Balderton Capital, the private equity investor whose list of past and present investments reads like a Who's Who of UK ecommerce firms, has brought in new talent as it seeks to focus more heavily on early stage start-ups.
The investment firm has appointed blinkx founder Suranga Chandratillake as its newest general partner. His appointment comes amid talk that co-founding partner Barry Maloney plans to step down.
It also drafted in Wellington Partners' Daniel Waterhouse in October. Waterhouse spent five years at the firm, often providing the first institutional money in a number of fast-growing companies including Hailo, YPlan, SumAll, EyeEm and Qype, later sold to Yelp.
Techcrunch reckons that the management makeover is part of a refocus of Balderton's investments even more heavily on Series A funding rounds.
The slight shift in strategy can only mean that Balderton, whose UK investments have included Asos, The Hut and Worldstores, is sharpening its claws amid increasing interest in tech, internet and ecommerce start-ups from a wider range and larger firms.
Balderton and a handful of other tech investors had a lot of room to maneuver in the early years of the last decade when it broke away from US venture capital firm Benchmark Capital.
The only way to go it seems is down into the underground - seek out the new talent and, as Balderton said in a press release this week, 'identify and back the next generation of entrepreneurs'.
With one a former entrepreneur himself and the other a proven identifier of successful firms, Balderton clearly hopes Chandratillake and Waterhouse will be able to help it do just that.
For more on The Hut, see our Online Retail Stars of 2013 Report: The Hut.
Showing posts with label e-commerce. Show all posts
Showing posts with label e-commerce. Show all posts
Thursday, 23 January 2014
Monday, 20 January 2014
Ikea UK Says Online Sales Soar 60% Over Chrisr
Ikea said internet sales at its UK business jumped 60 per cent over Christmas as it invested in its multichannel offer.
The Swedish furniture retailer said that helped like-for-like sales in the period increase 12 per cent as customers sought to spruce up their houses and, in particular, living rooms, children's furniture and bathrooms.
Ikea's UK and Ireland country manager Gillian Drakeford said the sales rise followed a 9 per cent increase in sales over the Autumn period. She said the online growth was 'exceptionally strong' over Christmas.
'Ongoing investment across [our] online and in-store shopping experience also helped to boost sales as shoppers seek more convenience,' the company said.
It said the post-Christmas sale led to a spike in visitors, 11 per cent more than the same week a year earlier.
Ikea is benefiting as shoppers begin to redecorate their houses as they prepares to sell their homes as the UK housing market shows early signs of recovery.
The Swedish furniture retailer said that helped like-for-like sales in the period increase 12 per cent as customers sought to spruce up their houses and, in particular, living rooms, children's furniture and bathrooms.
Ikea's UK and Ireland country manager Gillian Drakeford said the sales rise followed a 9 per cent increase in sales over the Autumn period. She said the online growth was 'exceptionally strong' over Christmas.
'Ongoing investment across [our] online and in-store shopping experience also helped to boost sales as shoppers seek more convenience,' the company said.
It said the post-Christmas sale led to a spike in visitors, 11 per cent more than the same week a year earlier.
Ikea is benefiting as shoppers begin to redecorate their houses as they prepares to sell their homes as the UK housing market shows early signs of recovery.
Crew Clothing Says Click and Collect 'Instant Hit'
Casual fashion chain Crew Clothing says its click and collect offer, introduced last year, helped grow sales from busy customers who have less time for shopping.
The chain said the new delivery option helped increase sales by 20 per cent in the 10 weeks to January 5, compared to the same period last year, according to the Daily Telegraph.
Finance director Justin Hampshire said: 'We have invested significantly in our multichannel offering. [Click and collect] was an instant hit. Our customers are busy people. With click and collect they can come in, perhaps try on their purchases, and they're out.'
Crew began as a catalogue retailer but now has 78 shops. Sales at the chain, which is owned by founder Alistair Parker-Swift, a professional skier and windsurfer, and private equity firm Isis, are expected to hit £52 million this year.
Hampshire said a 20 per cent off sale at the beginning of December helped increase sales but insisted that Crew 'didn't have to mark down to levels that would really hurt margins.'
The chain said the new delivery option helped increase sales by 20 per cent in the 10 weeks to January 5, compared to the same period last year, according to the Daily Telegraph.
Finance director Justin Hampshire said: 'We have invested significantly in our multichannel offering. [Click and collect] was an instant hit. Our customers are busy people. With click and collect they can come in, perhaps try on their purchases, and they're out.'
Crew began as a catalogue retailer but now has 78 shops. Sales at the chain, which is owned by founder Alistair Parker-Swift, a professional skier and windsurfer, and private equity firm Isis, are expected to hit £52 million this year.
Hampshire said a 20 per cent off sale at the beginning of December helped increase sales but insisted that Crew 'didn't have to mark down to levels that would really hurt margins.'
Wednesday, 15 January 2014
Feelunique.com Drafts in Former Clarins Boss To Bolster Growth Plans
Beauty website Feelunique.com has appointed former Clarins president Joël Palix as its chief executive officer.
He takes the reins from co-founder Aaron Chatterley, who set up the business in 2005 with Richard Schiessl, and who will become deputy chairman.
Palix was president at the Clarins Fragrance Group for five years where he managed the €400 million turnover business and brands such as the Thierry Mugler, Azzaro, Porsche Design, Swarovski and Zadig & Voltaire fragrance brands.
He has also held key executive positions at Yves Saint Laurent Beauté where he was managing director for Europe, France and Spain at various times.
