Appliances website AO.com, which is preparing to launch a possible sale of shares in the business next year, saw sales surge on Monday as customers flocked to the internet for Cyber Monday bargains.
Sales on Monday jumped 50 per cent compared to the same day the previous week as traffic to its website rose by 40 per cent.
An AO.com spokesman told the Manchester Evening News: 'The results were amazing. Cyber Monday has become a real phenomenon for online retail.'
Another Manchester-based firm Boohoo.com said both Black Friday and Cyber Monday prompted 'particularly high levels of traffic'.
Joint chief executive Carol Kane said: 'The festive season is now in full swing. Pieces such as our Christmas jumpers and onesies, as well as key party looks are continuing to be popular and with only three weeks left to order in time for Christmas, we are looking forward to a busy period ahead.'
Barclaycard said an average of £312,500 was expected to be spent online every minute on Monday December 2.
Director of commercial development at Barclaycard Jeremy Nicholds said: 'Online shopping now accounts for more than 25 per cent of spend with Visa in the UK, signifying the confidence that consumers have in the security of online payments and in the delivery of goods.'
AO.com hired Jefferies and JP MOrgan as advisers in September ahead of a possible IPO. Boohoo.com is considering a similar plan and is being advised by Zeus Capital.
For more on AO.com, see our Online Retail Stars of 2013 Report: AO.com.
Wednesday, 4 December 2013
Rocket Internet's Zalora Raises $112 Million For Asian Expansion
Online fashion and beauty group Zalora, backed by prolific German ecommerce investor Rocket Internet, has raised $112 million for expansion in the southeast Asian market.
The Singapore-based firm raised the cash from new investors including Len Blavatnik, currently the UK's second richest person. The Ukrainian-born Blavatnik has become a serial investor in ecommerce and this year has funded businesses such as Russia's Lamoda in June and New York crowd-funding site The Fancy in July.
Zalora will use the money to tap into growing demand from southeast Asia's 600 million population and is the second fundraising this year following a $100 million boost in May from existing investors.
Other backers this time include Scopia Capital Management, a New York-based hedge fund, and Blavatnik's Access Industries.
Zalora's managing director Michele Farrario told the Financial Times that, despite signs economic growth in the region is slowing, he and the investors remained confident in the medium term. He explained: 'When the investment climate becomes more challenging usually investors become more selective in what they do. So far they're happy with the macro opportunity on one side and the way we are executing on the other.'
Rocket's Lazada, which also operates in the same region across countries including Indonesia, Malaysia and Thailand, raised $100 million of new funds in June.
The Singapore-based firm raised the cash from new investors including Len Blavatnik, currently the UK's second richest person. The Ukrainian-born Blavatnik has become a serial investor in ecommerce and this year has funded businesses such as Russia's Lamoda in June and New York crowd-funding site The Fancy in July.
Zalora will use the money to tap into growing demand from southeast Asia's 600 million population and is the second fundraising this year following a $100 million boost in May from existing investors.
Other backers this time include Scopia Capital Management, a New York-based hedge fund, and Blavatnik's Access Industries.
Zalora's managing director Michele Farrario told the Financial Times that, despite signs economic growth in the region is slowing, he and the investors remained confident in the medium term. He explained: 'When the investment climate becomes more challenging usually investors become more selective in what they do. So far they're happy with the macro opportunity on one side and the way we are executing on the other.'
Rocket's Lazada, which also operates in the same region across countries including Indonesia, Malaysia and Thailand, raised $100 million of new funds in June.
Tuesday, 3 December 2013
November Online Sales Grow At Fastest Rate This Year, Says BRC
Online sales of non-grocery products rose in November at the fastest rate this year as consumers took to the internet to get festive shopping done early.
The 16 per cent increase was the fastest rate for three years excluding December months, according to figures released today by the British Retail Consortium. Spending online in the non-food category reached 19.9 per cent of the total retail spend.
The trend illustrates the acceleration of online shopping growth ahead of Christmas and suggests more people are using the internet to plan ahead to save time and money. Total non-food sales grew 2 per cent in November and dropped after the effect of online shopping was stripped out.
'The signs are that many of us went online during the month to make an early start on our present shopping, and the Cyber Monday effect is likely to continue that trend into December,' said Helen Dickinson, director general of the British Retail Consortium.
She said: 'Faster delivery times and the growing popularity of Click & Collect means customers are ready to leave ordering online closer to Christmas with the confidence that their goods will still arrive on time.'
