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.'
Showing posts with label etail. Show all posts
Showing posts with label etail. Show all posts
Wednesday, 15 January 2014
Tuesday, 14 January 2014
Amazon Gets Fashion Smart With US Clothing Sales Jump
US online giant Amazon has taken a bigger slice of the fashion market in the US with 10 per cent of the population saying they bought clothing via its site during December.
The number represented a 27 per cent increase on the same month last year, according to figures released by market analysts at Cowen & Co. The report said the clothing, in particular its fashion products, continues to grow 'dramatically'.
Just-Style.com quoted the report as saying: 'It is not a news flash that Amazon continues to gain market share from traditional retailers. Nonetheless, we think that investors may be underestimating the inroads that Amazon is making in apparel, including fashion apparel.'
Fashion sales grew at the faster rate of 37 per cent with 5 per cent of the US population admitting to purchasing more stylish goods.
The number represented a 27 per cent increase on the same month last year, according to figures released by market analysts at Cowen & Co. The report said the clothing, in particular its fashion products, continues to grow 'dramatically'.
Just-Style.com quoted the report as saying: 'It is not a news flash that Amazon continues to gain market share from traditional retailers. Nonetheless, we think that investors may be underestimating the inroads that Amazon is making in apparel, including fashion apparel.'
Fashion sales grew at the faster rate of 37 per cent with 5 per cent of the US population admitting to purchasing more stylish goods.
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.
Dump Those Shopping Bags And Carry On Spending: US Shopping Centres Trial Home Delivery
Silicon Valley startup Deliv is offering home delivery from several US shopping centres as part of a growing number of schemes run by large shopping destinations to try to combat the convenience of home shopping.
Shoppers at nine malls across California and Chicago, including Westfield's Century City in Los Angeles and its Valley Fair in Santa Clara, will be able to leave their bags with store staff or a concierge and press on with the main task in hand - spending money.
The bags can then be dropped off at the shopper's car for free using the valet service or else sent straight to a chosen local destination with 12 miles of the centre for $5.
A first wave of trials was undertaken in August at four of General Growth Property's 123 malls including Glendale Galleria in Los Angeles and Oakbrook Center in Chicago. The deal also enabled stores that signed up to have shoppers order online and have their goods delivered by Deliv drivers the same day.
The latest part of the scheme, which was launched shortly before Christmas and ends this weekend, is also being tested at shopping malls operated by Simon Property Group and Macerich.
Drivers are 'crowdsourced' and run their own cars to make the deliveries, making it cheaper for all involved and making the scheme financially viable.
'Our partnership with Deliv is another example of our holistic approach to multichannel retailing and our commitment to support our mall-based retailers' business strategies through technology while continuing to improve the overall shopping experience,' said Ken Volk, chief marketing officer of Macerich.
He said: 'Same-day delivery is in high demand no matter how a purchase is made, and our malls can be the hub of distribution for in-store and online purchasing, facilitating convenience and immediate shopper gratification.'
Shoppers at nine malls across California and Chicago, including Westfield's Century City in Los Angeles and its Valley Fair in Santa Clara, will be able to leave their bags with store staff or a concierge and press on with the main task in hand - spending money.
The bags can then be dropped off at the shopper's car for free using the valet service or else sent straight to a chosen local destination with 12 miles of the centre for $5.
A first wave of trials was undertaken in August at four of General Growth Property's 123 malls including Glendale Galleria in Los Angeles and Oakbrook Center in Chicago. The deal also enabled stores that signed up to have shoppers order online and have their goods delivered by Deliv drivers the same day.
The latest part of the scheme, which was launched shortly before Christmas and ends this weekend, is also being tested at shopping malls operated by Simon Property Group and Macerich.
Drivers are 'crowdsourced' and run their own cars to make the deliveries, making it cheaper for all involved and making the scheme financially viable.
'Our partnership with Deliv is another example of our holistic approach to multichannel retailing and our commitment to support our mall-based retailers' business strategies through technology while continuing to improve the overall shopping experience,' said Ken Volk, chief marketing officer of Macerich.
He said: 'Same-day delivery is in high demand no matter how a purchase is made, and our malls can be the hub of distribution for in-store and online purchasing, facilitating convenience and immediate shopper gratification.'
Tuesday, 31 December 2013
DaisyStreet.co.uk: Manchester's New Boohoo
So who is the latest Boohoo.com to come out of Manchester?
DaisyStreet.co.uk has been quietly making waves in the back streets of the UK's teen fashion scene for the last couple of years. But it was only last month that it's two twenty-something directors registered the company's name - Daisy Street Limited.
