The founder of AO.com is this week sitting on a very comfortable pile.
Friday, 28 February 2014
Sainsbury's Promotes Online Boss Rudow To Its Operating Board
Sainsbury's supermarket has promoted its online director Jon Rudoe to its operating board as supermarkets prepare to do battle in the digital world.
Thursday, 27 February 2014
Boohoo.com Lines Up Former Selfridges Chief As Chairman
Boohoo.com has lined up the former chief executive of Selfridges Peter Williams as its chairman as it prepares to launch a £500 million float next week.
John Roberts Takes £86 million From AO And Denies Float Was 'Over-Revved'
John Roberts, the founder of AO.com, pocketed £86 million from the float of the business yesterday and then instantly made back the money he took out as shares soared.
HereForAPound.com Fends Off Legal Action
The online pound shop HereForAPound.com has been threatened with legal action by an offline rival for the use of a £1 logo that was deemed too similar.
Wednesday, 26 February 2014
AO.com Becomes UK's Biggest Ever Ecommerce IPO
AO became the UK's biggest ever ecommerce IPO when it launched on the London Stock Exchange this morning with a valuation of £1.2 billion.
Tesco To Offer Free Click & Collect As It Accelerates Multichannel Strategy
Tesco, Britain’s largest retailer, plans to hasten its shift towards the digital world by ramping up investment online that includes massive cuts in online delivery and remote shopping charges.
Tuesday, 25 February 2014
Cocosa Finally Closes Its Doors This Week
Flash sales website Cocosa.com will finally cease operating by the end of this week after announcing its intention to wind the company down last October.
Asda Hails Tube Station Click And Collect A Success
Grocer Asda has declared its trial of collection points at London Underground stations a success and plans to open more.
GoDaddy Prepares To Launch Shop Builder To Rival Shopify
GoDaddy's new online store is expected to launch imminently in a bid to provide a stripped-down rival rival Shopify.
Monday, 24 February 2014
Tesco Starts Its First Ever Tube Station Click & Collect Service
Tesco has launched its first ever London Underground Click & Collect service which allows customers to order and collect from a van parked at the station.
My-Wardrobe Launches 'Try Before You Buy'
My-Wardrobe.com, the luxury fashion site, has launched a free 'try before you buy' service allowing customers.
Lazada Drives For Regional Domination As It Heads For Singapore
Rocket Internet's Lazada. which counts Tesco among its shareholders, plans to launch an internet site in Singapore this year.
'More Complicated' UK Shoppers Buying From Overseas Sites
A third of UK internet shoppers are buying from overseas sites as consumers become 'ever more complicated'.
Sunday, 23 February 2014
Facebook Pays More Dividends For Retailers Than Pinterest, Says IBM
Facebook referrals convert to spending shoppers at twice the rate of those referred by Pinterest, according to a survey by IBM.
Saturday, 22 February 2014
Morrisons Defector George Dymond Turns Up At Tesco
Morrisons former online boss George Dymond has accepted a key role at Tesco just weeks after his shock departure from Morrisons last month.
Ocado Eyes Salford For Third Giant Warehouse
Ocado is in 'advanced talks' to open a third, giant distribution centre in Salford.
Asos Rekindles Love Affair With Australia
Asos is putting its Australian troubles of the last few weeks behind it with a bold new marketing initiative to connect with the country's student population.
Friday, 21 February 2014
John Lewis Proves Its Business Is Flood Proof
John Lewis has received a sales lift at its online business after floods hit the country last week.
The flood-proof company described the performance as 'very pleasing' with rise of 26.4 per cent in the week to February 15.
It said the gain 'offset any impact to the business from the adverse weather conditions seen across much of the UK' in mid February.
Exeter (down 19.9 per cent), Cardiff (-9.5 per cent) and Reading (-11.2 per cent) were among the worst hit stores are the surrounding areas were hit by storms and floods.
The company said total sales in the week increased 6.4 per cent as shoppers flocked to buy new technology, rising 9.7 per cent on last year, fashion, which rose 7.3 per cent, and St Valentine's Day cards, which helped its cards business rise 23 per cent.
The flood-proof company described the performance as 'very pleasing' with rise of 26.4 per cent in the week to February 15.
It said the gain 'offset any impact to the business from the adverse weather conditions seen across much of the UK' in mid February.
Exeter (down 19.9 per cent), Cardiff (-9.5 per cent) and Reading (-11.2 per cent) were among the worst hit stores are the surrounding areas were hit by storms and floods.
The company said total sales in the week increased 6.4 per cent as shoppers flocked to buy new technology, rising 9.7 per cent on last year, fashion, which rose 7.3 per cent, and St Valentine's Day cards, which helped its cards business rise 23 per cent.
LiveShopLocal.co.uk Relaunches To Shine A Likght On Local Shops
LiveShopLocal.co.uk has relaunched its website with a mapping system and to allow retailers to provide a more tailored profile of their store.
The site, which is aimed at independent businesses relaunched this week, and promises to highlight special deals and offers from local shops, restaurants and hotels.
The site encourages shoppers by promising that they are helping their local community and says it has amassed 20,000 social network followers.
Lee McPherson, Founder of LiveShopLocal.co.uk, said: We couldn't be happier with our new look website which is an important milestone in the development of Live Shop Local. Community reaction has been brilliant and our collection of deals just gets better and better.'
'Past offers include a £25 discount on a one-night stay at a local hotel, or 10 per cent discount on a Friday at a local hairdresser. As well as standard offers, there is a wide selection of gorgeous gifts and ideas for special occasions such as 'Build your own celebration cakes'.'
The site, which is aimed at independent businesses relaunched this week, and promises to highlight special deals and offers from local shops, restaurants and hotels.
The site encourages shoppers by promising that they are helping their local community and says it has amassed 20,000 social network followers.
Lee McPherson, Founder of LiveShopLocal.co.uk, said: We couldn't be happier with our new look website which is an important milestone in the development of Live Shop Local. Community reaction has been brilliant and our collection of deals just gets better and better.'
'Past offers include a £25 discount on a one-night stay at a local hotel, or 10 per cent discount on a Friday at a local hairdresser. As well as standard offers, there is a wide selection of gorgeous gifts and ideas for special occasions such as 'Build your own celebration cakes'.'
‘We’ll Make More Money Online From Overseas Shoppers,’ says Sports Direct
Sports Direct said its foreign web division will make it more money than its UK business by April.
Chief executive Dave Forsey said the retailer’s gross profit on sales to foreign countries is expected to exceed that of the UK by its year end on April 28.
Chief executive Dave Forsey said the retailer’s gross profit on sales to foreign countries is expected to exceed that of the UK by its year end on April 28.
Forsey said the online business 'performed strongly’ in the 13 weeks to January 26 while total group sales were up 11.2 per cent to £655.4 million.
The company did not give a figure for the relative size of its international online division compared to the UK by sales.
Sports Direct is majority-owned by Newcastle united owner Mike Ashley. It has benefited from the collapse of its closest rival JJB but the company said sales 'continued to perform well' in the latest period.
Sports Direct is majority-owned by Newcastle united owner Mike Ashley. It has benefited from the collapse of its closest rival JJB but the company said sales 'continued to perform well' in the latest period.
Thursday, 20 February 2014
A Quarter Of Fashion Goods Bought Online Are Returned
Almost a quarter of all fashion goods bought online are returned by shoppers, according to a new survey which claims to be the first of its kind to comprehensively measure the phenomenon.
The survey also found that the long-term average return rate among its sample was 23 per cent in the second and third quarter of 2013 and that up to 50 per cent of fashion returns are caused by just 10 per cent of products.
The survey has been carried out by the IMRG and technology firm Clear Returns which specialises in measuring the phenomenon. The review drew on two years background data to ensure consistency and a sample of around 1 million transactions for the current survey findings taken from between May and October.
The survey comprised a limited number of retailers ranging in size from £130 million turnover to just under £9 million.
The survey found that the value of a product can drop by up to 10 per cent once it is returned and estimated that by reducing returns by just 1 per cent, a company could increase its profit by 1 per cent.
The busiest month for returns was October when 29 per cent of items were returned.
Returns for fashion retailers are costly because goods can get damaged in transit or because they can be out of fashion in the weeks it takes for them to be sent and returned to store. This is particularly so later in the year when retailers can switch rapidly from full-priced sales before Christmas to massive discounts.
The busiest month for returns was October when 29 per cent of items were returned.
Returns for fashion retailers are costly because goods can get damaged in transit or because they can be out of fashion in the weeks it takes for them to be sent and returned to store. This is particularly so later in the year when retailers can switch rapidly from full-priced sales before Christmas to massive discounts.
The average lead time for returns was calculated at 10 days, the survey said, but it can be much longer and retailers return policies mainly provide for a window between 14 days and 30 days.
Some retailers are introducing policies to make it more attractive for customers to return goods earlier, such as money off delivery. Dresses were by far the most returned items with tops second, according to the survey which asked respondents to name the top three most returned items.
Nick D'Aloisio Helps TicTail Line Up £5 Million
TicTail, the Stockholm-based shopfront for ecommerce start-ups, has secured $8 million (£4.8 million) as it prepares to open a New York office.
The new investors include Nick D'Aloisio who sold his start-up Summly to Yahoo last year for a reported $30 million. He is one of four strategic investors to contribute to the Series A funding round.
The online store builder, which lets users open a new shop in minutes, is close to signing a lease in the city's Soho district to serves as its outpost for US expansion. The New York office will initially be home to company CEO Carl Waldenkranz and four other staff. It will add 10 to 15 more this year.
Tictail has 35,000 stores on its platform. We tested the claim that users could set up shop in minutes in an article last year.
The funding was led by Thrive Capital, which has also invested in Instagram, and Scott Bellsky, founder of Behance, also contributed.
The new investors include Nick D'Aloisio who sold his start-up Summly to Yahoo last year for a reported $30 million. He is one of four strategic investors to contribute to the Series A funding round.
The online store builder, which lets users open a new shop in minutes, is close to signing a lease in the city's Soho district to serves as its outpost for US expansion. The New York office will initially be home to company CEO Carl Waldenkranz and four other staff. It will add 10 to 15 more this year.
Tictail has 35,000 stores on its platform. We tested the claim that users could set up shop in minutes in an article last year.
The funding was led by Thrive Capital, which has also invested in Instagram, and Scott Bellsky, founder of Behance, also contributed.
Wednesday, 19 February 2014
M&S Hires 17-Strong Editorial Team For Website Led By My-Wardrobe Editor
Marks & Spencer has hired a 17-strong writing team that is being led by a former Financial Times newspaper and My-Wardrobe.com editor.