'The proportion of goods bought online increased across all categories during the month, with clothing having a particularly strong showing. These figures highlight that, while online may have come of age last Christmas, this year it’s cementing its position as a popular choice at all stages of the customer journey.' added Dickinson.
The penetration is a jump on last month's 18.3 per cent and well ahead of last December when spending on non-food online was just 14.8 per cent of the total.
Clothing sales online have led the recent growth surge accounting for 24.6 per cent of total sales in November compared to 21.7 per cent last year, according to the BRC. Footwear has also seen rapid growth rising to 29.3 per cent from 27.1 per cent last year.
Health and beauty still represents the smallest category with only 6 per cent of sales online compared to 5.1 per cent a year ago.
The 16 per cent increase was the fastest rate for three years excluding December months, according to figures released today by the British Retail Consortium. Spending online in the non-food category reached 19.9 per cent of the total retail spend.
The trend illustrates the acceleration of online shopping growth ahead of Christmas and suggests more people are using the internet to plan ahead to save time and money. Total non-food sales grew 2 per cent in November and dropped after the effect of online shopping was stripped out.
'The signs are that many of us went online during the month to make an early start on our present shopping, and the Cyber Monday effect is likely to continue that trend into December,' said Helen Dickinson, director general of the British Retail Consortium.
She said: 'Faster delivery times and the growing popularity of Click & Collect means customers are ready to leave ordering online closer to Christmas with the confidence that their goods will still arrive on time.'
'The proportion of goods bought online increased across all categories during the month, with clothing having a particularly strong showing. These figures highlight that, while online may have come of age last Christmas, this year it’s cementing its position as a popular choice at all stages of the customer journey.' added Dickinson.
The penetration is a jump on last month's 18.3 per cent and well ahead of last December when spending on non-food online was just 14.8 per cent of the total.
Clothing sales online have led the recent growth surge accounting for 24.6 per cent of total sales in November compared to 21.7 per cent last year, according to the BRC. Footwear has also seen rapid growth rising to 29.3 per cent from 27.1 per cent last year.
Health and beauty still represents the smallest category with only 6 per cent of sales online compared to 5.1 per cent a year ago.
Amazon Delivery Drones 'Not Science Fiction,' Says Bezos
Amazon is testing mini flying drones that chief executive Jeff Bezos says could deliver packages to customers in just half-an-hour.
Speaking to American news show 60 Minutes, Bezos said the robotic devices, known as octocopters, can carry items up to five pounds (2.3 kg) in small yellow buckets.
They are powered by electric motors and could cover areas in a 10 mile radius of distribution centres, which would include vast urban areas.
Bezos said the drones' carrying capacity includes '86 per cent of the items we deliver.' He explained: 'I know this looks like science fiction. It's not.'
Bezos said the service, know as Prime Air, could be running within five years allowing for safety testing, a change in regulations and Federal approval. The Federal Aviation Administration is already actively working on new rules for unmanned aerial vehicles.
The FAA predicts the rule changes could be in place by 2015 which would allow Prime Air to be activated earlier then Bezos suggested, US news sources said.
Bezos said the plan would better enable Amazon to avoid being 'disrupted' by smarter rivals.
He said: 'Companies have short life spans and Amazon will be disrupted one day. I would love for it to be after I'm dead.'
Speaking to American news show 60 Minutes, Bezos said the robotic devices, known as octocopters, can carry items up to five pounds (2.3 kg) in small yellow buckets.
They are powered by electric motors and could cover areas in a 10 mile radius of distribution centres, which would include vast urban areas.
Bezos said the drones' carrying capacity includes '86 per cent of the items we deliver.' He explained: 'I know this looks like science fiction. It's not.'
Bezos said the service, know as Prime Air, could be running within five years allowing for safety testing, a change in regulations and Federal approval. The Federal Aviation Administration is already actively working on new rules for unmanned aerial vehicles.
The FAA predicts the rule changes could be in place by 2015 which would allow Prime Air to be activated earlier then Bezos suggested, US news sources said.
Bezos said the plan would better enable Amazon to avoid being 'disrupted' by smarter rivals.
He said: 'Companies have short life spans and Amazon will be disrupted one day. I would love for it to be after I'm dead.'
Christmas Shopping On Tablets Set To Soar As Sales Reach £4.7bn This Year
Spending on tablets this Christmas is expected to rise three-fold taking the total spent on the devices this year to £4.7 billion.
The use of tablets is expected to mean sales overtake those on smartphones this year driven by cheap devices flooding into the market from the likes of Tesco, Argos and Dixons Retail, which owns Currys and PC World.
Tablets have rapidly reached a broader audience than home PCs and users are able to engage with them more often. It is also easier to see information on them than on smartphones.
