi-fi (14 per cent), advertisement of social media interaction (14 per cent), had interactive kiosks (9 per cent) or offered mobile scanning and check-out (3 per cent) among several other measures.
Econsultancy.com has a handy review of the options for retailers failing the survey and the current demand for some of the above services.
The survey shows how far behind many retailers are falling on giving customers basic multichannel choices such as equipping staff with iPads (which only 8 per cent had done), having click and collect available in store (44 per cent) and not offering home delivery from the store (30 per cent).
Omnico surveyed 90 retailers in the Oxford Street and Regent Street and found even fewer, 19 per cent, offered delivery to another store. The software group and systems found there was a significant gulf forming between those that had adopted new technologies to provide customers with purchasing, ordering and delivery options.
The study found that mobile phone operators EE and Carphone Warehouse, department store John Lewis and Nike all offered six or more customer facing technologies which also included in-store video screens, used by 35 per cent, wi-fi (14 per cent), advertisement of social media interaction (14 per cent), had interactive kiosks (9 per cent) or offered mobile scanning and check-out (3 per cent) among several other measures.
Econsultancy.com has a handy review of the options for retailers failing the survey and the current demand for some of the above services.
Independent Shop Web Portal Farfetch Looks East
The independent fashion retailer's web portal Farfetch is planning to launch native language sites in Russia and China as part of massive overseas expansion plans.
The site, which allows independent fashion shop owners to sell on the internet, has already seen 'rapid growth' from these markets over the past 12 months, according to Drapers magazine.
The strategy is expected to be implemented next year and Farfetch chief operating officer Andrew Robb said other territories will be included 'further down the line'.
Farfetch investors include publisher Condé Nast which gave the site $20 million (£13.3 million) in March. José Neves said at the time the investment would support growth into 'new markets'.
The site, which allows independent fashion shop owners to sell on the internet, has already seen 'rapid growth' from these markets over the past 12 months, according to Drapers magazine.
The strategy is expected to be implemented next year and Farfetch chief operating officer Andrew Robb said other territories will be included 'further down the line'.
Farfetch investors include publisher Condé Nast which gave the site $20 million (£13.3 million) in March. José Neves said at the time the investment would support growth into 'new markets'.
Monday, 21 October 2013
Waitrose Set For £300 Million Online Sales
Waitrose is set for a leap in sales from its web site in the next few months with managing director Mark Price predicting sales will reach £300 million.
Sales in the first half increased 40.5 per cent and that momentum is expected to continue over the festive period. Waitrose is trialing a number of projects to help secure the growth including lockers that will allow customers to pick up their shopping from outside stores using a security code sent to their mobile.
It also plans to open 'a number' of online delivery warehouses around London where pressure on stores in greatest. Its first is in Acton and its second is planned in the second half of 2014.
Price said it was possible he may open online-only 'dark stores' in other cities such as Glasgow if the pressure on the traditional in-store picking model in such areas became too great.
He said online forms a crucial part of the plan to turn Waitrose into a £15 billion retailer in the next ten years. Waitrose also has a supply contract with for Ocado's delivery service.
Price refused to be drawn on relations with Ocado in an interview with the Mail on Sunday other than to say things were 'fine'. When asked whether he would continue the contract after 2020 when it ends, he said 'who knows'.
Sales in the first half increased 40.5 per cent and that momentum is expected to continue over the festive period. Waitrose is trialing a number of projects to help secure the growth including lockers that will allow customers to pick up their shopping from outside stores using a security code sent to their mobile.
It also plans to open 'a number' of online delivery warehouses around London where pressure on stores in greatest. Its first is in Acton and its second is planned in the second half of 2014.
Price said it was possible he may open online-only 'dark stores' in other cities such as Glasgow if the pressure on the traditional in-store picking model in such areas became too great.
He said online forms a crucial part of the plan to turn Waitrose into a £15 billion retailer in the next ten years. Waitrose also has a supply contract with for Ocado's delivery service.
Price refused to be drawn on relations with Ocado in an interview with the Mail on Sunday other than to say things were 'fine'. When asked whether he would continue the contract after 2020 when it ends, he said 'who knows'.
John Lewis Predicts 'Mobile Christmas' As Traffic Soars
Department store John Lewis has predicted that this year will be the first 'mobile Christmas' in the UK as traffic from smartphones and tablets overtakes PCs on Christmas Day.
Mobile made up almost half of traffic to johnlewis.com on the big day last year and the retailer expects that mobile will overtake desktop traffic at 5pm and that mobile traffic will peak at around 10pm. It also expects 1 million mobile visitors on Boxing Day after last year's 920,000 visits.
Mobile now accounts for 40 per cent of traffic on the site, up 115 per cent on last year, it said. Fashion has seen a significant increase with 78 per cent of sales in the category now completed on a mobile device.
In anticipation of the swing, John Lewis has launched its new transactional iPad app. John Lewis said the app will bring 'rich content from the retailer's magazine and catalogues to the shopping environment.' It also relaunched its iPhone app this Autumn and has wi-fi in shops to encourage browsing on the web.
'Mobile is set to be the shining star of Christmas 2013. Shopping is becoming much more of a social experience with people browsing, purchasing and sharing ideas with others using their mobile phones and tablets. We expect this to increase dramatically during the festive period as customers shop on the go and we anticipate that Christmas Day will be the tipping point for mobile,' said online director Mark Lewis.
He said customers tend to buy lower value items on mobile devices but that there is a 'significant proportion' of customers buying big ticket items. The most expensive so far is a £7,000 television.
Mobile made up almost half of traffic to johnlewis.com on the big day last year and the retailer expects that mobile will overtake desktop traffic at 5pm and that mobile traffic will peak at around 10pm. It also expects 1 million mobile visitors on Boxing Day after last year's 920,000 visits.
Mobile now accounts for 40 per cent of traffic on the site, up 115 per cent on last year, it said. Fashion has seen a significant increase with 78 per cent of sales in the category now completed on a mobile device.
In anticipation of the swing, John Lewis has launched its new transactional iPad app. John Lewis said the app will bring 'rich content from the retailer's magazine and catalogues to the shopping environment.' It also relaunched its iPhone app this Autumn and has wi-fi in shops to encourage browsing on the web.
'Mobile is set to be the shining star of Christmas 2013. Shopping is becoming much more of a social experience with people browsing, purchasing and sharing ideas with others using their mobile phones and tablets. We expect this to increase dramatically during the festive period as customers shop on the go and we anticipate that Christmas Day will be the tipping point for mobile,' said online director Mark Lewis.