For the last two-and-a-half years Tejpal and Manveer Singh Grewal have been operating the firm through the holding company Virtual Insanity Limited.
We think the company is a magnitude of size smaller than Boohoo and that other fashion-obsessed daughter of the city Missguided.co.uk. But we also think its ambitions are no less big.
'Daisystreet.co.uk is an up and coming, blossoming etailer showcasing the freshest fashion online,' it says on its website.
'From the latest catwalk trends, to providing your essential wardrobe staples Daisystreet.co.uk has it all. We allow you to open the door to fast and affordable fashion, before it hits the high street and the masses,' it adds.
Sound familiar?
DaisyStreet.co.uk has been quietly making waves in the back streets of the UK's teen fashion scene for the last couple of years. But it was only last month that it's two twenty-something directors registered the company's name - Daisy Street Limited.
For the last two-and-a-half years Tejpal and Manveer Singh Grewal have been operating the firm through the holding company Virtual Insanity Limited.
We think the company is a magnitude of size smaller than Boohoo and that other fashion-obsessed daughter of the city Missguided.co.uk. But we also think its ambitions are no less big.
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| DaisyStreet.co.uk: blossoming |
'From the latest catwalk trends, to providing your essential wardrobe staples Daisystreet.co.uk has it all. We allow you to open the door to fast and affordable fashion, before it hits the high street and the masses,' it adds.
Sound familiar?
Like its larger rivals its is also offering express shipping to the US, Australia and Europe. It is also offering free postage on orders over £40 and Saturday delivery for orders made on Friday by 5pm. We're not convinced about the sub-clause suggesting customers should pay for postage and packaging on returns, but maybe that is a work in progress.
It has a pretty keenly priced offer at the moment on a small selection of dresses for less than £5 and tops from £1.99. But we thought at first glance that the price structure is a little less ordered than Boohoo.com but then that could well just be a symptom of the Sale.
But given the flurry of interest around Boohoo.com's potential stock market listing and the stratospheric valuation for its £100 million-or-so-turnover the registering of the name with Companies House perhaps suggests Tejpal, Manveer and the other family members involved with the firm have their eye on greater things. Perhaps even outside investment or, in the longer term, stock market plans of their own.
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.
Friday, 12 April 2013
Ebooks account for a quarter of US sales, figures show
Tim Waterstone may have seen the writing on the wall when he launched his new digital venture this week. Or at least made a visit to the United States recently.
E-books last year accounted for 22.6 per cent of US publishers sales last year according to information released yesterday. A report from the Association of American Publishers said that figure compared to 17 per cent the previous year and just 3 per cent in 2009.
However, analysts suggest the figures indicate growth could be set to plateau from the rapid rises seen in 2010 and 2011.
But the levels of sales are an indication of the possible impact on the UK where the market is relatively immature.
Total book sales increased 6.2 per cent to $7.1 billion (£4.6 billion).
Earlier this week bookshop entrepreneur Waterstone announced he had been appointed a non-executive at Read Petite. The new online book venture will offer short stories and serialised books for handheld devices such as the Kindle and the Kobo.
E-books last year accounted for 22.6 per cent of US publishers sales last year according to information released yesterday. A report from the Association of American Publishers said that figure compared to 17 per cent the previous year and just 3 per cent in 2009.
However, analysts suggest the figures indicate growth could be set to plateau from the rapid rises seen in 2010 and 2011.
But the levels of sales are an indication of the possible impact on the UK where the market is relatively immature.
Total book sales increased 6.2 per cent to $7.1 billion (£4.6 billion).
Earlier this week bookshop entrepreneur Waterstone announced he had been appointed a non-executive at Read Petite. The new online book venture will offer short stories and serialised books for handheld devices such as the Kindle and the Kobo.
Thursday, 11 April 2013
Internet Sales at Marks & Spencer surge 23%
British High Street giant Marks & Spencer said online sales surged 22.9 per cent in the past three months as shoppers used its 'click and collect' service.
The rise is faster than the 10.8 per cent reported in the previous three months and will take total multi-channel sales in the year to around £650 million, it is estimated.
The increase helped the company to marginally beat analysts expectations of a 4 per cent drop in clothing and home wares sales. Like-for-like sales in clothing and home dropped 3.8 per cent. Marks & Spencer only offers a small food service online and the vast majority is clothing and home products.
