Fashion phenomenon Boohoo.com is targeting a number of Western European countries for expansion in the new year as it seeks to map out its international strategy ahead of a stock market listing.
The fast growing Manchester-based fashion retailer is aiming for growth in Germany, France and Spain and is recruiting a raft of new staff to establish a significant international team in the new year.
The company wants to take on bilingual staff to help build a series of beacheads that will build on existing interest in the countries for its fashions targeting 16-25 year-olds.
Boohoo confirmed last week it plans to launch a stock market listing in the first quarter of next year that could value the company at £500 million.
It is estimated that the company is currently making about £100 million a year following a successful two years during which it has increased its advertising budget to grow from its northern heartland.
The company is owned by a number of shareholders who stand to benefit from any sale that include co-founders Mahmud Kamani and Carol Kane.
For more on Boohoo, see our Online Retail Stars of 2013 Report: Boohoo.com.
Saturday, 30 November 2013
AO.com Boss: ‘Every Single Customer That Posts A Message On Facebook Gets A Signed Letter From Me.’
The boss of AO.com, the appliances online delivery site, says he sends a hand-signed letter to every customer that posts a message on Facebook.
Founder and chief executive John Roberts told Retail Week that he spends 40 minutes a day signing letters, adding, ‘I file it under ‘high class problems'. If I have hundreds of thousands of customers to thank that's a pretty cool problem.'
He adds ‘As a culture, as a business, we’re fanatical about service. We obssess about every single one we get wrong.'
The company also launches a full investigation into every complaint. He’s confident about his own online reviews but scathing about those who can’t cope.
‘You can due diligence any business in a heartbeat by looking at the reviews online,’ he says.’People view buying the category as a pain in the arse but when they taste our service, they think ‘that was amazing. I’ll get a new fridge freezer as well'.’
The company also told the magazine that it was in ‘phase two’ of a six-stage roll-out of new product categories over the next six months that include small appliances from coffee machines to toasters.
For more on AO.com, see our Online Retail Stars of 2013 Report: AO.com.
Founder and chief executive John Roberts told Retail Week that he spends 40 minutes a day signing letters, adding, ‘I file it under ‘high class problems'. If I have hundreds of thousands of customers to thank that's a pretty cool problem.'
He adds ‘As a culture, as a business, we’re fanatical about service. We obssess about every single one we get wrong.'
The company also launches a full investigation into every complaint. He’s confident about his own online reviews but scathing about those who can’t cope.
‘You can due diligence any business in a heartbeat by looking at the reviews online,’ he says.’People view buying the category as a pain in the arse but when they taste our service, they think ‘that was amazing. I’ll get a new fridge freezer as well'.’
The company also told the magazine that it was in ‘phase two’ of a six-stage roll-out of new product categories over the next six months that include small appliances from coffee machines to toasters.
For more on AO.com, see our Online Retail Stars of 2013 Report: AO.com.
Friday, 29 November 2013
Debenhams Online Sales Will Reach 20% Of Turnover Next Year
Department store Debenhams will sell one fifth of its products online by the end of next summer as its focus on multi-channel delivery over the past three years pays off.
The online division is expected to account for 20 per cent of sales by its year-end in August, according to analysis by brokers at Jefferies. That means the weight of online sales compared to traditional sales will have doubled in two years, it said.
Debenhams online sales have increased 46.2 per cent to £366.3 million in its last financial year.
However, analysts are concerned the department store chain may struggle to reconcile its large property portfolio to the needs of the digital era as its reliance on online and home delivery increase.
Debenhams, as with other retailers, argues that stores are becoming an integral part of the multichannel experience providing touch points for customers and locations for click and collect.
The online division is expected to account for 20 per cent of sales by its year-end in August, according to analysis by brokers at Jefferies. That means the weight of online sales compared to traditional sales will have doubled in two years, it said.
Debenhams online sales have increased 46.2 per cent to £366.3 million in its last financial year.
However, analysts are concerned the department store chain may struggle to reconcile its large property portfolio to the needs of the digital era as its reliance on online and home delivery increase.
Debenhams, as with other retailers, argues that stores are becoming an integral part of the multichannel experience providing touch points for customers and locations for click and collect.
Tesco Tests Same-Day Grocery Delivery Plan
Tesco is preparing to launch same-day grocery delivery across the country as the battle for the online supermarket shopper goes up a gear.
The move would match Ocado’s existing service, which will be offered by Morrisons next year, and a same-day strategic plan being drawn up by Asda for next year.
Tesco is currently trialing the service in Mansfield and Nottingham that allows shoppers to order goods before midday for delivery after 6pm. Director for grocery home shopping Simon Belsham said the trial was ‘working successfully’ and he expected it to be extended to other areas.
A charge of between £3 and £6 is added to the order.
Tesco this week opened a 120,000 sq ft 'dark store' distribution centre in Erith in south east London. The supermarket has six of the warehouses which are laid out in a similar manner to stores to make it easy for staff to pick goods but not open to the public.
It can process 4,000 orders per day when it is at full-capacity and offers 30,000 products with the help of new hi-tech systems - 50 per cent more than the average store and 16 per cent more than its other online-only dark stores.
Tesco controls 47.5 per cent of the online delivery market and has focused its dark store opening programme around London where online grocery sales are growing faster than other regions.
It is understood that Tesco has continued to increase market share online despite losing out in store to discounting rivals including Aldi and Lidl and the more premium Waitrose.
The supermarket is also trialing a collection service at its convenience shop-style Express stores. The food is handed over from a Tesco delivery van parked behind the stores in Datchet and Harrow.
The move would match Ocado’s existing service, which will be offered by Morrisons next year, and a same-day strategic plan being drawn up by Asda for next year.
Tesco is currently trialing the service in Mansfield and Nottingham that allows shoppers to order goods before midday for delivery after 6pm. Director for grocery home shopping Simon Belsham said the trial was ‘working successfully’ and he expected it to be extended to other areas.
A charge of between £3 and £6 is added to the order.
Tesco this week opened a 120,000 sq ft 'dark store' distribution centre in Erith in south east London. The supermarket has six of the warehouses which are laid out in a similar manner to stores to make it easy for staff to pick goods but not open to the public.
It can process 4,000 orders per day when it is at full-capacity and offers 30,000 products with the help of new hi-tech systems - 50 per cent more than the average store and 16 per cent more than its other online-only dark stores.
Tesco controls 47.5 per cent of the online delivery market and has focused its dark store opening programme around London where online grocery sales are growing faster than other regions.
It is understood that Tesco has continued to increase market share online despite losing out in store to discounting rivals including Aldi and Lidl and the more premium Waitrose.
The supermarket is also trialing a collection service at its convenience shop-style Express stores. The food is handed over from a Tesco delivery van parked behind the stores in Datchet and Harrow.
Thursday, 28 November 2013
Morrisons Appoints Former eBay Marketing Director To Key Digital Role
Supermarket Morrisons has appointed former eBay marketing director Amanda Metcalfe as its first digital marketing director.
Metcalfe will report to group marketing and customer director Nick Collard and be responsible for the development of digital marketing as Morrisons prepares to launch its online delivery service.
Morrisons plans to trial the delivery service over the coming weeks before the main launch in the Midlands in January. It will then extend the service to West Yorkshire soon after and hopes to cover 50 per cent of UK households by the end of the year including London.
Metcalfe left eBay, where she was marketing manager, in July after a year in the role. Reports in the marketing press suggested she did not have a job to go to at that time.
She joined eBay as its first UK and Ireland marketing director after the company identified Britain as the fastest-growing market in Europe.
She previously held senior consumer and digital marketing roles at flash sales site Cocosa.com, My-Wardrobe.com and in 2010 was interim head of online marketing at Sainsbury's.
Metcalfe will report to group marketing and customer director Nick Collard and be responsible for the development of digital marketing as Morrisons prepares to launch its online delivery service.
Morrisons plans to trial the delivery service over the coming weeks before the main launch in the Midlands in January. It will then extend the service to West Yorkshire soon after and hopes to cover 50 per cent of UK households by the end of the year including London.
Metcalfe left eBay, where she was marketing manager, in July after a year in the role. Reports in the marketing press suggested she did not have a job to go to at that time.
She joined eBay as its first UK and Ireland marketing director after the company identified Britain as the fastest-growing market in Europe.
She previously held senior consumer and digital marketing roles at flash sales site Cocosa.com, My-Wardrobe.com and in 2010 was interim head of online marketing at Sainsbury's.
Boohoo.com Aims For IPO By March
Boohoo.com is working towards a stock market listing by March that would net founders Mahmud Kamani and Carol Kane a fortune.
Kamani is understood to be determined to prove his firm is worth an initial £500 million which has been aired to possible investors by pressing home strong Christmas trading in January.
We estimated earlier this month that the business would turnover between £75 million and £100 million in the year to February. Rumours of the float plan were circulating as far back as June with advisory firm Zeus capital exploring possible routes to the market.
It is understood that Boohoo.com will try to present itself as an 'Asos Mark II' with as much growth potential as its larger, London-based rival. Asos is currently valued at more than £4 billion and is understood to be considering shifting its listing from the more speculative Aim market to the FTSE next year.
A market report in the Daily Mail newspaper today suggested that Kamani and Kane may struggle to get the £500 million valuation they have been touting to possible investors.
For more on Boohoo, see our Online Retail Stars of 2013 Report: Boohoo.com.
Kamani is understood to be determined to prove his firm is worth an initial £500 million which has been aired to possible investors by pressing home strong Christmas trading in January.
We estimated earlier this month that the business would turnover between £75 million and £100 million in the year to February. Rumours of the float plan were circulating as far back as June with advisory firm Zeus capital exploring possible routes to the market.
It is understood that Boohoo.com will try to present itself as an 'Asos Mark II' with as much growth potential as its larger, London-based rival. Asos is currently valued at more than £4 billion and is understood to be considering shifting its listing from the more speculative Aim market to the FTSE next year.
A market report in the Daily Mail newspaper today suggested that Kamani and Kane may struggle to get the £500 million valuation they have been touting to possible investors.
For more on Boohoo, see our Online Retail Stars of 2013 Report: Boohoo.com.