He said customers tend to buy lower value items on mobile devices but that there is a 'significant proportion' of customers buying big ticket items. The most expensive so far is a £7,000 television.
Sunday, 20 October 2013
Asos To Break The Billion Pound Sales Mark Next Year
Online retail phenomenon Asos is expected to make more than £1 billion pounds in sales next year after this years surge in demand at home and the success of its overseas ventures.
The company will confirm this week that sales rocketed 40 per cent to £753.8 this year numbers, accelerating to 47 per cent in the fourth quarter.
Asos predicted three years ago it would reach sales of £1 billion in 2015, according to news wire Reuters. At that time its sales were just £223 million.
Asos chief executive Nick Robertson told the news service: 'It's feeling that [this financial year] should be our first billion pound year.'
Analysts expect the retailer to announce on Wednesday that profits increased by a fifth to £53.7 million with the consensus forecast for next year rising to £70.5 million.
They also expect Asos UK business to slow over the next few quarters but predict that international will accelerate as various strands of its strategy take hold. The etailer is poised to launch its Chinese web site at the end of this month.
The company will confirm this week that sales rocketed 40 per cent to £753.8 this year numbers, accelerating to 47 per cent in the fourth quarter.
Asos predicted three years ago it would reach sales of £1 billion in 2015, according to news wire Reuters. At that time its sales were just £223 million.
Asos chief executive Nick Robertson told the news service: 'It's feeling that [this financial year] should be our first billion pound year.'
Analysts expect the retailer to announce on Wednesday that profits increased by a fifth to £53.7 million with the consensus forecast for next year rising to £70.5 million.
They also expect Asos UK business to slow over the next few quarters but predict that international will accelerate as various strands of its strategy take hold. The etailer is poised to launch its Chinese web site at the end of this month.
Saturday, 19 October 2013
Tesco Offers Click & Collect At Schools, Libraries And Car Parks
Supermarket Tesco has launched a trial that will allow customers of its Click & Collect service to pick up their shopping at the library or even on their way to fetch the kids from school.
The supermarket is giving customers the option as part of a trial in York to collect shopping from Huntington Secondary School, Monk Bar Car Park or Grimston Bar Park & Ride stop. It also plans to test the service in London and Dingwall, Scotland before Christmas and will include libraries, sports centres and other community locations as options.
The grocer said it was the first time it had extended its Click & Collect service beyond its store network and 'underlines its commitment to making shopping as convenient as possible for customers'.
The grocery industry trade body the IGD said almost one in five grocery shoppers have used click and collect service in the last month and a third said they intend to use it more over the coming year.
The supermarket is giving customers the option as part of a trial in York to collect shopping from Huntington Secondary School, Monk Bar Car Park or Grimston Bar Park & Ride stop. It also plans to test the service in London and Dingwall, Scotland before Christmas and will include libraries, sports centres and other community locations as options.
The grocer said it was the first time it had extended its Click & Collect service beyond its store network and 'underlines its commitment to making shopping as convenient as possible for customers'.
The grocery industry trade body the IGD said almost one in five grocery shoppers have used click and collect service in the last month and a third said they intend to use it more over the coming year.
WHSmith Returns Online After Porn and Abuse E-Books Debacle
British books retailer WHSmith reopened its website on Thursday after it was engulfed in a scandal selling themed pornographic e-books on its website.
The site was suspended by the company after it was revealed last weekend by British newspaper The Mail on Sunday that it has been selling e-books featuring rape, incest and bestiality.
Retailers including Amazon and US chain Barnes & Noble were also found selling the books. WHSmith suspended the site on Monday - two days after it was alerted to the issue.
WHSmith takes its e-book content from its e-reader partner Kobo. The supplier has suspended all self-published e-books as a result of the scandal.
WHSmith had issued a notice on its suspended site reading: 'We sincerely apologise for any offence caused.'
The statement also read the site 'will become live again once all self-published e-books have been removed and we are totally sure there are no offending titles available.'
The scandal broke among online news sites such as The Kernal in the days leading up to the weekend and by Saturday 12th the BBC's online site featured the story. That evening Amazon and Barnes & Noble had already begun removing the titles but many still remained, the BBC said.
It appears the titles had been filed on the sites automatically, in part because of the ability of writers to self-publish e-books.
Barnes & Noble, who sells e-books through its Nook online business, said: 'When there are violations to the content policy that are brought to our attention, either through our internal process or from a customer or external source, we have a rapid response team in place to appropriately categorise or remove the content in accordance with our policy.'
The Mail on Sunday and the BBC pointed out that the titles were easily available by searching with seemingly innocuous words. The books were apparently appearing alongside children's titles and often with suggestive or pornographic covers.
The site was suspended by the company after it was revealed last weekend by British newspaper The Mail on Sunday that it has been selling e-books featuring rape, incest and bestiality.
Retailers including Amazon and US chain Barnes & Noble were also found selling the books. WHSmith suspended the site on Monday - two days after it was alerted to the issue.
WHSmith takes its e-book content from its e-reader partner Kobo. The supplier has suspended all self-published e-books as a result of the scandal.
WHSmith had issued a notice on its suspended site reading: 'We sincerely apologise for any offence caused.'
The statement also read the site 'will become live again once all self-published e-books have been removed and we are totally sure there are no offending titles available.'
The scandal broke among online news sites such as The Kernal in the days leading up to the weekend and by Saturday 12th the BBC's online site featured the story. That evening Amazon and Barnes & Noble had already begun removing the titles but many still remained, the BBC said.
It appears the titles had been filed on the sites automatically, in part because of the ability of writers to self-publish e-books.
Barnes & Noble, who sells e-books through its Nook online business, said: 'When there are violations to the content policy that are brought to our attention, either through our internal process or from a customer or external source, we have a rapid response team in place to appropriately categorise or remove the content in accordance with our policy.'
The Mail on Sunday and the BBC pointed out that the titles were easily available by searching with seemingly innocuous words. The books were apparently appearing alongside children's titles and often with suggestive or pornographic covers.
Comment: Should Marks & Spencer Start Online Food Delivery?
Former Marks & Spencer chairman and chief executive Sir Stuart Rose said this week that his old firm needs to grasp the nettle and begin delivering food to customer's doorsteps.
The online service they already have is very limited. It consists of cakes, cold meats and sandwiches - food for parties and picnics rather than your weekly shop.