It also said sales from mobile phones grew 70 per cent compared to last year after it improved its mobile site. It said its e-commerce distribution centre will begin to open next month ahead of the relaunch of its entire web platform in a year's time when it separates from Amazon.com.
'Multi-channel sales growth accelerated,' said chief executive Marc Bolland.
Group sales rose 3.1 per cent and total UK sales increased 2.6 per cent after food sales climbed 6.3 per cent. Total like-for-like sales (sales from mature stores open at least a year) increased 0.6 per cent and food sales on that basis increased 4 per cent. Overseas sales grew 7 per cent.
'We are working hard on improving our performance in general merchandise (clothing and home products) and, despite difficult trading conditions, we made progress in our operational execution,' he said.
The company said it held prices during much of the quarter but introduced tactical offers in March as promotional activity across the market intensified.
The rise is faster than the 10.8 per cent reported in the previous three months and will take total multi-channel sales in the year to around £650 million, it is estimated.
The increase helped the company to marginally beat analysts expectations of a 4 per cent drop in clothing and home wares sales. Like-for-like sales in clothing and home dropped 3.8 per cent. Marks & Spencer only offers a small food service online and the vast majority is clothing and home products.
It also said sales from mobile phones grew 70 per cent compared to last year after it improved its mobile site. It said its e-commerce distribution centre will begin to open next month ahead of the relaunch of its entire web platform in a year's time when it separates from Amazon.com.
'Multi-channel sales growth accelerated,' said chief executive Marc Bolland.
Group sales rose 3.1 per cent and total UK sales increased 2.6 per cent after food sales climbed 6.3 per cent. Total like-for-like sales (sales from mature stores open at least a year) increased 0.6 per cent and food sales on that basis increased 4 per cent. Overseas sales grew 7 per cent.
'We are working hard on improving our performance in general merchandise (clothing and home products) and, despite difficult trading conditions, we made progress in our operational execution,' he said.
The company said it held prices during much of the quarter but introduced tactical offers in March as promotional activity across the market intensified.
Bookshop Entrepreneur Waterstone Finally Cashes In On Digital Revolution
Bookshop entrepreneur Tim Waterstone has finally conceded the future may be digital and joined the board of a new online book venture.
Read Petite will begin trading in the autumn to capitalise on a rising demand its founders have identified for short stories that can be read on handheld devices such as Amazon's Kindle. Waterstone has been appointed as a non-executive at the firm and former editor of the Bookseller magazine Neill Denny is chief operating officer.
The site will launch officially next Tuesday at the London Book Fair. The strategy includes a plan to serialise books in a similar way to those published by Charles Dickens that were originally written weekly and utilised plot cliff-hangers.
Tim Waterstone founded the Waterstone's bookshop in 1982 after leaving WH Smith, disaffected and with a £6,000 redundancy cheque. He sold it for £9 million in 1993 but has since tried to buy the chain back several times before joining a successful bid from Russian oligarch Alexander Mamut two years ago.
He has been a vocal supporter of books and bookshops in the face of the online rivals. At first he dismissed the threat of e-books but has more recently insisted the books industry embrace the opportunity and even admits he recently bought a Kindle.
Last year he slammed Amazon for its aggressive business tactics that have enabled it to dominate the industry. He also complained about its 'tax structures' and said its global tax arrangements were 'grotesquely unfair' on High Street bookshops.
Read Petite will begin trading in the autumn to capitalise on a rising demand its founders have identified for short stories that can be read on handheld devices such as Amazon's Kindle. Waterstone has been appointed as a non-executive at the firm and former editor of the Bookseller magazine Neill Denny is chief operating officer.
The site will launch officially next Tuesday at the London Book Fair. The strategy includes a plan to serialise books in a similar way to those published by Charles Dickens that were originally written weekly and utilised plot cliff-hangers.
Tim Waterstone founded the Waterstone's bookshop in 1982 after leaving WH Smith, disaffected and with a £6,000 redundancy cheque. He sold it for £9 million in 1993 but has since tried to buy the chain back several times before joining a successful bid from Russian oligarch Alexander Mamut two years ago.
He has been a vocal supporter of books and bookshops in the face of the online rivals. At first he dismissed the threat of e-books but has more recently insisted the books industry embrace the opportunity and even admits he recently bought a Kindle.
Last year he slammed Amazon for its aggressive business tactics that have enabled it to dominate the industry. He also complained about its 'tax structures' and said its global tax arrangements were 'grotesquely unfair' on High Street bookshops.