Wednesday, 27 November 2013
Amazon Offers Lower Prices With Its Virtual Currency
Amazon has launched its virtual currency in the UK and promises to offer lower prices to those choosing to purchase with it.
Every ‘Coin’ will be worth one penny and will be redeemable against any apps, games or in app items that appear in the Amazon site and app store.
The UK is the second market to receive the Coin currency following a US launch in February. The currency is exclusively accessible to customers using its Kindle Fire devices and available to buy online.
Amazon has given users of the device 400 free coins to kick-start use of the currency. Purchases using the currency will be cheaper because Amazon has priced larger volumes of Coin at a lower rate - so 10,000 will cost £90 rather than £100 pounds.
But Amazon also hopes it will encourage more visits to its site as well as offering shoppers a secure way to pay.
Every ‘Coin’ will be worth one penny and will be redeemable against any apps, games or in app items that appear in the Amazon site and app store.
The UK is the second market to receive the Coin currency following a US launch in February. The currency is exclusively accessible to customers using its Kindle Fire devices and available to buy online.
Amazon has given users of the device 400 free coins to kick-start use of the currency. Purchases using the currency will be cheaper because Amazon has priced larger volumes of Coin at a lower rate - so 10,000 will cost £90 rather than £100 pounds.
But Amazon also hopes it will encourage more visits to its site as well as offering shoppers a secure way to pay.
Argos Revamps 'Digital' Store
Home retailer Argos has launched its first 'digital' store as it tries to meet the demands of a high street with online shopping.
The store no longer includes catalogues, slips of paper and betting shop-style pencils but instead has voice activated computers, iPads and free wi-fi.
Argos hopes to have six operating by Christmas and unveiled its first in Old Street, just north of the City of London, yesterday. Three more will open in London, on in Colchester and one in Dunfermline, Scotland.
The collection desks and queuing system have been removed. Customers order via iPad kiosks and also enter a memorable word which is then use by till staff to call up the order. The item is collected and paid for at the same time. A fast track service promises to make orders available within 1 minute of being in stores.
The store no longer includes catalogues, slips of paper and betting shop-style pencils but instead has voice activated computers, iPads and free wi-fi.
Argos hopes to have six operating by Christmas and unveiled its first in Old Street, just north of the City of London, yesterday. Three more will open in London, on in Colchester and one in Dunfermline, Scotland.
The collection desks and queuing system have been removed. Customers order via iPad kiosks and also enter a memorable word which is then use by till staff to call up the order. The item is collected and paid for at the same time. A fast track service promises to make orders available within 1 minute of being in stores.
Amazon Slammed in BBC Documentary
Amazon has been slammed in a BBC documentary that suggested its warehouse workers were under too much stress and exposed to mental illness as a result.
A Panorama documentary team planted an undercover reporter at its warehouse in Swansea, Wales who was required to do 11 miles of walking in one shift and collect separate orders every 33 seconds.
Amazon said recently it plans to hire an extra 15,000 staff for Christmas. Amazon told the BBC that its 'number one priority' was the safety of staff.
The undercover reporter took a secret camera into the 800,000 sq ft warehouse to act as a picker for online orders. A handset told him what to collect and counted down the seconds, beeping if he made a mistake, the BBC said.
A Panorama documentary team planted an undercover reporter at its warehouse in Swansea, Wales who was required to do 11 miles of walking in one shift and collect separate orders every 33 seconds.
Amazon said recently it plans to hire an extra 15,000 staff for Christmas. Amazon told the BBC that its 'number one priority' was the safety of staff.
The undercover reporter took a secret camera into the 800,000 sq ft warehouse to act as a picker for online orders. A handset told him what to collect and counted down the seconds, beeping if he made a mistake, the BBC said.
TM Lewin Revamp Boosts Web Sales By £1 Million
A redesign of shirt maker TM Lewin's web site has boosted sales by £1 million.
The new design includes more detailed photography, a zoom facility, more images of individual products and an option to buy a complete outfit in one click to avoid trawling though the site to get a recommended look.
According to Drapers magazine the retailer's director of home shopping Andrew Mossman said the overhaul six months ago in May has also increased men's suit sales on the site by 70 per cent.
The new technology for the site, which accounts for 25 per cent of the retailer's sales compared to 18 per cent in 2011, was provided by Ecommera.
The new design includes more detailed photography, a zoom facility, more images of individual products and an option to buy a complete outfit in one click to avoid trawling though the site to get a recommended look.
 |
| TM Lewin: Web Sales Account For a Quarter of the Business |
The new technology for the site, which accounts for 25 per cent of the retailer's sales compared to 18 per cent in 2011, was provided by Ecommera.
Tuesday, 26 November 2013
Cyber Monday Effect Spreads In The US As Shoppers Spend When Shops Are Closed
The sharp increase in online shopping on Cyber Monday is beginning to spread to other days as consumers use their mobile devices to shop when they please.
The Monday after Thanksgiving, which lands a week later this year than in 2012, is traditionally seen as the busiest online day as shoppers place the Thanksgiving festivities behind them and focus on Christmas.
But shoppers armed with smartphones and tablets are no longer tied to their PCs and so many are expected to begin their Christmas preparations over this weekend.
The effect is likely to repeat itself on Christmas Day in Britain when shoppers will thrust themselves into the January sales frenzy.
Evidence of an extended online buying period emerged last year, according to the Business of Fashion website, quoting ComScore statistics.
The Monday after Thanksgiving, which lands a week later this year than in 2012, is traditionally seen as the busiest online day as shoppers place the Thanksgiving festivities behind them and focus on Christmas.
But shoppers armed with smartphones and tablets are no longer tied to their PCs and so many are expected to begin their Christmas preparations over this weekend.
The effect is likely to repeat itself on Christmas Day in Britain when shoppers will thrust themselves into the January sales frenzy.
Evidence of an extended online buying period emerged last year, according to the Business of Fashion website, quoting ComScore statistics.
River Island Android App In Time For Festive Season
River Island has launched an app for Android devices as it seeks to reach new audiences.
The app has been built in partnership with No Need For Mirrors and allows customers access to a range of services such as browsing the full catalogue or viewing their order history on their mobile phones, according to Drapers magazine.
The chain launched its iPhone app three years ago and also has an IoS app for the iPad.
Doug Gardener, chief information officer at River Island, told the magazine: 'Downloads from the Google Play store exceed those from the App Store. This makes it an important channel for River Island to reach our customers and plays a key part in our multichannel strategy.'
The app has been built in partnership with No Need For Mirrors and allows customers access to a range of services such as browsing the full catalogue or viewing their order history on their mobile phones, according to Drapers magazine.
The chain launched its iPhone app three years ago and also has an IoS app for the iPad.
Doug Gardener, chief information officer at River Island, told the magazine: 'Downloads from the Google Play store exceed those from the App Store. This makes it an important channel for River Island to reach our customers and plays a key part in our multichannel strategy.'
Monday, 25 November 2013
Online Sales Will Hit £5bn This Christmas As Shoppers Embrace Click & Collect
Shoppers will spend £5bn on the internet this Christmas after retailers embraced a proliferation of delivery options.
Online spending in the UK is expected to increase 19 per cent compared to the same time last year, according to new research by company adviser Deloitte.
Ian Geddes, Deloitte's UK head of retailer, said click and collect had grown in importance over the past 12 months - and stressed that those high street retailers who did not include it in their offer were missing out.
He said: 'Consumer's expectations around flexible delivery over the coming festive period are higher than ever before. Store collection is now seen as a basic offering and those retailers without this capability will struggle to convert online sales and lose resulting footfall in-store.'
He said: 'This year the consumer will be challenging retailers' ability to deliver a sofa at home in a specified time-slot, transfer a party dress to their local store for same day collection and drop their Christmas DVDs at a convenient locker.'
Deloitte has calculated spending in the Christmas period will increase 3.5 per cent to £40.3 million. The figures correlate with other forecasts that suggest consumers have been spending less in the run-up to Christmas so they can enjoy the festive period.
Deloitte said 47 per cent of UK shoppers believe boarded up high street stores would be convenient locations for collecting online shopping. It said 36 per cent would like to pick up small packages from lockers or convenience stores near their home or their workplace.
They said innovations such as sub-90 minute deliveries, Sunday services and tube station collection points were all helping individual retailers stay ahead.
'However, [retailers] must balance this against the cost of delivery and recognise the infrastructure and systems that need to be in place to ensure a reliable and efficient service. Retailers are under pressure to secure sales and customer loyalty but ultimately they need to turn a profit in the process,' said Ben Perkins, head of consumer business research at Deloitte.
Online spending in the UK is expected to increase 19 per cent compared to the same time last year, according to new research by company adviser Deloitte.
Ian Geddes, Deloitte's UK head of retailer, said click and collect had grown in importance over the past 12 months - and stressed that those high street retailers who did not include it in their offer were missing out.
He said: 'Consumer's expectations around flexible delivery over the coming festive period are higher than ever before. Store collection is now seen as a basic offering and those retailers without this capability will struggle to convert online sales and lose resulting footfall in-store.'
He said: 'This year the consumer will be challenging retailers' ability to deliver a sofa at home in a specified time-slot, transfer a party dress to their local store for same day collection and drop their Christmas DVDs at a convenient locker.'
Deloitte has calculated spending in the Christmas period will increase 3.5 per cent to £40.3 million. The figures correlate with other forecasts that suggest consumers have been spending less in the run-up to Christmas so they can enjoy the festive period.
Deloitte said 47 per cent of UK shoppers believe boarded up high street stores would be convenient locations for collecting online shopping. It said 36 per cent would like to pick up small packages from lockers or convenience stores near their home or their workplace.
They said innovations such as sub-90 minute deliveries, Sunday services and tube station collection points were all helping individual retailers stay ahead.
'However, [retailers] must balance this against the cost of delivery and recognise the infrastructure and systems that need to be in place to ensure a reliable and efficient service. Retailers are under pressure to secure sales and customer loyalty but ultimately they need to turn a profit in the process,' said Ben Perkins, head of consumer business research at Deloitte.
Online Sales Growth At John Lewis Stumble As Shoppers Pause For Breath
Sales at johnlewis.com stumbled last week when spending rose at just half the rate of previous weeks.
In keeping with reports of sporadic sales across the retail sector, online sales at the department store increased 9.4 per cent compared to a total of 19.9 per cent in the 16 previous weeks.