Nicola Copping, formerly editor-in-chief at My-Wardrobe.com, has been appointed digital editor at MarksandSpencer.com. She was at My-Wardrobe for a year but left in October as new investors arrived to rescue the business.
Copping was previously the editor at Harrods.com and deputy fashion editor at the Financial Times.
The team, appointed by multichannel executive director Laura Wade-Gery, will spearhead Marks & Spencer's new look site and regularly update it with magazine style content in a bid to increase traffic and better inform shoppers on new looks.
Advice will include tips on what items to wear with which outfits and reviews of the latest fashion trends.
The relaunch is part of a £100 million overhaul of the M&S site and back office systems. The relaunch will also see it end its partnership with Amazon which it appointed to run its site in 2005.
However, it is not expected to reach peak performance until its new 900,000 sq ft distribution centre near Castle Donnington is fully operational later this year.
Nicola Copping, formerly editor-in-chief at My-Wardrobe.com, has been appointed digital editor at MarksandSpencer.com. She was at My-Wardrobe for a year but left in October as new investors arrived to rescue the business.
Copping was previously the editor at Harrods.com and deputy fashion editor at the Financial Times.
The team, appointed by multichannel executive director Laura Wade-Gery, will spearhead Marks & Spencer's new look site and regularly update it with magazine style content in a bid to increase traffic and better inform shoppers on new looks.
Advice will include tips on what items to wear with which outfits and reviews of the latest fashion trends.
The relaunch is part of a £100 million overhaul of the M&S site and back office systems. The relaunch will also see it end its partnership with Amazon which it appointed to run its site in 2005.
However, it is not expected to reach peak performance until its new 900,000 sq ft distribution centre near Castle Donnington is fully operational later this year.
Online Sales In January Rise 18%, Says IMRG
Online sales in January surged 18 per cent compared to the year before, according to figures released by UK internet retailer's trade body the IMRG.
The figures indicate the amount spent online in January rose to £8.1 billion. The data, unlike the British Retail Consortium and the ONS figures, includes sectors not traditionally thought of as retail such as flights, holidays and tickets to events.
The month also recorded the highest January conversion rate for five years at 4.35 per cent.
Tina Spooner, chief information officer at the IMRG, said: 'The January Index results reveal a strong start to the year, with online sales growth ahead of our expectations.'
He said: 'The number of browsers converting to buyers reached the highest levels recorded in the month of January since 2009 and this, together with the 18 per cent annual growth in e-retail sales, appears to be evidence that we are seeing an overall increase in consumer confidence.'
However, growth in the online clothing sector slowed to just 9 per cent compared to a year earlier compared to a rise of 17 per cent in December. The IMRG said the lower rate of growth compared to the festive season may be an indication that retailers were discounting less following a strong performance over the festive trading period.
The figures indicate the amount spent online in January rose to £8.1 billion. The data, unlike the British Retail Consortium and the ONS figures, includes sectors not traditionally thought of as retail such as flights, holidays and tickets to events.
The month also recorded the highest January conversion rate for five years at 4.35 per cent.
Tina Spooner, chief information officer at the IMRG, said: 'The January Index results reveal a strong start to the year, with online sales growth ahead of our expectations.'
He said: 'The number of browsers converting to buyers reached the highest levels recorded in the month of January since 2009 and this, together with the 18 per cent annual growth in e-retail sales, appears to be evidence that we are seeing an overall increase in consumer confidence.'
However, growth in the online clothing sector slowed to just 9 per cent compared to a year earlier compared to a rise of 17 per cent in December. The IMRG said the lower rate of growth compared to the festive season may be an indication that retailers were discounting less following a strong performance over the festive trading period.
Zalora Would Like To Meet: Highly Organised Individual To Float Our Company On The New York Stock Exchange
Rocket Internet’s Southeast Asian internet start-up Zalora has inadvertently advertised its intention to float on the stock market via a job advert.
Zalora advertised the position 'Project Manager - IPO' on a Singapore-based jobs website that included a requirement for experience 'preparing for a US IPO that included filing a registration statement with the SEC [Securities and Exchange Commission] at a minimum.'
Rocket Internet launched Zalora in 2012. It raised 'significant double digit million' in investment in the same year from investors including JPMorgan and then another $100 million from Summit Partners, Kinnevik, Verlinvest and Tengelmann Group last year.
Zalora said in the advert it wanted to 'triple' sales this year.
It described itself as ‘Southeast Asia’s number one fashion and beauty website and the most visited fashion website in the region,’ according the the advert, which was reproduced on TechInAsia.com.
It operates in 10 Asian countries including Singapore, Indonesia, Malaysia, Brunei, the Philippines, Thailand, Vietnam, Taiwan, Hong Kong and New Zealand and Australia where it trades as TheIconic.com.
Zalora advertised the position 'Project Manager - IPO' on a Singapore-based jobs website that included a requirement for experience 'preparing for a US IPO that included filing a registration statement with the SEC [Securities and Exchange Commission] at a minimum.'
Rocket Internet launched Zalora in 2012. It raised 'significant double digit million' in investment in the same year from investors including JPMorgan and then another $100 million from Summit Partners, Kinnevik, Verlinvest and Tengelmann Group last year.
Zalora said in the advert it wanted to 'triple' sales this year.
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| Zalora: Needed One Stock Market Listing |
It operates in 10 Asian countries including Singapore, Indonesia, Malaysia, Brunei, the Philippines, Thailand, Vietnam, Taiwan, Hong Kong and New Zealand and Australia where it trades as TheIconic.com.
Tuesday, 18 February 2014
Marks & Spencer Breaks From Amazon To Launch New Site After A Decade
Marks & Spencer has finally severed ties with Amazon to launch its own standalone after almost a decade in partnership with the web giant.
The new site uses editorial content and imagery more than the previous one, which insiders says was too functional for the fashion firm.
It is also designed to be easier for shoppers to use and to capitalise on Marks & Spencer's multichannel capabilities.
The site only sells clothing and homewares and Marks & Spencer chief executive Marc Bolland has publicly said there are no plans to launch a food delivery service beyond a limited party range.
The new site uses editorial content and imagery more than the previous one, which insiders says was too functional for the fashion firm.
It is also designed to be easier for shoppers to use and to capitalise on Marks & Spencer's multichannel capabilities.
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| The New M&S Site: Amazon Free |
New Look Promotes Barrasso To Get Closer To Digital Customers
New Look, one of the UK's biggest fashion retailers, has promoted its head of digital marketing to become executive assistant to chief executive Anders Kristiansen.
The promotion comes as New Look ramps up its online ambitions in order to maximise the potential of its multichannel capabilities. The fashion retailer was widely seen in the industry as one of the fastest improving performers among the high street fashion retailers at Christmas.
The executive assistant role is often used by large firms to groom high flyers for the top job. Barrasso, whose full title was head of multichannel digital marketing and innovation, has been identified among a number of potential future candidates for the job.
Kristiansen arrived in January last year and has steadied the business after a number of tumultuous years during the recession when it was heavily weighed down by debt.
Barrasso was formerly at travel company Thomas Cook as head of online partnerships and then at Hilton Hotels, where he was head of ecommerce for Europe, Middle East and Africa. He was drafted in to New Look in 2012.
Barrasso's appointment, shortly before Christmas, is understood to have coincided with the departure of New Look's ecommerce director Shivani Tejuja as part of a number of management changes.
A former business associate of Barrasso's described him as having 'infectious enthusiasm' and with a 'very non-confrontational and informative' management style.
The promotion comes as New Look ramps up its online ambitions in order to maximise the potential of its multichannel capabilities. The fashion retailer was widely seen in the industry as one of the fastest improving performers among the high street fashion retailers at Christmas.
The executive assistant role is often used by large firms to groom high flyers for the top job. Barrasso, whose full title was head of multichannel digital marketing and innovation, has been identified among a number of potential future candidates for the job.
Kristiansen arrived in January last year and has steadied the business after a number of tumultuous years during the recession when it was heavily weighed down by debt.
Barrasso was formerly at travel company Thomas Cook as head of online partnerships and then at Hilton Hotels, where he was head of ecommerce for Europe, Middle East and Africa. He was drafted in to New Look in 2012.
Barrasso's appointment, shortly before Christmas, is understood to have coincided with the departure of New Look's ecommerce director Shivani Tejuja as part of a number of management changes.
A former business associate of Barrasso's described him as having 'infectious enthusiasm' and with a 'very non-confrontational and informative' management style.
Online Grocery Sales Stall In January
Online grocery shopping stalled in January as consumers cut back on food shopping online.
Grocery delivery sales rose 6.6 per cent during the month almost half the rate of the previous two months. Online food sales increased 12.6 per cent in December and 11.7 per cent in November.
The slower increase will be a disappointment for grocery retailers which have identified food as a key growth area. Last month Morrisons launched its online food service and Ocado is seeking a third distribution centre for its partnership with the Bradford-based chain.
The slowdown compares to a 27.1 per cent increase in food delivery sales in January last year.
Total retail sales during the month both on and offline otherwise performed well, increasing 4.4 per cent on the same month a year ago. Within that, grocery retailers have struggled to grow sales from stores.
Internet spending on non-food items increased 11.3 per cent, helped along by a good performance in clothing.
The grocery sector accounts for about half the sales in the retail industry but ordering and delivery is more complex and so fewer people have so far switched to doing the majority of their food shopping online.
Grocery delivery sales rose 6.6 per cent during the month almost half the rate of the previous two months. Online food sales increased 12.6 per cent in December and 11.7 per cent in November.
The slower increase will be a disappointment for grocery retailers which have identified food as a key growth area. Last month Morrisons launched its online food service and Ocado is seeking a third distribution centre for its partnership with the Bradford-based chain.
The slowdown compares to a 27.1 per cent increase in food delivery sales in January last year.
Total retail sales during the month both on and offline otherwise performed well, increasing 4.4 per cent on the same month a year ago. Within that, grocery retailers have struggled to grow sales from stores.
Internet spending on non-food items increased 11.3 per cent, helped along by a good performance in clothing.
The grocery sector accounts for about half the sales in the retail industry but ordering and delivery is more complex and so fewer people have so far switched to doing the majority of their food shopping online.
Amazon 'Destroyed a Million Jobs,' Says Former Angel Investor In The Firm
A former investor in Amazon who made $100 million from his early stake in the business has said the company 'destroyed a million jobs'.
Entrepreneur Nick Hanauer, a Democrat party supporter who is currently campaigning for a $15 an hour minimum wage in the US, said he was 'incredibly proud' of what Amazon achieved after he invested $45,000 - the bulk of his savings - in the business in 1995.
