Indian general merchandise retailer Flipkart has raised $200 million (£131 million) for a number of private equity funds.
Reuters reported that the fund raising could be the largest ever in the country for an ecommerce company.
South African tech group Naspers and private equity funds Tiger Global and Accel Partners all provided funds, according to a company statement. The three are all existing investors.
The funds will be used for investing in technology and strengthening the supply chain, it said. The company is six years old and offers products from clothing, watches and jewellery to mobile phones.
Monday, 15 July 2013
Ocado Posts Terms Of 'Terminal Clauses' In Morrisons Deal
Delivery firm Ocado has listed a number of conditions and targets that could prompt Morrisons to break its contract with the firm that include failure to provide adequate service levels.
Ocado has posted a 60-page document on the stock exchange that lists the 'termination rights'
and targets relating to their joint venture Last Mile Developments.
Although academic at present, the contract includes obligations from both Morrisons and Ocado on targets that need to be achieved that also include provision of consistently up-to-date technology. Morrisons also has a number of obligations including the achieve sales of £100 million in three years and £300 million in five years.
The 60-page document, which can be found here, also lists a number of 'adverse' impacts of the agreement that include the potential commitment of management time to the Morrisons agreement and the potential impact of a takeover of either firm.
Ocado has posted a 60-page document on the stock exchange that lists the 'termination rights'
and targets relating to their joint venture Last Mile Developments.
Although academic at present, the contract includes obligations from both Morrisons and Ocado on targets that need to be achieved that also include provision of consistently up-to-date technology. Morrisons also has a number of obligations including the achieve sales of £100 million in three years and £300 million in five years.
The 60-page document, which can be found here, also lists a number of 'adverse' impacts of the agreement that include the potential commitment of management time to the Morrisons agreement and the potential impact of a takeover of either firm.
M and M Direct Reverses Profit Decline After New Boss Joins
Online casual and sportswear retailer M and M Direct has seen sales and profit increase, reversing a decline over the previous two years.
Operating profit at the retailer increased 66 per cent to 6.4 million in the year to February 28 and sales grew 7.4 per cent to £113.4 million, according to trade magazine Retail Week. Retail week said pre-tax profit increased about three fold to just over £6 million.
That reverses the declines for the previous two years when pre-tax profit dropped to just over £2 million, a quarter of their 2010 levels, and sales slid.
M and M poached John Lewis online boss as chief executive last year. He replaced former Argos and Tesco online executive Steve Robinson.
Operating profit at the retailer increased 66 per cent to 6.4 million in the year to February 28 and sales grew 7.4 per cent to £113.4 million, according to trade magazine Retail Week. Retail week said pre-tax profit increased about three fold to just over £6 million.
That reverses the declines for the previous two years when pre-tax profit dropped to just over £2 million, a quarter of their 2010 levels, and sales slid.
M and M poached John Lewis online boss as chief executive last year. He replaced former Argos and Tesco online executive Steve Robinson.
Sunday, 14 July 2013
Morrisons Missing Out On £700 Million Online Delivery Sales, says chief
Morrisons chief executive Dalton Philips says the supermarket is missing out on £700 million of online sales by not being in the market.
The chain, which plans to launch an online service in January, has calculated the size of the opportunity relative to its larger peers, Tesco, with food delivery sales of over £2 billion, and Asda and Sainsbury's, both of which have sales of about £1 billion.
The supermarket has agreed a 25 year partnership with delivery specialists Ocado and has leased the online firm's distribution centre in Dordon, Warwickshire. The deal has been calculated to cost Morrisons £216 million but Philips said over 25 years the firm would spend more than that on tires for its distribution lorries.
Morrisons is planning a limited test of the service to a number of customers in the Midlands today according to The Mail on Sunday's financial pages today. The trial will take place around the Midlands and will be designed to test the new web site and the distribution centre's systems.