Total sales at John Lewis rose just 2.1 per cent, in further signs that shoppers are showing restraint ahead of the Christmas rush, compared to a 6.7 per cent increase in the previous 16 weeks.
Retail executives both on an off-line have reported that many customers are reining in spending rather than dipping into debt. Shoppers may be preferring to wait until the end-of-the-month paydays arrive to buy more festive goods rather than using money they have not got.
In keeping with reports of sporadic sales across the retail sector, online sales at the department store increased 9.4 per cent compared to a total of 19.9 per cent in the 16 previous weeks.
Total sales at John Lewis rose just 2.1 per cent, in further signs that shoppers are showing restraint ahead of the Christmas rush, compared to a 6.7 per cent increase in the previous 16 weeks.
Retail executives both on an off-line have reported that many customers are reining in spending rather than dipping into debt. Shoppers may be preferring to wait until the end-of-the-month paydays arrive to buy more festive goods rather than using money they have not got.
Sunday, 24 November 2013
Comment: Alarm Bells Should be Ringing Over Latest 'Trojan Horse' Rates Review
Earlier this year when Next boss Simon Wolfson slammed the idea of an online sales tax we were hoping the idea was dead and buried.
Wolfson - who has close ties with the conservative party and is married to a former assistant to George Osborne - is one of the more sensible heads in the retail sector. Someone able to see a broader view rather than purely the one from his own backyard.
Yes, he has a significant interest in the internet given his Directory business accounts for about a third of his sales. But his reaction was more aimed at, let us be honest here, supermarket bosses such as Justin King who had complained how the 'burden of tax falls on unfairly on bricks and mortar retailers'. Morrisons boss Dalton Philips was also a supporter of an online tax.
We hesitate to go into all the sides of the argument here but suffice to say that King likened the situation to that in the US. We have pointed out many times that US retailers are avoiding paying tax through a technicality which, amazingly, means that their customers are obliged to pay sales tax when buying over the internet.
Wolfson - who has close ties with the conservative party and is married to a former assistant to George Osborne - is one of the more sensible heads in the retail sector. Someone able to see a broader view rather than purely the one from his own backyard.
Yes, he has a significant interest in the internet given his Directory business accounts for about a third of his sales. But his reaction was more aimed at, let us be honest here, supermarket bosses such as Justin King who had complained how the 'burden of tax falls on unfairly on bricks and mortar retailers'. Morrisons boss Dalton Philips was also a supporter of an online tax.
We hesitate to go into all the sides of the argument here but suffice to say that King likened the situation to that in the US. We have pointed out many times that US retailers are avoiding paying tax through a technicality which, amazingly, means that their customers are obliged to pay sales tax when buying over the internet.
Revived Furniture Retailer Dwell Has 'Turned A Corner'
Dwell, the furniture retailer that collapsed earlier this year, has 'turned a corner' and is expected to make £20 million turnover this year.
Founder Aamir Ahmad apparently left the business in November 2012 but returned to rescue the business months later when it collpased in June. Ahmed continued trading the website and six of the 23 shops.
It has never fully been clarified the reasons for his departure or in what state the business was in when he left. The timing was during the critical Christmas period and January is also seen as crucial to many furniture retailers.
He 'may consider' opening more stores next year, according to the Sunday Express newspaper today.
He is also plotting a chain of Indian restaurants after opening his first, Zumbura, in Clapham. He told the newspaper the quality of Indian food served commercially is 'appalling'.
Founder Aamir Ahmad apparently left the business in November 2012 but returned to rescue the business months later when it collpased in June. Ahmed continued trading the website and six of the 23 shops.
It has never fully been clarified the reasons for his departure or in what state the business was in when he left. The timing was during the critical Christmas period and January is also seen as crucial to many furniture retailers.
He 'may consider' opening more stores next year, according to the Sunday Express newspaper today.
He is also plotting a chain of Indian restaurants after opening his first, Zumbura, in Clapham. He told the newspaper the quality of Indian food served commercially is 'appalling'.
Saturday, 23 November 2013
Amazon Lockers Could Replace London's Underground Ticket Offices
Transport for London is considering replacing London Underground ticket offices with Amazon lockers as part of sweeping changes to the way the network will be run.
The changes include opening stations through the night and employing automatic ticket machines rather than staff, who have already been told that job cuts are likely.
Transport for London said it is already talking to Amazon about the opportunity for setting up customer collection points for its goods in disused areas in entrance halls, according to the Financial TImes and other newspapers.
The talks follow a the launch last week of a trial to allow supermarket Asda to hand over shopping to customers journeying home at six stations in North and East London.
The plan will mean the five busiest Underground lines will open through the night and run non-stop from Friday morning to Sunday night by 2015. Mayor Boris Johnson said the plan, fiercely opposed by unions, will 'be hugely valuable to London's economy, which is increasingly a 24-hour economy interacting with time zones around the world.'
Amazon has 270 lockers in the UK with a total of 12,000 slots. But a high visibility, high footfall location such as London Underground ticket halls would be a coup for the company helping to more easily connect with busy customers as well as advertising its service.
The changes include opening stations through the night and employing automatic ticket machines rather than staff, who have already been told that job cuts are likely.
Transport for London said it is already talking to Amazon about the opportunity for setting up customer collection points for its goods in disused areas in entrance halls, according to the Financial TImes and other newspapers.
The talks follow a the launch last week of a trial to allow supermarket Asda to hand over shopping to customers journeying home at six stations in North and East London.
The plan will mean the five busiest Underground lines will open through the night and run non-stop from Friday morning to Sunday night by 2015. Mayor Boris Johnson said the plan, fiercely opposed by unions, will 'be hugely valuable to London's economy, which is increasingly a 24-hour economy interacting with time zones around the world.'
Amazon has 270 lockers in the UK with a total of 12,000 slots. But a high visibility, high footfall location such as London Underground ticket halls would be a coup for the company helping to more easily connect with busy customers as well as advertising its service.
Ikea Finally Gets Its Head Round Online Shopping
Ikea may have initially eschewed online selling and then entered the market at a tentative, even leisurely pace.
But it latest figures suggest it has finally tackling the internet head on with a 29 per cent increase in online sales over the past year. That helped total sales to rise 3.1 per cent to £1.27 billion in the year to August.
Ikea has extended its online product range to 7,500 products, 80 per cent of its full range, as it aims to reach a wider demographic who cannot all access its stores or do not want to. It has also extended home delivery to cover most regions.
It has also added a mobile site towards the end of the financial period and extended wi-fi to all its stores to allow customers to order immediately as they browse in store.
Gillian Drakeford, Ikea UK retail manager, said: 'We have worked hard to put a renewed focus on the customer over the past year, understanding how they live, their needs, dreams and wants in the home as well as learning about how they want to shop with us, in order to offer them the best value for money home furnishings.'
She added: 'With the continued uncertainty around the recovery from the recession, we have continued to invest across our online and in-store shopping channels to create a simpler, more convenient and enjoyable experience.'
Ikea said its market share increased 0.2 percentage points to 6.4 per cent during the period.
But it latest figures suggest it has finally tackling the internet head on with a 29 per cent increase in online sales over the past year. That helped total sales to rise 3.1 per cent to £1.27 billion in the year to August.
Ikea has extended its online product range to 7,500 products, 80 per cent of its full range, as it aims to reach a wider demographic who cannot all access its stores or do not want to. It has also extended home delivery to cover most regions.
It has also added a mobile site towards the end of the financial period and extended wi-fi to all its stores to allow customers to order immediately as they browse in store.
Gillian Drakeford, Ikea UK retail manager, said: 'We have worked hard to put a renewed focus on the customer over the past year, understanding how they live, their needs, dreams and wants in the home as well as learning about how they want to shop with us, in order to offer them the best value for money home furnishings.'
She added: 'With the continued uncertainty around the recovery from the recession, we have continued to invest across our online and in-store shopping channels to create a simpler, more convenient and enjoyable experience.'
Ikea said its market share increased 0.2 percentage points to 6.4 per cent during the period.
Friday, 22 November 2013
Comment: Morrisons Has Set High Stakes For Online Delivery
Morrisons may be late to the party but it is planning to make quite an entrance, chief executive Dalton Philips promised yesterday.
The supermarket unveiled plans for its online delivery service to City analysts and journalists in east London and is certainly not making life easy for itself.
As one analyst pointed out, the delivery service's start-up losses don't really bear thinking about with a £216 million 25-year contract signed with Ocado and a brand new hi-tech delivery centre currently sparking into activity somewhere in the Warwickshire countryside (Dordon to be exact).
But Morrisons seems keen to justify its spending beyond the mere desire to catch up with rivals. Tesco controls about 50 per cent of the online delivery market and Asda and Sainsbury's have both said this year they have surpassed the £1 billion online sales figure as demand grows.
But there is no denying that, when it works, Morrisons partner Ocado does a more efficient job than the others. Less clunky, fewer complaints, not reliant on individuals picking food that customers may not actually want because its bruised or out of date.
The supermarket unveiled plans for its online delivery service to City analysts and journalists in east London and is certainly not making life easy for itself.
As one analyst pointed out, the delivery service's start-up losses don't really bear thinking about with a £216 million 25-year contract signed with Ocado and a brand new hi-tech delivery centre currently sparking into activity somewhere in the Warwickshire countryside (Dordon to be exact).
But Morrisons seems keen to justify its spending beyond the mere desire to catch up with rivals. Tesco controls about 50 per cent of the online delivery market and Asda and Sainsbury's have both said this year they have surpassed the £1 billion online sales figure as demand grows.
But there is no denying that, when it works, Morrisons partner Ocado does a more efficient job than the others. Less clunky, fewer complaints, not reliant on individuals picking food that customers may not actually want because its bruised or out of date.
Mothercare Direct Sales Climb 11.6%
Mother and baby retailer Mothercare has increased sales ordered over the internet as it restructures the business away from its UK store portfolio.
The company increased what it calls Direct in Home sales - orders made by customers at home, primarily through the internet - by 11.6 per cent to £48 million in the 28 weeks to October 12. Orders made via its instore internet terminals increased 4.1 per cent to £18.7 million in the period.