He described Feelunique.com, which has over 500 brands and 20,000 products on it site, as 'an exciting brand at a very exciting time'.
Chatterley will remain 'very much involved with the business,' the company said in the statement. He said: 'I am proud of what we have achieved so far and very much look forward to working closely with him and seeing Feelunique flourish through the next stage of growth.'
He takes the reins from co-founder Aaron Chatterley, who set up the business in 2005 with Richard Schiessl, and who will become deputy chairman.
Palix was president at the Clarins Fragrance Group for five years where he managed the €400 million turnover business and brands such as the Thierry Mugler, Azzaro, Porsche Design, Swarovski and Zadig & Voltaire fragrance brands.
He has also held key executive positions at Yves Saint Laurent Beauté where he was managing director for Europe, France and Spain at various times.
He described Feelunique.com, which has over 500 brands and 20,000 products on it site, as 'an exciting brand at a very exciting time'.
Chatterley will remain 'very much involved with the business,' the company said in the statement. He said: 'I am proud of what we have achieved so far and very much look forward to working closely with him and seeing Feelunique flourish through the next stage of growth.'
Asos Reports ‘Strong’ Sales As It Gears Up For Global Expansion
Online fashion phenomenon Asos has reported 'another strong Christmas' in the UK and Europe as it gears up to take on the world's biggest markets.
The Camden, London-based etailer said total sales in the four months to the end of December increased 38 per cent, boosted by UK sales of 37 per cent and European sales of 69 per cent.
CEO Nick Robertson said: 'These results were driven by significant improvements to our customer proposition, including better delivery options, additional payment methods and the roll-out of our premier service in key international markets.'
He added: 'We have enjoyed another strong Christmas and made a good start to the financial year.'
The company is planning to 'significantly increase' the capacity of the Barnsley distribution centre this year and open a central European distribution centre.
US sales, about a quarter the size of UK sales, rose 28 per cent and 'rest of the world' sales increased 19 per cent. Retail gross margins increased 90 basis points.
One analyst said, despite expectations that UK sales would inevitably slow at some point, Asos would benefit overseas by targeting key markets.
'We believe [Asos] will focus on a limited number of markets with a view to making them as significant as the UK rather than taking a scatter gun approach to global expansion with the development of a small dedicated infrastructure in each market,' the analyst said.
The Camden, London-based etailer said total sales in the four months to the end of December increased 38 per cent, boosted by UK sales of 37 per cent and European sales of 69 per cent.
CEO Nick Robertson said: 'These results were driven by significant improvements to our customer proposition, including better delivery options, additional payment methods and the roll-out of our premier service in key international markets.'
He added: 'We have enjoyed another strong Christmas and made a good start to the financial year.'
The company is planning to 'significantly increase' the capacity of the Barnsley distribution centre this year and open a central European distribution centre.
US sales, about a quarter the size of UK sales, rose 28 per cent and 'rest of the world' sales increased 19 per cent. Retail gross margins increased 90 basis points.
One analyst said, despite expectations that UK sales would inevitably slow at some point, Asos would benefit overseas by targeting key markets.
'We believe [Asos] will focus on a limited number of markets with a view to making them as significant as the UK rather than taking a scatter gun approach to global expansion with the development of a small dedicated infrastructure in each market,' the analyst said.
Missguided.co.uk Drafts In Nicole Scherzinger For Exclusive Range
Manchester-based fashion website Missguided.co.uk has drafted in X-Factor judge Nicole Scherzinger to launch a new fashion collection.
The 30-piece range will capture the 'playful, sexy spirit' of the Missguided girl and feature a mix of directional dresses, jumpsuits, skirts, bodysuits and tops.
'I'm so excited to be collaborating with Missguided. I've worn their clothes in the past as I'm a big fan. This is my first time designing my own collection and I can't imagine a more perfect fit than Missguided,' Scherzinger said.
Missguided's managing director Nitin Passi, who launched the site in 2009, said: 'Working with Nicole was a natural choice for us. She's personable, fun and loves to experiment with fashion - all qualities that truly represent out customer. She's a great ambassador for the brand and we're excited to see the response.'
The range launches in March.
For more on Missguided, see our Online Retail Stars of 2013 Report: Missguided.co.uk.
The 30-piece range will capture the 'playful, sexy spirit' of the Missguided girl and feature a mix of directional dresses, jumpsuits, skirts, bodysuits and tops.
'I'm so excited to be collaborating with Missguided. I've worn their clothes in the past as I'm a big fan. This is my first time designing my own collection and I can't imagine a more perfect fit than Missguided,' Scherzinger said.
Missguided's managing director Nitin Passi, who launched the site in 2009, said: 'Working with Nicole was a natural choice for us. She's personable, fun and loves to experiment with fashion - all qualities that truly represent out customer. She's a great ambassador for the brand and we're excited to see the response.'
The range launches in March.
For more on Missguided, see our Online Retail Stars of 2013 Report: Missguided.co.uk.
Tuesday, 14 January 2014
Shop Direct Reports Mobile Shopping Sales 'Explosion'
Online and catalogue giant Shop Direct said its sales rose over Christmas after an 'explosion' in mobile shopping.
The £1.6 billion turnover giant said turnover grew 5 per cent in the six weeks to December 27 compared to the same period last year. Sales in the 26 weeks to the end of 2013 increased 1 per cent suggesting a marked acceleration in sales over the final weeks.
Group CEO Alex Baldock described the retail market over Christmas as 'tough' and 'highly promotional'.
But he said: 'We're proud to report a record Christmas for Shop Direct. We've come through an exceptionally tough environment and come through it stronger.'