Morrisons has bought the warehouse and is leasing half the warehouse back to Ocado for its own service. The half it still owns will give Morrisons capacity for £500 million online orders per year. Once the centre is at full capacity the two firms will open more sites.
Philips said this week he would develop a London 'spoke' from the Dordon centre, that would include using Ocado's existing satellite centres such as West Byfleet in Surrey, that would allow it to service the lucrative London market.
Morrisons only has a market share of about 6.5 per cent in London - less than half its national share of the grocery market - but online and convenience stores will help increase that, he said.
Ocado is providing the technology, warehouse, staff and vans but the service will feature all the Morrisons branding and only delivery Morrisons food. Ocado has said its existing service with Waitrose would be unaffected.
However, Waitrose managing director Mark Price has said he is uneasy about the Morrisons agreement and asked his lawyers to examine the situation for potentialk breaches of contract. Ocado has agreed to delivery Waitrsoe products until 2020 but there is a break clause at 2017. Waitrose also runs itsa own separate service from stores and internet-only warehouses - the same strategy as Tesco, Asda and Sainsbury's.
Philips said at a press conference last week that the chain has spent about £300 million hauling the IT systems 'into the 21st century'.
He said in some stores cash was still being counted by hand at the end of the day and stock was being checked using pen and paper. But he said these were in the process of being phased out by January next year in favour of electronic counting machines and iPads.
He said it was the only retailer of its size in the world still using paper to manually check stock in stores and monitor empty shelves.
The chain, which plans to launch an online service in January, has calculated the size of the opportunity relative to its larger peers, Tesco, with food delivery sales of over £2 billion, and Asda and Sainsbury's, both of which have sales of about £1 billion.
The supermarket has agreed a 25 year partnership with delivery specialists Ocado and has leased the online firm's distribution centre in Dordon, Warwickshire. The deal has been calculated to cost Morrisons £216 million but Philips said over 25 years the firm would spend more than that on tires for its distribution lorries.
Morrisons is planning a limited test of the service to a number of customers in the Midlands today according to The Mail on Sunday's financial pages today. The trial will take place around the Midlands and will be designed to test the new web site and the distribution centre's systems.
Morrisons has bought the warehouse and is leasing half the warehouse back to Ocado for its own service. The half it still owns will give Morrisons capacity for £500 million online orders per year. Once the centre is at full capacity the two firms will open more sites.
Philips said this week he would develop a London 'spoke' from the Dordon centre, that would include using Ocado's existing satellite centres such as West Byfleet in Surrey, that would allow it to service the lucrative London market.
Morrisons only has a market share of about 6.5 per cent in London - less than half its national share of the grocery market - but online and convenience stores will help increase that, he said.
Ocado is providing the technology, warehouse, staff and vans but the service will feature all the Morrisons branding and only delivery Morrisons food. Ocado has said its existing service with Waitrose would be unaffected.
However, Waitrose managing director Mark Price has said he is uneasy about the Morrisons agreement and asked his lawyers to examine the situation for potentialk breaches of contract. Ocado has agreed to delivery Waitrsoe products until 2020 but there is a break clause at 2017. Waitrose also runs itsa own separate service from stores and internet-only warehouses - the same strategy as Tesco, Asda and Sainsbury's.
Philips said at a press conference last week that the chain has spent about £300 million hauling the IT systems 'into the 21st century'.
He said in some stores cash was still being counted by hand at the end of the day and stock was being checked using pen and paper. But he said these were in the process of being phased out by January next year in favour of electronic counting machines and iPads.
He said it was the only retailer of its size in the world still using paper to manually check stock in stores and monitor empty shelves.
Saturday, 13 July 2013
My-Wardrobe Founder Leaves Just A Month After Another Key Director
Sarah Curran, the founder of My-Wardrobe.com, is leaving the business just one month after another key director was poached by Harrods.