But he said, after cashing in five years later for $100 million, he feelings towards the firm were not an 'unalloyed good'.
'Amazon didn't create any jobs. Amazon probably destroyed a million jobs in our economy,' he told the Seattle Times on Saturday, pointing to reduced employment at bricks and mortar stores that resulted from the firms market dominance.
He said: 'We have to find a way as a capitalist democracy to account for that.'
Amazon is often criticised for operating a virtually profitless model to undercut rivals and force them out of business - the book retailing industry being the principle example often used.
Entrepreneur Nick Hanauer, a Democrat party supporter who is currently campaigning for a $15 an hour minimum wage in the US, said he was 'incredibly proud' of what Amazon achieved after he invested $45,000 - the bulk of his savings - in the business in 1995.
But he said, after cashing in five years later for $100 million, he feelings towards the firm were not an 'unalloyed good'.
'Amazon didn't create any jobs. Amazon probably destroyed a million jobs in our economy,' he told the Seattle Times on Saturday, pointing to reduced employment at bricks and mortar stores that resulted from the firms market dominance.
He said: 'We have to find a way as a capitalist democracy to account for that.'
Amazon is often criticised for operating a virtually profitless model to undercut rivals and force them out of business - the book retailing industry being the principle example often used.
Topshop Owner Plans US Distribution Hub As Its Prepares For Online Push
Topshop owner Sir Philip Green is planning to open a massive distribution hub in the US as a platform for its North American internet push.
The billionaire, who controls Topshop group Arcadia through a family shareholding, said the group is currently debating the timing of the hub that will provide a step change for the groups ambitions.
'At some point we are going to have other hubs [outside the UK]. We know we are going to have to put the goods in America. We will have to have an American warehouse, ship locally. It is a question of when not if,' Green told the Sunday Telegraph.
He also said he had signed a £50 million deal with IT firm Oracle to overhaul Arcadia's digital platforms. The retail group also includes chains such as Topman, Miss Selfridge, Dorothy Perkins, Burtons, Wallis, Evans, Outfit and the struggling department store Bhs.
The London-based group is mapping out a plan to open key stores worldwide and with local websites to cater for individual countries. Green is also considering small investments in entrepreneurial start-ups to better understnad the rapidly changing ways younger people are interacting with technology.
He said of the Oracle deal and the start-up investment plan: 'Good bad or indifferent, if you are not investing in new technology, you are going to get left behind.'
The billionaire, who controls Topshop group Arcadia through a family shareholding, said the group is currently debating the timing of the hub that will provide a step change for the groups ambitions.
'At some point we are going to have other hubs [outside the UK]. We know we are going to have to put the goods in America. We will have to have an American warehouse, ship locally. It is a question of when not if,' Green told the Sunday Telegraph.
He also said he had signed a £50 million deal with IT firm Oracle to overhaul Arcadia's digital platforms. The retail group also includes chains such as Topman, Miss Selfridge, Dorothy Perkins, Burtons, Wallis, Evans, Outfit and the struggling department store Bhs.
The London-based group is mapping out a plan to open key stores worldwide and with local websites to cater for individual countries. Green is also considering small investments in entrepreneurial start-ups to better understnad the rapidly changing ways younger people are interacting with technology.
He said of the Oracle deal and the start-up investment plan: 'Good bad or indifferent, if you are not investing in new technology, you are going to get left behind.'
Monday, 17 February 2014
Zalando 'Holding Talks With Banks' Over IPO Plan
Zalando, the German fashion giant, has been holding talks with prospective banks to pitch to help it with an initial public offering of shares, according to reports.
The company has held talks with Goldman Sachs, JPMorgan, Morgan Stanley and Deutsche Bank, according to news wire Reuters on Friday.
The speculation followed a report from Zalando's shareholder Kinnevik which reported that sales at the ecommerce giant have increased by 52 per cent last year to €1.76 billion (£1.44 million).
Kinnevik, which has a 36 per cent stake, revealed that it has valued Zalando at 33.7 billion SKr (£3.13 billion), 42 per cent more than a year earlier.
That compares to reports earlier this month in UK newspapers that the value could be as high as €5 billion (£4 billion) and estimates by analysts at Citigroup on Friday putting it at €8.5 billion (£6.9 billion).
Zalando co-founder and director said on Friday that an IPO was 'an interesting option' but 'a decision has not been made and we are not in any rush to make one.'
The company has held talks with Goldman Sachs, JPMorgan, Morgan Stanley and Deutsche Bank, according to news wire Reuters on Friday.
The speculation followed a report from Zalando's shareholder Kinnevik which reported that sales at the ecommerce giant have increased by 52 per cent last year to €1.76 billion (£1.44 million).
Kinnevik, which has a 36 per cent stake, revealed that it has valued Zalando at 33.7 billion SKr (£3.13 billion), 42 per cent more than a year earlier.
That compares to reports earlier this month in UK newspapers that the value could be as high as €5 billion (£4 billion) and estimates by analysts at Citigroup on Friday putting it at €8.5 billion (£6.9 billion).
Zalando co-founder and director said on Friday that an IPO was 'an interesting option' but 'a decision has not been made and we are not in any rush to make one.'
Online Sales Do Not Cannibalise The High Street, Claims Deloitte
Online shopping does not cannibalise high street sales but helps to add to existing spending, according to a study by Deloitte on behalf of Ebay.
The study found that about 95 per cent of women's dresses bought online were in addition to spending in physical shops, according to the study by Deloitte - and commissioned by Ebay UK - of 17 large UK fashion retailers between 2009 and 2013.
The retailers accounted for a about half of total spending in the market, the Financial Times reported. It said another study, also comissioned by Ebay, found a similar effect in the appliances market in Germany where 98 per cent of spending was in addition to the high street.
The survey - which has been received with a little scepticism by several retailers both on and offline that we have spoken with so far this morning, with one suggesting the argument was 'a little academic' and the situation much more complex than the survey suggested - was backed up by John Lewis managing director Andy Street.
He told the FT that the media had 'set the two channels against each other' but he said it was 'not as simple as cannibalisation' because customers shopping both channels at one retailer usually spend more than others.
The study found that about 95 per cent of women's dresses bought online were in addition to spending in physical shops, according to the study by Deloitte - and commissioned by Ebay UK - of 17 large UK fashion retailers between 2009 and 2013.
The retailers accounted for a about half of total spending in the market, the Financial Times reported. It said another study, also comissioned by Ebay, found a similar effect in the appliances market in Germany where 98 per cent of spending was in addition to the high street.
The survey - which has been received with a little scepticism by several retailers both on and offline that we have spoken with so far this morning, with one suggesting the argument was 'a little academic' and the situation much more complex than the survey suggested - was backed up by John Lewis managing director Andy Street.
He told the FT that the media had 'set the two channels against each other' but he said it was 'not as simple as cannibalisation' because customers shopping both channels at one retailer usually spend more than others.
Sunday, 16 February 2014
Big Ecommerce Sites Losing Out To Smaller Rivals As Load Times and Downtimes Rise
Online retailers are struggling to cope with the demands of rapidly growing site traffic and an increasingly sophisticated consumer.
According to NCC Group, the average load time on sites run by the top 50 UK web retailers hit 7.3 seconds as traffic volumes increased over the busy festive period. It compared with a 3 second target that most ecommerce firms regard as optimum.
There was a noticeable increase through the year and the poor performance compared with 6.6 seconds in the third quarter.
Meanwhile, average downtime increased to 6 hours 3 minutes compared to 4 hours 32 minutes in Q3.
Bob Dowson, director at NCC Group’s website performance division, said: 'Customers won’t think twice before abandoning their basket and going elsewhere if a website is down or takes too long to load. etailers should invest more in their most valuable asset because better website performance increases customer loyalty and, most importantly, boosts sales.'
He continued: 'The shift to online shows no signs of stopping, so there’s a massive opportunity. But if e-retailers are to take advantage of this, they simply must prioritise website performance. The relatively poor performance of the top etail sites suggests that much of that growth is going either to a few top performers in that group or to competitors outside the top 50.'
According to NCC Group, the average load time on sites run by the top 50 UK web retailers hit 7.3 seconds as traffic volumes increased over the busy festive period. It compared with a 3 second target that most ecommerce firms regard as optimum.
There was a noticeable increase through the year and the poor performance compared with 6.6 seconds in the third quarter.
Meanwhile, average downtime increased to 6 hours 3 minutes compared to 4 hours 32 minutes in Q3.
Bob Dowson, director at NCC Group’s website performance division, said: 'Customers won’t think twice before abandoning their basket and going elsewhere if a website is down or takes too long to load. etailers should invest more in their most valuable asset because better website performance increases customer loyalty and, most importantly, boosts sales.'
He continued: 'The shift to online shows no signs of stopping, so there’s a massive opportunity. But if e-retailers are to take advantage of this, they simply must prioritise website performance. The relatively poor performance of the top etail sites suggests that much of that growth is going either to a few top performers in that group or to competitors outside the top 50.'
Boohoo.com To Launch IPO By End Of The Month
Boohoo.com is expected to launch IPO plans by the end of this month, according to reports today.
The fashion etail phenomenon has been valued at £500 million and plans to list on Aim like its larger rival ecommerce retailer Asos.
The timetable means the firm would list shares on the stock market by the end of next month, the Sunday Times said today.
The company is majority owned by the Kamani family and co-founder Carol Kane, who is understood to own about 10 per cent of the shares.
For more on Boohoo, see our Online Retail Stars of 2013 Report: Boohoo.com.
The fashion etail phenomenon has been valued at £500 million and plans to list on Aim like its larger rival ecommerce retailer Asos.
The timetable means the firm would list shares on the stock market by the end of next month, the Sunday Times said today.
The company is majority owned by the Kamani family and co-founder Carol Kane, who is understood to own about 10 per cent of the shares.
For more on Boohoo, see our Online Retail Stars of 2013 Report: Boohoo.com.
Zalando Sales Slow Amid Widespread Discounting
Zalando, Europe's biggest fashion etailer, said sales last year slowed during the second half of last year as rivals engaged in aggressive discounting.
Total sales in the year grew 52 per cent to €1.76 billion (£1.44 billion). But sales in the final quarter of 2013 increased 36 per cent compared to a 42 per cent rise in the third quarter. Sales had grown 70 per cent in the first half.
European clothing retailers have complained that warmer weather over winter hampered demand forcing them to cut prices to attract more shoppers.
The figures were released on Friday in an end of year presentation by major shareholder Kinnevik, which owns 36 per cent of Zalando.
