Marks & Spencer's online sales rose 28.5 per cent in the first-half setting it on course to meet targets laid down in 2010.
The retailer's online sales were an estimated £652 million last year, based on growth and figures for the business released in 2012. If growth continues at the same rate in the second-half M&S would make £838 million from its multichannel business in the full-year.
That would put it within targets laid down by chief executive Marc Bolland when he set the course for the business in 2010. He said at the time he wanted internet sales to account for between £800 million and £1 billion sales.
Bolland was forced to rebase overall targets for the business in 2012 because it was clear the chain was growing at a slower rate than he had expected.
But the the renewed focus on the internet business made by Bolland and multichannel executive Laura Wade-Gery has lifted sales. That has been helped by continued growth in the market and a second wind provided by the uptake of tablet computers.
Marks & Spencer said 55 per cent of its multichannel orders are now picked up in store. It also said its plan to split from partner Amazon, which operates its web platform, is on track for spring next year.
Overall profit at the business declined 9 per cent to £262 million as it struggles to revitalise womenswear sales.
Tuesday, 5 November 2013
AO.com: The Online Retail Stars Of 2013, Part 1
In the first of our series of e-commerce stars of 2013 we take a look at AO.com.
The basis of the review is that a growing number of online retailers are shuffling into the queue for a possible London Stock Exchange listing or refinancing.
Of these we see a number that are very strong candidates for a potential IPO, finding new investors or just future success. But others where, as outsiders, we are struggling.
Short of brokers or advisers to do the 'big sell' and cook the numbers for us, we decided to crunch the numbers ourselves.
The first in our series is Appliances Online: recently furnished with a new moniker AO.com. Starting in 2000, the company behind the website, DRL Holdings, has grown as the high street electricals model has dwindled. If ever there was a product that suited to being sold online and dropped off at your home by two muscle-bound Eastern European blokes trained to do so, it was the washing machine.
As with fridges and dishwashers, dimensions, specification and price is pretty much everything and most of that you can see on a computer screen. Margins are so slim it also helps that expensive stores and lease costs can be cut out.
The business developed as bricks and mortar retailers fell by the wayside. Powerhouse collapsed first in 2003 and then 2006 and it was followed by Comet last year - both of whom focused more heavily on white goods - that is fridges, freezers, dishwashers and other large kitchen appliances - far more than the more multi-faceted Dixons (which also owns PC World and Currys).
Many retailers saw the attraction of selling white goods but few wanted the bulky stock in their stores or even in their warehouses. As the market opened up, DRL signed up a host of supermarkets, high street retailers, catalogue retailers and online retailers for a 'white label service'.
First, in 2004, Sainsbury's became its first client allowing customers to buy what they thought was from Sainsbury's but was actually sourced, stored and then delivered by DRL. Boots, Next, House of Fraser, M&S, Debenhams, Shop Direct, Screwfix, Empire Direct, Argos and even B&Q all followed suit.
Purely and simply that is an example of a business with an excellently run model cornering the market.
It also bought Expert Logistics from grocer Iceland in 2009 after the chain's founder returned to run it (and decided it had better things to do than sell fridges and freezers in its shops). At the time the retailer devoted 18 per cent of space in its stores to selling white goods. And guess who is now running Iceland's white goods delivery business which it plans to launch later this month? Of course, it's DRL.
A quick run through the accounts for parent group DRL Holdings (yes, they filed early, just two months after their year end - almost unheard of for a private business and a strong indication the management is serious about wooing investors) tells you all you need to know about this business. Sales increased 33 per cent to £275.5 million in the year to March and profit swung to £8.1 million from a £2.2 million loss the previous year.
Small profit margins are not unusual for a private firm and the sudden swing as they prepare to find new investors suggests they've got a good handle on costs and all the levers and buttons to pull a bit back when they want. Sensible businesses will then always leave a bit for the analysts to crow about and wave at investors as evidence of the growth in the model.
That will be easy: the accounts paint the picture of a business growing rather than cutting costs. The average number of staff employed during the year was 834, 24.5 per cent more than it did the year before.
Overall, since 2010 when it made £126.7 million, it has more than doubled in size in three years.
Sky News suggested in September that the business could be valued at £300 million - about one times revenues - but we think this may underestimate the true worth of this rapidly growing, well-run business.