He added: 'This Christmas was another milestone on our journey to being a world class digital retailer, as our department store range, unique financial services offer and ever-growing ecommerce capabilities allowed us to make good things easily accessible to more people.'
Shop Direct, formerly catalogue group Littlewoods, is said its relatively new digital brands such as Very.co.uk and Isme.com 'out-paced the market' while it continued to re-engineer its 'heritage brands', including Littlewoods.com and KandCo.com, to profitability.
Very.co.uk and Isme.com delivered combined sales of 27 per cent in the six weeks while Littlewoods and KandCo.com grew by 5 per cent.
Online sales increased 14 per cent overall increasing digital revenue to 84 per cent of sales compared to 80 per cent in the same period last year. Mobile sales, which rose 64 per cent, now account for 43 per cent of online sales versus 28 per cent last year.
Baldock said: 'By 2015, we expect every transaction to involve a mobile device at some point in the customer journey. It’s hard to overstate how important this trend is, and we mean to stay on top of it.'
Traffic to its websites is already dominated by mobile devices as shoppers use their spare time to research shopping decisions. Traffric from mobiles increased to 52 per cent of all internet traffic from 37 per cent last year.
Total visits to websites increased 32 per cent to 56 million.
It said the week commencing Saturday 30th was the busiest week of the year and Cyber Monday, on December 2, was the busiest day.
The company sold 76,500 consoles including Xboxes and Playstation 4s, with over 120,000 tablets sold, up 31 per cent on last year. Childrenswear sales rose 20 per cent, in part because of the expansion of the branded product ranges and investment in Ladybird.
Beauty sales increased 18 per cent on the back of new brand introductions such as GHD, St Tropez, Illamasqua and Bourgois. It also said it sold a onesie every 35 seconds, 103,000 in total and that Adidas, Apple, Babyliss, Samsung, Superdry and UGG were among its best selling brands.
The £1.6 billion turnover giant said turnover grew 5 per cent in the six weeks to December 27 compared to the same period last year. Sales in the 26 weeks to the end of 2013 increased 1 per cent suggesting a marked acceleration in sales over the final weeks.
Group CEO Alex Baldock described the retail market over Christmas as 'tough' and 'highly promotional'.
But he said: 'We're proud to report a record Christmas for Shop Direct. We've come through an exceptionally tough environment and come through it stronger.'
He added: 'This Christmas was another milestone on our journey to being a world class digital retailer, as our department store range, unique financial services offer and ever-growing ecommerce capabilities allowed us to make good things easily accessible to more people.'
Shop Direct, formerly catalogue group Littlewoods, is said its relatively new digital brands such as Very.co.uk and Isme.com 'out-paced the market' while it continued to re-engineer its 'heritage brands', including Littlewoods.com and KandCo.com, to profitability.
Very.co.uk and Isme.com delivered combined sales of 27 per cent in the six weeks while Littlewoods and KandCo.com grew by 5 per cent.
Online sales increased 14 per cent overall increasing digital revenue to 84 per cent of sales compared to 80 per cent in the same period last year. Mobile sales, which rose 64 per cent, now account for 43 per cent of online sales versus 28 per cent last year.
Baldock said: 'By 2015, we expect every transaction to involve a mobile device at some point in the customer journey. It’s hard to overstate how important this trend is, and we mean to stay on top of it.'
Traffic to its websites is already dominated by mobile devices as shoppers use their spare time to research shopping decisions. Traffric from mobiles increased to 52 per cent of all internet traffic from 37 per cent last year.
Total visits to websites increased 32 per cent to 56 million.
It said the week commencing Saturday 30th was the busiest week of the year and Cyber Monday, on December 2, was the busiest day.
The company sold 76,500 consoles including Xboxes and Playstation 4s, with over 120,000 tablets sold, up 31 per cent on last year. Childrenswear sales rose 20 per cent, in part because of the expansion of the branded product ranges and investment in Ladybird.
Beauty sales increased 18 per cent on the back of new brand introductions such as GHD, St Tropez, Illamasqua and Bourgois. It also said it sold a onesie every 35 seconds, 103,000 in total and that Adidas, Apple, Babyliss, Samsung, Superdry and UGG were among its best selling brands.
Jaeger Says Relauched Website Stitched Up Christmas
Fashion retailer Jaeger said a relaunch of its website last year helped it grow online sales by 57 per cent in the festive quarter.
The retailer said the boost over the 13 weeks to December 28 lifted total sales by 20 per cent and like-for-like sales by 23 per cent. Stores alone rose 10 per cent on a like-for-like basis.
The retailer was acquired by Jon Moulton's Better Capital in April 2012. In the year to February, sales fell 17 per cent to £70.7 million and pretax losses fell from £35.5 million to £13.1 million.
Jaeger said in a statement: 'Strong online sales were underpinned by recent website enhancements and a continuing robust performance from retail stores.'
According to Econsultancy.com, last year's major overhaul of the site followed a revamp only the year before. However, it said analysis in June last year revealed that, while searches for 'Jaeger' had grown between 2007 and 2011, they had then plateaued.
Econsultancy said the new, improved site had provided a 'good foundation in place' although noted a number of areas where the site could have been improved. It said, for example, that a clearer promotion of the option to use Paypal could have a significant effect on sales.
That said, a it is unlikely the site alone would have had such a marked effect if the retailer had not improved its fashion offer. Jaeger said sales at its Regent Street store had increased 50 per cent after the store was refurbished.
Jaeger chief executive Colin Henry said: 'We are extremely pleased with this strong performance, particularly as trading across the sector during this period was very competitive.'