Rose, it could be argued, should mind his own business having had the chance to take the food business online and failing to do so by the time he left in 2010. He's also the chairman of Ocado which is hawking round an instant solution to anyone with online food delivery ambitions - reportedly including Carrefour in France to Safeway in the US.
On the other hand he has a very good point (see The Hawker, Thursday, October 17).
In the old days it was perfectly acceptable to argue that Marks & Spencer's shoppers don't tend to do a full shop at the store - including, for example, nappies, washing powder and stocking up on staples like rice and pasta. They buy those from Sainsbury's or Waitrose.
So if customers aren't ordering every week and the shop is more for selectively buying into quality, for special occasions or just a lazy visit to the Simply Food store at the train station on the way home because you didn't make it to the supermarket that week, where does online ordering fit into buying habits?
What is more, when do we ever spend £80, £100 or even £150 these days on a trip to Marks & Spencer?
What's more the cost involved must be making management heads spin. Already struggling to make profits grow, the board must have weighed up the fact that, as analysts estimate, it costs about £15 to deliver each customer order from an online shop. Executives must have baulked at the numbers involved.
But Rose pointed out that by next year all the majors grocers will have some form of online service.
That includes Tesco (sales £44 billion), Sainsbury's (£25 billion), Asda (£23 billion) and Waitrose £5.3 billion) who have been selling food online for years; Iceland (£2.6 billion) which launched its service before summer and is busily rolling it out to all its 800 or so stores; the Co-Operative Group (£7.4 billion) which is testing a fledgling service ahead of Christmas - as is Morrisons who is running its operation through Ocado in a deal struck in May.
Waitrose, obviously, also supplies Ocado's main delivery business.
But is that any reason for Marks & Spencer to follow suit. All the reasons it states for not doing it seem valid enough.
Except for the obvious question - what does their customer want? Is it really more convenient to go trekking to stores come rain or shine on busy weekends when you've also got to mow the lawn, pick the kids up from piano lessons or football practice and visit granny?
And with shoppers being so promiscuous these days isn't it obvious that what their customer wants? (And their customer is most of us at some point or another every day, week or month). We have all come to expect - and, soon, take for granted - the convenience to access products when and how we want.
Whether that is delivery, click and collect or good old fashioned shopping - believe it or not most of us do still schlep to stores and unstack those shelves on a regular basis.
But the bar is getting higher. This weekend Tesco, leading the grocery Charge of the Light Brigade into online grocery shopping, said it planned to test out an option for shoppers to collect food at the school gates, at libraries or in car parks. Isn't the Tesco shopper, who also does a bit of shopping in M&S now and again, going to wonder at some point why Marks & Spencer's board doesn't do the same - and find it a little infuriating that it doesn't bother?
Is the food THAT good?
So, in a multichannel world where choice is key and the customer must be heard, doing nothing isn't really an option any more. Even if that option is an expensive and unpalatable one for the retailers involved.
When do valid reasons simply become excuses?
Marks & Spencer's food business may be standing up to scrutiny at the moment and on a high relative to many of its bigger supermarket rivals (the obvious and crucial exception being Waitrose which has outperformed M&S for years).
But, as Morrisons found to its cost, you cannot ignore this rapidly changing consumer environment. And when you do decide to play catch up with the others it can be a messy and, in the end, expensive business.
The online food channel is expected to double to £11 billion in five years. It is where all the action and growth can be found.
Even if it means having a limited selection, keeping it to London-only stores or getting a delivery boy to shuttle back and forth from Simply Food stores in London to busy homes late at night, isn't it worth a try?
Time, then, to do as the old man says. Grasp the nettle, Marks & Spencer, or find yourselves getting badly stung.
The online service they already have is very limited. It consists of cakes, cold meats and sandwiches - food for parties and picnics rather than your weekly shop.
Rose, it could be argued, should mind his own business having had the chance to take the food business online and failing to do so by the time he left in 2010. He's also the chairman of Ocado which is hawking round an instant solution to anyone with online food delivery ambitions - reportedly including Carrefour in France to Safeway in the US.
On the other hand he has a very good point (see The Hawker, Thursday, October 17).
In the old days it was perfectly acceptable to argue that Marks & Spencer's shoppers don't tend to do a full shop at the store - including, for example, nappies, washing powder and stocking up on staples like rice and pasta. They buy those from Sainsbury's or Waitrose.
So if customers aren't ordering every week and the shop is more for selectively buying into quality, for special occasions or just a lazy visit to the Simply Food store at the train station on the way home because you didn't make it to the supermarket that week, where does online ordering fit into buying habits?
What is more, when do we ever spend £80, £100 or even £150 these days on a trip to Marks & Spencer?
What's more the cost involved must be making management heads spin. Already struggling to make profits grow, the board must have weighed up the fact that, as analysts estimate, it costs about £15 to deliver each customer order from an online shop. Executives must have baulked at the numbers involved.
But Rose pointed out that by next year all the majors grocers will have some form of online service.
That includes Tesco (sales £44 billion), Sainsbury's (£25 billion), Asda (£23 billion) and Waitrose £5.3 billion) who have been selling food online for years; Iceland (£2.6 billion) which launched its service before summer and is busily rolling it out to all its 800 or so stores; the Co-Operative Group (£7.4 billion) which is testing a fledgling service ahead of Christmas - as is Morrisons who is running its operation through Ocado in a deal struck in May.
Waitrose, obviously, also supplies Ocado's main delivery business.
But is that any reason for Marks & Spencer to follow suit. All the reasons it states for not doing it seem valid enough.
Except for the obvious question - what does their customer want? Is it really more convenient to go trekking to stores come rain or shine on busy weekends when you've also got to mow the lawn, pick the kids up from piano lessons or football practice and visit granny?
And with shoppers being so promiscuous these days isn't it obvious that what their customer wants? (And their customer is most of us at some point or another every day, week or month). We have all come to expect - and, soon, take for granted - the convenience to access products when and how we want.
Whether that is delivery, click and collect or good old fashioned shopping - believe it or not most of us do still schlep to stores and unstack those shelves on a regular basis.
But the bar is getting higher. This weekend Tesco, leading the grocery Charge of the Light Brigade into online grocery shopping, said it planned to test out an option for shoppers to collect food at the school gates, at libraries or in car parks. Isn't the Tesco shopper, who also does a bit of shopping in M&S now and again, going to wonder at some point why Marks & Spencer's board doesn't do the same - and find it a little infuriating that it doesn't bother?