The documents show Kinnevik has valued its investment in Zalando at 12.14 billion SKr (£1.13 billion). That values the total business at 33.7 billion SKr (£3.13 billion). That is 42 per cent more than Kinnevik's estimated value for the firm this time last year.
The value is less than suggested in the Sunday Times last month which suggested Zalando could be worth £4 billion (€5 billion).
The Swedish firm said it has estimated the value based on a multiple of two times sales, a much more conservative estimate than the four times sales multiple being applied to many UK ecommerce firms eyeing a stock market float including Boohoo.com and AO.com.
Speaking to news wire Reuters about a potential IPO, Zalando executive and co-founder Rubin Ritter said 'right now there is no decision on this topic.'
Total sales in the year grew 52 per cent to €1.76 billion (£1.44 billion). But sales in the final quarter of 2013 increased 36 per cent compared to a 42 per cent rise in the third quarter. Sales had grown 70 per cent in the first half.
European clothing retailers have complained that warmer weather over winter hampered demand forcing them to cut prices to attract more shoppers.
The figures were released on Friday in an end of year presentation by major shareholder Kinnevik, which owns 36 per cent of Zalando.
The documents show Kinnevik has valued its investment in Zalando at 12.14 billion SKr (£1.13 billion). That values the total business at 33.7 billion SKr (£3.13 billion). That is 42 per cent more than Kinnevik's estimated value for the firm this time last year.
The value is less than suggested in the Sunday Times last month which suggested Zalando could be worth £4 billion (€5 billion).
The Swedish firm said it has estimated the value based on a multiple of two times sales, a much more conservative estimate than the four times sales multiple being applied to many UK ecommerce firms eyeing a stock market float including Boohoo.com and AO.com.
Speaking to news wire Reuters about a potential IPO, Zalando executive and co-founder Rubin Ritter said 'right now there is no decision on this topic.'
Saturday, 15 February 2014
Boohoo.com, Amazon, Next Warn Severe Weather Will Delay Deliveries
Boohoo.com, the UK’s second largest fashion pureplay etailer, and other ecommerce firms have warned that poor weather sweeping the UK is causing delays to orders.
The firm highlighted many areas of the country, mainly in London, Hampshire, the south coast, Cornwall and southern Wales as areas that have been affected particularly badly.
It said in a statement on its website: 'Due to severe weather conditions there may be delays to UK and Irish deliveries.'
Meanwhile, Amazon UK said in a message on its site: 'Severe weather conditions are affecting deliveries across the country. Some deliveries could take 1-2 days longer than usual to be delivered. The estimated delivery date quoted in the checkout will reflect our best estimate of when your order will be delivered.'
Next, the UK's biggest online clothing retailer, also listed a number of postcodes it expected to be badly affected. It said on its website: 'Whilst the majority of our parcels are being delivered on time, in some parts of the country, particularly Scotland, we are having difficulties getting through to deliver orders.'
Delivery firm CollectPlus, whose customers include Amazon.co.uk, Asos.com and House of Fraser, also warned: 'Recent weather conditions across the UK means there may be delays to some deliveries and collections in certain areas. As a result of localised flooding, high winds and road closures, parcels may be delayed in reaching their final destinations.'
It added: 'We would like to take this opportunity to apologise if your parcel has been one of those affected by the adverse weather.'
It said it was a 'national issue' and that some parcels may need to travel through routes or via hubs in areas that are affected even if customers are not actually in weather-hit regions.
The poor weather is otherwise expected to be a boost to ecommerce retailers are shoppers in some areas are unable or unwilling to leave their homes. John Lewis said yesterday that sales at JohnLewis.com increased 17.7 per cent in the week to February 8, the most recent figures available.
However, in other areas, the weather had disrupted power supplies, phone lines and caused flooding which effectively cut off local areas from the internet.
The firm highlighted many areas of the country, mainly in London, Hampshire, the south coast, Cornwall and southern Wales as areas that have been affected particularly badly.
It said in a statement on its website: 'Due to severe weather conditions there may be delays to UK and Irish deliveries.'
Meanwhile, Amazon UK said in a message on its site: 'Severe weather conditions are affecting deliveries across the country. Some deliveries could take 1-2 days longer than usual to be delivered. The estimated delivery date quoted in the checkout will reflect our best estimate of when your order will be delivered.'
Next, the UK's biggest online clothing retailer, also listed a number of postcodes it expected to be badly affected. It said on its website: 'Whilst the majority of our parcels are being delivered on time, in some parts of the country, particularly Scotland, we are having difficulties getting through to deliver orders.'
Delivery firm CollectPlus, whose customers include Amazon.co.uk, Asos.com and House of Fraser, also warned: 'Recent weather conditions across the UK means there may be delays to some deliveries and collections in certain areas. As a result of localised flooding, high winds and road closures, parcels may be delayed in reaching their final destinations.'
It added: 'We would like to take this opportunity to apologise if your parcel has been one of those affected by the adverse weather.'
It said it was a 'national issue' and that some parcels may need to travel through routes or via hubs in areas that are affected even if customers are not actually in weather-hit regions.
The poor weather is otherwise expected to be a boost to ecommerce retailers are shoppers in some areas are unable or unwilling to leave their homes. John Lewis said yesterday that sales at JohnLewis.com increased 17.7 per cent in the week to February 8, the most recent figures available.
However, in other areas, the weather had disrupted power supplies, phone lines and caused flooding which effectively cut off local areas from the internet.
Friday, 14 February 2014
PoundPanda.co.uk Collapses After A Week Under Weight Of Demand
PoundPanda.co.uk, one of three online pound stores launched this month, has been struggling to cope with a surge in demand from penny-pinching shoppers.
The site was suspended by its owner last night and was still displaying a 'temporary' closure notice at 8am this morning next to a worn out, sleeping panda.
The notice reads: 'We're sorry! Due to unprecedented interest in our new site, we've had to temporarily close our doors while we make some necessary upgrades'
It added: 'We'll be back online as soon as possible. All orders placed will be dispatched as normal.'
Earlier this week, Poundshop.com also had problems on its launch day. The Grocer magazine reported that it had been scheduled to go live at 2pm on Tuesday but had been forced to close the site following greater than expected demand.
The company blamed 'an unprecedented response' but said it would be back up 'shortly'. It said it had witness 5,000 people a second trying to log on to the site.
It was operating again two-and-a-half-hours later and was operating as normal this morning.
HereForAPound is understood to have been the first of the three to launch and is owned by a husband and wife team. Poundshop.com is a venture between millionaire and Poundland co-founder Steve Smith and Poundworld.
PoundPanda.co.uk is owned by a Manchester-based importer Shonn Brothers.
The site was suspended by its owner last night and was still displaying a 'temporary' closure notice at 8am this morning next to a worn out, sleeping panda.
The notice reads: 'We're sorry! Due to unprecedented interest in our new site, we've had to temporarily close our doors while we make some necessary upgrades'
 |
| PoundPanda: Site Falls Over |
Earlier this week, Poundshop.com also had problems on its launch day. The Grocer magazine reported that it had been scheduled to go live at 2pm on Tuesday but had been forced to close the site following greater than expected demand.
The company blamed 'an unprecedented response' but said it would be back up 'shortly'. It said it had witness 5,000 people a second trying to log on to the site.
It was operating again two-and-a-half-hours later and was operating as normal this morning.
HereForAPound is understood to have been the first of the three to launch and is owned by a husband and wife team. Poundshop.com is a venture between millionaire and Poundland co-founder Steve Smith and Poundworld.
PoundPanda.co.uk is owned by a Manchester-based importer Shonn Brothers.
Boohoo.com To Double Size Of Warehouse Operation This Year
Fashion etailer Boohoo.com is expected to add 600 jobs to its warehouse site at Burnley in the next year, more than doubling the number of staff.
Boohoo.com is poised to add 360 jobs to its 425 strong workforce, local M P Gordon Birtwistle told Lancashire today. However, the total number of staff employed by the company in the town could rise to 1,000 by next year, he said.
Plans have already been submitted to Burnley Council to extend the site to accommodate the £5 million plan. It comes as founders Mahmud Kamani and Carol Kane prepare for a possible £500 million stock market listing of the chain.
Boohoo.com runs its distribution facilities from Burnley with its main headquarters in central Manchester. It also has smaller operations running from Leicester where it oversees local manufacturing in the area and in London where it has a smaller marketing and PR operation.
Following a meeting with Boohoo bosses, Birtwistle said: 'It is amazing that they came to Burnley just a few years ago with just 40 employees.'
Lancashire today said its current rota sees its 400 staff work over four shifts. The new plan would see another 102,500 square feet added with an additional 30,500 square foot, four-storey office block.
It is understood that Boohoo.com acquired the land more than three years ago in anticipation of the plan.
For more on Boohoo, see our Online Retail Stars of 2013 Report: Boohoo.com.
Boohoo.com is poised to add 360 jobs to its 425 strong workforce, local M P Gordon Birtwistle told Lancashire today. However, the total number of staff employed by the company in the town could rise to 1,000 by next year, he said.
Plans have already been submitted to Burnley Council to extend the site to accommodate the £5 million plan. It comes as founders Mahmud Kamani and Carol Kane prepare for a possible £500 million stock market listing of the chain.
Boohoo.com runs its distribution facilities from Burnley with its main headquarters in central Manchester. It also has smaller operations running from Leicester where it oversees local manufacturing in the area and in London where it has a smaller marketing and PR operation.
Following a meeting with Boohoo bosses, Birtwistle said: 'It is amazing that they came to Burnley just a few years ago with just 40 employees.'
Lancashire today said its current rota sees its 400 staff work over four shifts. The new plan would see another 102,500 square feet added with an additional 30,500 square foot, four-storey office block.
It is understood that Boohoo.com acquired the land more than three years ago in anticipation of the plan.
For more on Boohoo, see our Online Retail Stars of 2013 Report: Boohoo.com.
Thursday, 13 February 2014
Poundpanda.co.uk Becomes Third Online Pound Store To Open In A Week
PoundPanda.co.uk has emerged as the third online pound store to launch in less than a week.
Its launch last Friday followed HereForAPound.com, believed to be the first ever pound store and which launched last week, and Poundshop.com, which launched on Tuesday.
PoundPanda.co.uk stocks 2,000 products and promises nationwide delivery for £3.95. It is owned by Manchester importer Shonn Brothers which is hoping the wider range will attract shoppers away from its two rival sites, both of which carry about 1,000 lines each.
Managing director Nicky Shonn told the Grocer: 'The concept of an online pound shop is certainly untried and untested but I think the market is certainly ready for it.'
He said it was a 'natural step' for his import business selling kitchen and household products, personal care and toys online.