The two channels together account for 28 per cent of total UK sales and rising. Total UK sales declined 7.5 per cent to £238.4 million.
Mothercare said its mobile app has helped drive online traffic and 33 per cent of all visits are now from mobile devices. It also introduced free click and collect to all Mothercare stores from May and has since added all its Early Learning Centre stores.
It said click and collect accounts for 36 per cent of all its Direct in Home sales. 'Online customers spend twice as much as our store-only customers and multichannel customers spend twice as much again,' the company said.
Mothercare is focusing efforts on building online sales and growing overseas as it cuts UK stores, which are still loss-making. International sales rose 13 per cent to £399.3 million. The company made an overall profit in the first-half, excluding exceptional items, for the first time since 2011.
Chief executive Simonn Calver said the UK market 'remains subdued'.
However, Mothercare is currently taking its online site to more than 30 international markets which could also receive additional Early Learning Centre web sites. Many, such as the Ukraine, launched earlier this year, will be run by franchise operators.
The company increased what it calls Direct in Home sales - orders made by customers at home, primarily through the internet - by 11.6 per cent to £48 million in the 28 weeks to October 12. Orders made via its instore internet terminals increased 4.1 per cent to £18.7 million in the period.
The two channels together account for 28 per cent of total UK sales and rising. Total UK sales declined 7.5 per cent to £238.4 million.
Mothercare said its mobile app has helped drive online traffic and 33 per cent of all visits are now from mobile devices. It also introduced free click and collect to all Mothercare stores from May and has since added all its Early Learning Centre stores.
It said click and collect accounts for 36 per cent of all its Direct in Home sales. 'Online customers spend twice as much as our store-only customers and multichannel customers spend twice as much again,' the company said.
Mothercare is focusing efforts on building online sales and growing overseas as it cuts UK stores, which are still loss-making. International sales rose 13 per cent to £399.3 million. The company made an overall profit in the first-half, excluding exceptional items, for the first time since 2011.
Chief executive Simonn Calver said the UK market 'remains subdued'.
However, Mothercare is currently taking its online site to more than 30 international markets which could also receive additional Early Learning Centre web sites. Many, such as the Ukraine, launched earlier this year, will be run by franchise operators.
Thursday, 21 November 2013
Morrisons Prepares To Launch A Market-Leading Delivery Service
We're hearing lots of news coming through about Morrisons new delivery service following today's presentation to analysts.
We understand, the service is expected to launch on January 10 - after the trail that begins this month, and which has been much flagged on this site.
Morrisons has been busy today at the Forman's Fish Island salmon packing factory near the Olympic Stadium highlighting the excellence of Ocado's delivery model and its own fresh credentials. So we've already picked up a few interesting aspects of the service with more to follow in the morning.
Firstly, delivery charges will be split along clear lines costing £1, £3 or £5. There will also be a 'Fresh Check' at the doorstep to guarantee products are well within sell-by or use-by dates and otherwise all up to customer expectations. Unsatisfactory products will be immediately refunded.
There will also be a star-rating for fresh products - something Morrisons has picked up from its involvement with New York-based Fresh Direct.
Other than that, it has been busy emphasising Ocado's order accuracy, on-time record, slot availability, lower picking costs and Ocado's 'market-leading' delivery routing software.
More on this tomorrow - and we still wonder whether Ocado's model is simply too expensive - but it all sounds good on paper. And it will doubtless shake up the still patchy service offered by the remaining three of the 'big four' - Tesco, Asda and Sainsbury's, whose market share Morrisons will be looking to swipe with this venture.
We understand, the service is expected to launch on January 10 - after the trail that begins this month, and which has been much flagged on this site.
Morrisons has been busy today at the Forman's Fish Island salmon packing factory near the Olympic Stadium highlighting the excellence of Ocado's delivery model and its own fresh credentials. So we've already picked up a few interesting aspects of the service with more to follow in the morning.
Firstly, delivery charges will be split along clear lines costing £1, £3 or £5. There will also be a 'Fresh Check' at the doorstep to guarantee products are well within sell-by or use-by dates and otherwise all up to customer expectations. Unsatisfactory products will be immediately refunded.
There will also be a star-rating for fresh products - something Morrisons has picked up from its involvement with New York-based Fresh Direct.
Other than that, it has been busy emphasising Ocado's order accuracy, on-time record, slot availability, lower picking costs and Ocado's 'market-leading' delivery routing software.
More on this tomorrow - and we still wonder whether Ocado's model is simply too expensive - but it all sounds good on paper. And it will doubtless shake up the still patchy service offered by the remaining three of the 'big four' - Tesco, Asda and Sainsbury's, whose market share Morrisons will be looking to swipe with this venture.
John Lewis Weekly Online Sales Top £30m
The department store said on Sunday that preliminary figures showed online sales last week rose 23.7 per cent compared to the same week last year. Online sales accounted for 31 per cent of the £101.4 million spent at the department store in the 7-day period.
The chain said mid-November was the earliest the £100 million barrier had ever been broken in the run up to Christmas. It said the onset of cold weather had helped.
Andrew Murphy, retail director at John Lewis, said: 'We're delighted to have achieved such a strong uplift in sales and it's clear that, as customers start to plan for Christmas, John Lewis is their destination of choice. All directories have put in an impressive performance and the online share result is a great testament to the strength of our omnichannel model.'
More details of the chain's performance so far this month are expected tomorrow and on Sunday.
Asda Launches Click & Collect At London Underground Stations
Suoermarket Asda has launched a click and collect service at six London Underground stations.
From yesterday the supermarket began operating the service at East Finchley, Harrow and Wealdstone, High Barnet, Highgate, Stanmore and Epping. The same-day service will be available for anyone spending more than £15 at a cost of £1.50.
Customers will be asked to order before 12 noon and collect orders after 4pm as they journey home. The trial will be extended to other stations if it proves successful.
The supermarket said its customers will be 'the first in the world to trial this type of service' which it is operating in partnership with Transport for London (TFL).
Retail director Mark Ibbotson said: 'Customers in the South East tell us they want the prices and quality provided by Asda value but they can't access it easily. This tie-up with TfL solves that.'
The launch is part of a plan to extend the supermarket's click and collect service to 1000 collection points by 2018 including park and ride sites, business parks and underground station car parks.
It said the technology for the collection service has been developed together wtih Walmart labs in California, a division of the supermarket's parent company.
From yesterday the supermarket began operating the service at East Finchley, Harrow and Wealdstone, High Barnet, Highgate, Stanmore and Epping. The same-day service will be available for anyone spending more than £15 at a cost of £1.50.
Customers will be asked to order before 12 noon and collect orders after 4pm as they journey home. The trial will be extended to other stations if it proves successful.
The supermarket said its customers will be 'the first in the world to trial this type of service' which it is operating in partnership with Transport for London (TFL).
Retail director Mark Ibbotson said: 'Customers in the South East tell us they want the prices and quality provided by Asda value but they can't access it easily. This tie-up with TfL solves that.'
The launch is part of a plan to extend the supermarket's click and collect service to 1000 collection points by 2018 including park and ride sites, business parks and underground station car parks.
It said the technology for the collection service has been developed together wtih Walmart labs in California, a division of the supermarket's parent company.
The Hut: The Online Retail Stars Of 2103, Part 3
If ever there was an online company that we thought would have found its way to the stock market by now, it's the Hut Group.
Groomed to the point you can almost smell the deodorant and cosmetics it sells through its various sites, its board and shareholder register looks like a veritable 'Who's Who?' of retail from the past decade.
Will this be the year it finally makes the cut? We think it is.
But let's first recap on our series to date. A growing number of online retailers are shuffling into the queue for a possible London Stock Exchange listing or refinancing of their businesses as the British obsession with online shopping reaches fever pitch.
It also feels like a window has opened to the investment markets that means now could well be the time for good businesses with growth prospects to cash in.
Of those we plan to analyse, we see a number that are very strong candidates for finding new investors - and then others which, from the outside at least, we struggle with.
Short of stockbrokers or advisers to cook the figures for us we decided to do some number crunching ourselves. Last week we studied the virtues of fashion upstart Boohoo.com and prior to that appliances giant AO.com. Our verdict: two clear stars of the sector.
But the performance of the Hut has seemed patchy over recent years and we had begun to worry it had become a triumph of acquisition over trading performance.
Groomed to the point you can almost smell the deodorant and cosmetics it sells through its various sites, its board and shareholder register looks like a veritable 'Who's Who?' of retail from the past decade.
Will this be the year it finally makes the cut? We think it is.
But let's first recap on our series to date. A growing number of online retailers are shuffling into the queue for a possible London Stock Exchange listing or refinancing of their businesses as the British obsession with online shopping reaches fever pitch.
It also feels like a window has opened to the investment markets that means now could well be the time for good businesses with growth prospects to cash in.
Of those we plan to analyse, we see a number that are very strong candidates for finding new investors - and then others which, from the outside at least, we struggle with.
Short of stockbrokers or advisers to cook the figures for us we decided to do some number crunching ourselves. Last week we studied the virtues of fashion upstart Boohoo.com and prior to that appliances giant AO.com. Our verdict: two clear stars of the sector.
But the performance of the Hut has seemed patchy over recent years and we had begun to worry it had become a triumph of acquisition over trading performance.
Wednesday, 20 November 2013
My-Wardrobe Rescued In 'Pre-Pack' Administration
Fashion website My-Wardrobe.com has been rescued in a pre-pack administration late Monday night and its chief executive has exited the business.
David Worby, who was drafted in from Harrods eighteen months ago to drive international growth, has left alongside trading director Joanna Stephenson. The site appears to have struggled to attract brands comparable with one-time rivals such as Net-a-Porter aiming instead for lower tier labels.
Founder Andrew Curran says he took a more active role in the business six months ago as efforts intensified to turn its fortunes around. The Guardian newspaper said he had the backing of new investors.
But it was finally decided there was no alternative but to financially restructure the business. Administrators Leonard Curtis were appointed to manage parent company Meemi Limited on the November 18 and the deal was completed the same day.
Curran told Retail Week he would pull the site back into the black next year by revamping its product offer which has become too upmarket. 'We want to be in the middle ground between Asos and Net-a-Porter', he said. Curran said he couldn't understand why the business had focused on growth in Asia and the US.