Just a few weeks ago it launched its first ever national television campaign so its eye is clearly on a nationwide growth model through its own business and that which it supplies through others. It's a win-win. It now controls a large chunk of the white goods delivery market.
If it sees more growth and profit coming from its own sites, it simply switches off the wholesale taps supplying its retail and supermarket customers.
With the usual caveat that we have not spoken to management or had access to all the filing cabinets in the executive suite, this is a company growing with a firm handle on the future. We'd love to hear the rest of the investment case because companies only tend to sell when founders see an end to growth in sight. Potentially of course, other bulky items could be sold or delivered and, clearly, the model must be transferable overseas.
There are always issues for new investors in either an IPO or private funds looking to come in when a entrepreneurial founder - in this case John Roberts - remains such a strong influence. But there are things can can be done to sure up a bit of confidence if any management changes are afoot - or if it turns out he has his eye on a complete exit at some point in the future.
Verdict: tie in the management and founder with a ball and chain for at least three years (five if possible!) and where do we sign up?
Expect Part 2 coming soon: Boohoo.com
The basis of the review is that a growing number of online retailers are shuffling into the queue for a possible London Stock Exchange listing or refinancing.
Of these we see a number that are very strong candidates for a potential IPO, finding new investors or just future success. But others where, as outsiders, we are struggling.
Short of brokers or advisers to do the 'big sell' and cook the numbers for us, we decided to crunch the numbers ourselves.
The first in our series is Appliances Online: recently furnished with a new moniker AO.com. Starting in 2000, the company behind the website, DRL Holdings, has grown as the high street electricals model has dwindled. If ever there was a product that suited to being sold online and dropped off at your home by two muscle-bound Eastern European blokes trained to do so, it was the washing machine.
As with fridges and dishwashers, dimensions, specification and price is pretty much everything and most of that you can see on a computer screen. Margins are so slim it also helps that expensive stores and lease costs can be cut out.
The business developed as bricks and mortar retailers fell by the wayside. Powerhouse collapsed first in 2003 and then 2006 and it was followed by Comet last year - both of whom focused more heavily on white goods - that is fridges, freezers, dishwashers and other large kitchen appliances - far more than the more multi-faceted Dixons (which also owns PC World and Currys).
Many retailers saw the attraction of selling white goods but few wanted the bulky stock in their stores or even in their warehouses. As the market opened up, DRL signed up a host of supermarkets, high street retailers, catalogue retailers and online retailers for a 'white label service'.
First, in 2004, Sainsbury's became its first client allowing customers to buy what they thought was from Sainsbury's but was actually sourced, stored and then delivered by DRL. Boots, Next, House of Fraser, M&S, Debenhams, Shop Direct, Screwfix, Empire Direct, Argos and even B&Q all followed suit.
Purely and simply that is an example of a business with an excellently run model cornering the market.
It also bought Expert Logistics from grocer Iceland in 2009 after the chain's founder returned to run it (and decided it had better things to do than sell fridges and freezers in its shops). At the time the retailer devoted 18 per cent of space in its stores to selling white goods. And guess who is now running Iceland's white goods delivery business which it plans to launch later this month? Of course, it's DRL.
A quick run through the accounts for parent group DRL Holdings (yes, they filed early, just two months after their year end - almost unheard of for a private business and a strong indication the management is serious about wooing investors) tells you all you need to know about this business. Sales increased 33 per cent to £275.5 million in the year to March and profit swung to £8.1 million from a £2.2 million loss the previous year.
Small profit margins are not unusual for a private firm and the sudden swing as they prepare to find new investors suggests they've got a good handle on costs and all the levers and buttons to pull a bit back when they want. Sensible businesses will then always leave a bit for the analysts to crow about and wave at investors as evidence of the growth in the model.
That will be easy: the accounts paint the picture of a business growing rather than cutting costs. The average number of staff employed during the year was 834, 24.5 per cent more than it did the year before.
Overall, since 2010 when it made £126.7 million, it has more than doubled in size in three years.
Sky News suggested in September that the business could be valued at £300 million - about one times revenues - but we think this may underestimate the true worth of this rapidly growing, well-run business.
