Chinese online retail giant Alibaba may list its business in New York as part of an attempt to balance its business in favour of management control over investors.
According to the Financial Times newspaper today, the Alibaba Partnership, led by 20 senior executives, want to ensure the board maintain control of the direction of the business as it prepares for a $60 billion stock exchange listing. They want to be able to appoint a majority of board members in order to do so.
The Financial Times says that would allow the Partnership 'to ensure that in difficult times investors will not be able to derail the company from its chosen path.'
The tussle for control ahead of a listing could mean Alibaba chooses New York over Hong Kong, where a fight is brewing as some seek to defend the principles of investor protection.
But both sides could end up regretting a New York listing, says the FT, where executives would face responsibilities far from home and the nerve centre of the business. It would also tie them into 'an accounting environment that demands high and voluminous disclosure on a quarterly basis'.
In turn, Hong Kong could lose the largest and most high profile listing since insurance group AIA, it said.
The FT says: 'For China too, the outcome would be difficult to bear. That is not only because one of its most successful private enterprises would be making its financial home elsewhere, but also because Alibaba has become the single most important repository of pricing and consumer information in the economy. If China wants to understand inflation, it often looks to Alibaba.'
Monday, 9 September 2013
Appliances Online 'Joins The Rush To Go Public'
Online delivery giant Appliances Online has selected advisers as it paves the way for a flotation on the London Stock Exchange.
The firm has appointed investment banks JP Morgan and Jefferies to help prepare the plan that could be completed by the end of the year, Sky News said last night. It is estimated the firm would be worth £300 million.
That would make it the third biggest online retail pure-play on the London Stock Exchange after food delivery firm Ocado and fashion site Asos.
The flotation of AO.com, known as Appliances Online until its rebranding launched back in May and completed a few weeks ago, joins a number of large firms expected to join the markets in the coming weeks and months.
Internet retailers including Boohoo.com are understood to be considering plans to raise money on the exchange. There is also major activity among big firms including The Royal Mail, expected to float by the end of this month, Zoopla and Saga.
AO.com is owned by entrepreneur John Roberts via his DRL Limited group. Sales in the year to March increased 82 per cent to £274 million and it employs 400 staff. It is also expected to have benefited from the demise of Comet last year.
AO.com 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. A float could net Roberts £60 million.
The firm has appointed investment banks JP Morgan and Jefferies to help prepare the plan that could be completed by the end of the year, Sky News said last night. It is estimated the firm would be worth £300 million.
That would make it the third biggest online retail pure-play on the London Stock Exchange after food delivery firm Ocado and fashion site Asos.
The flotation of AO.com, known as Appliances Online until its rebranding launched back in May and completed a few weeks ago, joins a number of large firms expected to join the markets in the coming weeks and months.
Internet retailers including Boohoo.com are understood to be considering plans to raise money on the exchange. There is also major activity among big firms including The Royal Mail, expected to float by the end of this month, Zoopla and Saga.
AO.com is owned by entrepreneur John Roberts via his DRL Limited group. Sales in the year to March increased 82 per cent to £274 million and it employs 400 staff. It is also expected to have benefited from the demise of Comet last year.
AO.com 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. A float could net Roberts £60 million.
Sunday, 8 September 2013
Mobile Shopping Transactions Double In A Year
The number of transactions completed on mobile devices has doubled in a year according to the latest figures from the online retail industry body, the IMRG.
In the second quarter of this year the number of online transactions completed on gadgets such as smartphones and tablets has grown to 23.2 per cent, from 11.6 per cent in the same period a year before.
According to the survey, done in partnership with management consultancy Capgemini, the number of page visits from mobiles in the period was even higher at 34 per cent, from 21.1 per cent a year earlier.
The survey has been undertaken for three years now during which time the number of transactions has grown by more than 2,000 per cent and the number of visits by 1,100 per cent. At the beginning of 2010 over 97 per cent of retail site access was through a desktop.
But the downside is that bounce rates from sites - customers quickly abandoning their shopping trips - have increased as shoppers get more demanding. From 21.7 per cent in 2010, 23.7 per cent in 2011, to a high of 27 per cent in 2012. The rate so far this in 2013 is slightly lower at 26 per cent.
'There appears to be a correlation between the surge in mobile commerce over the past 3 years and the rise in visitor bounce rates on e-retail websites. While consumers have generally become more confident in using their mobile devices as a shopping tool, the latest data suggests they have also become more demanding,' said Tina Spooner, chief information officer at the IMRG.
'Higher search volumes will inevitably result in an increase in bounce rates as shoppers will often compare products and pricing across several brands. However, by offering an engaging and relevant experience for customers across all channels retailers will ultimately achieve the end goal of higher conversion rates and an increase in customer loyalty,' she said.
There was also a significant rise in click and collect sales in the second quarter - which for the purposes of the survey runs from May to July. Click and collect rates increased by 33 per cent to 16 per cent of all online sales, from 12 per cent in the period last year.