Is the food THAT good?
So, in a multichannel world where choice is key and the customer must be heard, doing nothing isn't really an option any more. Even if that option is an expensive and unpalatable one for the retailers involved.
When do valid reasons simply become excuses?
Marks & Spencer's food business may be standing up to scrutiny at the moment and on a high relative to many of its bigger supermarket rivals (the obvious and crucial exception being Waitrose which has outperformed M&S for years).
But, as Morrisons found to its cost, you cannot ignore this rapidly changing consumer environment. And when you do decide to play catch up with the others it can be a messy and, in the end, expensive business.
The online food channel is expected to double to £11 billion in five years. It is where all the action and growth can be found.
Even if it means having a limited selection, keeping it to London-only stores or getting a delivery boy to shuttle back and forth from Simply Food stores in London to busy homes late at night, isn't it worth a try?
Time, then, to do as the old man says. Grasp the nettle, Marks & Spencer, or find yourselves getting badly stung.
Friday, 18 October 2013
Boots To 'Ramp Up Multichannel' For Christmas
Pharmacy chain Boots is gearing up its multichannel operation in time for Christmas as it seeks to make shopping for its customers as convenient as possible.
The new UK managing director for health and beauty Simon Roberts told Retail Week magazine that it is rolling out iPads into stores and a next-day 'click and collect' service.
Roberts said the firm launched an in-store marketing campaign last month encouraging staff to drive customers towards its online offer.
Health and beauty has one of the lowest penetrations across the UK's e-commerce market. But the latest surge in the online market on the back of tablets and smartphone usage is expected to hasten the shift to the internet.
He told the magazine: 'We have big ambitions this Christmas. It will be about convenience and we have a compelling offer.'
Roberts last month assumed the responsibilities of Alex Gourlay who left in August to take an executive position at US drugstore Walgreens. The US giant owns about half of the Boots business.
The new UK managing director for health and beauty Simon Roberts told Retail Week magazine that it is rolling out iPads into stores and a next-day 'click and collect' service.
Roberts said the firm launched an in-store marketing campaign last month encouraging staff to drive customers towards its online offer.
Health and beauty has one of the lowest penetrations across the UK's e-commerce market. But the latest surge in the online market on the back of tablets and smartphone usage is expected to hasten the shift to the internet.
He told the magazine: 'We have big ambitions this Christmas. It will be about convenience and we have a compelling offer.'
Roberts last month assumed the responsibilities of Alex Gourlay who left in August to take an executive position at US drugstore Walgreens. The US giant owns about half of the Boots business.
HMV To Relaunch Digital Service Six Months After The Chain Was Rescued
HMV plans to reopen its digital music service with the launch of an MP3 download store and an innovative app to compete with Apple and Amazon.
The service marks the first phase of HMV's revival of its online strategy after it was closed down in January. The company collapsed the same month and was run by administrators until it was rescued by retail investor Hilco in April.
The app will be the first non-iTunes based service on Apple's iOS platform to allow the purchase of digital music downloads, the company said.
'For the first time, music lovers have the ability to experience the traditional feel of HMV on the high street and have the option to discover and build a digital music collection, delivered and managed across devices,' said James Coughlan, managing director of HMV digital.
The app is available from this week, free of charge, from the iOS and Android app stores in the UK and from October 24th in Ireland.
A new website will also launch next week extending the digital service to all platforms including Mac OS X, Windows PC and smartphones carrying Blackberry 10 and Windows.
The service marks the first phase of HMV's revival of its online strategy after it was closed down in January. The company collapsed the same month and was run by administrators until it was rescued by retail investor Hilco in April.
The app will be the first non-iTunes based service on Apple's iOS platform to allow the purchase of digital music downloads, the company said.
'For the first time, music lovers have the ability to experience the traditional feel of HMV on the high street and have the option to discover and build a digital music collection, delivered and managed across devices,' said James Coughlan, managing director of HMV digital.
The app is available from this week, free of charge, from the iOS and Android app stores in the UK and from October 24th in Ireland.
A new website will also launch next week extending the digital service to all platforms including Mac OS X, Windows PC and smartphones carrying Blackberry 10 and Windows.
Amazon Plots Central European Warehouse Network As German Strike Threat Looms
Amazon is planning to open a series of warehouses in Central Europe after being hit by a series of strikes in Germany.
According to Polish newspaper Puls Biznesu the online giant is exploring the possibility of opening three locations in Poland and two in the Czech Republic.
The Financial Times said German workers have demanded better pay from the firm and a Christmas strike threat looms. But the newspaper says that the firm relies on 'razor-thin' profit margins and that the business model 'does not sit well with unionised European work forces'.
Polish and Czech centres, well within striking distance of Germany, could allow the firm to reduce the scale of its operation within Germany. Polish and Czech wages are also lower than in western Europe and far fewer workers belong to unions.
Amazon confirmed the Polish plans to the FT, saying the centres would 'ensure Amazon continues to keep its promise of prompt and reliable delivery to European customers , especially during the ramp-up phase before the holiday season'.
According to Polish newspaper Puls Biznesu the online giant is exploring the possibility of opening three locations in Poland and two in the Czech Republic.
The Financial Times said German workers have demanded better pay from the firm and a Christmas strike threat looms. But the newspaper says that the firm relies on 'razor-thin' profit margins and that the business model 'does not sit well with unionised European work forces'.
Polish and Czech centres, well within striking distance of Germany, could allow the firm to reduce the scale of its operation within Germany. Polish and Czech wages are also lower than in western Europe and far fewer workers belong to unions.
Amazon confirmed the Polish plans to the FT, saying the centres would 'ensure Amazon continues to keep its promise of prompt and reliable delivery to European customers , especially during the ramp-up phase before the holiday season'.
Thursday, 17 October 2013
M&S Needs Online Food Delivery, Says Former Chief
Marks & Spencer risks falling behind its big food rivals if it fails to develop a plan for online delivery, former chief executive Sir Stuart Rose has said.
Rose, who has been chairman of Ocado since January, told journalists at the sidelines of the Internet Retailing Conference in London yesterday that the retailer may have to bow to customer demand.
'If the customer wants it, eventually they are going to have to provide it. By next year M&S will be the only large scale grocer that doesn't have it [an online delivery service],' he said.
Online delivery firm Ocado will begin a trial with Morrisons as soon as next month with the full launch of the supermarket's online service planned for January.