Just a few weeks ago it launched its first ever national television campaign so its eye is clearly on a nationwide growth model through its own business and that which it supplies through others. It's a win-win. It now controls a large chunk of the white goods delivery market.
If it sees more growth and profit coming from its own sites, it simply switches off the wholesale taps supplying its retail and supermarket customers.
With the usual caveat that we have not spoken to management or had access to all the filing cabinets in the executive suite, this is a company growing with a firm handle on the future. We'd love to hear the rest of the investment case because companies only tend to sell when founders see an end to growth in sight. Potentially of course, other bulky items could be sold or delivered and, clearly, the model must be transferable overseas.
There are always issues for new investors in either an IPO or private funds looking to come in when a entrepreneurial founder - in this case John Roberts - remains such a strong influence. But there are things can can be done to sure up a bit of confidence if any management changes are afoot - or if it turns out he has his eye on a complete exit at some point in the future.
Verdict: tie in the management and founder with a ball and chain for at least three years (five if possible!) and where do we sign up?
Expect Part 2 coming soon: Boohoo.com
Monday, 4 November 2013
HMV App Returns To Apple Store A Shadow Of Its Former Self
HMV's app has gone live on Apple's App Store after being rejected last month for violating the store's guidelines.
The app has returned for the second time after first being approved in September. But it now does not allow users to download MP3s directly via the app. Instead, users have to go to a separate site - HMV's mobile website - in order to download music bought from HMV.
The app still allows people to identify artwork and songs, what music industry news website digitalmusicnews.com said makes it a 'glorified Shazam'. HMV said the process was 'very simple and straightforward' and could be done though Safari.
The site also gives 30 second previews of tracks available at HMV. But it all makes the app less pertinent for HMV and for users since it disconnects the experience of discovery from the instant hit of the purchase.
The app has returned for the second time after first being approved in September. But it now does not allow users to download MP3s directly via the app. Instead, users have to go to a separate site - HMV's mobile website - in order to download music bought from HMV.
The app still allows people to identify artwork and songs, what music industry news website digitalmusicnews.com said makes it a 'glorified Shazam'. HMV said the process was 'very simple and straightforward' and could be done though Safari.
The site also gives 30 second previews of tracks available at HMV. But it all makes the app less pertinent for HMV and for users since it disconnects the experience of discovery from the instant hit of the purchase.
My-Wardrobe 'Eyes Stockmarket Floatation'
Online designer fashion site My-Wardrobe.com is pondering a stock market float just months after founder Sarah Curran announced her departure.
An article in the Daily Telegraph sourced 'analysts' saying the site might be worth as much as £50 million, around four times its revenue in the year to June 2011.
The e-commerce retailer, which has not yet appointed brokers to advise on the sale, the newspaper said, sells 180 designer brands including McQ Alexander McQueen and Burberry Brit. Fashion retailer Boohoo, AO.com and The Hut are among other online retailers understood to be seeking a sale or a refinancing over the coming months.
My-Wardrobe has declined to comment, the Telegraph said. It is equally likely that the firm would like to raise more cash off the stock market and may be considering an outright sale if one or more investors have lost their appetite.
The article reports that My-Wardrobe stocks Tom Ford and Mulberry, although there are no Mulberry products on the site, according to its own search facility, and the only Tom Ford product is a £259 pair of Brown Bardot Cat Eye Acetate Sunglasses. It does not sell Gucci.
The Telegraph describes its offer as 'everyday luxury'.
According to the most recent figures available at Companies House, My-Wardrobe parent company Meemi Ltd increased revenues from selling fashion online by 23 per cent year-on-year to almost £15.6 million in the 12 months to June 2012. It recorded a pre-tax loss of £4.9 million, 29 per cent more than the previous year.
It has not filed accounts since and has nine months to do so from its year end.
Documents also indicate the firm employs 102 people and is 26.7 per cent owned by Balderton Capital, whose other interests include The Hut. Founder Sarah Curran owns 16.1 per cent and Andrew Curran owns 12.6 per cent.
But the firm has been through a number of changes in the past year after appointing chief executive David Worby from Harrods a year ago. In July Sarah Curran announced her departure and the company has undertaken at least two rounds of fundraising since last September amounting to around £2 million.
The Currans, since divorced, sold their house in 2006 to fund the business.
