Department store House of Fraser has reported an increase in sales aided by a surge in online demand as it prepares the company for a stock market listing.
The chain said like-for-like sales in the nine weeks to December 28 increased 4.3 per cent. Online sales in the final three weeks increased 57.7 per cent while gross margins across the two months improved by 140 basis points, it said.
Beauty was the leading performer online with sales rising 77 per cent in the three weeks.
The 61-store department store chain has emerged as one of the best performing retailers to release figures so far since Christmas alongside John Lewis. Debenhams said earlier this week that online sales were 'lower than anticipated' and blamed weak clothing sales as it warned profits in the first half will drop 26 per cent to £85 million.
House of Fraser chief executive John King said: 'We are delighted with our Christmas trading and are pleased to report another record performance despite a more competitive environment.'
He said: 'November trading was strong, in terms of both sales and margin growth, with a similar promotional programme [as last year]. As we expected, the peak Christmas trading came late, however it was the best we have ever recorded.'
He added: 'We remain clearly differentiated with our leading branded fashion offer representing approximately two thirds of our sales.'
Online sales now account for about 15 per cent of the chain's total.
The company, which is preparing for an IPO later this year, said it has merged its defined benefit pension schemes into a single new scheme.
Showing posts with label Debenhams. Show all posts
Showing posts with label Debenhams. Show all posts
Friday, 3 January 2014
Thursday, 2 January 2014
John Lewis Sells A Third Of Its Goods Online Over Christmas
A third of all sales at the John Lewis department store over the festive period were made on its website.
Online sales rose 22.6 per cent in the five weeks to December 28 compared to the same period a year earlier meaning that JohnLewis.com accounted for 31.8 per cent of the retailer's total revenues, according to figures released today. Click and collect orders were a major contributor rising 61.8 per cent.
Total sales at the company increased 7.2 per cent to £734 million. Sales rose 6.9 per cent on a like-for-like basis, which strips out the effect of new stores.
The company hailed the period as a record Christmas outshining rival Debenhams who complained of a weak online performance. Debenhams was forced to rush out a statement earlier this week warning the market that profits in the financial first-half would fall 26 per cent to about £85 million after like-for-like sales increased just 0.1 per cent.
John Lewis managing director Andy Street said: 'This Christmas has seen trade take a different shape to previous years, with an early peak driven by Black Friday and a huge surge in the final 10 days. Many of the big online shopping days and weeks occurred earlier in the period but shops were packed in the last-minute rush on 'manic Monday' [December 23].'
He said: 'The shift to mobile devices for online shopping has been confirmed but the in-store sale is well and truly thriving, as shown by the record first day for Clearance in our shops on 27 December.'
John Lewis said sales at its shops increased 1.2 per cent, stripping out the effect of online.
It said Black Friday - which fell on the last Friday in November - was the biggest ever online day and the week before Christmas was the biggest ever for the whole business breaking £160 million sales for the first time.
Electricals and home technology sales increased 10.7 per cent on last year, fashion and beauty rose 8.5 per cent and home grew 2 per cent.
Online sales rose 22.6 per cent in the five weeks to December 28 compared to the same period a year earlier meaning that JohnLewis.com accounted for 31.8 per cent of the retailer's total revenues, according to figures released today. Click and collect orders were a major contributor rising 61.8 per cent.
Total sales at the company increased 7.2 per cent to £734 million. Sales rose 6.9 per cent on a like-for-like basis, which strips out the effect of new stores.
The company hailed the period as a record Christmas outshining rival Debenhams who complained of a weak online performance. Debenhams was forced to rush out a statement earlier this week warning the market that profits in the financial first-half would fall 26 per cent to about £85 million after like-for-like sales increased just 0.1 per cent.
John Lewis managing director Andy Street said: 'This Christmas has seen trade take a different shape to previous years, with an early peak driven by Black Friday and a huge surge in the final 10 days. Many of the big online shopping days and weeks occurred earlier in the period but shops were packed in the last-minute rush on 'manic Monday' [December 23].'
He said: 'The shift to mobile devices for online shopping has been confirmed but the in-store sale is well and truly thriving, as shown by the record first day for Clearance in our shops on 27 December.'
John Lewis said sales at its shops increased 1.2 per cent, stripping out the effect of online.
It said Black Friday - which fell on the last Friday in November - was the biggest ever online day and the week before Christmas was the biggest ever for the whole business breaking £160 million sales for the first time.
Electricals and home technology sales increased 10.7 per cent on last year, fashion and beauty rose 8.5 per cent and home grew 2 per cent.
Wednesday, 1 January 2014
Online Push Fails To Bring Debenhams A Happy Christmas
Debenhams was forced to issue a profit warning yesterday after a poor online performance and a 'highly competitive' festive retail market.
The department store said online delivery was 'lower than anticipated' and blamed weak clothing sales and unseasonal weather for the dire numbers.
