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.
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