Marks & Spencer, whose food business is worth over £4 billion a year, will be the only one among Tesco, Asda, Sainsbury's and Waitrose that does not have such a service. The Co-operative group has said it plans to begin testing a service this year and even the Iceland chain has online delivery offer.
At present the retailer only has a limited 'Food to Order' party food delivery service including sandwiches, quiches and cakes. The retailer is understood to have previously considered food delivery - including a possible tie-up with Ocado - but the plans were not pursued.
On Tuesday, Marks & Spencer plans to update the City on its food strategy amid fears that its Autumn clothing sales have failed to perform as well as expected. It has previously argued that a delivery service would not work as well as those launched by supermarkets because its customers rarely carry out a full weekly shop at its stores.
Rose, who has been chairman of Ocado since January, told journalists at the sidelines of the Internet Retailing Conference in London yesterday that the retailer may have to bow to customer demand.
'If the customer wants it, eventually they are going to have to provide it. By next year M&S will be the only large scale grocer that doesn't have it [an online delivery service],' he said.
Online delivery firm Ocado will begin a trial with Morrisons as soon as next month with the full launch of the supermarket's online service planned for January.
Marks & Spencer, whose food business is worth over £4 billion a year, will be the only one among Tesco, Asda, Sainsbury's and Waitrose that does not have such a service. The Co-operative group has said it plans to begin testing a service this year and even the Iceland chain has online delivery offer.
At present the retailer only has a limited 'Food to Order' party food delivery service including sandwiches, quiches and cakes. The retailer is understood to have previously considered food delivery - including a possible tie-up with Ocado - but the plans were not pursued.
On Tuesday, Marks & Spencer plans to update the City on its food strategy amid fears that its Autumn clothing sales have failed to perform as well as expected. It has previously argued that a delivery service would not work as well as those launched by supermarkets because its customers rarely carry out a full weekly shop at its stores.
Wednesday, 16 October 2013
Argos Joins The Tablet War With Tesco
Argos has stepped into the battleground for tablets this Christmas by launching a tablet computer today, less than a month after Tesco launched its own version.
The Argos MyTablet undercuts Tesco by £20 with a price tag of £99.99. Argos said that while 'millions' of people have already bought a tablet over the last year there are still around 75 per cent of the population without one.
'We know that tablets will feature heavily on Christmas lists this year. MyTablet is highly competitive with a great specification and fits neatly in the range of tablets we have on offer,' said Argos managing director John Walden.
While Argos's motivation appears more about gaining a slice of the tablet market - and to complete with online rivals like Amazon and Ebay - rival Tesco clearly sees it as an opportunity to hook in customers to its wider array of online and digital services.
The tablet market has grown form virtually nothing three years ago to 15 million users in the UK. This is expected to triple to 44 million by 2020 Enders Analysis predicts.
Benedict Evans, a mobile analyst at Enders, told the Financial Times: 'The price of tablets has dropped to the point where tablets are becoming customer acquisition tools. Retailers are thinking about how they can use it to build their business.'
Tesco's 7 inch device, priced at £119, also runs Android Jelly Bean, is pre-loaded with apps such as YouTube and has bespoke versions of its own digital services such as Blinkbox and access to Clubcard TV. It has 16GB of storage with an option to expand it to 48GB comes in blue, red, black and purple.
MyTablet has a 7 inch, 1024x600 resolution LCD glass screen and and has 8GB of memory. With a Micro SD card it can support 32GB. It runs Google's Android Jelly Bean 4.2.2 operating system and is powered by a 1.6GHz dual core processor.
It is also clearly targeting the teenage market. It is available in pink or silver metal cases, comes with free pre-loaded games and apps including BBC iPlayer, Angry Birds, Facebook, Twitter, an e-Book reader app and a front facing camera for Skyping. Its association with Google means that users will also have access to millions of apps through Google Play.
The Argos MyTablet undercuts Tesco by £20 with a price tag of £99.99. Argos said that while 'millions' of people have already bought a tablet over the last year there are still around 75 per cent of the population without one.
'We know that tablets will feature heavily on Christmas lists this year. MyTablet is highly competitive with a great specification and fits neatly in the range of tablets we have on offer,' said Argos managing director John Walden.
While Argos's motivation appears more about gaining a slice of the tablet market - and to complete with online rivals like Amazon and Ebay - rival Tesco clearly sees it as an opportunity to hook in customers to its wider array of online and digital services.
The tablet market has grown form virtually nothing three years ago to 15 million users in the UK. This is expected to triple to 44 million by 2020 Enders Analysis predicts.
Benedict Evans, a mobile analyst at Enders, told the Financial Times: 'The price of tablets has dropped to the point where tablets are becoming customer acquisition tools. Retailers are thinking about how they can use it to build their business.'
Tesco's 7 inch device, priced at £119, also runs Android Jelly Bean, is pre-loaded with apps such as YouTube and has bespoke versions of its own digital services such as Blinkbox and access to Clubcard TV. It has 16GB of storage with an option to expand it to 48GB comes in blue, red, black and purple.
MyTablet has a 7 inch, 1024x600 resolution LCD glass screen and and has 8GB of memory. With a Micro SD card it can support 32GB. It runs Google's Android Jelly Bean 4.2.2 operating system and is powered by a 1.6GHz dual core processor.
It is also clearly targeting the teenage market. It is available in pink or silver metal cases, comes with free pre-loaded games and apps including BBC iPlayer, Angry Birds, Facebook, Twitter, an e-Book reader app and a front facing camera for Skyping. Its association with Google means that users will also have access to millions of apps through Google Play.
Former Kiddicare Executives Create Digital Start-Up Investment Vehicle
Former Kiddicare executives Scott and Elaine Weavers-Wright have set up a digital start-up investment fund.
Haatch has been set up by the husband and wife team to provide funding and assistance to technology-driven firms in the early stages of development.
Scott Weaver-Wright was chief executive at Kiddicare, the online children's retailer which was acquired by Morrisons in February 2011. Elaine was head of buying and merchandising at Kiddicare.
Fred Soneya, an e-commerce troubleshooter at Morrisons who also previously worked at Kiddicare, is also joining the investment team.
In June it was revealed that Scott Weavers-Wright - described as the architect of online at Morrisons - had decided to leave the supermarket following the completion of the landmark deal with Ocado. Soneya left the same month.