'Shopping on a tablet device is a little more sensory,' Bill Fisher, analyst at eMarketer, a research group, told the Financial Times newspaper.
Tablets account for about one tenth of online sales, according to eMarketer. That is expected to quadruple to £17.9 billion over the next four years.
IBM researchers have calculated that 16.5 per cent of online sales in the US were made on tablets on Thanksgiving day compared with 9 per cent on smartphones.
The use of tablets is expected to mean sales overtake those on smartphones this year driven by cheap devices flooding into the market from the likes of Tesco, Argos and Dixons Retail, which owns Currys and PC World.
Tablets have rapidly reached a broader audience than home PCs and users are able to engage with them more often. It is also easier to see information on them than on smartphones.
'Shopping on a tablet device is a little more sensory,' Bill Fisher, analyst at eMarketer, a research group, told the Financial Times newspaper.
Tablets account for about one tenth of online sales, according to eMarketer. That is expected to quadruple to £17.9 billion over the next four years.
IBM researchers have calculated that 16.5 per cent of online sales in the US were made on tablets on Thanksgiving day compared with 9 per cent on smartphones.
Older Shoppers Prefer Tablets To 'Fiddly' Smartphones, Says N Brown
Online and catalogue giant N Brown says tablets are more popular with older shoppers who find smart phones too 'fiddly'.
Dara O'Malley, N Brown's head of mature consumers, told the Financial Times that smartphones were too small for many older shoppers to happily surf the internet. 'The beauty of the tablet is you can actually alter the size of the font,' he said.
N Brown targets both older and larger-sized customers and has shown more resilience than other retailers - and other former catalogue firms trying to switch to online - over the past decade.
Retailers are planning to blitz the tablet market this Christmas as their usage for internet shopping soars.
Britons have adopted internet shopping faster than most other European countries and online sales now represent about 12 percent of all shopping and growing at double digit rates.
Dara O'Malley, N Brown's head of mature consumers, told the Financial Times that smartphones were too small for many older shoppers to happily surf the internet. 'The beauty of the tablet is you can actually alter the size of the font,' he said.
N Brown targets both older and larger-sized customers and has shown more resilience than other retailers - and other former catalogue firms trying to switch to online - over the past decade.
Retailers are planning to blitz the tablet market this Christmas as their usage for internet shopping soars.
Britons have adopted internet shopping faster than most other European countries and online sales now represent about 12 percent of all shopping and growing at double digit rates.
Monday, 2 December 2013
John Lewis Website More Than Doubles Its Own Record Sales Day
Department store John Lewis said its 'Black Friday' sales promotion boosted sales and made Friday its business day online ever.
The store said Friday's sales were more than double its previous record for a single day's trade on Johnlewis.com.
Sales last week increased 35.7 per cent compared to the same week a year earlier, the department store said in a statement yesterday afternoon. Total sales at the chain increased 18.4 per cent.
The chain is also benefiting from the timing of its Black Friday Sale event which fell a week earlier last year. Sales in the previous week, the second to last week in December were weaker as a result of the calendar effect.
'Any doubt whether UK customers are interested in Black Friday has been cast aside as record sales were notched up online and via mobile devices,' online director Mark Lewis said.
The record could still be beaten if demand on Cyber Monday, which falls tomorrow, meets expectations across the retail sector.
The chain's management expect iPads, cashmere and Ugg-branded products would be among the most popular.
The store said Friday's sales were more than double its previous record for a single day's trade on Johnlewis.com.
Sales last week increased 35.7 per cent compared to the same week a year earlier, the department store said in a statement yesterday afternoon. Total sales at the chain increased 18.4 per cent.
The chain is also benefiting from the timing of its Black Friday Sale event which fell a week earlier last year. Sales in the previous week, the second to last week in December were weaker as a result of the calendar effect.
'Any doubt whether UK customers are interested in Black Friday has been cast aside as record sales were notched up online and via mobile devices,' online director Mark Lewis said.
The record could still be beaten if demand on Cyber Monday, which falls tomorrow, meets expectations across the retail sector.
The chain's management expect iPads, cashmere and Ugg-branded products would be among the most popular.
Demand On Cyber Monday Expected To Rise 16% Says Visa Europe
The number of shopping transactions made tomorrow - billed as Cyber Monday, the busiest online shopping day before Christmas - is expected to increase 16 per cent compared to last year.
That is expected to take the number of purchases to 7.7 million or £450 million through its credit cards alone, according to Visa Europe.