The importer, which already runs a shop on Amazon's Marketplace, will operate the service from its existing 100,000 square foot Manchester warehouse.
Its launch last Friday followed HereForAPound.com, believed to be the first ever pound store and which launched last week, and Poundshop.com, which launched on Tuesday.
PoundPanda.co.uk stocks 2,000 products and promises nationwide delivery for £3.95. It is owned by Manchester importer Shonn Brothers which is hoping the wider range will attract shoppers away from its two rival sites, both of which carry about 1,000 lines each.
Managing director Nicky Shonn told the Grocer: 'The concept of an online pound shop is certainly untried and untested but I think the market is certainly ready for it.'
He said it was a 'natural step' for his import business selling kitchen and household products, personal care and toys online.
The importer, which already runs a shop on Amazon's Marketplace, will operate the service from its existing 100,000 square foot Manchester warehouse.
House Of Fraser To Extend Its ‘True Fit’ Remote Size Guide To All Brands Within Months
House of Fraser is planning to extend its True Fit service to all its clothing brands within months after relaunching the sizing guide with its new website last week.
True Fit allows shoppers to enter their measurements and size details to be directed to the appropriately sized garments.
The department store’s multichannel director Andy Harding said: 'We’re working with all apparel partners to get 100 per cent coverage this spring.'
House of Fraser’s new website is designed to be easily used on both handheld devices and desktop PCs. Econsultancy said it was 'already a very good ecommerce site, but has improved further with this relaunch'.
One ecommerce source said: 'It is a very good site, well thought out and should be well received by shoppers. They could do with getting more written product information on there to make it easier for customers to make purchasing decisions but they can perhaps iron out things like that in the coming months.'
True Fit allows shoppers to enter their measurements and size details to be directed to the appropriately sized garments.
The department store’s multichannel director Andy Harding said: 'We’re working with all apparel partners to get 100 per cent coverage this spring.'
House of Fraser’s new website is designed to be easily used on both handheld devices and desktop PCs. Econsultancy said it was 'already a very good ecommerce site, but has improved further with this relaunch'.
One ecommerce source said: 'It is a very good site, well thought out and should be well received by shoppers. They could do with getting more written product information on there to make it easier for customers to make purchasing decisions but they can perhaps iron out things like that in the coming months.'
Hobbs Ecommerce Director Gracia Amico Leaves
Gracia Amico has left her position as ecommerce director at women’s fashion chain Hobbs after just a year in the role.
Amico, who is highly regarded in the industry, took the role in January last year from her previous position as head of ecommerce at Topman where she had been for five years.
The circumstances around the departure are not yet clear but Hobbs is understood to have had a difficult Christmas. Clare Dobbie, Hobbs' marketing director, will taken her responsibilities until a permanent replacement is found.
Hobbs owner 3i has recently written down the value of its investment in the fashion retailer and last month appointed chairman Phil Wrigley, formerly chief executive at New Look, to replace Iain MacRitchie who stepped down after a three-year term.
Amico, who is highly regarded in the industry, took the role in January last year from her previous position as head of ecommerce at Topman where she had been for five years.
The circumstances around the departure are not yet clear but Hobbs is understood to have had a difficult Christmas. Clare Dobbie, Hobbs' marketing director, will taken her responsibilities until a permanent replacement is found.
Hobbs owner 3i has recently written down the value of its investment in the fashion retailer and last month appointed chairman Phil Wrigley, formerly chief executive at New Look, to replace Iain MacRitchie who stepped down after a three-year term.
Wednesday, 12 February 2014
Dunelm Plans £7m Web Boost
Dunelm is planning to launch a new website by September to support the 'next phase' of its multichannel growth.
The company has already invested £2 million in the plan and up to £5 million more will be spent as it prepares to launch the new site. It follows the opening of a new online fulfilment centre last year.
The company said in a statement: 'We believe the next phase of multi-channel growth will demand the development of a new website and associated systems to deliver a smoother, more integrated multi-channel experience for our customers.'
It said: 'This development will enhance the front end customer journey and will allow future website developments to be achieved over shorter lead-times. Complementary investments to be made at the same time to key back end processes such as customer service and handling systems will further enhance customers’ end-to end experience.'
In the past six months the company has linked its internet site to in store stock information helping boost web sales in the past six months by half.
The change to its availability monitoring allowed customer to see instantly updated information on whether specific products were available in local stores. It said it was one of a number of improvements to its Reserve & Collect service encouraging shoppers to pick items up from shops.
'R&C is the most profitable element of multi-channel and importantly represents approximately a third of our multi-channel revenues,' the company said.
The retailer said it was one of a number of improvements that helped lift sales by more than 50 per cent in the 26 weeks to December 28. Its website, which received 26 million visits in the period, now accounts for 6 per cent of Dunelm's total revenues.
It said it has also reduced the lead time between ordering and collection to three hours. It also opened a new fulfilment facility last year which it says holds about 14,500 skus of stock - all of which are available for next-day delivery - improving the speed and choice of ordering.
The site allowed Dunelm to take orders much closer to Christmas, it said.
The company has already invested £2 million in the plan and up to £5 million more will be spent as it prepares to launch the new site. It follows the opening of a new online fulfilment centre last year.
The company said in a statement: 'We believe the next phase of multi-channel growth will demand the development of a new website and associated systems to deliver a smoother, more integrated multi-channel experience for our customers.'
It said: 'This development will enhance the front end customer journey and will allow future website developments to be achieved over shorter lead-times. Complementary investments to be made at the same time to key back end processes such as customer service and handling systems will further enhance customers’ end-to end experience.'
In the past six months the company has linked its internet site to in store stock information helping boost web sales in the past six months by half.
The change to its availability monitoring allowed customer to see instantly updated information on whether specific products were available in local stores. It said it was one of a number of improvements to its Reserve & Collect service encouraging shoppers to pick items up from shops.
'R&C is the most profitable element of multi-channel and importantly represents approximately a third of our multi-channel revenues,' the company said.
The retailer said it was one of a number of improvements that helped lift sales by more than 50 per cent in the 26 weeks to December 28. Its website, which received 26 million visits in the period, now accounts for 6 per cent of Dunelm's total revenues.
It said it has also reduced the lead time between ordering and collection to three hours. It also opened a new fulfilment facility last year which it says holds about 14,500 skus of stock - all of which are available for next-day delivery - improving the speed and choice of ordering.
The site allowed Dunelm to take orders much closer to Christmas, it said.
Alibaba Plans '11 Main' US Ecommerce Venture
Chinese etail giant Alibaba, which has been valued at over $100 billion, is planning to launch a US ecommerce venture.
The new site - to be called 11Main.com - will be launched via two of Alibaba's subsidiary ecommerce operations Vendio and Auctive. It will be an online shopping platform that sells 'interesting quality products from 'handpicked shop owners', Alibaba Group Holding told Reuters.
It is understood that 11 Main is being backed by Alibaba but it is not in direct control and it has insisted this is not a launch by the main business into the US.
Alibaba is expected to launch an IPO as soon as this year that would likely give it a US listing. Its sites control 80 per cent of China's ecommerce market - Tmall and Taobao are estimated to account for about 5 per cent of the total retail market in China.
But growth last year showed signs of slowing and it is seeking new ways to grow revenue both in an outside the country. This week Alibaba also made a bid to for mapping firm AutoNav valuing the firm at $1.6 billion.
The new site - to be called 11Main.com - will be launched via two of Alibaba's subsidiary ecommerce operations Vendio and Auctive. It will be an online shopping platform that sells 'interesting quality products from 'handpicked shop owners', Alibaba Group Holding told Reuters.
It is understood that 11 Main is being backed by Alibaba but it is not in direct control and it has insisted this is not a launch by the main business into the US.
Alibaba is expected to launch an IPO as soon as this year that would likely give it a US listing. Its sites control 80 per cent of China's ecommerce market - Tmall and Taobao are estimated to account for about 5 per cent of the total retail market in China.
But growth last year showed signs of slowing and it is seeking new ways to grow revenue both in an outside the country. This week Alibaba also made a bid to for mapping firm AutoNav valuing the firm at $1.6 billion.
Online Sales 'Strongest For Five Years' In January
Online sales rose 19.2 per cent in January compared to the same month a year earlier as shoppers used 'click and collect' services and retailers tailored their offers to customer needs.
The increase - which only includes non-food products - compared to a 13.5 per cent rise in the same month in 2013 when many shoppers went online to buy goods amid heavy snow which prevented them going to the shops. The figures are from the BRC-KPMG Online Retail Sales Monitor.
The growth was the strongest since January 2009 and it means online sales in January represented 17.4 per cent of non-food sales. Total sales in January across online and shops increased 5.4 per cent, benefiting from less disruptive weather.
BRC director general Helen Dickinson said: 'Embracing omnichannel sales has been a big driver of business for UK retailers. We've seen an ever-more discerning customer taking good advantage of click and collect and other innovative services. The combination of an online presence with a bricks and mortar offering is becoming increasingly compelling.'
She said: 'There's no doubt that online is driving structural change within the sector and retailers will continue to invest heavily to provide the seamless experience between channels that today's shoppers demand.'
She added: 'Our figures showed that 17.4 per cent of all non-food spending is online and we're expecting this number to continue to rise as operations become more efficient, collections more convenient, deliveries faster and technology more integrated.'
The increase - which only includes non-food products - compared to a 13.5 per cent rise in the same month in 2013 when many shoppers went online to buy goods amid heavy snow which prevented them going to the shops. The figures are from the BRC-KPMG Online Retail Sales Monitor.
The growth was the strongest since January 2009 and it means online sales in January represented 17.4 per cent of non-food sales. Total sales in January across online and shops increased 5.4 per cent, benefiting from less disruptive weather.
BRC director general Helen Dickinson said: 'Embracing omnichannel sales has been a big driver of business for UK retailers. We've seen an ever-more discerning customer taking good advantage of click and collect and other innovative services. The combination of an online presence with a bricks and mortar offering is becoming increasingly compelling.'
She said: 'There's no doubt that online is driving structural change within the sector and retailers will continue to invest heavily to provide the seamless experience between channels that today's shoppers demand.'
She added: 'Our figures showed that 17.4 per cent of all non-food spending is online and we're expecting this number to continue to rise as operations become more efficient, collections more convenient, deliveries faster and technology more integrated.'
Tuesday, 11 February 2014
New Look Online Sales Jump 50% Over Christmas Period
Fashion retailer New Look said ecommerce sales over the Christmas rose 50.3 per cent after customers made more use of its shops to collect and return goods.
The chain said the majority of returns of goods bought from its website were taken into stores rather than sent by post and a quarter of people chose to 'click and collect'.