Haatch said in a statement: 'With an investment focus on graduates and start-ups in the digital realm, Haatch will provide much more than a desk space and a lump sum. We will work alongside start-ups in their early stages, wrapping the services and support you need to grow your seed into a flourishing new business.'
To create an environment for the firms to develop, Haatch says it is building a £1.5 million 'state of the art business incubation centre' planned to open in Stamford, Lincolnshire in summer 2014. Stamford was earlier this year named the best place to live in Britain by the Sunday Times.
The Stamford centre, also known as The Hub, will house over 100 people in an open-plan, 5 storey building, complete with a roof terrace and 'super fast internet'. It will be an 'inspiring and collaborative atmosphere,' according to the company.
The Kiddicare business was founded by Neville and Marilyn Wright. Scott and Elaine Weavers-Wright are their son-in-law and daughter. The acquisition was billed as a way for Morrisons to gain knowledge of the online world as well as a successful children's products business.
Haatch has been set up by the husband and wife team to provide funding and assistance to technology-driven firms in the early stages of development.
Scott Weaver-Wright was chief executive at Kiddicare, the online children's retailer which was acquired by Morrisons in February 2011. Elaine was head of buying and merchandising at Kiddicare.
Fred Soneya, an e-commerce troubleshooter at Morrisons who also previously worked at Kiddicare, is also joining the investment team.
In June it was revealed that Scott Weavers-Wright - described as the architect of online at Morrisons - had decided to leave the supermarket following the completion of the landmark deal with Ocado. Soneya left the same month.
Haatch said in a statement: 'With an investment focus on graduates and start-ups in the digital realm, Haatch will provide much more than a desk space and a lump sum. We will work alongside start-ups in their early stages, wrapping the services and support you need to grow your seed into a flourishing new business.'
To create an environment for the firms to develop, Haatch says it is building a £1.5 million 'state of the art business incubation centre' planned to open in Stamford, Lincolnshire in summer 2014. Stamford was earlier this year named the best place to live in Britain by the Sunday Times.
The Stamford centre, also known as The Hub, will house over 100 people in an open-plan, 5 storey building, complete with a roof terrace and 'super fast internet'. It will be an 'inspiring and collaborative atmosphere,' according to the company.
The Kiddicare business was founded by Neville and Marilyn Wright. Scott and Elaine Weavers-Wright are their son-in-law and daughter. The acquisition was billed as a way for Morrisons to gain knowledge of the online world as well as a successful children's products business.
SecretSales.com Heads For Profit After Advertising Kick Starts Sales Surge
Flash sales site SecretSales.com expects to make a profit next year after start-up costs plunge it into an expected loss of around £3 million this year
The fashion etailer revealed it made a loss of £3.9 million in 2012 on sales of 10.8 million. Sales increased 22 per cent across the year but accelerated in the last quarter to 84 per cent.
The website benefited from a television campaign in the quarter that co-founder Nish Kukadia told Drapers magazine was ‘essential for setting the foundations of the business’ and ‘building scale’.
‘It’s a volume business and what dictates our profit is membership,’ he said. The TV campaign provided a ‘step change’ in the company’s development.
The etailer expects to membership to increase by around a quarter this year, reaching 3.1 million. He said he expected the firm to hit profitability next year which would be achieved when membership reaches 3.5 to 3.6 million.
He said the site, whose target customers earn around £75,000 a year, was not just about luxury brands but ‘desireable ones’ as well.
The fashion etailer revealed it made a loss of £3.9 million in 2012 on sales of 10.8 million. Sales increased 22 per cent across the year but accelerated in the last quarter to 84 per cent.
The website benefited from a television campaign in the quarter that co-founder Nish Kukadia told Drapers magazine was ‘essential for setting the foundations of the business’ and ‘building scale’.
‘It’s a volume business and what dictates our profit is membership,’ he said. The TV campaign provided a ‘step change’ in the company’s development.
The etailer expects to membership to increase by around a quarter this year, reaching 3.1 million. He said he expected the firm to hit profitability next year which would be achieved when membership reaches 3.5 to 3.6 million.
He said the site, whose target customers earn around £75,000 a year, was not just about luxury brands but ‘desireable ones’ as well.
Tuesday, 15 October 2013
Sainsbury's To Open First Dark Store In South East London
Supermarket Sainsbury's plans to open its first online-only delivery warehouse as it expands its billion pound grocery delivery business.
The so-called 'dark' store will be built in Bromley-By-Bow - just five miles east of Sainsbury's head office in Central London - and open in the next few years. The facility will cover 185,000 square feet and serve 20,000 customers a week.
Jon Rudoe, Sainsbury’s director of online, digital and cross-channel, told the Daily Telegraph: 'The site will be purpose-built with the Sainsbury’s customer in mind and will support our existing store-based operation, something that will continue to be the foundation of our online grocery business.'
Sainsbury's revealed earlier this month that its food delivery business turnover had reached £1 billion on a 12 month rolling basis. It fulfills 190,000 orders a week.
Tesco, Asda and Waitrose have all opened dedicated online delivery warehouses. Tesco is due to open its sixth this month, Waitrose has one with plans for a second, both in London, and Asda has three in Leeds, Enfield in North London, and Nottingham.
But Sainsbury's management has historically appeared dismissive of dark stores arguing that it is more cost effective to make store picking more efficient rather than set about creating costly, dedicated centres.
Chief executive Justin King was quizzed on the subject by analysts during the firm's second quarter results conference call just two weeks ago and appeared to have changed his tune. He said: 'Dark stores will come, I don’t think that that’s in debate, and as we’ve seen from our competitors the capacity constraint for them will be the same for us, it will be in the southeast.'
But he also made an effort to play down expectations that any strategy was urgently needed: 'The progress that we’ve made over the last two or three years, both in the layout of our stores but also in the timing and approach of our picking operations, means that we remain confident we’ve got capacity growth there. The key balance in an in-store pick is that you don’t want it to interfere with the in-store experience for real customers in the store.'
He continued: 'Our first focus is to invest on productivity in our existing operations, and we continue to exceed our own expectations of what’s possible from a store pick operation, both in terms of the productivity of that operation, but also in terms of the capacity.'
The Bromley-By-Bow warehouse will employ 375 people when it opens.
The so-called 'dark' store will be built in Bromley-By-Bow - just five miles east of Sainsbury's head office in Central London - and open in the next few years. The facility will cover 185,000 square feet and serve 20,000 customers a week.