An article in the Daily Telegraph sourced 'analysts' saying the site might be worth as much as £50 million, around four times its revenue in the year to June 2011.
The e-commerce retailer, which has not yet appointed brokers to advise on the sale, the newspaper said, sells 180 designer brands including McQ Alexander McQueen and Burberry Brit. Fashion retailer Boohoo, AO.com and The Hut are among other online retailers understood to be seeking a sale or a refinancing over the coming months.
My-Wardrobe has declined to comment, the Telegraph said. It is equally likely that the firm would like to raise more cash off the stock market and may be considering an outright sale if one or more investors have lost their appetite.
The article reports that My-Wardrobe stocks Tom Ford and Mulberry, although there are no Mulberry products on the site, according to its own search facility, and the only Tom Ford product is a £259 pair of Brown Bardot Cat Eye Acetate Sunglasses. It does not sell Gucci.
The Telegraph describes its offer as 'everyday luxury'.
According to the most recent figures available at Companies House, My-Wardrobe parent company Meemi Ltd increased revenues from selling fashion online by 23 per cent year-on-year to almost £15.6 million in the 12 months to June 2012. It recorded a pre-tax loss of £4.9 million, 29 per cent more than the previous year.
It has not filed accounts since and has nine months to do so from its year end.
Documents also indicate the firm employs 102 people and is 26.7 per cent owned by Balderton Capital, whose other interests include The Hut. Founder Sarah Curran owns 16.1 per cent and Andrew Curran owns 12.6 per cent.
But the firm has been through a number of changes in the past year after appointing chief executive David Worby from Harrods a year ago. In July Sarah Curran announced her departure and the company has undertaken at least two rounds of fundraising since last September amounting to around £2 million.
The Currans, since divorced, sold their house in 2006 to fund the business.
Sunday, 3 November 2013
La Redoute Staff Warned Over 700 Job Cuts
Luxury goods group Kering has reportedly identified 700 possible job cuts at its online and catalogue business La Redoute.
The new comes just a week after it was reported by Reuters that Kering was ready to put €300 million into La Redoute to attract a buyer for the business, which it has been trying to sell for at least a year.
The injection of cash and redundancy programme is likely to help attract restructuring firms and OpCapita, which was behind the failed turnaround of Comet, HIG Capital and real estate company Altarea Cogadim have all been linked to a possible buy-out.
La Redoute employs 2,500 people and is the largest mail order business in France.
Sources told FashionUnited.co.uk that Kering was prepared to 'put some money on the table' to help restructure La Redoute. The site quoted a union source providing information about the job cuts. It also said Kering has received three informal offers but no official bid.
The firm owns several other brands such as Vertbaudet and trades through UK websites. It is unprofitable and Kering is selling the business alongside stablemate, French music chain Fnac, at it seeks to focus purely on luxury goods and sportswear.
The new comes just a week after it was reported by Reuters that Kering was ready to put €300 million into La Redoute to attract a buyer for the business, which it has been trying to sell for at least a year.
The injection of cash and redundancy programme is likely to help attract restructuring firms and OpCapita, which was behind the failed turnaround of Comet, HIG Capital and real estate company Altarea Cogadim have all been linked to a possible buy-out.
La Redoute employs 2,500 people and is the largest mail order business in France.
Sources told FashionUnited.co.uk that Kering was prepared to 'put some money on the table' to help restructure La Redoute. The site quoted a union source providing information about the job cuts. It also said Kering has received three informal offers but no official bid.
The firm owns several other brands such as Vertbaudet and trades through UK websites. It is unprofitable and Kering is selling the business alongside stablemate, French music chain Fnac, at it seeks to focus purely on luxury goods and sportswear.
Ted Baker Overhauls Web Platform And Adds 'Click And Collect'
Fashion retailer Ted Baker has overhauled its internet arm ready for international growth and added a 'click and collect' service.
The company said the new launch with allow the site to better reflect the levels of customer service shoppers receive in store. The site will adapt to the tastes of new visitors and take into account their browsing history.
The click and collect service is available at all its stores but excludes its airports, outlet stores and concessions. Ted Baker says on its website that customers must wait 5-7 days for the order to arrive in a store from the time it is sent from the warehouse.
The fashion brand worked with digital agency Poke and software solution company Neoworks on the project.