'We now face the future with confidence,' he said in a separate statement.
Losses in the year to June 2012, the most recent year for which accounts are available at Companies House, were down 29 per cent to £4.9 million. Sales rose 23 per cent to £15.6 million.
Curran and former wife Sarah Curran founded the firm in 2006. He left in 2010 after the couple split and she left in July this year. She said in an interview with Vogue the same month her role at the firm had been reduced to being 'the face of the brand.'
Fashion director Carmen Borgonovo, who was poached from her senior post as Harper's Bazaar senior fashion editor a year ago, is one of the few senior staff to remain with the firm among a total of 48 other employees. The business was acquired by Growth Capital Acquisitions, a firm set up by Curran and his backers to repurchase the business.
A spokesman at insolvency expert Company Watch said there is still 'some debate' about the application of pre-pack administrations as existing directors, to whom the company is normally sold in such situations, and new investors often benefit over suppliers.
However, it adds: 'It is a very quick process and can get rid of debt, save jobs and allow a business to continue trading.'
David Worby, who was drafted in from Harrods eighteen months ago to drive international growth, has left alongside trading director Joanna Stephenson. The site appears to have struggled to attract brands comparable with one-time rivals such as Net-a-Porter aiming instead for lower tier labels.
Founder Andrew Curran says he took a more active role in the business six months ago as efforts intensified to turn its fortunes around. The Guardian newspaper said he had the backing of new investors.
But it was finally decided there was no alternative but to financially restructure the business. Administrators Leonard Curtis were appointed to manage parent company Meemi Limited on the November 18 and the deal was completed the same day.
Curran told Retail Week he would pull the site back into the black next year by revamping its product offer which has become too upmarket. 'We want to be in the middle ground between Asos and Net-a-Porter', he said. Curran said he couldn't understand why the business had focused on growth in Asia and the US.
'We now face the future with confidence,' he said in a separate statement.
Losses in the year to June 2012, the most recent year for which accounts are available at Companies House, were down 29 per cent to £4.9 million. Sales rose 23 per cent to £15.6 million.
Curran and former wife Sarah Curran founded the firm in 2006. He left in 2010 after the couple split and she left in July this year. She said in an interview with Vogue the same month her role at the firm had been reduced to being 'the face of the brand.'
Fashion director Carmen Borgonovo, who was poached from her senior post as Harper's Bazaar senior fashion editor a year ago, is one of the few senior staff to remain with the firm among a total of 48 other employees. The business was acquired by Growth Capital Acquisitions, a firm set up by Curran and his backers to repurchase the business.
A spokesman at insolvency expert Company Watch said there is still 'some debate' about the application of pre-pack administrations as existing directors, to whom the company is normally sold in such situations, and new investors often benefit over suppliers.
However, it adds: 'It is a very quick process and can get rid of debt, save jobs and allow a business to continue trading.'
Tuesday, 19 November 2013
Sir Stuart Rose Appointed Chair At Duvet & Pillow Warehouse
Online bedding company Duvet & Pillow Warehouse has appointed former Marks & Spencer chief Sir Stuart Rose as chairman.
The new hire is part of a growth plan for the Guildford-based firm that includes changing the company's name to Soak & Sleep early next year.
The position marks Rose's fifth chairmanship including food delivery business Ocado, clothing chain Fat Face, menswear store Blue Inc and, last month, Oasis Healthcare dental group.
Charlie Hunt, founder of the £12 million-turnover Duvetandpillowwarehouse.co.uk, said he first met Rose nine months ago. 'He has helped create the structure for growth. We want to be the Asos for bed and bath,' said Hunt.
It plans to introduce new products every month for the next two years - including bathrobes, soaps and perfumes.
Rose has a number of other non-executive positions and consultancy roles including as a retail adviser to HSBC.
The new hire is part of a growth plan for the Guildford-based firm that includes changing the company's name to Soak & Sleep early next year.
The position marks Rose's fifth chairmanship including food delivery business Ocado, clothing chain Fat Face, menswear store Blue Inc and, last month, Oasis Healthcare dental group.
Charlie Hunt, founder of the £12 million-turnover Duvetandpillowwarehouse.co.uk, said he first met Rose nine months ago. 'He has helped create the structure for growth. We want to be the Asos for bed and bath,' said Hunt.
 |
| Former M&S Boss Has Helped Create Plan |
Rose has a number of other non-executive positions and consultancy roles including as a retail adviser to HSBC.
Monday, 18 November 2013
Marks & Spencer Winning Christmas Social Media War
Marks & Spencer is winning the Christmas social media war with John Lewis a close second, according to research from media firm Kindred.
The research, which measured the number of mentions seven large retailer's TV campaigns had received, said M&S had 58.8 million mentions on Twitter and 160,000 interactions on Facebook.
Its main rival John Lewis came second overall, receiving 45.9 million Twitter mentions - 16.5 per cent more than in 2012, marketing site The Drum reported. John Lewis had 71,000 interactions on Facebook.
Only those two of the seven campaigns had their own designated hashtag. Of those, John Lewis' #bearandhare was the clear winner with 28.000 mentions and the M&S tag #magicandsparkle received 3,500.
Meanwhile, Tesco was second in the Twitter rankings with 49.2 million mentions and Asda was second in the Facebook stakes with 87,000 interactions.
But Tesco had just 2,000 interactions on Facebook and Waitrose just 1,000.
The research, which measured the number of mentions seven large retailer's TV campaigns had received, said M&S had 58.8 million mentions on Twitter and 160,000 interactions on Facebook.
 |
| M&S: causing a magical storm on Twitter |
Only those two of the seven campaigns had their own designated hashtag. Of those, John Lewis' #bearandhare was the clear winner with 28.000 mentions and the M&S tag #magicandsparkle received 3,500.
Meanwhile, Tesco was second in the Twitter rankings with 49.2 million mentions and Asda was second in the Facebook stakes with 87,000 interactions.
But Tesco had just 2,000 interactions on Facebook and Waitrose just 1,000.
Majestic Wine's Online Sales Rise 8.3% After Third Generation Web Launch
Wine merchant Majestic Wine said the third generation of its online site in July helped carry internet sales up 8.3 per cent.
It said the site was launched on a new platform and will provide the firm 'with the infrastructure to handle expected future growth through the online channel'.
Online sales now account for 10.3 per cent of its £130.2 million sales in the first half to September 30. Total sales increased 3.3 per cent and pretax profit increased 4.2 per cent to £9.5 million.
'[The new site] delivers a much enhanced customer experience including an improved click and collect proposition. Improved functionality now enables us to disply local stock availability which gives customers a greater range to choose from and improves our operational efficiency,' the company said this morning in a London Stock Exchange announcement.
Like-for-like sales declined 0.4 per cent because of the boost the company received the previous year from the Jubilee. It said the figure was also adversely affected by the change in the timing of Easter, which was earlier this year and therefore fell outside the accounting period.
It said the site was launched on a new platform and will provide the firm 'with the infrastructure to handle expected future growth through the online channel'.
Online sales now account for 10.3 per cent of its £130.2 million sales in the first half to September 30. Total sales increased 3.3 per cent and pretax profit increased 4.2 per cent to £9.5 million.
'[The new site] delivers a much enhanced customer experience including an improved click and collect proposition. Improved functionality now enables us to disply local stock availability which gives customers a greater range to choose from and improves our operational efficiency,' the company said this morning in a London Stock Exchange announcement.
Like-for-like sales declined 0.4 per cent because of the boost the company received the previous year from the Jubilee. It said the figure was also adversely affected by the change in the timing of Easter, which was earlier this year and therefore fell outside the accounting period.
Family-Owned Victoria Plumb, Online Bathroom Etailer, Set For £150 Million Sale
Online bathroom etailer Victoria Plumb is working with advisers from KPMG on a possible £150 million sale of the business.
The business is owned by the Walker family who are best known for acquiring the MFI brand after its collapse, according to the Sunday Times.
According to accounts filed at Companies House, sales at Victoria Plumb Ltd increased 37 per cent to 26.3 million in the year to February this year. Pretax profit increased 24 per cent to 6 million.
The sale would provide Sean and Jason, who founded the business in 2001 and each own 33 per cent of the business, with a massive windfall. Their father Malcolm, no relation to the Iceland supermarket boss, also controls 33 per cent.
The family's Walker Group plumbing business bought the rights to the name for £250,000 in 2010. They also acquired the Focus DIY brand. Sean and Jason launched the Victoria Plumb business in 2001.
The Sunday Times said the sale of the retailer could attract private equity investors and possible retail buyers.
Victoria Plumb currently has a 'Four Day Bath Bonanza' offering 60 per cent off.
The business is owned by the Walker family who are best known for acquiring the MFI brand after its collapse, according to the Sunday Times.
According to accounts filed at Companies House, sales at Victoria Plumb Ltd increased 37 per cent to 26.3 million in the year to February this year. Pretax profit increased 24 per cent to 6 million.
The sale would provide Sean and Jason, who founded the business in 2001 and each own 33 per cent of the business, with a massive windfall. Their father Malcolm, no relation to the Iceland supermarket boss, also controls 33 per cent.
The family's Walker Group plumbing business bought the rights to the name for £250,000 in 2010. They also acquired the Focus DIY brand. Sean and Jason launched the Victoria Plumb business in 2001.
 |
| Victoria Plumb: Could Fetch £150 Million in a Sale |
The Sunday Times said the sale of the retailer could attract private equity investors and possible retail buyers.
Victoria Plumb currently has a 'Four Day Bath Bonanza' offering 60 per cent off.
Sunday, 17 November 2013
Morrisons Will Promise 'Freshness' For Its Online Service
Morrisons hopes to entice online shoppers from rivals with the promise that its food will be fresher than you can get from others.
Morrisons is expected to emphasise its partnership with Ocado means food will arrive faster than from other major supermarkets where store picking models means it often has to travel through a slower picking and packing system and even be stacked on shelves first.
The Sunday Telegraph said further details of the service will be launched this week at a salmon-packing factory in Stratford, East London. Morrisons is the last of the four major supermarkets, including Tesco, Sainsbury's and Asda to launch a delivery service.