Jon Rudoe, Sainsbury’s director of online, digital and cross-channel, told the Daily Telegraph: 'The site will be purpose-built with the Sainsbury’s customer in mind and will support our existing store-based operation, something that will continue to be the foundation of our online grocery business.'
Sainsbury's revealed earlier this month that its food delivery business turnover had reached £1 billion on a 12 month rolling basis. It fulfills 190,000 orders a week.
Tesco, Asda and Waitrose have all opened dedicated online delivery warehouses. Tesco is due to open its sixth this month, Waitrose has one with plans for a second, both in London, and Asda has three in Leeds, Enfield in North London, and Nottingham.
But Sainsbury's management has historically appeared dismissive of dark stores arguing that it is more cost effective to make store picking more efficient rather than set about creating costly, dedicated centres.
Chief executive Justin King was quizzed on the subject by analysts during the firm's second quarter results conference call just two weeks ago and appeared to have changed his tune. He said: 'Dark stores will come, I don’t think that that’s in debate, and as we’ve seen from our competitors the capacity constraint for them will be the same for us, it will be in the southeast.'
But he also made an effort to play down expectations that any strategy was urgently needed: 'The progress that we’ve made over the last two or three years, both in the layout of our stores but also in the timing and approach of our picking operations, means that we remain confident we’ve got capacity growth there. The key balance in an in-store pick is that you don’t want it to interfere with the in-store experience for real customers in the store.'
He continued: 'Our first focus is to invest on productivity in our existing operations, and we continue to exceed our own expectations of what’s possible from a store pick operation, both in terms of the productivity of that operation, but also in terms of the capacity.'
The Bromley-By-Bow warehouse will employ 375 people when it opens.
Monday, 14 October 2013
Morrisons Online Trial Moves Closer As It Begins Hiring Drivers
A trial of Morrisons' online delivery service is expected to begin as early as next month after its partner on the project Ocado began recruiting drivers.
The drivers have been told by Ocado on details release in its website that they will make up to 28 deliveries a day - up to 1,000 kg of shopping. Basic pay is £7.71 an hour and they have been offered a 15 per cent discount on groceries.
A first wave is being recruited to start next month for two weeks training ahead of the limited trial in the Midlands before Christmas. The main push will begin in January.
Birmingham is about 18 miles from the delivery centre in Dordon. Warwickshire - about half an hour in heavy traffic - and likely to be the main focus for the trial. Other urban centres like Tamworth and Sutton Coldfield are within easy striking distance.
Coventry is around the same distance as Birmingham, but less accessible from Dordon, and Burton-on-Trent is a similar distance in the opposite direction. Leicester and
Morrisons chief executive Dalton Philips and Ocado boss Tim Steiner unveiled the £216 million deal with Ocado in May. Morrisons will lease Ocado's Dordon centre and Ocado will provide technology, staff and other services as part of the partnership that Philips has said would propel Morrisons from a 'standing start straight into the fast lane.'
The online delivery market is worth about £6 billion and Morrisons is playing catch up with rivals including Tesco, Sainsbury's, Asda, Waitrose - and Ocado.
Ocado's boss Tim Steiner has stated that he did not feel the customer bases of the two firms crossed over sufficiently to cause concern.
The drivers have been told by Ocado on details release in its website that they will make up to 28 deliveries a day - up to 1,000 kg of shopping. Basic pay is £7.71 an hour and they have been offered a 15 per cent discount on groceries.
A first wave is being recruited to start next month for two weeks training ahead of the limited trial in the Midlands before Christmas. The main push will begin in January.
Birmingham is about 18 miles from the delivery centre in Dordon. Warwickshire - about half an hour in heavy traffic - and likely to be the main focus for the trial. Other urban centres like Tamworth and Sutton Coldfield are within easy striking distance.
Coventry is around the same distance as Birmingham, but less accessible from Dordon, and Burton-on-Trent is a similar distance in the opposite direction. Leicester and
Morrisons chief executive Dalton Philips and Ocado boss Tim Steiner unveiled the £216 million deal with Ocado in May. Morrisons will lease Ocado's Dordon centre and Ocado will provide technology, staff and other services as part of the partnership that Philips has said would propel Morrisons from a 'standing start straight into the fast lane.'
The online delivery market is worth about £6 billion and Morrisons is playing catch up with rivals including Tesco, Sainsbury's, Asda, Waitrose - and Ocado.
Ocado's boss Tim Steiner has stated that he did not feel the customer bases of the two firms crossed over sufficiently to cause concern.
Sunday, 13 October 2013
HMV Prepares For Christmas Online Blitz
Music retailer HMV is preparing for a massive online push in time for the festive season beginning with its Irish web site in the next few days.
It is understood that will act as a precursor for a full relaunch of its UK site once tests on the Irish launch have been completed, according to an article in the Mail on Sunday's business section.
Both sites have been closed since HMV collapsed in January. The businesses were acquired in April by retail investor Hilco who has set about resurrecting the business.
Hilco, which also owns HMV Canada, plans to have around 10 Irish stores reopened by Christmas after they were all closed earlier this year. Several have already opened with more on the way.
It also operates about 140 UK sites and recently opened a second store on Oxford Street, formerly occupied by Footlocker and reputedly the site of HMV's first ever store.
It is understood that will act as a precursor for a full relaunch of its UK site once tests on the Irish launch have been completed, according to an article in the Mail on Sunday's business section.
Both sites have been closed since HMV collapsed in January. The businesses were acquired in April by retail investor Hilco who has set about resurrecting the business.
Hilco, which also owns HMV Canada, plans to have around 10 Irish stores reopened by Christmas after they were all closed earlier this year. Several have already opened with more on the way.
It also operates about 140 UK sites and recently opened a second store on Oxford Street, formerly occupied by Footlocker and reputedly the site of HMV's first ever store.
Saturday, 12 October 2013
New Look Beats Asos And Next As Most Visited Fashion Website
Fashion retailer New Look may have been late to the online game but its website is proving popular with shoppers.
The retailer attracted 1,447,000 unique visitors in August - the most of any pureplay or multiple retailer selling fashion, according to Kantar Media data published in Drapers magazine. That compared with 1,388,000 unique visitors at Asos and 1,372,000 at Next.
The survey confirms our suspicions that New Look has hit a sweet spot with shoppers - and particularly online shoppers - after years of struggling.
We were told by someone senior at the chain a few months ago that returns are very low compared to industry peers at around 25 per cent. This is because of the close attention buyers pay to getting consistency in sizes so shoppers can order fewer sizes to fit and, therefore, need to return less.