He added: 'It is still early days in our turnaround and there is much to do to capitalise on the significant opportunities that we have.'
The retailer said the boost over the 13 weeks to December 28 lifted total sales by 20 per cent and like-for-like sales by 23 per cent. Stores alone rose 10 per cent on a like-for-like basis.
The retailer was acquired by Jon Moulton's Better Capital in April 2012. In the year to February, sales fell 17 per cent to £70.7 million and pretax losses fell from £35.5 million to £13.1 million.
Jaeger said in a statement: 'Strong online sales were underpinned by recent website enhancements and a continuing robust performance from retail stores.'
According to Econsultancy.com, last year's major overhaul of the site followed a revamp only the year before. However, it said analysis in June last year revealed that, while searches for 'Jaeger' had grown between 2007 and 2011, they had then plateaued.
Econsultancy said the new, improved site had provided a 'good foundation in place' although noted a number of areas where the site could have been improved. It said, for example, that a clearer promotion of the option to use Paypal could have a significant effect on sales.
That said, a it is unlikely the site alone would have had such a marked effect if the retailer had not improved its fashion offer. Jaeger said sales at its Regent Street store had increased 50 per cent after the store was refurbished.
Jaeger chief executive Colin Henry said: 'We are extremely pleased with this strong performance, particularly as trading across the sector during this period was very competitive.'
He added: 'It is still early days in our turnaround and there is much to do to capitalise on the significant opportunities that we have.'
Saturday, 11 January 2014
M&S 'In The Closing Stages' Of Switching On New Website
Marks & Spencer is poised to launch its new website following a difficult trading during which internet sales rocketed.
The clothing retailer's chief information officer Darrell Stein said systems managers are in the 'closing stages' of switching from using the Amazon platform.
'We are live with three out of the eight systems - the back-end systems - and we will put the front-end stuff on [beginning this month]. That's going to go live by Spring,' he told Cio.co.uk.
He said that Marks & Spencer was 'renting' the Amazon platform but it was increasingly critical to switch to its own systems.
The tie-up with Amazon was agreed in 2005 and launched in 2007. But Stein told said: 'The problem with using Amazon is that you have got a key growth area for your business being run by a competitor - they are now also selling general merchandise online.'
He explained that M&S was not able to change the systems as frequently as it wanted. 'They were trying to drive it down more of a package route and we want to be really flexible and change it every five minutes. It was completely divergent.'
He said internet sales have grown from £30 million to £700 million during its partnership with Amazon.
He also told Computer World that M&S is currently testing SAP HANA to help it monitor real time stock availability. He said monitoring stock so closely was not a necessity in the past.
He explained: 'Previously you could order overnight, it was in the store the next day - but the internet has blown all that away. You need to know what you have got right now so you can show your customers in real-time.'
He said it was a 'key infrastructure project' that is still in 'validation mode'.
The clothing retailer's chief information officer Darrell Stein said systems managers are in the 'closing stages' of switching from using the Amazon platform.
'We are live with three out of the eight systems - the back-end systems - and we will put the front-end stuff on [beginning this month]. That's going to go live by Spring,' he told Cio.co.uk.
He said that Marks & Spencer was 'renting' the Amazon platform but it was increasingly critical to switch to its own systems.
The tie-up with Amazon was agreed in 2005 and launched in 2007. But Stein told said: 'The problem with using Amazon is that you have got a key growth area for your business being run by a competitor - they are now also selling general merchandise online.'
He explained that M&S was not able to change the systems as frequently as it wanted. 'They were trying to drive it down more of a package route and we want to be really flexible and change it every five minutes. It was completely divergent.'
He said internet sales have grown from £30 million to £700 million during its partnership with Amazon.
He also told Computer World that M&S is currently testing SAP HANA to help it monitor real time stock availability. He said monitoring stock so closely was not a necessity in the past.
He explained: 'Previously you could order overnight, it was in the store the next day - but the internet has blown all that away. You need to know what you have got right now so you can show your customers in real-time.'
He said it was a 'key infrastructure project' that is still in 'validation mode'.
Asos To Announce Sales Up By A Third Next Week
Online fashion phenomenon Asos is expected to announce a surge in sales in the coming days driven by an increasingly localised offer in key markets.
Analysts expect the company to say on Tuesday that sales increased 38 per cent in the four months to the end of December and that UK sales increases 35 per cent.
But the main driver for growth was in Europe where sales increased 70 per cent as the company increasingly tailored its offer for individual markets such as France and Germany.
Asos, which one analyst said focuses on 'providing an entire fashion web-sphere for twenty-somethings,' is expected to increase group sales to over £1 billion this year. It has also launched a Chinese website which its hopes will contribute to sales and profit growth in the long-term.
In the UK, Asos has benefited from price reductions over the past year, the launch of an Android App, increased digital marketing and range expansion, including popular high street brands including New Look and River Island.
Analysts expect the company to say on Tuesday that sales increased 38 per cent in the four months to the end of December and that UK sales increases 35 per cent.
But the main driver for growth was in Europe where sales increased 70 per cent as the company increasingly tailored its offer for individual markets such as France and Germany.
Asos, which one analyst said focuses on 'providing an entire fashion web-sphere for twenty-somethings,' is expected to increase group sales to over £1 billion this year. It has also launched a Chinese website which its hopes will contribute to sales and profit growth in the long-term.
In the UK, Asos has benefited from price reductions over the past year, the launch of an Android App, increased digital marketing and range expansion, including popular high street brands including New Look and River Island.