The site features two separate templates depending on the gender of the customer and a total of 27 templates at launch to allow the site to be adapted according to season and region as the brand develops overseas. The site will be extended to the US, where it already accepts orders from, and Australia, where it does not yet do so.
Craig Smith, brand communications director for Ted Baker, said: 'The new site is fast, fully responsive and supports our growing number of omnichannel activities. But, just as importantly, it’s full of the unique details, clever touches and attention to detail, which makes Ted Baker so engaging.'
Head of ecommerce at the retailer Eve Henrikson said: 'The new platform is an ambitious project and affords Ted a very hard-working digital presence on which to inspire, trade and serve our fast-growing customer base. Its focus on flexible content management, personalisation and merchandising functions affords us a wealth of trading opportunities and the responsive design caters for the changing profile of customer use.'
The company said the new launch with allow the site to better reflect the levels of customer service shoppers receive in store. The site will adapt to the tastes of new visitors and take into account their browsing history.
The click and collect service is available at all its stores but excludes its airports, outlet stores and concessions. Ted Baker says on its website that customers must wait 5-7 days for the order to arrive in a store from the time it is sent from the warehouse.
The fashion brand worked with digital agency Poke and software solution company Neoworks on the project.
The site features two separate templates depending on the gender of the customer and a total of 27 templates at launch to allow the site to be adapted according to season and region as the brand develops overseas. The site will be extended to the US, where it already accepts orders from, and Australia, where it does not yet do so.
Craig Smith, brand communications director for Ted Baker, said: 'The new site is fast, fully responsive and supports our growing number of omnichannel activities. But, just as importantly, it’s full of the unique details, clever touches and attention to detail, which makes Ted Baker so engaging.'
Head of ecommerce at the retailer Eve Henrikson said: 'The new platform is an ambitious project and affords Ted a very hard-working digital presence on which to inspire, trade and serve our fast-growing customer base. Its focus on flexible content management, personalisation and merchandising functions affords us a wealth of trading opportunities and the responsive design caters for the changing profile of customer use.'
Saturday, 2 November 2013
Primark Relaunches Site To Focus On Trends Shopper
Primark has relaunched its website despite ending a partnership with online shopping hub Asos in September selling its goods online.
The new, editorioally-focused site features pictures of shoppers wearing and recommending favourite products - and allows customers to post their products and say which Primark shop they bought them from.
The site was relaunched earlier this week, with Primark saying: 'We thought it was time for a refresh (right?). Browse our brand new website for exclusive previews of new collections, articles, trends and Primania, our very own street style community.'
A central feature of the site is the Primania community that allows users to sign in an upload pictures via facebook or through the site itself. Pictures can then be shared via Facebook, Pinterest, Twitter, Google+, or just emailed to friends.
More than 200 photographs have already been posted with prices, product details and where the outfit was worn.
It is not clear whether the new site is a precursor to a new ecommerce venture for the firm, although it seems unlikely in the short-term. However, last month Asos boss Nick Robertson said that, while the trial with Asos had ended, he still hoped something could be worked out.
'We’re still trying to work out a way that we could do it. If we can make money at it, we’ll go for it,' he said as Asos reported its company results on October 23. The trial ran from June to September.
His main concerns were over the small margins on Primark products, whether they could demand a minimum order from customers and what the returns rate might be, which would further erode low-value margins. Asos operates a free delivery and return model.
The new, editorioally-focused site features pictures of shoppers wearing and recommending favourite products - and allows customers to post their products and say which Primark shop they bought them from.
The site was relaunched earlier this week, with Primark saying: 'We thought it was time for a refresh (right?). Browse our brand new website for exclusive previews of new collections, articles, trends and Primania, our very own street style community.'
A central feature of the site is the Primania community that allows users to sign in an upload pictures via facebook or through the site itself. Pictures can then be shared via Facebook, Pinterest, Twitter, Google+, or just emailed to friends.
More than 200 photographs have already been posted with prices, product details and where the outfit was worn.
 |
| Primark's new 'Primania' web community |
'We’re still trying to work out a way that we could do it. If we can make money at it, we’ll go for it,' he said as Asos reported its company results on October 23. The trial ran from June to September.
His main concerns were over the small margins on Primark products, whether they could demand a minimum order from customers and what the returns rate might be, which would further erode low-value margins. Asos operates a free delivery and return model.