'The record high levels of online sales via mobile devices corresponds with record high rates for click and collect, which now stands at 16% of all eCommerce orders. This correlation of mobile ordering and location flexible collection is at the heart of the mobile internet and the impact it will have on consumer behaviour. Maybe we are truly entering the Martini age - anytime, anyplace, anywhere,' said Chris Webster, vice president of consumer products and retail at Capgemini.
In the second quarter of this year the number of online transactions completed on gadgets such as smartphones and tablets has grown to 23.2 per cent, from 11.6 per cent in the same period a year before.
According to the survey, done in partnership with management consultancy Capgemini, the number of page visits from mobiles in the period was even higher at 34 per cent, from 21.1 per cent a year earlier.
The survey has been undertaken for three years now during which time the number of transactions has grown by more than 2,000 per cent and the number of visits by 1,100 per cent. At the beginning of 2010 over 97 per cent of retail site access was through a desktop.
But the downside is that bounce rates from sites - customers quickly abandoning their shopping trips - have increased as shoppers get more demanding. From 21.7 per cent in 2010, 23.7 per cent in 2011, to a high of 27 per cent in 2012. The rate so far this in 2013 is slightly lower at 26 per cent.
'There appears to be a correlation between the surge in mobile commerce over the past 3 years and the rise in visitor bounce rates on e-retail websites. While consumers have generally become more confident in using their mobile devices as a shopping tool, the latest data suggests they have also become more demanding,' said Tina Spooner, chief information officer at the IMRG.
'Higher search volumes will inevitably result in an increase in bounce rates as shoppers will often compare products and pricing across several brands. However, by offering an engaging and relevant experience for customers across all channels retailers will ultimately achieve the end goal of higher conversion rates and an increase in customer loyalty,' she said.
There was also a significant rise in click and collect sales in the second quarter - which for the purposes of the survey runs from May to July. Click and collect rates increased by 33 per cent to 16 per cent of all online sales, from 12 per cent in the period last year.
'The record high levels of online sales via mobile devices corresponds with record high rates for click and collect, which now stands at 16% of all eCommerce orders. This correlation of mobile ordering and location flexible collection is at the heart of the mobile internet and the impact it will have on consumer behaviour. Maybe we are truly entering the Martini age - anytime, anyplace, anywhere,' said Chris Webster, vice president of consumer products and retail at Capgemini.
Saturday, 7 September 2013
Asos Hires New Sourcing Director From Blacks
Online fashion phenomenon Asos has poached Simon Platts from outdoor group Blacks.
Platts, who joins as sourcing director, had been head of buying for clothing and accessories at Blacks and Millets since February last year. Blacks and its sister chain Millets are owned by sports wear group JD.
Platts, who has also worked at clothing suppliers Blue Method and Lazzati UK, joined Asos at the end of last month.
He joins as Asos bolsters its management team following a series of departures and amid suggestions that it aims to get a place in the FTSE 100.
Platts, who joins as sourcing director, had been head of buying for clothing and accessories at Blacks and Millets since February last year. Blacks and its sister chain Millets are owned by sports wear group JD.
Platts, who has also worked at clothing suppliers Blue Method and Lazzati UK, joined Asos at the end of last month.
He joins as Asos bolsters its management team following a series of departures and amid suggestions that it aims to get a place in the FTSE 100.
Almost A Quarter Of UK Clothing Now Sold Online, Says BRC's New Online Sales Monitor
A new measure of online sales launched by Britain's main retail industry body suggests that the internet now accounts for almost a quarter of clothing sales.
The BRC-KPMG Online Retail Sales Monitor shows that sales over the internet accounted for 22.5 per cent of fashion sales last month, a rise from 19.7 per cent in the same month last year. Footwear sales grew to 23.4 per cent from 20.5 per cent in the same month last year, according to a report in Retail Week.
The monitor includes 50 retailers representing about 30 per cent of non-food sales online.
Online non-food sales increased 15 per cent in August compared to an increase of just 4.8 per cent last year, a record low blamed on the Olympics. The BRC said online sales now make up 16.4 per cent of all sales.
The BRC-KPMG Online Retail Sales Monitor shows that sales over the internet accounted for 22.5 per cent of fashion sales last month, a rise from 19.7 per cent in the same month last year. Footwear sales grew to 23.4 per cent from 20.5 per cent in the same month last year, according to a report in Retail Week.
The monitor includes 50 retailers representing about 30 per cent of non-food sales online.
Online non-food sales increased 15 per cent in August compared to an increase of just 4.8 per cent last year, a record low blamed on the Olympics. The BRC said online sales now make up 16.4 per cent of all sales.
Friday, 6 September 2013
Majestic Wine Gears Up New Website For Five Year Plan
Majestic Wine plans to revamp its web site to allow more flexibility as it prepares to grow the business over the next five years.
The site will allow customers better access to stock availability in local stores, a second store-front for its French business and to provide better product recommendations including blogs, videos and wine guides.