The uplift took the total rise in ecommerce sales from its own and via other retailer's websites over the 39 weeks to December 28 to 65.6 per cent. Sales from the New Look site alone rose 43.3 per cent in the same period.
The performance came in an otherwise tough period for retailers and 'highly promotional high street,' the company said.
The retailer said the 'convenience and flexibility' offered by its multichannel approach has 'never been stronger'.
Total sales in the third quarter increased 5 per cent to £452.1 million against flat underlying operating profit of 64.8 million. International sales increased 7.2 per cent.
CEO Anders Kristiansen said: 'We are pleased with our performance in a difficult quarter. Growth was once more driven by a particularly strong ecommerce performance - both from our own site and third parties - and our New Look international business turned in a commendable performance.'
The chain said the majority of returns of goods bought from its website were taken into stores rather than sent by post and a quarter of people chose to 'click and collect'.
The uplift took the total rise in ecommerce sales from its own and via other retailer's websites over the 39 weeks to December 28 to 65.6 per cent. Sales from the New Look site alone rose 43.3 per cent in the same period.
The performance came in an otherwise tough period for retailers and 'highly promotional high street,' the company said.
The retailer said the 'convenience and flexibility' offered by its multichannel approach has 'never been stronger'.
Total sales in the third quarter increased 5 per cent to £452.1 million against flat underlying operating profit of 64.8 million. International sales increased 7.2 per cent.
CEO Anders Kristiansen said: 'We are pleased with our performance in a difficult quarter. Growth was once more driven by a particularly strong ecommerce performance - both from our own site and third parties - and our New Look international business turned in a commendable performance.'
Asos Glitch Sees Oz Website 'Meltdown'
Asos has received hundreds of complaints in Australia after a technical glitch that left customers waiting for goods and unable to contact customer service representatives.
The complaints began at the beginning of last week and Asos has since been receiving a steady stream despite insisting that the problem has been resolved. Australia is Asos' second largest market after the UK.
Customers were still complaining yesterday and railing against the responses from the customer service team. Shoppers have vented their frustration on the company's Facebook site.
One, Abbie Margaret, complained she had ordered two men's shirts and a pair of men's sunglasses for her partner only to receive two dresses, a pair of shoes, a women's belt and a pair of suspenders.
She said: 'Disgusting customer service. I am sick of dealing with emails and waiting 10 days for a reply and it is appalling that I have been reduced to doing this over social media in order to get any sort of real response.'
Anther said on Friday: 'This is the fifth time I've tried to get in touch with Asos regarding this issue and I can't believe its got to the point now where I'm having to post on your Facebook page! ....I'm so shocked at the lack of help I've had with this issue. Asos have been so helpful in the past but this has totally ruined my perception of you.'
Dozens of others also complained of not being answered by customer service representatives.
Customers also seem to be having a host of other problems such as not being provided with a next-day delivery option even on a Premier delivery service, being charged for express shipping despite being Premier customers and with difficulty a registering discount codes.
Simon Lines said on Friday: 'Premier [should mean] unlimited next day delivery, clearly not! Where has the option for next days delivery gone then? And where is my order [which I made on] Tuesday night!'
One representative called Dion said: 'Sorry for that. Due to some tech updates, Premier service is currently unavailable. For more information, please check out our help page for the important updates.'
Another shopper who cancelled an order when she was denied the Express shipping option was told: 'Sorry about that, Angela. Our system is taking a little longer than normal to get the emails sent out because of our outage last weekend.'
A spokesperson for Asos told the Australian newspaper The Age: 'Over the weekend, Asos experienced a delay due to a planned tech update that impacted our ability to process orders. We have experienced a backlog, which has affected a small number of customers and we are doing everything that we can to fulfil our customers' orders in expected time frames.'
She told the newspaper, which described the problems as a 'meltdown,' that the issue had now 'been resolved'.
Asos complained last month that it has had troubles in Australia due to the strength of the Australian dollar. Chief executive Nick Robertson said that meant its products were 'about 15 per cent more expensive than we were this time last year'.
That contributed to a slowdown in sales in its 'rest of the world' division, which also includes Russia.
The complaints began at the beginning of last week and Asos has since been receiving a steady stream despite insisting that the problem has been resolved. Australia is Asos' second largest market after the UK.
Customers were still complaining yesterday and railing against the responses from the customer service team. Shoppers have vented their frustration on the company's Facebook site.
One, Abbie Margaret, complained she had ordered two men's shirts and a pair of men's sunglasses for her partner only to receive two dresses, a pair of shoes, a women's belt and a pair of suspenders.
She said: 'Disgusting customer service. I am sick of dealing with emails and waiting 10 days for a reply and it is appalling that I have been reduced to doing this over social media in order to get any sort of real response.'
Anther said on Friday: 'This is the fifth time I've tried to get in touch with Asos regarding this issue and I can't believe its got to the point now where I'm having to post on your Facebook page! ....I'm so shocked at the lack of help I've had with this issue. Asos have been so helpful in the past but this has totally ruined my perception of you.'
Dozens of others also complained of not being answered by customer service representatives.
Customers also seem to be having a host of other problems such as not being provided with a next-day delivery option even on a Premier delivery service, being charged for express shipping despite being Premier customers and with difficulty a registering discount codes.
Simon Lines said on Friday: 'Premier [should mean] unlimited next day delivery, clearly not! Where has the option for next days delivery gone then? And where is my order [which I made on] Tuesday night!'
One representative called Dion said: 'Sorry for that. Due to some tech updates, Premier service is currently unavailable. For more information, please check out our help page for the important updates.'
Another shopper who cancelled an order when she was denied the Express shipping option was told: 'Sorry about that, Angela. Our system is taking a little longer than normal to get the emails sent out because of our outage last weekend.'
A spokesperson for Asos told the Australian newspaper The Age: 'Over the weekend, Asos experienced a delay due to a planned tech update that impacted our ability to process orders. We have experienced a backlog, which has affected a small number of customers and we are doing everything that we can to fulfil our customers' orders in expected time frames.'
She told the newspaper, which described the problems as a 'meltdown,' that the issue had now 'been resolved'.
Asos complained last month that it has had troubles in Australia due to the strength of the Australian dollar. Chief executive Nick Robertson said that meant its products were 'about 15 per cent more expensive than we were this time last year'.
That contributed to a slowdown in sales in its 'rest of the world' division, which also includes Russia.
Yorkshire Folk Want Morrisons.com More Than In The Midlands
Demand for the Morrisons.com delivery service in Yorkshire has already exceeded that in the Midlands where the supermarkets main online distribution centre is located.
The Morrisons.com service was only launched to Yorkshire post codes last week after a three-and-a-half week launch period in the Midlands in the vicinity of the automated warehouse in Dordon, Warwickshire.
But, speaking on the day of the launch last Monday, Morrisons managing director for online food Simon Thompson told the Yorkshire Post: 'We're very happy with Yorkshire pre-bookings. We've seen greater demand from Yorkshire shoppers than we've seen from Warwickshire.'
That was despite the fact that the Warwickshire trial - within 45 minutes drive of Birmingham, Leicester and Coventry - covered 12 per cent of UK homes compared to just 8 per cent in the Yorkshire area phase of the plan.
Morrisons is located in Bradford and West Yorkshire is considered to be its heartland. Morrisons' partner Ocado is currently looking for another giant warehouse in Lancashire or Yorkshire to support growth in the North of England.
Until then, groceries delivered in the Yorkshire area are likely to be packed in Dordon, shipped by lorry to a smaller Leeds 'satellite' warehouse before being loaded into Sprinter vans for the final leg of the journey.
Morrisons is expecting to cover 50 per cent of the country by early next year and plans to launch a London service over summer.
It is likely to be a long time after that before the large, automated northern warehouse opens for business. Ocado, mainly sells Waitrose products but also has its own label, also operates a large warehouse in Hatfield, just north of London from which it delivers orders to its own site.
The Yorkshire warehouse is likely to be split between its own service and Morrisons.
The Morrisons.com service was only launched to Yorkshire post codes last week after a three-and-a-half week launch period in the Midlands in the vicinity of the automated warehouse in Dordon, Warwickshire.
But, speaking on the day of the launch last Monday, Morrisons managing director for online food Simon Thompson told the Yorkshire Post: 'We're very happy with Yorkshire pre-bookings. We've seen greater demand from Yorkshire shoppers than we've seen from Warwickshire.'
That was despite the fact that the Warwickshire trial - within 45 minutes drive of Birmingham, Leicester and Coventry - covered 12 per cent of UK homes compared to just 8 per cent in the Yorkshire area phase of the plan.
Morrisons is located in Bradford and West Yorkshire is considered to be its heartland. Morrisons' partner Ocado is currently looking for another giant warehouse in Lancashire or Yorkshire to support growth in the North of England.
Until then, groceries delivered in the Yorkshire area are likely to be packed in Dordon, shipped by lorry to a smaller Leeds 'satellite' warehouse before being loaded into Sprinter vans for the final leg of the journey.
Morrisons is expecting to cover 50 per cent of the country by early next year and plans to launch a London service over summer.
It is likely to be a long time after that before the large, automated northern warehouse opens for business. Ocado, mainly sells Waitrose products but also has its own label, also operates a large warehouse in Hatfield, just north of London from which it delivers orders to its own site.
The Yorkshire warehouse is likely to be split between its own service and Morrisons.
Vente-Privee's UK Sales Jumped 22% As It Drafts New Group Sales Targets
French flash sale website Vente-Privee has announced UK sales increased 22 per cent as it unveiled plans to increase group sales to as much as €8 billion.
Overall sales at the group increased 23 per cent to €1.6 billion (£1.3 billion) in 2013 compared to a year earlier and it said the total number of flash sales increased 65 per cent to 10,100. The rate of sales growth was slightly faster than the 22 per cent rise in 2012.
In an interview in Paris, founder Jacques Antoine-Granjon said the company plans to increase group sales to between €6 billion and €8 billion by over the next decade.
The site has become the third biggest online site in France after Amazon and eBay since it launched in 2001. It has been a front runner in developing the flash sales concept online and has attracted many immitators. Investors include Qatar Holding, an indirect subsidiary of the Qatari sovereign wealth fund.
The company operates in eight European countries. Vente-Privee launched in the US in 2011 and last year doubled sales to $50 million - with 800 flash sales.
It produced 973 flash sales in the UK during the year and said it is the largest market for mobile commerce, contributing to 37 per cent of total sales.