The others, all larger than Morrisons, primarily relay on staff to pick products from shelves but also use online-only wareshouse. These too often rely on labour intensive picking packing models compared to Ocado's hi-tech system, Morrisons will say.
Morrisons has leased Ocado's Dordon warehouse in Warwickshire which is fully automated to increase the efficiency of the process. Ocado has another automated warehouse in Hatfield, Herefordshire, and a number of 'spokes' to aid swift distribution to different regions.
Morrisons is going to argue that too many shoppers still prefer to only buy ambient, non-fresh food over the internet, while visiting stores for fresh products. Many supermarkets have been accused of delivering food too nears its sell-by date and shoppers worry that delivered food is not the best available or the products they would have picked for themselves.
The Morrisons trial will begin in the next fortnight with a main launch in January. Delivery will be available first in the midlands and the North and aim to cover 50 per cent of London by the end of 2014.
Morrisons chief executive Dalton Philips said last month: 'I said at the outset that our online offer would be unmistakably Morrisons and I’m very confident that the service we unveil in January will live up to that promise.'
Morrisons is expected to emphasise its partnership with Ocado means food will arrive faster than from other major supermarkets where store picking models means it often has to travel through a slower picking and packing system and even be stacked on shelves first.
The Sunday Telegraph said further details of the service will be launched this week at a salmon-packing factory in Stratford, East London. Morrisons is the last of the four major supermarkets, including Tesco, Sainsbury's and Asda to launch a delivery service.
The others, all larger than Morrisons, primarily relay on staff to pick products from shelves but also use online-only wareshouse. These too often rely on labour intensive picking packing models compared to Ocado's hi-tech system, Morrisons will say.
Morrisons has leased Ocado's Dordon warehouse in Warwickshire which is fully automated to increase the efficiency of the process. Ocado has another automated warehouse in Hatfield, Herefordshire, and a number of 'spokes' to aid swift distribution to different regions.
Morrisons is going to argue that too many shoppers still prefer to only buy ambient, non-fresh food over the internet, while visiting stores for fresh products. Many supermarkets have been accused of delivering food too nears its sell-by date and shoppers worry that delivered food is not the best available or the products they would have picked for themselves.
The Morrisons trial will begin in the next fortnight with a main launch in January. Delivery will be available first in the midlands and the North and aim to cover 50 per cent of London by the end of 2014.
Morrisons chief executive Dalton Philips said last month: 'I said at the outset that our online offer would be unmistakably Morrisons and I’m very confident that the service we unveil in January will live up to that promise.'
Comment: Tmall claims 40% of Information-Obsessed Chinese Ecommerce Market
We’re becoming a bit obsessed by the e-commerce data that that keeps cropping up in various industry magazines and the amazing insight they give
This week fashion industry magazine Drapers is in China, courtesy of market researchers iProspect, and shedding some light on the vast territory and its residents’ online shopping habits.
First off it points out that the top five ecommerce players in China control most of the market, an astonishing 60 per cent. Tmall.com has 40 per cent (possibly by traffic but it could easily be estimated turnover given Tmall-owner Alibaba made £2 billion in just one day last week!), 360buy.com has 14.7 per cent, Suning.com has 2.4 per cent, Amazon.cn has 2.2 per cent and Dangdang.com has 1.6 per cent.
It probably won’t surprise anyone with even a rudimentary understanding of Asian consumer habits that the mobile is the device of choice with 78.5 per cent using mobile devices. But desktops are still high with 69.5 per cent and laptops 46.9 per cent.
Perhaps the most interesting and useful fact in the survey is that 40 per cent of Chinese shoppers actively read and post reviews. This is more than double the number in the US and illustrates one of the interesting aspect of the Chinese ecommerce market we’ve come across: the hunger for data and information.
Shoppers, perhaps more mindful of what they are spending than their American cousins, want to know exactly what they’re getting and are obviously keen to share and encourage others to do so.
Comparing any of the above Chinese websites to virtually any British one illustrates the point instantly. The ordered chaos of Chinese sites compares to the smart, ordered restraint of UK sites.
So let’s pause for a minute to ponder whether the UK model is a good thing. Let’s be honest, British ecommerce sites have largely been driven by the marketing teams in the past whose very nature is very often image-led. How often have you come across a beautiful site only to find it doesn’t do or tell you half the things you need?
If someone has a sudden urge to spend you shouldn’t be leaving any obstacles in their way. So information should be the key as much as, if not more so, than design.
Clearly this depends on the type of product you're selling, but we see no difference between electricals, clothing or lampshades. Anything that is not a book or a CD. The more pictures, the more reviews (good and bad - we all understand that some people just have a bad experience - or a bad day that makes the experience feel worse than it was). And if the product really is bad, well, you most likely shouldn’t be selling it, or you should at least try to clarify in some way why people's expectations are too high and why there is so much disappointment.
Either way, as ecommerce spreads though tablets and smartphones ever further into people’s lives and xonsumers snatch opportunities thoughout the day to browse or buy on mobiles, tablets and PCs, it is time to grab them while you can. A little more information, surely, is never a bad thing.
This week fashion industry magazine Drapers is in China, courtesy of market researchers iProspect, and shedding some light on the vast territory and its residents’ online shopping habits.
First off it points out that the top five ecommerce players in China control most of the market, an astonishing 60 per cent. Tmall.com has 40 per cent (possibly by traffic but it could easily be estimated turnover given Tmall-owner Alibaba made £2 billion in just one day last week!), 360buy.com has 14.7 per cent, Suning.com has 2.4 per cent, Amazon.cn has 2.2 per cent and Dangdang.com has 1.6 per cent.
It probably won’t surprise anyone with even a rudimentary understanding of Asian consumer habits that the mobile is the device of choice with 78.5 per cent using mobile devices. But desktops are still high with 69.5 per cent and laptops 46.9 per cent.
Perhaps the most interesting and useful fact in the survey is that 40 per cent of Chinese shoppers actively read and post reviews. This is more than double the number in the US and illustrates one of the interesting aspect of the Chinese ecommerce market we’ve come across: the hunger for data and information.
Shoppers, perhaps more mindful of what they are spending than their American cousins, want to know exactly what they’re getting and are obviously keen to share and encourage others to do so.
Comparing any of the above Chinese websites to virtually any British one illustrates the point instantly. The ordered chaos of Chinese sites compares to the smart, ordered restraint of UK sites.
So let’s pause for a minute to ponder whether the UK model is a good thing. Let’s be honest, British ecommerce sites have largely been driven by the marketing teams in the past whose very nature is very often image-led. How often have you come across a beautiful site only to find it doesn’t do or tell you half the things you need?
If someone has a sudden urge to spend you shouldn’t be leaving any obstacles in their way. So information should be the key as much as, if not more so, than design.
Clearly this depends on the type of product you're selling, but we see no difference between electricals, clothing or lampshades. Anything that is not a book or a CD. The more pictures, the more reviews (good and bad - we all understand that some people just have a bad experience - or a bad day that makes the experience feel worse than it was). And if the product really is bad, well, you most likely shouldn’t be selling it, or you should at least try to clarify in some way why people's expectations are too high and why there is so much disappointment.
Either way, as ecommerce spreads though tablets and smartphones ever further into people’s lives and xonsumers snatch opportunities thoughout the day to browse or buy on mobiles, tablets and PCs, it is time to grab them while you can. A little more information, surely, is never a bad thing.
Saturday, 16 November 2013
LK Bennett Plans European Websites
Fashion retailer LK Bennett plans to launch websites in France and Spain and after the success of its US e-commerce business.
The chain launched a US and Canadian site in February and it has been 'ticking along nicely,' customer relations manager Claire Goodman told Drapers magazine yesterday. She said the plan was to extend the service across Europe beginning with dedicated sites in France and Spain.
She said LK Bennett, which has 114 UK stores, was also looking further afield at the online markets in China and Australia.
'We have great wholesale accounts in China, the Far East and Australia, so we are looking at the idea of launching online accounts there,' said Goodman.
The chain launched a US and Canadian site in February and it has been 'ticking along nicely,' customer relations manager Claire Goodman told Drapers magazine yesterday. She said the plan was to extend the service across Europe beginning with dedicated sites in France and Spain.
She said LK Bennett, which has 114 UK stores, was also looking further afield at the online markets in China and Australia.
'We have great wholesale accounts in China, the Far East and Australia, so we are looking at the idea of launching online accounts there,' said Goodman.
Friday, 15 November 2013
Asda Will Triple Online Sales To £3 Billion, Says Boss
Supermarket Asda said it has just reached £1 billion in sales online and now plans to triple that over the next five years.
The target to reach £3 billion sales came amid a broad strategic plan laid down by the chain's chief executive Andy Clarke yesterday.
Clarke said increasing the availability of click and collect was a central part of the plan and the store plans to establish 1,000 collection points around the UK. He said he was not ready to release the names of partners but said they would include locations such as train stations and petrol stations.
The chain, which is owned by US retail giant Wal-Mart, also plans to invest £1 billion cutting prices over the next five years. Clarke said that was £400 million more than the current run rate of price investment.
Clarke told the Financial Times that prices in stores are still rising at more than three times the rate of wages and utility and food bills were denting families' spending power.
'People are already saying 'we will go to bed early rather than put the heating on'. That really brings it down to earth,' he said.
The target to reach £3 billion sales came amid a broad strategic plan laid down by the chain's chief executive Andy Clarke yesterday.
Clarke said increasing the availability of click and collect was a central part of the plan and the store plans to establish 1,000 collection points around the UK. He said he was not ready to release the names of partners but said they would include locations such as train stations and petrol stations.
The chain, which is owned by US retail giant Wal-Mart, also plans to invest £1 billion cutting prices over the next five years. Clarke said that was £400 million more than the current run rate of price investment.
Clarke told the Financial Times that prices in stores are still rising at more than three times the rate of wages and utility and food bills were denting families' spending power.
'People are already saying 'we will go to bed early rather than put the heating on'. That really brings it down to earth,' he said.
Thursday, 14 November 2013
Ecommerce Growth 'Solid' In October As Shoppers Prepare For Chritstmas
Online sales growth was 'solid' in October despite being the slowest month so far this Autumn.
In was is being widely read as evidence that shoppers are shoring up their finances ahead of the Christmas rush, sales grew 15 per cent, slower than the previous two months.