Profit for its financial first-half is now expected to drop 26 per cent to £85 million, it said in a statement. Same-store sales in the 17 weeks to December 28 rose 0.1 per cent - well below inflation and equivalent to a sales drop in real terms.
The chain was not due to update the market for two weeks but was forced to release the statement early because of the material impact the poor performance will have on profit.
Despite the disappointment in the online performance, internet sales grew 27 per cent for the 17 week period and now account for 15.6 per cent of total sales compared to 12.4 per cent in the same period last year.
The rushed statement does not bode well for other retailers in competing categories. Analysts have already warned that Marks & Spencer's Christmas performance will mean this year's profits will be the worst for five years.
Debenhams said: 'We did not experience the anticipated final surge in sales in the last week of the period and as a result we expect the need for additional markdown to clear stock in January and February.'
The department store said online delivery was 'lower than anticipated' and blamed weak clothing sales and unseasonal weather for the dire numbers.
Profit for its financial first-half is now expected to drop 26 per cent to £85 million, it said in a statement. Same-store sales in the 17 weeks to December 28 rose 0.1 per cent - well below inflation and equivalent to a sales drop in real terms.
The chain was not due to update the market for two weeks but was forced to release the statement early because of the material impact the poor performance will have on profit.
Despite the disappointment in the online performance, internet sales grew 27 per cent for the 17 week period and now account for 15.6 per cent of total sales compared to 12.4 per cent in the same period last year.
The rushed statement does not bode well for other retailers in competing categories. Analysts have already warned that Marks & Spencer's Christmas performance will mean this year's profits will be the worst for five years.
Debenhams said: 'We did not experience the anticipated final surge in sales in the last week of the period and as a result we expect the need for additional markdown to clear stock in January and February.'
Monday, 22 April 2013
John Lewis Online Sales Hit £1bn
Department store John Lewis has announced annual internet sales have exceeded £1 billion for the first time.
The retailer said it has invested almost £40 million during a three year project to reorganise its internet division and offer. It said the strategy and increasing popularity of the site has meant it hit the £1 billion target a year early.
Online director Mark Lewis, who joined the retailer in January from courtier service CollectPlus and formerly at eBay, said: 'Passing the £1 billion milestone an entire year ahead of schedule is a fantastic achievement for us and a reflection of how central online shopping has become for customers.'
It said the mark was exceeded on a 52-week rolling basis and represents gross sales, that is, including VAT. Total sales at the department store chain increased 13.5 per cent last year to £3.8 billion. Rival Debenhams said its multichannel sales in the year to September were £251 million on sales of £2.7 billion. Marks & Spencer's online sales are estimated to be about £650 in the year to March on total general merchandise sales of around £4.3 billion.
The web site now includes wish list function and the inclusion of a search history. John Lewis said mobile now counts for over 25 per cent of traffic to the site and it has also improved its mobile offer to mirror the design of the main site and plans to launch a new app later this year.
John Lewis IT director Paul Coby said: 'With sales at johnlewis.com up over 40 per cent in 2012 we are seeing an unprecedented pace of online growth and customers are making more demands on our website, than ever before.'
'The billion-pound success is a reflection of out strategy to put the customer at the hear of our online operations.Early testing at every stage of the build and inviting over 3 million customers to use our beta site before full launch has resulted in what we believe will be an outstanding experience and journey for customers,' he said.
The retailer said it has invested almost £40 million during a three year project to reorganise its internet division and offer. It said the strategy and increasing popularity of the site has meant it hit the £1 billion target a year early.
Online director Mark Lewis, who joined the retailer in January from courtier service CollectPlus and formerly at eBay, said: 'Passing the £1 billion milestone an entire year ahead of schedule is a fantastic achievement for us and a reflection of how central online shopping has become for customers.'
It said the mark was exceeded on a 52-week rolling basis and represents gross sales, that is, including VAT. Total sales at the department store chain increased 13.5 per cent last year to £3.8 billion. Rival Debenhams said its multichannel sales in the year to September were £251 million on sales of £2.7 billion. Marks & Spencer's online sales are estimated to be about £650 in the year to March on total general merchandise sales of around £4.3 billion.
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| Tori diamond print dress from Collection by John Lewis |
The web site now includes wish list function and the inclusion of a search history. John Lewis said mobile now counts for over 25 per cent of traffic to the site and it has also improved its mobile offer to mirror the design of the main site and plans to launch a new app later this year.
John Lewis IT director Paul Coby said: 'With sales at johnlewis.com up over 40 per cent in 2012 we are seeing an unprecedented pace of online growth and customers are making more demands on our website, than ever before.'
'The billion-pound success is a reflection of out strategy to put the customer at the hear of our online operations.Early testing at every stage of the build and inviting over 3 million customers to use our beta site before full launch has resulted in what we believe will be an outstanding experience and journey for customers,' he said.
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