Overall sales at the group increased 23 per cent to €1.6 billion (£1.3 billion) in 2013 compared to a year earlier and it said the total number of flash sales increased 65 per cent to 10,100. The rate of sales growth was slightly faster than the 22 per cent rise in 2012.
In an interview in Paris, founder Jacques Antoine-Granjon said the company plans to increase group sales to between €6 billion and €8 billion by over the next decade.
The site has become the third biggest online site in France after Amazon and eBay since it launched in 2001. It has been a front runner in developing the flash sales concept online and has attracted many immitators. Investors include Qatar Holding, an indirect subsidiary of the Qatari sovereign wealth fund.
The company operates in eight European countries. Vente-Privee launched in the US in 2011 and last year doubled sales to $50 million - with 800 flash sales.
It produced 973 flash sales in the UK during the year and said it is the largest market for mobile commerce, contributing to 37 per cent of total sales.
Monday, 10 February 2014
Weak Start For Morrisons Online Launch, Research Suggests
Less than 1 per cent of Morrisons shoppers which were eligible to take up the new online ordering survey have done so, according to research.
Tamworth-based SBXL said the survey of existing shoppers in the area around the new online distribution centre in Warwickshare was part of a wider study of 3,000 shoppers.
SBXL's monthly Continuous Shopper Insights research indicated that 26 per dent of Morrisons shoppers said they would shop online for food over the next year, rising to 30 per cent in a smaller survey carried out in January.
Morrisons launched its online service in partnership with Ocado on January 10. The survey suggests that either the marketing message of the new launch has not yet hit home or that Morrisons shoppers are prefering to stick to their current grocery delivery supplier.
But it has also been interpreted by others that Morrisons shoppers are less likely to switch to online than customers at other retailers. According to the research, 45 per cent of shoppers in the South said they planned to shop online in the next year but only 22 per cent of Morrisons shoppers in the area said the same thing.
Serena Tippler, insight manager at SBXL, said all supermarkets needed to work harder to get people to switch to online - but it highlighted Morrisons in particular.
But Morrisons told the Yorkshire Post the research was 'very inconsistent' with the performance it had seen at the business and even suggested it was 'mischief making' because SBXL says on its website that it works for Asda and Tesco.
In a separate report, Ocado boss Tim Steiner insisted that 'the early indications have been very positive'.
Tamworth-based SBXL said the survey of existing shoppers in the area around the new online distribution centre in Warwickshare was part of a wider study of 3,000 shoppers.
SBXL's monthly Continuous Shopper Insights research indicated that 26 per dent of Morrisons shoppers said they would shop online for food over the next year, rising to 30 per cent in a smaller survey carried out in January.
Morrisons launched its online service in partnership with Ocado on January 10. The survey suggests that either the marketing message of the new launch has not yet hit home or that Morrisons shoppers are prefering to stick to their current grocery delivery supplier.
But it has also been interpreted by others that Morrisons shoppers are less likely to switch to online than customers at other retailers. According to the research, 45 per cent of shoppers in the South said they planned to shop online in the next year but only 22 per cent of Morrisons shoppers in the area said the same thing.
Serena Tippler, insight manager at SBXL, said all supermarkets needed to work harder to get people to switch to online - but it highlighted Morrisons in particular.
But Morrisons told the Yorkshire Post the research was 'very inconsistent' with the performance it had seen at the business and even suggested it was 'mischief making' because SBXL says on its website that it works for Asda and Tesco.
In a separate report, Ocado boss Tim Steiner insisted that 'the early indications have been very positive'.
Lord Alli Drafts In Former French Connection Exec For Indian Online IPO
The former chairman of Asos, Lord Waheed Alli, has appointed a number of UK executives as he prepares to float his Indian online venture Koovs.
Former French Connection finance director Roy Naismith has been appointed chief financial officer while Penguin Random House chair Gail Rebuck and deputy editor of British Vogue Emily Sheffield have both been appointed non-executive directors.
Lord Ali, who was chairman at Asos for a decade and owns 10 per cent of Koovs, plans a £22 million float for the business in March. About a third of the business will be floated on Aim.
Slightly less than half the business is owned by the Nahata family, which own Indian telecoms group HFCL.
Lord Alli also a Labour peer and chairman of Silvergate Media which produces children the children's television programme Octonauts.
Lord Alli told the FT: 'This is a real business. It took us eight to 10 years before people realised what was going on at Asos. It will take five years for people to understand what we’re doing here. We’re not going to profit take.'
Former French Connection finance director Roy Naismith has been appointed chief financial officer while Penguin Random House chair Gail Rebuck and deputy editor of British Vogue Emily Sheffield have both been appointed non-executive directors.
Lord Ali, who was chairman at Asos for a decade and owns 10 per cent of Koovs, plans a £22 million float for the business in March. About a third of the business will be floated on Aim.
Slightly less than half the business is owned by the Nahata family, which own Indian telecoms group HFCL.
Lord Alli also a Labour peer and chairman of Silvergate Media which produces children the children's television programme Octonauts.
Lord Alli told the FT: 'This is a real business. It took us eight to 10 years before people realised what was going on at Asos. It will take five years for people to understand what we’re doing here. We’re not going to profit take.'
UK Department Stores Overtake Amazon With Better Websites
John Lewis provides the best customer experience across 22 high street and pure play retailers when tested over six key categories.
In a wide-ranging survey that included hundreds of individual site surveys and purchases, John Lewis ranked best for site navigation, shopping basket and checkout experiences across its main site, mobile site and app, according a study by eDigital Research.
'All three of John Lewis’s digital channels ranked highest for their navigation and search facilities. Surveyors raved about the clearly defined menu options and ‘accordion’ mobile menu style functionality, making John Lewis’s vast and extensive product range easily accessible no matter what digital channels customers are using,' eDigital Research said.
'Innovations across channels such as Price Matching, Click & Collect and Store Postcode Search featured prominently in John Lewis’ feedback,' it said.
Department store rivals Marks & Spencer and House of Fraser ranked second and third overall with other key measures including homepage, search function and product pages.
But Amazon fell three places from top to fourth place in the bi-annual report after its overall score dropped from 87 per cent last time to 85 per cent. Amazon ranked best for its search facility but scored less highly on navigation.
The most improved site was Asda which increased its score from 76 per cent to 82 per cent.
In a wide-ranging survey that included hundreds of individual site surveys and purchases, John Lewis ranked best for site navigation, shopping basket and checkout experiences across its main site, mobile site and app, according a study by eDigital Research.
'All three of John Lewis’s digital channels ranked highest for their navigation and search facilities. Surveyors raved about the clearly defined menu options and ‘accordion’ mobile menu style functionality, making John Lewis’s vast and extensive product range easily accessible no matter what digital channels customers are using,' eDigital Research said.
'Innovations across channels such as Price Matching, Click & Collect and Store Postcode Search featured prominently in John Lewis’ feedback,' it said.
Department store rivals Marks & Spencer and House of Fraser ranked second and third overall with other key measures including homepage, search function and product pages.
But Amazon fell three places from top to fourth place in the bi-annual report after its overall score dropped from 87 per cent last time to 85 per cent. Amazon ranked best for its search facility but scored less highly on navigation.
The most improved site was Asda which increased its score from 76 per cent to 82 per cent.
Australian Internet Shoppers Could Be Hit By A 37% Tax, Warns Group
Australian internet shoppers buying goods from overseas could be hit by a 37 per cent tax if proposed legislation comes into force.
Australian consumer group Choice said the average parcel arriving in the country - currently worth A$38 - would end up costing A$56 if the idea comes into law.
It said it made the calculation based on a the 10 per cent GST level and the processing fee levied. It said three quarters of all online orders are less than A$100 and would all pay more in a likely 'processing fee' than the actual tax.
Local retailers are asking for a reduction in the A$1,000 goods and services tax (GST) threshold on imported goods. Choice said the lowering of the threshold would act as a strong disincentive to shoppers fond of foreign online stores.
Choice said levying the fee was the only way to collect the tax and provide a sufficient disincentive. It estimated the reduction of the threshold to zero would cost Australian shoppers A$823 million a year.
It applied the same level of fee as is applied on imports to the UK which it calculated at A$14. In the UK there is a VAT (20 per cent) tax charged on imports worth more than £15 and the processing fee is £8.
However, HMRC waives charges on anything where the tax raised would be less than £9.
The Australian Retailers Association Margy Osmond dismissed Choice's arguments as 'misunderstanding how the UK system worked'.
She told the Sydney Morning Herald: 'This is a discussion about closing a loophole in the tax law that is a hangover from when nobody shopped online'.
Australian consumer group Choice said the average parcel arriving in the country - currently worth A$38 - would end up costing A$56 if the idea comes into law.
It said it made the calculation based on a the 10 per cent GST level and the processing fee levied. It said three quarters of all online orders are less than A$100 and would all pay more in a likely 'processing fee' than the actual tax.
Local retailers are asking for a reduction in the A$1,000 goods and services tax (GST) threshold on imported goods. Choice said the lowering of the threshold would act as a strong disincentive to shoppers fond of foreign online stores.
Choice said levying the fee was the only way to collect the tax and provide a sufficient disincentive. It estimated the reduction of the threshold to zero would cost Australian shoppers A$823 million a year.
It applied the same level of fee as is applied on imports to the UK which it calculated at A$14. In the UK there is a VAT (20 per cent) tax charged on imports worth more than £15 and the processing fee is £8.
However, HMRC waives charges on anything where the tax raised would be less than £9.
The Australian Retailers Association Margy Osmond dismissed Choice's arguments as 'misunderstanding how the UK system worked'.
She told the Sydney Morning Herald: 'This is a discussion about closing a loophole in the tax law that is a hangover from when nobody shopped online'.
Sunday, 9 February 2014
House of Fraser's Website Just Got Better, Says Econsultancy
The newly relaunched House of Fraser website focusing on mobile users is faster and with more concise product pages and navigation menus, says web researcher Econsultancy.
The mobile-first strategy aimed to focus the site's design on those using touch screen devices and to reduce the load time of pages in acknowledgement of the importance of speed to mobile users, it said.
Researchers tested the site on mobile, tablet and desktop and decided the new features 'work almost equally well on all three'.
'After its relaunch in 2011, House of Fraser was already a very good ecommerce site, but has improved further with this relaunch,' said Econsultancy's editor-in-chief Graham Charlton.
Other features include reduced options in drop-down menus but with more sub categories to avoid instantly overwhelming small screens, product pages now have a 'super zoom' feature, and the True Fit feature (http://www.truefit.com) invites users to enter their size, weight and body shape to recommend product sizes - and reduce returns.