Saturday, 4 January 2014
Etailers Seeking 'Physical Presence' This Year As They Seek More Routes To Market
Online retailers are seeking new ways to market themselves as competition increases with just over 40 per cent saying they would like a 'physical presence' this year.
The respondents - all smaller online businesses - said they would like a way to meet customers face-to-face with some sort of space in a store and almost 10 per cent said they are even planning to open their own high street shop.
Ecommerce firms are increasingly attracted by flexible leases as landlords try to fill empty retail outlets, according to new research by Royal Mail.
'[Retailers] are concentrating on exploiting as many channels to market as possible, adding space in physical premises and online marketplace listings to complement their existing web channel,” Nick Landon, managing director of the Royal Mail's parcel business told the Financial Times.
Almost 60 per cent said attracting new customers was the biggest challenge.
The respondents - all smaller online businesses - said they would like a way to meet customers face-to-face with some sort of space in a store and almost 10 per cent said they are even planning to open their own high street shop.
Ecommerce firms are increasingly attracted by flexible leases as landlords try to fill empty retail outlets, according to new research by Royal Mail.
'[Retailers] are concentrating on exploiting as many channels to market as possible, adding space in physical premises and online marketplace listings to complement their existing web channel,” Nick Landon, managing director of the Royal Mail's parcel business told the Financial Times.
Almost 60 per cent said attracting new customers was the biggest challenge.
Friday, 3 January 2014
Next Directory Soars As Christmas Surpasses Expectations
Clothing retailer Next said this morning that its Directory business has seen another growth surge after demand over the Christmas period soared.
Sales at the online and catalogue business increased 21 per cent in the eight week period from November 1 to December 24. Sales at stores grew 7.7 per cent taking the total increase in revenue to 11.9 per cent.
Next said: 'Sales in the fourth quarter have been significantly ahead of our expectations. The step-up in Christmas trade was mainly down to improvements in our seasonal knitwear, nightwear and gift offer. In addition, increased confidence in online deliveries meant that more customers continued to trade with Next Directory right up to the weekend before Christmas.'
It said the success during the fourth quarter so far meant it had raised its guidance for full-year profit to around £692 million, an increase of about 11 per cent on last year.
Next also plans to pay a one-off 50 pence a share dividend with extra cash it has made this year.
'As far as the consumer environment is concerned, it seems likely that the economy will continue to steadily improve with strong employment numbers driving a general recovery,' the company said.
But it warned: 'However, the problem of little or no growth in real earnings looks set to persist for some time, and we cannot see any reason to expect a significant increase in total consumer spending in the year ahead. We are also wary that any return to significant economic growth is likely to result in rising interest rates which, in turn, is likely to moderate spending of those with mortgages.'
Sales at the online and catalogue business increased 21 per cent in the eight week period from November 1 to December 24. Sales at stores grew 7.7 per cent taking the total increase in revenue to 11.9 per cent.
Next said: 'Sales in the fourth quarter have been significantly ahead of our expectations. The step-up in Christmas trade was mainly down to improvements in our seasonal knitwear, nightwear and gift offer. In addition, increased confidence in online deliveries meant that more customers continued to trade with Next Directory right up to the weekend before Christmas.'
It said the success during the fourth quarter so far meant it had raised its guidance for full-year profit to around £692 million, an increase of about 11 per cent on last year.
Next also plans to pay a one-off 50 pence a share dividend with extra cash it has made this year.
'As far as the consumer environment is concerned, it seems likely that the economy will continue to steadily improve with strong employment numbers driving a general recovery,' the company said.
But it warned: 'However, the problem of little or no growth in real earnings looks set to persist for some time, and we cannot see any reason to expect a significant increase in total consumer spending in the year ahead. We are also wary that any return to significant economic growth is likely to result in rising interest rates which, in turn, is likely to moderate spending of those with mortgages.'
House Of Fraser Reports Online Hike And A 'Record' Christmas
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.
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.
John Lewis To Launch A French Website To Serve Its 'Most Successful' Market
John Lewis plans to launch a website in its 'most successful' overseas market as it takes its first concerted international steps.
Managing director Andy Street said the JohnLewis.com website is already 'well established' with overseas customers and this year he will set about preparing to launch a dedicated French website.
Managing director Andy Street said the JohnLewis.com website is already 'well established' with overseas customers and this year he will set about preparing to launch a dedicated French website.
'That has appeared to be the most successful market for us,' he explained to the Daily Telegraph. He said the site would be in French and denominated in euros rather than pounds.
John Lewis says on its web site that it currently ships to 33 countries and offers delivery information in Danish, Dutch, French, German, Italian, Spanish and Swedish. It charges £7.50 for European orders and £25 for the rest of the world.
He described an agreement to wholesale to Korea as a 'success' and said there were similar deals in the pipeline with 10 other countries.
Street also said that, by 2020, online sales will account for about half of John Lewis revenues with the other half sold through stores. He said in a decade it would have around 65 stores, from 40 at present, with revenues of £7 billion rather than £4 billion.
Iceland Food Chain To Launch Click & Collect Service
Frozen food chain Iceland plans to launch a click and collect online ordering option after relaunching its delivery business last year.
Iceland scrapped online delivery eight years ago after it failed to gain traction but it resurrected the service after a trial early last year.
It aims to offer customers the option of picking up orders in 540 of its 800 stores by April and, at the same time, will offer free home delivery from 85 per cent of its stores on orders over £35.
'We need to be there with click and collect as it is one of the fastest growing areas on the high street,' John Mackie, Iceland's ecommerce chief, told the Grocer.