Tuesday, 9 April 2013
Comment: Marks & Spencer Faces Biggest Test Online
All eyes in the City of London will be on UK retail giant Marks & Spencer this week. Sales are expected to be
down again. But observers should be looking for clues to the company’s future, not
in its bursting stockrooms, but in its online sales.
Online spending is proving more than ever to be the saviour
of forward thinking High Street chains. Clothing chain Next and department store John Lewis are two prime
examples. Both have long established interest in the potential of online growth
going back well over a decade.
At that time many at Marks & Spencer were still among those who gave the impression they thought internet was a fad. At
most, something they would consider over time if their customers showed any
interest. That came back to bite many a venerable old retailer (HMV to name one
but clothing retailers were among the most guilty) and the British High Street is still
suffering the consequences.
In 2007 M&S struck its deal with Amazon.com that would see
the internet giant providing it with its online platform. Before then it did
not have anything even approaching a comprehensive online offer – some home
wares and other bits and pieces (read the 2006 annual report – the words ‘web’,
‘online’ or ‘internet’ merit barely a mention other than to direct people to
corporate and shareholder information sources).
In 2007 then chief executive Sir Stuart Rose was talking
about of sales of around £100 million (the actual figure was a little vague).
He wanted sales of £500 million in five years. Last year it hit £559 million.
So far, so good. But that is not to say it shouldn't have been far higher. Next's catalogue and online sales account for a third of its total revenue. For M&S that would be about £1.5 billion. The
crutch in the form of the Amazon deal, some feel, has become more like a ball
and chain.
New chief executive Marc Bolland in autumn 2010 said he
wanted to deliver an additional £800 million to £1 billion to its internet
sales by 2014 – next year. The company scrapped its entire set of targets less
than a year ago because it said growth was being hampered by the recession. That
growth target, looking back, seems ludicrously ambitious and would have
required an estimated growth of around five-fold to £1.3 billion or more.
So, where are online sales now and where should they be? If
they have exceeded £700 million by year-end (which happened last week) that
will mean they have grown 25 per cent in the past year. That feels unlikely
(they grew 18 per cent last year and half billion-pound units in any business
usually face dwindling sales growth just by virtue of their sheer size).
Even so, that growth would only add 1.5 per cent or so to
its overall sales, about 3 per cent to total clothing sales. Is that enough to
counter a sales drop in its High Street clothing stores? Not this year. Maybe
next spring when Marks & Spencer is released from its Amazon contract. But
every year lost to under-achievement is another to catch up on later. The food
business is going great guns for now but that won’t always be the case.
Marks & Spencer’s board needs to fix its online business
and fast. The future isn’t waiting for them.
Monday, 8 April 2013
Boost to online sales in March amid freezing temperatures
Internet shopping sales rose in March amid freezing conditions on the High Street as many shoppers chose to stay home to avoid bad weather.
Barclaycard said internet sales in March increased 12 per cent despite the lack of appetite for Spring fashions. That compares to overall growth in consumer spending of 2.5 per cent and sales growth on the High Street of 0.4 per cent, according to a report.
That is slightly slower than the 13 per cent rise in online sales in February but continues to indicate the strength of online growth as High Street sales stall.
Overall spending should have received a boost from the early timing of Easter with three days of the Easter weekend falling in March. However, sales at DIY stores, which often compare the Easter boost to Christmas for other shops, are understood to have seen sales decline by about 11 per cent compared to the same month last year.
Spend on women's clothing stores fell by 10 per cent with men's down 7.4 per cent, the figures indicate.
Spending in restaurants (total spending up 9.8 per cent) and cinemas (up 8.8 per cent) benefited from some of the surplus cash as people looked for ways to treat themselves. Sales of electrical goods soared 8.4 per cent in stores and 36 per cent online. While utility bills also jumped up 15.5 per cent as Britons spent more cash on keeping warm and because charges have risen well above inflation.
But the data also suggests firms are adapting, the report said. While department stores’ sales fell 7.5 per cent overall, online sales increased 18 per cent.
Opinion: Barclaycard says its numbers account for around half of all spending. Clearly that is not the whole picture and could be skewed towards more affluent shoppers. But they also track payments through credit and debit card payments in systems they monitor through a host of retailers so the figures provide a strong indication of the direction and speed of travel.
This week Marks & Spencer is expected to become the latest retailer to complain that weather hit sales. Chief executive Marc Bolland is expected to emphasise the strength of his online business to convince shareholders the business is achieving a turnaround. He will say clothing sales in stores open at least a year and online fell by about 4.5 per cent. That brings the annual rate of decline in the year to the end of March to 4 per cent, City analysts have calculated.
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