Internet trade body IMRG said that compared to 18 per cent and 20 per cent growth in August and September respectively. The market has growth 16 per cent so far this year.
Tina Spooner, chief information officer at IMRG, said: 'The month-on-month growth between September and October was actually far lower than is usual, at just 0.5 per cent compared with the rate of 4-8 per cent we have seen over the past five years.'
'However, this is following the strongest online sales growth recorded between August and September in 13 years. Coming off the back of a strong comparator last October, the performance is still strong and bodes well for a positive Christmas for online retail,' she said.
The survey also found that conversion rates from shopper traffic into sales were 4.7 per cent - the highest since November 2012. In the six month period from May to October, total online retail saw a conversion rate of 4.6 per cent, compared with 3.9 per cent during the same period in 2012.
Chris Webster, vice-president of retail consulting and technology at Capgemini, which produces the figures with IMRG, said: 'It's great to see that m-commerce conversions are slowly increasing, but it's important to note that conversion rates are still higher for laptops and PCs. Whilst tablet devices are used for sofa surfing in front of the TV and browsing on our smartphones is a perfect way of making use of the daily commute, when it comes to serious shopping, many of us still prefer the PC experience.'
The mild weather impacted clothing sales, which increased at just 9.6 per cent, down 4 per cent on the previous month and compared to growth of 17 per cent in the year to date. Electrical sales saw some of the strongest growth.
In was is being widely read as evidence that shoppers are shoring up their finances ahead of the Christmas rush, sales grew 15 per cent, slower than the previous two months.
Internet trade body IMRG said that compared to 18 per cent and 20 per cent growth in August and September respectively. The market has growth 16 per cent so far this year.
Tina Spooner, chief information officer at IMRG, said: 'The month-on-month growth between September and October was actually far lower than is usual, at just 0.5 per cent compared with the rate of 4-8 per cent we have seen over the past five years.'
'However, this is following the strongest online sales growth recorded between August and September in 13 years. Coming off the back of a strong comparator last October, the performance is still strong and bodes well for a positive Christmas for online retail,' she said.
The survey also found that conversion rates from shopper traffic into sales were 4.7 per cent - the highest since November 2012. In the six month period from May to October, total online retail saw a conversion rate of 4.6 per cent, compared with 3.9 per cent during the same period in 2012.
Chris Webster, vice-president of retail consulting and technology at Capgemini, which produces the figures with IMRG, said: 'It's great to see that m-commerce conversions are slowly increasing, but it's important to note that conversion rates are still higher for laptops and PCs. Whilst tablet devices are used for sofa surfing in front of the TV and browsing on our smartphones is a perfect way of making use of the daily commute, when it comes to serious shopping, many of us still prefer the PC experience.'
The mild weather impacted clothing sales, which increased at just 9.6 per cent, down 4 per cent on the previous month and compared to growth of 17 per cent in the year to date. Electrical sales saw some of the strongest growth.
Virgin Wines Management Buys Business For £14 Million
Virgin Wines UK business has been sold to its management by owner Direct Wines in a deal estimated to be worth around £14 million.
Direct Wines will still own the Virgin Wines businesses in the US and Australia and plans to continue to push on overseas expansion while focusing on its Laithwaite's Wine business in the UK.
Direct Wines is still owned by the Laithwaite family which founded the £350 million turnover business in 1969.
Virgin Wines management team, led by managing director Jay Wright, said it will now accelerate the growth of Virgin Wines in the UK backed by private equity firms Mobeus Equity Partners and Connection Capital. Finance director Graeme Weir and marketing director Paul Adams also formed part of the team.
UK sales at Virgin Wines were £35 million in the year to June 2013 but Wright told the Guardian he planned to increase that to £50 million over the next four to five years. Wright founded Warehouse Wines in 2000, sold it to Direct Wines.
'It's a fabulous opportunity to do everything the way we want to do it. Strategically we are looking at much faster growth," Wright told the Guardian newspaper.
Simon McMurtrie, group chief executive of Direct Wines, said in a statement: 'The Board of the Direct Wines group and our shareholders, the Laithwaite family, want us to accelerate our growth in the US, Australia and in our core Laithwaite’s Wine business in the UK and that is where we are now focusing our investment.'
Direct Wines will still own the Virgin Wines businesses in the US and Australia and plans to continue to push on overseas expansion while focusing on its Laithwaite's Wine business in the UK.
Direct Wines is still owned by the Laithwaite family which founded the £350 million turnover business in 1969.
Virgin Wines management team, led by managing director Jay Wright, said it will now accelerate the growth of Virgin Wines in the UK backed by private equity firms Mobeus Equity Partners and Connection Capital. Finance director Graeme Weir and marketing director Paul Adams also formed part of the team.
UK sales at Virgin Wines were £35 million in the year to June 2013 but Wright told the Guardian he planned to increase that to £50 million over the next four to five years. Wright founded Warehouse Wines in 2000, sold it to Direct Wines.
'It's a fabulous opportunity to do everything the way we want to do it. Strategically we are looking at much faster growth," Wright told the Guardian newspaper.
Simon McMurtrie, group chief executive of Direct Wines, said in a statement: 'The Board of the Direct Wines group and our shareholders, the Laithwaite family, want us to accelerate our growth in the US, Australia and in our core Laithwaite’s Wine business in the UK and that is where we are now focusing our investment.'
Wednesday, 13 November 2013
Boohoo.com: The Online Retail Stars Of 2103, Part 2
Boohoo.com is probably the most successful fashion retailer your dad has never heard of.
An online paradise for the young and fashion obsessed, the rumours are it is mulling a sale or an IPO.
But let us first just to recap on our series to date: a growing number of online retailers are shuffling into the queue for a possible London Stock Exchange listing or refinancing of their businesses.
Of these we see a number that are very strong candidates for finding new investors - and then others which, from the outside at least, we're struggling with.
Short of stockbrokers or advisers to cook the figures for us we decided to do some number crunching ourselves.
Last week we studied the virtues of appliances giant AO.com and did not find them wanting. Our verdict: tie in the management and founder with a ball and chain for at least three years and where do we sign up?
Today we turn our sites on fashion website Boohoo.com.
Often seen as a mini-Asos we suggest a better way to look at Boohoo.com as a Topshop online - with a Northern twang. Closest rivals are most probably fellow Mancunians Missguided.co.uk (fully owned by Japanese technology and investment corporation Nakai Investments) and New Look.
Dresses are as little as £20 and tops start around £4.
Fast fashion is the Holy Grail at Boohoo.com and fast is also the management's strategic by-word judging by the rate of sales growth in the past five years.
According to accounts filed by Wasabi Frog Limited, the website's parent company, sales almost doubled to £24.5 million in the year to the end of February 2011. That made the 18.5 per cent growth to £29 million the following year seem a little flat, even though that was more than respectable compared to many other online fashion players.
Finding more recent, reliable figures beyond the anecdotal is a little frustrating but we think evidence of continued growth is strong.
An online paradise for the young and fashion obsessed, the rumours are it is mulling a sale or an IPO.
But let us first just to recap on our series to date: a growing number of online retailers are shuffling into the queue for a possible London Stock Exchange listing or refinancing of their businesses.
Of these we see a number that are very strong candidates for finding new investors - and then others which, from the outside at least, we're struggling with.
Short of stockbrokers or advisers to cook the figures for us we decided to do some number crunching ourselves.
Last week we studied the virtues of appliances giant AO.com and did not find them wanting. Our verdict: tie in the management and founder with a ball and chain for at least three years and where do we sign up?
Today we turn our sites on fashion website Boohoo.com.
Often seen as a mini-Asos we suggest a better way to look at Boohoo.com as a Topshop online - with a Northern twang. Closest rivals are most probably fellow Mancunians Missguided.co.uk (fully owned by Japanese technology and investment corporation Nakai Investments) and New Look.
Dresses are as little as £20 and tops start around £4.
 |
| £20 Worth of Katie Neon Pink Sequin Skater Dress from Boohoo.com |
According to accounts filed by Wasabi Frog Limited, the website's parent company, sales almost doubled to £24.5 million in the year to the end of February 2011. That made the 18.5 per cent growth to £29 million the following year seem a little flat, even though that was more than respectable compared to many other online fashion players.
Finding more recent, reliable figures beyond the anecdotal is a little frustrating but we think evidence of continued growth is strong.
New Look Website Sales Surge 52% As It Looks East
Fashion retailer New Look said sales on its website increased 52 per cent after it improved service and delivery options.
New Look said Click & Collect helped boost demand and accounted for 25 per cent of the site's sales in the financial first-half. It said the group's total online sales, including sales on sites such as Asos, rose 79 per cent.
'E-commerce continues to power ahead. The improved functionality of our site and enhanced delivery options have been well received by customers and we are continuing to invest in this very important part of our business.' said chief executive Anders Kristiansen.
The group said overall sales in the 26 weeks to September 28 rose 6 per cent to £753.2 million. New Look's UK like-for-like sales increased 2.6 per cent compared to the same period a year earlier.
Kristiansen said: 'Our strategy is delivering, and there is real momentum in the business. I am particularly pleased with the margin improvement brought about by our continued focus on cost control, tight stock management and reduced discounting.'
But he said: 'In line with the rest of the sector, current trading is more challenging and as yet we are not seeing any benefits of economic recovery feed through to our customers’ pockets. However, we are confident that the strength of New Look’s offer, namely our product, our website, our stores and our people means that we are well placed for the busy Christmas trading period and beyond.'
New Look expects to open its first stores in China this Spring and has already agreed terms on six. It is doing 'due diligence carefully' and has appointed international managing director Bernhard Ruf as part of the push.
New Look said Click & Collect helped boost demand and accounted for 25 per cent of the site's sales in the financial first-half. It said the group's total online sales, including sales on sites such as Asos, rose 79 per cent.
'E-commerce continues to power ahead. The improved functionality of our site and enhanced delivery options have been well received by customers and we are continuing to invest in this very important part of our business.' said chief executive Anders Kristiansen.
 |
| New Look Biker Coat: £49.99 |
Kristiansen said: 'Our strategy is delivering, and there is real momentum in the business. I am particularly pleased with the margin improvement brought about by our continued focus on cost control, tight stock management and reduced discounting.'