Tesco, Asda and Waitrose are all well established in the click and collect arena and are variously testing the possibility of drop off points for collection at libraries, tube stations and refrigerated lockers.
Iceland scrapped online delivery eight years ago after it failed to gain traction but it resurrected the service after a trial early last year.
It aims to offer customers the option of picking up orders in 540 of its 800 stores by April and, at the same time, will offer free home delivery from 85 per cent of its stores on orders over £35.
'We need to be there with click and collect as it is one of the fastest growing areas on the high street,' John Mackie, Iceland's ecommerce chief, told the Grocer.
Tesco, Asda and Waitrose are all well established in the click and collect arena and are variously testing the possibility of drop off points for collection at libraries, tube stations and refrigerated lockers.
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.
Comment: What Tesco Can Learn From The Samwer Brothers
A few weeks ago Tesco, Britain's largest retailer by a long long way, made a surprising move.
Struggling to make ends meet at home in the face of a tidal wave of competition and retreating or retrenching in several of its overseas markets, the retailer agreed a deal that finally put it on the world ecommerce map.
While its home grown internet business Tesco Direct has failed to advance in the past five years, its new internet chief Robin Terrell went half a world away to take a stake in Rocket Internet's Lazada.
The business is small fry in Tesco terms. Last year it made $13.5 million revenue. By comparison, Tesco is the third biggest retailer in the world after France's Carrefour and Wal-Mart, the world's largest.
It was the first move by Tesco in a long time that didn't smack of deck-chair shuffling. It has spent the last two years trying to stem a slide in profits after seriously over-stretching itself globally and at home - a contraction that could be blamed both on the recession but just as much on management's blind self belief in its own right to succeed.
At the least, let's say, it took its eye off the ball. At the worst, it lost that sense of paranoia and had replaced it with a sense of arrogance.
It was paranoia that kept it on its toes and saw it beat Sainsbury's to within an inch of its life in the 1990s. By the last decade it had set about decimating the high street after stockpiling out of town hypermarkets and launching Tesco Direct that appeared back in 2006 about to seize the retail sector in a pincer movement.
If the phrase 'disruption' had been in common usage back then, Tesco's then chief executive Sir Terry Leahy would have loved it.
With everything from banking, pawnbroking and used cars on the menu the Tesco juggernaut appeared to be at full speed. But, in fact, it was overheating. looking back it almost seemed as if it was investing lots of money in projects that it appeared only half concerned would succeed.
One area that it did seem to be winning was the online food delivery business. It remains the UK's biggest with a 48.5 per cent market share. Even bigger than its 30-or-so per cent of the off-line food market where it is currently facing extreme competition from Germany's Aldi and Lidl, and the UK's home grown Waitrose supermarket.
We'll leave aside, for the moment, our concerns over the profitability of the internet-age food delivery model (pre-minimum wage 'Hovis' delivery boys on bicycles are cheap; but in store 'pickers' doing customers shopping for them and Sprinter vans full of petrol are a little more costly).
But its Tesco Direct non-food business - designed to wipe home goods giant Argos from existence - has become an unprofitable problem. Taking out Argos was a good idea for a business that had become obsessed with finding ways to grow market share.
The problem was Tesco simply wasn't thinking big enough. Tesco should have been far more concerned about Amazon rather than the slow-moving target of Argos.
So, while even the most commercially challenged of people were beginning to understand that the new frontier of retail was online, Tesco's own online business was still focused on destroying the high street.
The juggernaut was beginning to look more like a dinosaur and one that is only now trying to haul itself into the 21st century.
By comparison Rocket Internet has many of the qualities Tesco used to have. It is an expert imitator and has a knack of finding the right staff and the right partners. Moreover, its understands the new world of retailing and commerce like Tesco understood retailing back in the 1990s.
Disruption is the name of the game and it all began in Silicon Valley 15 years ago. During two visits to California back in 1998 first Oliver Samwer and then with his two brothers Alexander and Marc.
The brothers began absorbing the culture like a trio of sponges. First Oliver secured face time with CEOs as he completed his MBA dissertation. Then the brothers got jobs at companies they saw as pace-steers - offering to work for nothing.
Their first success was setting up eBay imitator Alando in January 1999 which was bought by eBay as it entered the German market five months later. The brothers have repeated the trick many times - adapting big ideas to local cultures.
They've been accused of being a 'clone factory' for other people's business strategies. But there's nothing the brothers have done that they wouldn't be the first to admit themselves - and probably a lot more. They have developed a reputation for parking tanks on lawns - and forcing firms to buy-out their local businesses just to get them out of the way.
But Rocket Internet has fast become an industry leader and those that dismiss them as merely printing carbon copies of ideas dreamt up by their betters risk deluding themselves.
The recent slump at design etailer Fab.com is widely attributed to the energy, perhaps even hubris, it expended taking out Rocket Internet's Bamerang.
Fast is the name of the game at Rocket Internet - and the brothers would stake their reputation on it. Tesco's dithering over the fate of its US chain Fresh & Easy (perhaps in part over some misplaced loyalty to former management, some might argue) would not have been something the more ruthless Samwer brothers would have indulged themselves over.
The morality of Oliver's decisiveness has been questioned - such as when he fired 400 staff from his Turkish operation - but the financial benefits haven't.
You could argue that Tesco is too far down the road as a corporation to adapt to new social and business norms that the Samwers take for granted. It is, after all, a grocer at heart and hypermarkets could not be further from the fleet of foot attitude of the internet if they tried.
How many people in Silicon Valley do we think sit around worrying what Tesco is up to next?
So, could Zalando help change their minds?