'A combination of pay day for the majority of consumers falling on the last Friday of the month and a weekend spent browsing the shops results in shoppers logging on to buy their gifts online [today],' the company said in a statement.
Some estimates put the amount expected to be spent online today at £1.3 billion compared to about £10.5 billion spent online through December as a whole.
That is expected to take the number of purchases to 7.7 million or £450 million through its credit cards alone, according to Visa Europe.
'A combination of pay day for the majority of consumers falling on the last Friday of the month and a weekend spent browsing the shops results in shoppers logging on to buy their gifts online [today],' the company said in a statement.
Some estimates put the amount expected to be spent online today at £1.3 billion compared to about £10.5 billion spent online through December as a whole.
Sunday, 1 December 2013
Boohoo.com To Unveil Massive Sales Growth This Week
The rapidly growing fashion website Boohoo.com is expected to unveil huge sales growth this week as it prepares the business for a stock market listing.
The business is expected to say sales in the year to February 2013 more than doubled to over £60 million. This current financial year has also seen exceptionally strong growth, it is understood.
The company, advised by Zeus Capital, has valued itself at £500 million and hopes to sell shares on the stock exchange in the first quarter of this year.
It has billed itself as an 'Asos Mark II' and aims to emulate the young fashion business which expects to hit £1 billion sales next year and is worth over £4 billion.
However, Boohoo advisers are arguing that it is potentially more profitable that Asos because it only sells own brand product.
Yesterday we revealed the business is recruiting heavily as part of a plan to grow overseas. It is targeting German, French and Spanish foreign speakers across e-commerce, marketing and PR functions to work at its Manchester head office.
For more on Boohoo, see our Online Retail Stars of 2013 Report: Boohoo.com.
The business is expected to say sales in the year to February 2013 more than doubled to over £60 million. This current financial year has also seen exceptionally strong growth, it is understood.
The company, advised by Zeus Capital, has valued itself at £500 million and hopes to sell shares on the stock exchange in the first quarter of this year.
It has billed itself as an 'Asos Mark II' and aims to emulate the young fashion business which expects to hit £1 billion sales next year and is worth over £4 billion.
However, Boohoo advisers are arguing that it is potentially more profitable that Asos because it only sells own brand product.
Yesterday we revealed the business is recruiting heavily as part of a plan to grow overseas. It is targeting German, French and Spanish foreign speakers across e-commerce, marketing and PR functions to work at its Manchester head office.
For more on Boohoo, see our Online Retail Stars of 2013 Report: Boohoo.com.
Six Firms Hit £1 Million Sales Through NotOnTheHighStreet
Six businesses trading on website hub NotOnTheHighStreet have reached £1 million in turnover this year.
The millionaire businesses include Letterfest, set up by Wendy Harrison, 40, in Barnstaple, Devon, selling personalised pebbles, slates and art prints, and Posh Totty Designs, which sells personalised jewellery.
More than 4,000 businesses operate through the site offering a total of 100,000 items. The site was set up by Holly Tucker, 36, and Sophie Cornish, 46, as an online arts and crafts community. More than 80 per cent of the sites on the hub are female run, according to the Mail on Sunday.
Posh Totty, founded by Alice Rivers-Cripps, 35, began selling on NotOnTheHighStreet five years ago when it ran a small shop in Brighton and now has two stores employing 16 people.
Tucker began holding meetings and webinars for the firms on the site in May to establish and overcome what issues they might face over the festive season.
'We also encourage retailers to develop products in new areas and across different departments so they are not too dependent on one area or period of time,' she said.
NotOnTheHighStreet charges 25 per cent commission for goods sold through the site and is working on plans to launch other online departments.
The millionaire businesses include Letterfest, set up by Wendy Harrison, 40, in Barnstaple, Devon, selling personalised pebbles, slates and art prints, and Posh Totty Designs, which sells personalised jewellery.
More than 4,000 businesses operate through the site offering a total of 100,000 items. The site was set up by Holly Tucker, 36, and Sophie Cornish, 46, as an online arts and crafts community. More than 80 per cent of the sites on the hub are female run, according to the Mail on Sunday.
Posh Totty, founded by Alice Rivers-Cripps, 35, began selling on NotOnTheHighStreet five years ago when it ran a small shop in Brighton and now has two stores employing 16 people.
Tucker began holding meetings and webinars for the firms on the site in May to establish and overcome what issues they might face over the festive season.
'We also encourage retailers to develop products in new areas and across different departments so they are not too dependent on one area or period of time,' she said.
NotOnTheHighStreet charges 25 per cent commission for goods sold through the site and is working on plans to launch other online departments.
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