Matt Lovell, head of analytics at Thomas Cook, Airlines Group commented: 'Really nice example of well a well thought out mobile friendly website. It still works just fine on a desktop computer (even when viewed on a large screen) and yet is now simpler for the user to navigate across all platforms'
Duvet & Pillow Warehouse Becomes 'Soak & Sleep'
Duvet and Pillow Warehouse, the online retailer that last year appointed Sir Stuart Rose as chairman, is planning to rebrand next month.
The seven-year-old company will begin trading under the name Soak & Sleep from March 5 as it prepares for rapid growth. The company has a turnover of £12 million but plans to quadruple that to £50 million over the next four years.
Charlie Hunt, founder and CEO of the company, said: 'We have become famous for fabulous bed and bath products at a fraction of high street prices and quite simply wanted a fantastic new name to match the quality of our product offering. We love Soak & Sleep as it's catchy and sums us up perfectly.'
The rebranding will include a new website, logo and new branding. Traffic to DuvetAndPillowWarehouse.co.uk will redirect to the new site, SoakAndSleep.com.
The seven-year-old company will begin trading under the name Soak & Sleep from March 5 as it prepares for rapid growth. The company has a turnover of £12 million but plans to quadruple that to £50 million over the next four years.
Charlie Hunt, founder and CEO of the company, said: 'We have become famous for fabulous bed and bath products at a fraction of high street prices and quite simply wanted a fantastic new name to match the quality of our product offering. We love Soak & Sleep as it's catchy and sums us up perfectly.'
The rebranding will include a new website, logo and new branding. Traffic to DuvetAndPillowWarehouse.co.uk will redirect to the new site, SoakAndSleep.com.
India's Myntra.com Follows Jabong With $50 Million Fund Raising
Indian fashion portal Myntra.com has attracted $50 million investment as it seeks to step up competition with rivals including Jabong.
Rocket Internet-backed Jabong.com is believed to be working on a $100 million funding round after it received $27.5 million in equity capital from British investment group CDC.
Myntra, which has already rejected a merger offer from India's biggest ecommerce firm Flipkart, has confirmed the funding from investors led by Premji Invest, the investment arm of Azim Premji's Wipro Ltd.
'We are confident of achieving $1 billion Gross Merchandise Value by 2016 and will be by far the largest fashion destination in India,' said Mukesh Bansal, co-founder and CEO of Myntra.
'We have been growing steadily, increasing our product offerings and attracting new users from different corners of the country. This round of funding will allow us to scale up, attract and retain superior talent, ramp up our technology infrastructure and strengthen the Myntra brand,' Bansal added.
The Indian ecommerce market is estimated to be worth $3.1 billion and market researchers CLSA have forecast that could reach $22 billion in five years.
Myntra has raised almost $75 million since its launch including funding from investors such as Accel Partners and Tiger Global.
Rocket Internet-backed Jabong.com is believed to be working on a $100 million funding round after it received $27.5 million in equity capital from British investment group CDC.
Myntra, which has already rejected a merger offer from India's biggest ecommerce firm Flipkart, has confirmed the funding from investors led by Premji Invest, the investment arm of Azim Premji's Wipro Ltd.
'We are confident of achieving $1 billion Gross Merchandise Value by 2016 and will be by far the largest fashion destination in India,' said Mukesh Bansal, co-founder and CEO of Myntra.
'We have been growing steadily, increasing our product offerings and attracting new users from different corners of the country. This round of funding will allow us to scale up, attract and retain superior talent, ramp up our technology infrastructure and strengthen the Myntra brand,' Bansal added.
The Indian ecommerce market is estimated to be worth $3.1 billion and market researchers CLSA have forecast that could reach $22 billion in five years.
Myntra has raised almost $75 million since its launch including funding from investors such as Accel Partners and Tiger Global.
Saturday, 8 February 2014
Amazon UK Set To Overtake Japan As Third Biggest Global Division
Amazon's UK division could supplant Japan as the firm's third biggest market this year despite a slow down in sales.
The UK business grew 12.5 per cent last year to $7.29 billion - half the rate of the previous two years. But its Japanese business stagnated with sales dropping 2 per cent to $7.64 billion.
That would mean the UK could overtake Japan requiring growth of just 4.8 per cent to match Japan's current size. That would make the UK Amazon's the biggest market after the US and Germany.
Amazon's sales in the UK have slowed amid suggestions that rivals are increasingly competitive. High street retailers have pushed their click and collect models to encourage shoppers back into stores which have provided convenient collection points.
Although some commentators sought to blame negative publicity over Amazon's tax affairs for the UK slowdown, a number of market research surveys have suggested shoppers are largely undeterred by the coverage.
Even if some shoppers had been put off, such a mood swing would be unlikely to explain the rapid slow down. However, Amazon has faced increasing competition from UK retailers both on and offline.
Amazon is trying to develop its clothing business to enable it to grow revenue in new markets where it is currently under represented. Clothing could also provide it with an opportunity to improve margins compared with low margin product areas such as electricals.
Sales in Germany, where Amazon has faced repeated strike action, continued to grow rapidly during 2013, increasing 20.6 per cent to $10.54 billion. Sales in the US rose 27.9 per cent to $44.51 billion. That helped total sales across Amazon's global business rise 21.9 per cent to $74.45 billion.
The UK business grew 12.5 per cent last year to $7.29 billion - half the rate of the previous two years. But its Japanese business stagnated with sales dropping 2 per cent to $7.64 billion.
That would mean the UK could overtake Japan requiring growth of just 4.8 per cent to match Japan's current size. That would make the UK Amazon's the biggest market after the US and Germany.
Amazon's sales in the UK have slowed amid suggestions that rivals are increasingly competitive. High street retailers have pushed their click and collect models to encourage shoppers back into stores which have provided convenient collection points.
Although some commentators sought to blame negative publicity over Amazon's tax affairs for the UK slowdown, a number of market research surveys have suggested shoppers are largely undeterred by the coverage.
Even if some shoppers had been put off, such a mood swing would be unlikely to explain the rapid slow down. However, Amazon has faced increasing competition from UK retailers both on and offline.
Amazon is trying to develop its clothing business to enable it to grow revenue in new markets where it is currently under represented. Clothing could also provide it with an opportunity to improve margins compared with low margin product areas such as electricals.
Sales in Germany, where Amazon has faced repeated strike action, continued to grow rapidly during 2013, increasing 20.6 per cent to $10.54 billion. Sales in the US rose 27.9 per cent to $44.51 billion. That helped total sales across Amazon's global business rise 21.9 per cent to $74.45 billion.
AO.com Drafts In Former Amazon UK Boss For IPO
Appliances delivery website AO.com has wooed former Amazon boss Brian McBride onto is board as it prepares for the UK's biggest ever ecommerce IPO.
McBride, 58, left Slough-based Amazon.co.uk in January 2011 and the following year was appointed non-executive chairman at Asos.
He has been appointed senior non-executive director at DRL Holdings Limited which will change its name to AO Plc over the coming weeks as it prepares to launch a stock market float.
Reports today suggest the market value of the firm could reach £1.4 billion - even higher than the revised £1 billion to £1.2 billion figure released last month.
The company is expected to float shares next month, it said in a statement yesterday morning. It says it aims to raise £60 million in new shares and that management will sell at least the 25 per cent of the firm required tin free float by stock market rules.
Chief executive John Roberts - who founded the firm after a bet in the pub in 2000 - has a 40 per cent stake in the business which could be worth £560 million at the upper end of the valuation estimates.
McBride, 58, left Slough-based Amazon.co.uk in January 2011 and the following year was appointed non-executive chairman at Asos.
He has been appointed senior non-executive director at DRL Holdings Limited which will change its name to AO Plc over the coming weeks as it prepares to launch a stock market float.
Reports today suggest the market value of the firm could reach £1.4 billion - even higher than the revised £1 billion to £1.2 billion figure released last month.
The company is expected to float shares next month, it said in a statement yesterday morning. It says it aims to raise £60 million in new shares and that management will sell at least the 25 per cent of the firm required tin free float by stock market rules.
Chief executive John Roberts - who founded the firm after a bet in the pub in 2000 - has a 40 per cent stake in the business which could be worth £560 million at the upper end of the valuation estimates.
Friday, 7 February 2014
AO.com Pulls The Trigger On Biggest Ever UK Ecommerce IPO
Online appliances delivery firm AO has announced its intention to float on the London Stock Exchange next month in a share sale that could value it at as much as £1.2 billion.
The company, which operates the AO.com website, did not indicate the expected valuation but said it planned to raise £60 million new capital and said that existing shareholders will seek to sell down their stakes.
The value, which has been the subject of speculation, would make it the biggest ever ecommerce float in the UK after Ocado was forced to reduce the size of its stock market listing to £895 million.
It was initially estimated to be worth £300 million but that was been dramatically revised upwards last month when the Financial Time said valuations of £1 billion to £1.2 billion are now being discussed.
Website AO.com offers 30 brands and 4,000 products, 80 per cent of which are available for next day delivery across the majority of UK post codes.
It has increased revenue by 29.6 per cent over the past two years and increased ebitda by 57 per cent annually over the same period. Sales in the year to March were £275.5 million and profit was £10.7 million.
AO controls 24 per cent of the large appliances online market in the UK, according to strategy consultants OC&C. That comprises 19 per cent from its own site and 5 per cent from appliances orders it fulfills for other retailers including Next and Boots.
It said the online large appliances market is expected to grow at 11 per cent a year between now and 2016.
It said it plans to achieve further scale by launching an operation in Germany where it estimates the market is worth around 6.6 billion.
The company, which operates the AO.com website, did not indicate the expected valuation but said it planned to raise £60 million new capital and said that existing shareholders will seek to sell down their stakes.
The value, which has been the subject of speculation, would make it the biggest ever ecommerce float in the UK after Ocado was forced to reduce the size of its stock market listing to £895 million.
It was initially estimated to be worth £300 million but that was been dramatically revised upwards last month when the Financial Time said valuations of £1 billion to £1.2 billion are now being discussed.
Website AO.com offers 30 brands and 4,000 products, 80 per cent of which are available for next day delivery across the majority of UK post codes.
It has increased revenue by 29.6 per cent over the past two years and increased ebitda by 57 per cent annually over the same period. Sales in the year to March were £275.5 million and profit was £10.7 million.
AO controls 24 per cent of the large appliances online market in the UK, according to strategy consultants OC&C. That comprises 19 per cent from its own site and 5 per cent from appliances orders it fulfills for other retailers including Next and Boots.
It said the online large appliances market is expected to grow at 11 per cent a year between now and 2016.
It said it plans to achieve further scale by launching an operation in Germany where it estimates the market is worth around 6.6 billion.
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