There is no doubt Tesco is now finally rubbing shoulders with the big boys, in global internet terms anyway. (Or should that be the bad boys?) Lazada is just one of 75 businesses backed by Rocket worldwide with a combined turnover of $3 billion.
Those include fashion etailers in South America (Dafiti), Russia and the CIS (Lamoda), Southeast Asia (Zalora), Europe (Zalando) and other businesses from food delivery to a peer-to-peer landing platform.
Lazada was founded in 2012 to replicate what Rocket is aiming to achieve in fashion elsewhere with general merchandise across Malaysia, Thailand, Indonesia, Vietnam and the Philippines. Despite the fact that Tesco already has online non-food operations in Malaysia and Thailand, Zalando already holds the number one spot in each of the five markets.
It's often said that there is no point being number three in international markets - you need to be number one or a fierce number two. Samwer doesn't even think that is a good enough benchmark.
Lazada means business. It has raised serious money in what Tesco might once have considered to be a small market where non-food online sales would be a nice add on to the main food business. It raised $100 million back in June and another $250 million last month.
Tesco has invested 'tens of millions' of pounds in the latest round alongside Kinnevik, serial ecommerce investor and Rocket Internet shareholder, and Verlinvest.
There's no question Tesco's executives lucky enough to be involved will learn a lot. The question is how much can they take from Oliver Samwer and his brothers business tactics and feed them back into an organisation which is creaking under the weight of its own legacy.
Struggling to make ends meet at home in the face of a tidal wave of competition and retreating or retrenching in several of its overseas markets, the retailer agreed a deal that finally put it on the world ecommerce map.
While its home grown internet business Tesco Direct has failed to advance in the past five years, its new internet chief Robin Terrell went half a world away to take a stake in Rocket Internet's Lazada.
The business is small fry in Tesco terms. Last year it made $13.5 million revenue. By comparison, Tesco is the third biggest retailer in the world after France's Carrefour and Wal-Mart, the world's largest.
It was the first move by Tesco in a long time that didn't smack of deck-chair shuffling. It has spent the last two years trying to stem a slide in profits after seriously over-stretching itself globally and at home - a contraction that could be blamed both on the recession but just as much on management's blind self belief in its own right to succeed.
At the least, let's say, it took its eye off the ball. At the worst, it lost that sense of paranoia and had replaced it with a sense of arrogance.
It was paranoia that kept it on its toes and saw it beat Sainsbury's to within an inch of its life in the 1990s. By the last decade it had set about decimating the high street after stockpiling out of town hypermarkets and launching Tesco Direct that appeared back in 2006 about to seize the retail sector in a pincer movement.
If the phrase 'disruption' had been in common usage back then, Tesco's then chief executive Sir Terry Leahy would have loved it.
With everything from banking, pawnbroking and used cars on the menu the Tesco juggernaut appeared to be at full speed. But, in fact, it was overheating. looking back it almost seemed as if it was investing lots of money in projects that it appeared only half concerned would succeed.
One area that it did seem to be winning was the online food delivery business. It remains the UK's biggest with a 48.5 per cent market share. Even bigger than its 30-or-so per cent of the off-line food market where it is currently facing extreme competition from Germany's Aldi and Lidl, and the UK's home grown Waitrose supermarket.
We'll leave aside, for the moment, our concerns over the profitability of the internet-age food delivery model (pre-minimum wage 'Hovis' delivery boys on bicycles are cheap; but in store 'pickers' doing customers shopping for them and Sprinter vans full of petrol are a little more costly).
But its Tesco Direct non-food business - designed to wipe home goods giant Argos from existence - has become an unprofitable problem. Taking out Argos was a good idea for a business that had become obsessed with finding ways to grow market share.
The problem was Tesco simply wasn't thinking big enough. Tesco should have been far more concerned about Amazon rather than the slow-moving target of Argos.
So, while even the most commercially challenged of people were beginning to understand that the new frontier of retail was online, Tesco's own online business was still focused on destroying the high street.
The juggernaut was beginning to look more like a dinosaur and one that is only now trying to haul itself into the 21st century.
By comparison Rocket Internet has many of the qualities Tesco used to have. It is an expert imitator and has a knack of finding the right staff and the right partners. Moreover, its understands the new world of retailing and commerce like Tesco understood retailing back in the 1990s.
Disruption is the name of the game and it all began in Silicon Valley 15 years ago. During two visits to California back in 1998 first Oliver Samwer and then with his two brothers Alexander and Marc.
The brothers began absorbing the culture like a trio of sponges. First Oliver secured face time with CEOs as he completed his MBA dissertation. Then the brothers got jobs at companies they saw as pace-steers - offering to work for nothing.
Their first success was setting up eBay imitator Alando in January 1999 which was bought by eBay as it entered the German market five months later. The brothers have repeated the trick many times - adapting big ideas to local cultures.
They've been accused of being a 'clone factory' for other people's business strategies. But there's nothing the brothers have done that they wouldn't be the first to admit themselves - and probably a lot more. They have developed a reputation for parking tanks on lawns - and forcing firms to buy-out their local businesses just to get them out of the way.
But Rocket Internet has fast become an industry leader and those that dismiss them as merely printing carbon copies of ideas dreamt up by their betters risk deluding themselves.
The recent slump at design etailer Fab.com is widely attributed to the energy, perhaps even hubris, it expended taking out Rocket Internet's Bamerang.
Fast is the name of the game at Rocket Internet - and the brothers would stake their reputation on it. Tesco's dithering over the fate of its US chain Fresh & Easy (perhaps in part over some misplaced loyalty to former management, some might argue) would not have been something the more ruthless Samwer brothers would have indulged themselves over.