Iceland Poised To Launch Non-Food Websites This Month
Grocery store Iceland is planning a big online push into non-food with the launch a series of websites beginning later this month.
The first to begin trading will be a selection of freezers, white goods and kitchen appliances through an offshoot of its existing site.
The site will be run in partnership with DRL, which owns ao.com, and see Iceland resurrect its appliances business. The chain closed its previous joint-venture with Dalton House Appliances in 2009 which occupied space in 18 per cent of Iceland's UK stores.
The chain relaunched its ecommerce food delivery platform earlier this year after a six year hiatus and hopes to be delivering from 300 stores by the year end. It eventually expects to have food delivery available through its website from 550 to 600 stores as it expands its delivery business into the north of England.
'We were probably ahead of the game [when we first launched the ecommerce service in 1999] and ended up doing a lot of transactions on the telephone. Our customers didn’t typically have PCs, so we were crucifying our in-store operation taking calls throughout the day and then not having enough resource to pick the goods – so we canned it in 2005,' John Mackie, Iceland's director of delivered sales told the Essential Retail website.
The company invested just over £1 million in the initial launch to 25 stores. Mackie said the low cost was because the chain still had the skeleton operation left from its previous online foray and because they had opted for a much simpler strategy than some rivals, such as Morrisons.
He said he also plans to weave Iceland's Bonus Card offer into the online shopping experience.
The first to begin trading will be a selection of freezers, white goods and kitchen appliances through an offshoot of its existing site.
The site will be run in partnership with DRL, which owns ao.com, and see Iceland resurrect its appliances business. The chain closed its previous joint-venture with Dalton House Appliances in 2009 which occupied space in 18 per cent of Iceland's UK stores.
The chain relaunched its ecommerce food delivery platform earlier this year after a six year hiatus and hopes to be delivering from 300 stores by the year end. It eventually expects to have food delivery available through its website from 550 to 600 stores as it expands its delivery business into the north of England.
'We were probably ahead of the game [when we first launched the ecommerce service in 1999] and ended up doing a lot of transactions on the telephone. Our customers didn’t typically have PCs, so we were crucifying our in-store operation taking calls throughout the day and then not having enough resource to pick the goods – so we canned it in 2005,' John Mackie, Iceland's director of delivered sales told the Essential Retail website.
The company invested just over £1 million in the initial launch to 25 stores. Mackie said the low cost was because the chain still had the skeleton operation left from its previous online foray and because they had opted for a much simpler strategy than some rivals, such as Morrisons.
He said he also plans to weave Iceland's Bonus Card offer into the online shopping experience.
Friday, 1 November 2013
Boohoo Surges As Sale Speculation Mounts
UPDATE: See our review of the Boohoo.com business, out on Wednesday November 13
Pureplay fashion etailer Boohoo.com has seen traffic to its site surge 22 per cent amid speculation its founders may be looking to sell some or all of the business.
The September figures produced for Drapers magazine Ecomm Index by Kantar Media show the Manchester-based site received 791,000 unique visitors during the month.
The surge is yet more proof of the site's success amid rumours we are hearing that it's founders have visited London canvassing possible City advisers in recent months - something they would only do if they were planning to raise funds or even attempt an IPO.
The traffic volumes meant Boohoo.com ranked fourth in the month behind Very.co.uk, where unique visitors rose 1 per cent to 801,000, eBay's fashion business, which increased 3 per cent to 843,000 and Asos, with a rise of 6 per cent to 1,648,000.
Among the high street retailers, New Look was again a strong performer following last month's gains that found it ahead of Asos and Next.
The latest figures show that New Look gained 18 per cent to attract 1,814,000 unique visitors putting it ahead of Asos, Next (a 1 per cent rise to 1,645,00) and Debenhams in fourth overall place with 1,565,000.
Clearly, the increase of visitors at any site does not necessarily correlate directly to sales. Next said on Wednesday that Directory sales in the three months to October increased 10.7 per cent.
However, traffic must always be good news even if they don't actually buy your product. Interestingly Bhs saw a surprise surge in traffic of 60 per cent to 478,000.