Mostly we hear of return rates in fashion between 30 per cent and 45 per cent, making it potentially costly and with huge advantages for those that can tackle the issue head on.
New Look only launched in 2007. After a slow start, it's internet sales have grown rapidly in the past two years and increased 50.1 per cent in the year to March helping the retailer back into profit. They now account for 7.5 per cent of sales.
The August figures were relatively weak compared to previous months and compares to about 1,800,000 unique visitors to New Look in July.
Interestingly, of the pureplay retailers, Boohoo.com was the second most popular site after Asos, with 680,000 visitors. The figures suggest that it has recently overtaken Very (645,000), a close third, Ebay (630,000) and Littlewoods (512,000).
Of the multiples, Debenhams was third behind New Look and Next with 1,274,000 visitors followed by Matalan (1,204,000) and Marks & Spencer (1,101,000).
John Lewis was way down the rankings after the likes of River Island and Topshop - perhaps suggesting that, while it only had 467,000 unique visitors, it’s 800 million or so turnover comes from a smaller number of shoppers who each spend a considerable amount with the company.
The retailer attracted 1,447,000 unique visitors in August - the most of any pureplay or multiple retailer selling fashion, according to Kantar Media data published in Drapers magazine. That compared with 1,388,000 unique visitors at Asos and 1,372,000 at Next.
The survey confirms our suspicions that New Look has hit a sweet spot with shoppers - and particularly online shoppers - after years of struggling.
We were told by someone senior at the chain a few months ago that returns are very low compared to industry peers at around 25 per cent. This is because of the close attention buyers pay to getting consistency in sizes so shoppers can order fewer sizes to fit and, therefore, need to return less.
Mostly we hear of return rates in fashion between 30 per cent and 45 per cent, making it potentially costly and with huge advantages for those that can tackle the issue head on.
New Look only launched in 2007. After a slow start, it's internet sales have grown rapidly in the past two years and increased 50.1 per cent in the year to March helping the retailer back into profit. They now account for 7.5 per cent of sales.
The August figures were relatively weak compared to previous months and compares to about 1,800,000 unique visitors to New Look in July.
Interestingly, of the pureplay retailers, Boohoo.com was the second most popular site after Asos, with 680,000 visitors. The figures suggest that it has recently overtaken Very (645,000), a close third, Ebay (630,000) and Littlewoods (512,000).
Of the multiples, Debenhams was third behind New Look and Next with 1,274,000 visitors followed by Matalan (1,204,000) and Marks & Spencer (1,101,000).
John Lewis was way down the rankings after the likes of River Island and Topshop - perhaps suggesting that, while it only had 467,000 unique visitors, it’s 800 million or so turnover comes from a smaller number of shoppers who each spend a considerable amount with the company.
Friday, 11 October 2013
Yoox Held Talks To Merge With Net-A-Porter, Reports Say
Italian e-commerce hub Yoox has reportedly held talks to buy or merge with Net-A-Porter, currently owned by Swiss group Richemont.
Yoox, which was forced to put out a statement on the subject, was in discussions but the talks stalled, according to sources including Il Sole 24 Ore, an Italian daily business newspaper. The reasons talks failed remains unclear.
In a statement, which did little to deny the story, Yoox said ‘no discussions are underway with Richemont to assess a potential merger with Net-a-Porter Ltd. Therefore, the Company cannot comment further on the rumour.'
Federico Marchetti, chief executive at Yoox, which increased sales by 26.6 per cent to €375.9 million last year, told Bloomberg: ‘There are no talks underway with Richemont.' Asked whether there had been talks he said: 'We wouldn't be doing our job if we didn't look at certain acquisitions in a selective manner and we will continue to do so.’
Marchetti also said it would never do anything to compromise the independence of the 30-or-so branded fashion websites it manages in the country, including Diesel, Dolce & Gabbana and Emporio Armani.
But the speculation that Net-A-Porter is up for sale would almost certainly draw other potential investors out. Richemont apparently would not comment on the rumours this week but it said earlier this year that it would consider hiving off acquisitions that had not worked or which were not profitable enough.
Observers - including the FT - took this to mean it had concerns about some of its fashion businesses rather than its jewellery and watches businesses which have long been its mainstay. But, although the timing of the rumoured talks makes it tempting to draw a link, there is no suggestion yet that Richemont includes Net-a-Porter among its regrets.
Net-A-Porter was acquired by Richemont in 2010. It had been profitable for 7 years before loosing £27.2 million on rising sales of £368 million in 2012 as it moved to broaden its products into health and beauty and opened more international markets.
Richemont said in its most recent annual report that Net-A-Porter managed to reduce losses in the 12 months to the end of March, without specifying what the losses were.
Yoox, which was forced to put out a statement on the subject, was in discussions but the talks stalled, according to sources including Il Sole 24 Ore, an Italian daily business newspaper. The reasons talks failed remains unclear.
In a statement, which did little to deny the story, Yoox said ‘no discussions are underway with Richemont to assess a potential merger with Net-a-Porter Ltd. Therefore, the Company cannot comment further on the rumour.'
Federico Marchetti, chief executive at Yoox, which increased sales by 26.6 per cent to €375.9 million last year, told Bloomberg: ‘There are no talks underway with Richemont.' Asked whether there had been talks he said: 'We wouldn't be doing our job if we didn't look at certain acquisitions in a selective manner and we will continue to do so.’
Marchetti also said it would never do anything to compromise the independence of the 30-or-so branded fashion websites it manages in the country, including Diesel, Dolce & Gabbana and Emporio Armani.
But the speculation that Net-A-Porter is up for sale would almost certainly draw other potential investors out. Richemont apparently would not comment on the rumours this week but it said earlier this year that it would consider hiving off acquisitions that had not worked or which were not profitable enough.
Observers - including the FT - took this to mean it had concerns about some of its fashion businesses rather than its jewellery and watches businesses which have long been its mainstay. But, although the timing of the rumoured talks makes it tempting to draw a link, there is no suggestion yet that Richemont includes Net-a-Porter among its regrets.
Net-A-Porter was acquired by Richemont in 2010. It had been profitable for 7 years before loosing £27.2 million on rising sales of £368 million in 2012 as it moved to broaden its products into health and beauty and opened more international markets.
Richemont said in its most recent annual report that Net-A-Porter managed to reduce losses in the 12 months to the end of March, without specifying what the losses were.
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