The morality of Oliver's decisiveness has been questioned - such as when he fired 400 staff from his Turkish operation - but the financial benefits haven't.
You could argue that Tesco is too far down the road as a corporation to adapt to new social and business norms that the Samwers take for granted. It is, after all, a grocer at heart and hypermarkets could not be further from the fleet of foot attitude of the internet if they tried.
How many people in Silicon Valley do we think sit around worrying what Tesco is up to next?
So, could Zalando help change their minds?
There is no doubt Tesco is now finally rubbing shoulders with the big boys, in global internet terms anyway. (Or should that be the bad boys?) Lazada is just one of 75 businesses backed by Rocket worldwide with a combined turnover of $3 billion.
Those include fashion etailers in South America (Dafiti), Russia and the CIS (Lamoda), Southeast Asia (Zalora), Europe (Zalando) and other businesses from food delivery to a peer-to-peer landing platform.
Lazada was founded in 2012 to replicate what Rocket is aiming to achieve in fashion elsewhere with general merchandise across Malaysia, Thailand, Indonesia, Vietnam and the Philippines. Despite the fact that Tesco already has online non-food operations in Malaysia and Thailand, Zalando already holds the number one spot in each of the five markets.
It's often said that there is no point being number three in international markets - you need to be number one or a fierce number two. Samwer doesn't even think that is a good enough benchmark.
Lazada means business. It has raised serious money in what Tesco might once have considered to be a small market where non-food online sales would be a nice add on to the main food business. It raised $100 million back in June and another $250 million last month.
Tesco has invested 'tens of millions' of pounds in the latest round alongside Kinnevik, serial ecommerce investor and Rocket Internet shareholder, and Verlinvest.
There's no question Tesco's executives lucky enough to be involved will learn a lot. The question is how much can they take from Oliver Samwer and his brothers business tactics and feed them back into an organisation which is creaking under the weight of its own legacy.
Asda To Emulate Argos With Live Availability Indicators
Asda will pilot a scheme this year to allow shoppers to see in-store stock levels and reserve specific items.
The retailer will also test a service that will enable its systems to inform shoppers at the checkout whether their local store has an item in stock and offer the option of reserving and collecting the item in store.
Asda head of multichannel Jon Wragg told The Grocer magazine that it would work 'very much like the Argos model.'
He said it would benefit Asda because it could potentially cut down on the need for so many deliveries if shoppers decided they would prefer to pick items up by hand.
The retailer will also test a service that will enable its systems to inform shoppers at the checkout whether their local store has an item in stock and offer the option of reserving and collecting the item in store.
Asda head of multichannel Jon Wragg told The Grocer magazine that it would work 'very much like the Argos model.'
He said it would benefit Asda because it could potentially cut down on the need for so many deliveries if shoppers decided they would prefer to pick items up by hand.
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.'
Made.com Gets Up Close With Its Northern Shoppers
Made.com’s founder Ning Li is fond of saying that key investor Brent Hoberman likes to encourage the Notting Hill-based management to think big.
But, on first glance, the location of the new showroom in Batley - closest neighbours Dewsbury and Wakefield, some of West Yorkshire's less glamorous towns - may seem like they have been doing everything possible to ignore him.
However, the new outlet is more than in keeping with the company's strategy to give significant portions of the population the chance to see and touch its products should they chose to seek them out. Pureplay internet shopping just isn't enough for many consumers, Li says.
The Notting Hill showroom is on the ninth floor of the same office block which houses its London headquarters. Rent is a fraction of the cost of the same space on the ground floor or on the busy Tottenham Court Road furniture hub but attracts 30,000 people a year - many of them visitors from the North of England making the most of trips to the capital.
Presumably, the theory is that, if people are making the 200 mile trip from Leeds to Notting Hill, they are more than likely prepared to make the 7 mile trip from Leeds to Batley. Not only that, Manchester is 40 minutes drive down the M62 and Sheffield even closer along the M1.
If that weren't enough the Redbrick Mill complex also houses the likes of Heal's, Content By Conran, Bo Concept and Feather & Black among many others making it something of a home furnishings design hub in its own right.
The showrooms allow customers to browse and take home product postcards and colour swatches while doing a great job of raising the company's profile among more design-oriented furniture shoppers.
But, on first glance, the location of the new showroom in Batley - closest neighbours Dewsbury and Wakefield, some of West Yorkshire's less glamorous towns - may seem like they have been doing everything possible to ignore him.
However, the new outlet is more than in keeping with the company's strategy to give significant portions of the population the chance to see and touch its products should they chose to seek them out. Pureplay internet shopping just isn't enough for many consumers, Li says.
The Notting Hill showroom is on the ninth floor of the same office block which houses its London headquarters. Rent is a fraction of the cost of the same space on the ground floor or on the busy Tottenham Court Road furniture hub but attracts 30,000 people a year - many of them visitors from the North of England making the most of trips to the capital.
Presumably, the theory is that, if people are making the 200 mile trip from Leeds to Notting Hill, they are more than likely prepared to make the 7 mile trip from Leeds to Batley. Not only that, Manchester is 40 minutes drive down the M62 and Sheffield even closer along the M1.
If that weren't enough the Redbrick Mill complex also houses the likes of Heal's, Content By Conran, Bo Concept and Feather & Black among many others making it something of a home furnishings design hub in its own right.
The showrooms allow customers to browse and take home product postcards and colour swatches while doing a great job of raising the company's profile among more design-oriented furniture shoppers.
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