But among the worst performers was Marks & Spencer which is relying in part on internet sales to help it lift revenue and profit. Total traffic fell 11 per cent to 1,047,000. It expects to move its entire platform away from its partnership with Amazon to its own systems next year. John Lewis, although never as reliant on clothing, also saw a dip with its fashion traffic falling 10 per cent to 527,000.
Pureplay fashion etailer Boohoo.com has seen traffic to its site surge 22 per cent amid speculation its founders may be looking to sell some or all of the business.
The September figures produced for Drapers magazine Ecomm Index by Kantar Media show the Manchester-based site received 791,000 unique visitors during the month.
The surge is yet more proof of the site's success amid rumours we are hearing that it's founders have visited London canvassing possible City advisers in recent months - something they would only do if they were planning to raise funds or even attempt an IPO.
The traffic volumes meant Boohoo.com ranked fourth in the month behind Very.co.uk, where unique visitors rose 1 per cent to 801,000, eBay's fashion business, which increased 3 per cent to 843,000 and Asos, with a rise of 6 per cent to 1,648,000.
Among the high street retailers, New Look was again a strong performer following last month's gains that found it ahead of Asos and Next.
The latest figures show that New Look gained 18 per cent to attract 1,814,000 unique visitors putting it ahead of Asos, Next (a 1 per cent rise to 1,645,00) and Debenhams in fourth overall place with 1,565,000.
Clearly, the increase of visitors at any site does not necessarily correlate directly to sales. Next said on Wednesday that Directory sales in the three months to October increased 10.7 per cent.
However, traffic must always be good news even if they don't actually buy your product. Interestingly Bhs saw a surprise surge in traffic of 60 per cent to 478,000.
But among the worst performers was Marks & Spencer which is relying in part on internet sales to help it lift revenue and profit. Total traffic fell 11 per cent to 1,047,000. It expects to move its entire platform away from its partnership with Amazon to its own systems next year. John Lewis, although never as reliant on clothing, also saw a dip with its fashion traffic falling 10 per cent to 527,000.
John Lewis: Future Is 'Clicks & Bricks'
John Lewis said it has seen a huge rise in the number of orders collected from store confirming its view that the future for retail is 'clicks and bricks'.
It said 40 per cent of its online purchases are collected rather than delivered to homes compared to 27 per cent last year.
In its 41-page report 'How We Shop, Live, Look' it says it analysed data from the past year that showed 42 per cent of online traffic now comes from smartphones and tablet computers. The number is higher for those buying fashion.
It says traffic from smartphones reaches a peak before 9am when its switches to desktop PCs as people arrive at work. Desktop browsing falls away from about 4pm with tablets taking over and peaking around 9pm - particularly during advert breaks in popular TV programmes.
'Whatever the customer’s preference; browsing in a shop, price checking on a desktop PC or buying on a tablet, in-store collection or home delivery, there’s no set path to purchase from John Lewis. The omnichannel approach we’ve developed and refined allows the purchasing route for any item to flow seamlessly across online, mobile and shops,' the department store said in its report.
But it said: 'Contrary to some headlines, we don’t think that online shopping is replacing the high street. In fact, our shoppers tell us that they still enjoy shopping as a leisure activity. John Lewis continues to draw customers into its high street shops with shop sales up three per cent for the first half of 2013.'
It said 40 per cent of its online purchases are collected rather than delivered to homes compared to 27 per cent last year.
In its 41-page report 'How We Shop, Live, Look' it says it analysed data from the past year that showed 42 per cent of online traffic now comes from smartphones and tablet computers. The number is higher for those buying fashion.
It says traffic from smartphones reaches a peak before 9am when its switches to desktop PCs as people arrive at work. Desktop browsing falls away from about 4pm with tablets taking over and peaking around 9pm - particularly during advert breaks in popular TV programmes.
'Whatever the customer’s preference; browsing in a shop, price checking on a desktop PC or buying on a tablet, in-store collection or home delivery, there’s no set path to purchase from John Lewis. The omnichannel approach we’ve developed and refined allows the purchasing route for any item to flow seamlessly across online, mobile and shops,' the department store said in its report.
But it said: 'Contrary to some headlines, we don’t think that online shopping is replacing the high street. In fact, our shoppers tell us that they still enjoy shopping as a leisure activity. John Lewis continues to draw customers into its high street shops with shop sales up three per cent for the first half of 2013.'
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