PR director Lauren Stevenson had been with My-Wardrobe since 2008 and left a month ago to become head of PR and communications at Harrods. Stevenson was widely credited with raising the brand's profile compared to its actual size and revenue.
In a statement to the Financial Times Curran said she was stepping down as a board member. But she said she was 'extremely proud' of what she had achieved with the business which is 'considered a respected global online retailer.
However, the departures raise questions for the firm whose sales in 2011, the most recent figures available, are £13 million. In January it was rumoured that My-Wardrobe was working with advisory firm Hawkwood to consider options for new funding partners and an additional £3 million, which prompted speculation it may be sold.
Curran founded the site in 2006 when she identified a gap for 'every day luxury' above the Asos target market and more affordable than Net-a-Porter. She was awarded an MBE in June for her services to fashion and will continue to retain a stake in My-Wardrobe.
In June 2010 internet investors Balderton Capital invested £6 million in the business and existing investors injected an additional £2.3 million. It appointed David Worby, director of Harrods direct, as chief executive last year.
PR director Lauren Stevenson had been with My-Wardrobe since 2008 and left a month ago to become head of PR and communications at Harrods. Stevenson was widely credited with raising the brand's profile compared to its actual size and revenue.
In a statement to the Financial Times Curran said she was stepping down as a board member. But she said she was 'extremely proud' of what she had achieved with the business which is 'considered a respected global online retailer.
However, the departures raise questions for the firm whose sales in 2011, the most recent figures available, are £13 million. In January it was rumoured that My-Wardrobe was working with advisory firm Hawkwood to consider options for new funding partners and an additional £3 million, which prompted speculation it may be sold.
Curran founded the site in 2006 when she identified a gap for 'every day luxury' above the Asos target market and more affordable than Net-a-Porter. She was awarded an MBE in June for her services to fashion and will continue to retain a stake in My-Wardrobe.
In June 2010 internet investors Balderton Capital invested £6 million in the business and existing investors injected an additional £2.3 million. It appointed David Worby, director of Harrods direct, as chief executive last year.
Waitrose Online To Launch Chilled Lockers For Customer Collection
Supermarket Waitrose is testing temperature controlled lockers that will allow customers to pick up food orders placed online without going into stores.
The fully-automated collection lockers are part of a plan to expand the grocery chain's click and collect offer and are being tested by staff at the Waitrose head office in Bracknell.
It is expected the chilled, frozen and ambient lockers will be rolled-out to branches next year. Customers will be receive a text message containing a PIN number, drive to the lockers and collect their shopping.
The service will be free with orders over £50 and will be available the next day if placed before 11.45am.
The fully-automated collection lockers are part of a plan to expand the grocery chain's click and collect offer and are being tested by staff at the Waitrose head office in Bracknell.
It is expected the chilled, frozen and ambient lockers will be rolled-out to branches next year. Customers will be receive a text message containing a PIN number, drive to the lockers and collect their shopping.
The service will be free with orders over £50 and will be available the next day if placed before 11.45am.
Friday, 12 July 2013
Superdry Web Sales Rise 28% After International Expansion
Superdry owner Supergroup said internet sales increased 27.8 per cent in the past year after it added 10 new international sites.
Online sales now account for 11.2 per cent of group sales compared to 10 per cent of group sales the previous year. Total group sales increased 14.9 per cent to £360.4 million in the year to April 28 and retail store like-for-like sales increased 5.7 per cent.
During the year the group added 10 local language sites in Canada, with English and French versions, Denmark, Finalnd, Italy, Norway, Sweden and Switzerland, in French and German. Supergroup said sales of its Superdry brand are now made through 16 web sites to 122 territories.
It said it will continue to launch new overseas sites this year including one in China which will be tested in 2014 and represents an 'exciting opportunity'.
Online sales now account for 11.2 per cent of group sales compared to 10 per cent of group sales the previous year. Total group sales increased 14.9 per cent to £360.4 million in the year to April 28 and retail store like-for-like sales increased 5.7 per cent.