But he said: 'In line with the rest of the sector, current trading is more challenging and as yet we are not seeing any benefits of economic recovery feed through to our customers’ pockets. However, we are confident that the strength of New Look’s offer, namely our product, our website, our stores and our people means that we are well placed for the busy Christmas trading period and beyond.'
New Look expects to open its first stores in China this Spring and has already agreed terms on six. It is doing 'due diligence carefully' and has appointed international managing director Bernhard Ruf as part of the push.
Asos Launches Long-Awaited Chinese Website
Asos.com has launched it's dedicated Chinese website after months of anticipation and speculation about what effect it might have on this business.
Asos.com/cn/ appears to be similar to the existing seven local sites but is in Han Chinese and carries prices in the local currency, RMB. The site offers a 365-day delivery service and a seven day 'hotline' which is accessible from 9am until 10 at night.
The editorial content of the site is geared to being locally relevant and it will have more than 6,000 items by Spring 2014 across men and womenswear. Third party brands will be added at some point.
Asos.com offers 65,000 products and sells in 237 countries. Asos also has dedicated sites in the US, Australia, France, Germany, Italy, Spain and Russia, which launched in May, to bolster its international growth plans.
Chief executive Nick Robertson said last month the firm would break the £1 billion sales mark in the current financial year, a year before it had previously anticipated when it drew up targets three years ago. International sales account for two-thirds of turnover.
Robertson said: China continues to impress us with its steady growth. While the launch will not only help navigate and break down existing barriers but also dramatically improve the ASOS experience for our fast growing number of Chinese customers.
Asos.com/cn/ appears to be similar to the existing seven local sites but is in Han Chinese and carries prices in the local currency, RMB. The site offers a 365-day delivery service and a seven day 'hotline' which is accessible from 9am until 10 at night.
The editorial content of the site is geared to being locally relevant and it will have more than 6,000 items by Spring 2014 across men and womenswear. Third party brands will be added at some point.
 |
| Asos Arrives In China At Last |
Chief executive Nick Robertson said last month the firm would break the £1 billion sales mark in the current financial year, a year before it had previously anticipated when it drew up targets three years ago. International sales account for two-thirds of turnover.
Robertson said: China continues to impress us with its steady growth. While the launch will not only help navigate and break down existing barriers but also dramatically improve the ASOS experience for our fast growing number of Chinese customers.
Tuesday, 12 November 2013
Online Sales Rise 8.7% Despite 'Damp' Consumer Spending
Online sales rose 'strongly' in October despite poor weather dampening consumer spending, according to Barclaycard.
The rise in online sales compared favourably to previous months even as overall spending rose just 1.9 per cent year-on-year. Spending in stores rose just 0.3 per cent.
Stronger overall growth in the previous two months had been cited as evidence of renewed optimism. But poor weather was blamed for sluggish sales in October - and probably contributed to comparatively healthier online growth as shoppers stayed at home.
However, it was the fourth month of single-digit online sales increases suggesting the arrival of slightly cooler levels of growth. Online spending now accounts for 20.6 per cent of overall spending, up 1.2 per cent on last year. Some experts, including the IMRG, have detected signs that growth may be growing despite an extra boost from the use of tablets and smartphones.
Barclaycard measures about half of all spending, through its own cards and through monitoring payments it processes through other operators.
The increase online follows last month's rise of 6.7 per cent and an 8.5 per cent increase in August.
Clothing led the way in October with online sales of womenswear rising 41 per cent compared to last year as department stores such as Debenhams and House of Fraser and large clothing chains such as Marks & Spencer got to grips with the internet. Menswear grew 34 per cent and DIY sales increased 24 per cent.
The rise in online sales compared favourably to previous months even as overall spending rose just 1.9 per cent year-on-year. Spending in stores rose just 0.3 per cent.
Stronger overall growth in the previous two months had been cited as evidence of renewed optimism. But poor weather was blamed for sluggish sales in October - and probably contributed to comparatively healthier online growth as shoppers stayed at home.
However, it was the fourth month of single-digit online sales increases suggesting the arrival of slightly cooler levels of growth. Online spending now accounts for 20.6 per cent of overall spending, up 1.2 per cent on last year. Some experts, including the IMRG, have detected signs that growth may be growing despite an extra boost from the use of tablets and smartphones.
Barclaycard measures about half of all spending, through its own cards and through monitoring payments it processes through other operators.
The increase online follows last month's rise of 6.7 per cent and an 8.5 per cent increase in August.
Clothing led the way in October with online sales of womenswear rising 41 per cent compared to last year as department stores such as Debenhams and House of Fraser and large clothing chains such as Marks & Spencer got to grips with the internet. Menswear grew 34 per cent and DIY sales increased 24 per cent.
Beleaguered Marks & Spencer Boss Complains There Has Been 'Decades Of Underinvestment'
The chief executive of Marks & Spencer has taken the unusual step of writing an opinion piece for the Daily Telegraph detailing the difficulties of turning the business around.
Bolland says in the piece that he is launching a new web platform in the spring to offer customers 'choice and inspiration'. The platform is part of an overhaul of the business that will see it sever ties with long-term partner Amazon which currently runs its ecommerce function.
Marks & Spencer is in the process of switching systems to its own and said recently that in some cases it is running 'three separate systems' to deal with the complexity of the switch.
He says in the Telegraph piece: 'Over the past 130 years, M&S has been most successful when it has taken large steps forward. I want to build solid building blocks for the future. We are tackling two decades of under-investment in IT systems and logistics network, overhauling these systems to provide a firm foundation for the company, as well as focusing on ecommerce and international.'
Marks & Spencer has made several presentations to City analysts and journalists over recent months as it tries to explain how the business transformation is progressing.
However, it has been criticised for moving too slowly and for missing targets set by the chief executive and finance director.
Bolland says in the piece that he is launching a new web platform in the spring to offer customers 'choice and inspiration'. The platform is part of an overhaul of the business that will see it sever ties with long-term partner Amazon which currently runs its ecommerce function.
Marks & Spencer is in the process of switching systems to its own and said recently that in some cases it is running 'three separate systems' to deal with the complexity of the switch.
He says in the Telegraph piece: 'Over the past 130 years, M&S has been most successful when it has taken large steps forward. I want to build solid building blocks for the future. We are tackling two decades of under-investment in IT systems and logistics network, overhauling these systems to provide a firm foundation for the company, as well as focusing on ecommerce and international.'
Marks & Spencer has made several presentations to City analysts and journalists over recent months as it tries to explain how the business transformation is progressing.
However, it has been criticised for moving too slowly and for missing targets set by the chief executive and finance director.
Alibaba Makes £2 Billion In One Single Day
Chinese etail giant Alibaba has sold more than twice the annual sales of British etail giant Asos - in one single day.
Alibaba Group Holdings, currently mulling an IPO that could include a London listing, said transactions on its websites yesterday broke sales records as consumers in the country celebrated 'Singles' Day'.
Sales hit last year's one-day record of 19.1 billion yuan (£2 billion) within 13 hours as discounts drove demand.
Singles' Day is the Chinese equivalent to St Valentine's Day and e-commerce firms, such as Alibaba's Taobao and Tmall, are marking the occasion by flooding the internet with offers and promotions.
Bloomberg said 20,000 Chinese and foreign merchants took part in the sales push including companies as well known as Gap. The news wire estimates online sales accounted for 6.3 per cent of retail spending in China last year compared to 4.3 per cent a year earlier.
Alibaba Group Holdings, currently mulling an IPO that could include a London listing, said transactions on its websites yesterday broke sales records as consumers in the country celebrated 'Singles' Day'.
Sales hit last year's one-day record of 19.1 billion yuan (£2 billion) within 13 hours as discounts drove demand.
Singles' Day is the Chinese equivalent to St Valentine's Day and e-commerce firms, such as Alibaba's Taobao and Tmall, are marking the occasion by flooding the internet with offers and promotions.
Bloomberg said 20,000 Chinese and foreign merchants took part in the sales push including companies as well known as Gap. The news wire estimates online sales accounted for 6.3 per cent of retail spending in China last year compared to 4.3 per cent a year earlier.
Monday, 11 November 2013
Sainsbury's Launches Delivery Pass To Compete With Tesco and Asda
Sainsbury's has launched an annual Delivery Pass subscription service following rivals Tesco and Asda which began offering similar services earlier this year.
The pass includes a £75 mid-week subscription that allows free grocery delivery for a year from Tuesday to Thursday. For £100, customers can access the 'Anytime' service allowing free delivery any day of the week.
Delivery is restricted to once per day and orders need to be over £40 - similar to the Tesco and Asda services. To help launch the service, Sainsbury's is offering double nectar points on shopping for new subscribers until December 31.
The Sainsbury's service demands a bigger commitment from customers than others. Asda launched a three month pass six weeks ago which, after an initial offer of £15, rose to £24 on November 1.
Asda said at the time that the pass is cheaper than Tesco whose three month Delivery Saver is £36 and compares to £32.97 at Ocado which charges £10.99 a month for a twelve month Smart Pass contract.
Asda also said its pass offered free delivery across food, clothing and home ranges while Sainsbury's is solely on food.
The passes are a way for supermarkets to bind shoppers into loyalty schemes as lower disposable incomes and price comparison sites have driven them to be more inclined to switch from one retailer to the next to find the best offers.
The pass includes a £75 mid-week subscription that allows free grocery delivery for a year from Tuesday to Thursday. For £100, customers can access the 'Anytime' service allowing free delivery any day of the week.
 |
| Sainsbury's: Online Delivery Loyalty Pass |
The Sainsbury's service demands a bigger commitment from customers than others. Asda launched a three month pass six weeks ago which, after an initial offer of £15, rose to £24 on November 1.
Asda said at the time that the pass is cheaper than Tesco whose three month Delivery Saver is £36 and compares to £32.97 at Ocado which charges £10.99 a month for a twelve month Smart Pass contract.
Asda also said its pass offered free delivery across food, clothing and home ranges while Sainsbury's is solely on food.
The passes are a way for supermarkets to bind shoppers into loyalty schemes as lower disposable incomes and price comparison sites have driven them to be more inclined to switch from one retailer to the next to find the best offers.
Subscribe to:
Posts (Atom)