During the year the group added 10 local language sites in Canada, with English and French versions, Denmark, Finalnd, Italy, Norway, Sweden and Switzerland, in French and German. Supergroup said sales of its Superdry brand are now made through 16 web sites to 122 territories.
It said it will continue to launch new overseas sites this year including one in China which will be tested in 2014 and represents an 'exciting opportunity'.
Appliances Online Considers Stock Market Float
Online white goods specialist Appliances Online plans to talk to advisers in the coming weeks about future options that could include a sale of shares to the stock market.
The award winning Bolton-based firm is understood to have been valued at around £300 million - although some experts said that could undervalue the firm at its current rate of growth.
Sales in the year to March 2012 increased 82 per cent to £274 million but the business is also understood to have benefited from the demise of Comet last year. Figures for the latest financial year have not been disclosed.
A decision could be made as soon as this Autumn and could net John Roberts, founder of parent group DRL, £60 million. Appliances Online accounts for about three quarters of DRL's sales with the remainder from third party fulfilment it provides to other retailers including Next, Argos and Boots.
The award winning Bolton-based firm is understood to have been valued at around £300 million - although some experts said that could undervalue the firm at its current rate of growth.
Sales in the year to March 2012 increased 82 per cent to £274 million but the business is also understood to have benefited from the demise of Comet last year. Figures for the latest financial year have not been disclosed.
A decision could be made as soon as this Autumn and could net John Roberts, founder of parent group DRL, £60 million. Appliances Online accounts for about three quarters of DRL's sales with the remainder from third party fulfilment it provides to other retailers including Next, Argos and Boots.
Value Retailer Poundstretcher Takes On The Web
Value chain Poundstretcher has launched a transactional web site for a second time as it tries to stack up low product values with delivery costs.
The retailer has 'soft launched' the site selling 300 mainly seasonal products but including general merchandise and home textiles ranges, according to trade magazine Retail Week's web site.
Mandi Ramoutar, a consultant working across the retailer's online and social networking operations, said the chain would extend product ranges and categories once it tests what customers want.
The firm is offering next day delivery for £6.50 which has prompted higher transaction values as customers spend more to justify the cost, said the magazine. Other value retailers have shunned transactional web sites because they do not make economic sense.
The retailer has 'soft launched' the site selling 300 mainly seasonal products but including general merchandise and home textiles ranges, according to trade magazine Retail Week's web site.
Mandi Ramoutar, a consultant working across the retailer's online and social networking operations, said the chain would extend product ranges and categories once it tests what customers want.
The firm is offering next day delivery for £6.50 which has prompted higher transaction values as customers spend more to justify the cost, said the magazine. Other value retailers have shunned transactional web sites because they do not make economic sense.
Thursday, 11 July 2013
Luxury Brand Burberry Invests In Digital Revolution
Luxury clothing brand Burberry said an 'exceptional' performance at its retail division was partly helped by investment in digital and growth of its online business.
The London-based firm said in a London Stock Exchange announcement that retail revenue increased 18 per cent to £339 million in the 13 weeks to the end of June. Comparable store sales, those open at least a year, climbed 13 per cent.
Burberry said its stores benefited from well-received Spring and Summer ranges, broad-based growth across regions, offline and online; and its investment in its digital platform.
Its wholesale business fared less well in the period and revenues declined by about 10 per cent as economic conditions in some of its markets worsened.
The London-based firm said in a London Stock Exchange announcement that retail revenue increased 18 per cent to £339 million in the 13 weeks to the end of June. Comparable store sales, those open at least a year, climbed 13 per cent.
Burberry said its stores benefited from well-received Spring and Summer ranges, broad-based growth across regions, offline and online; and its investment in its digital platform.
Its wholesale business fared less well in the period and revenues declined by about 10 per cent as economic conditions in some of its markets worsened.
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