Majestic Wine has selected Intershop as its e-commerce platform provider and Javelin Group as its systems integrator.
Majestic Wine e-commerce director Richard Weaver said the solution needs to fit the business 'today and for future growth'.
'We wanted a best-of-breed product capable of meeting our requirements from a vendor which continues to invest in and develop its solutions. Intershop’s comprehensive content management system and simple back-end tools impressed us. Furthermore, Intershop’s platform is not resource hungry, which was a pleasant surprise given all the functionality available,' he said.
As part of a closer integration with local stores the system will fit with Fredhopper, the selected search an navigation solution for its delivery network.
House Of Fraser Puts Shoppers in a 'Virtual Queue' - To Encourage More Shopping
House of Fraser has launched a ‘virtual queuing’ system at its City of London store that encourages its Buy & Collect shoppers to browse the store while waiting for their orders.
Multi-channel director Andy Harding said the service was being tested at the store to allow time-poor shopper to maximise their time in the shop while waiting for orders to be prepared for collection rather than waiting in a queue.
Upon arrival customers go to a self-service kiosk located on the ground floor of the department store. they are then sent a text message with an estimated waiting time and a link to a count-down. Customers can then browse the store before heading for the third floor collection desk when the order is ready.
Harding said: 'This is a new technology to the retail market, and it demonstrates our strategy to continually evolve and differentiate our customer service offering.'
'We have selected our London City store as the trial location because we know queues at the Buy & Collect service desk can be lengthier at peak times due to the high volume of online shoppers who work in the city’s business district.'
He said: 'We believe this trial will help to improve customer experience among our Buy & Collect shoppers and in turn have a long term effect on increasing customer retention.
'Early signs are that customers enjoy the experience and prefer to be given the option to browse the store or enjoy a coffee rather than wait in a queue. Following the trial, we will use the feedback gained from both customers and staff to develop the experience before implementing the service across the portfolio.'
Multi-channel director Andy Harding said the service was being tested at the store to allow time-poor shopper to maximise their time in the shop while waiting for orders to be prepared for collection rather than waiting in a queue.
Upon arrival customers go to a self-service kiosk located on the ground floor of the department store. they are then sent a text message with an estimated waiting time and a link to a count-down. Customers can then browse the store before heading for the third floor collection desk when the order is ready.
Harding said: 'This is a new technology to the retail market, and it demonstrates our strategy to continually evolve and differentiate our customer service offering.'
'We have selected our London City store as the trial location because we know queues at the Buy & Collect service desk can be lengthier at peak times due to the high volume of online shoppers who work in the city’s business district.'
He said: 'We believe this trial will help to improve customer experience among our Buy & Collect shoppers and in turn have a long term effect on increasing customer retention.
'Early signs are that customers enjoy the experience and prefer to be given the option to browse the store or enjoy a coffee rather than wait in a queue. Following the trial, we will use the feedback gained from both customers and staff to develop the experience before implementing the service across the portfolio.'
Thursday, 5 September 2013
Dixons Ejects Loss Making Pixmania Business
Electricals retailer Dixons has agreed to hive off its loss-making pure-play e-commerce business Pixmania.
German industrial group Mutares will buy the firm alongside a payment of €69 million (£58 million) from Dixons. Paris-based Pixmania lost £31 million in the year to April.
Dixons chief executive Sebastian James said: 'I am a passionate believer that Dixons succeeds where we offer our customers a fully integrated multi-channel proposition and where we are the market leader.
'In order to succeed as a pure play e-tailer, Pixmania needs a different kind of entrepreneurial vigour. I am therefore delighted that we have found a potential solution that offers the prospect of a good future for Pixmania outside the Group.
'The Mutares Group has a solid track record of improving and turning businesses around as well as experience of doing business in France. If the transaction progresses, they will acquire Pixmania with a well funded balance sheet and an excellent management team,' he said.
Like-for-like sales at Dixons' UK stores and internet business - which includes Currys and PC World - rose 6 per cent. Group like-for-like sales, including rapid declines from Pixmania, rose 2 per cent.
James said: 'Against some very good comparables last year, and despite a July that was sizzling in Northern Europe and chilly in Southern Europe - affecting electronics and air conditioning sales respectively for that month - we have had an encouraging start to the year. Margins have held up reasonably well across the Group.'
German industrial group Mutares will buy the firm alongside a payment of €69 million (£58 million) from Dixons. Paris-based Pixmania lost £31 million in the year to April.
Dixons chief executive Sebastian James said: 'I am a passionate believer that Dixons succeeds where we offer our customers a fully integrated multi-channel proposition and where we are the market leader.
'In order to succeed as a pure play e-tailer, Pixmania needs a different kind of entrepreneurial vigour. I am therefore delighted that we have found a potential solution that offers the prospect of a good future for Pixmania outside the Group.
'The Mutares Group has a solid track record of improving and turning businesses around as well as experience of doing business in France. If the transaction progresses, they will acquire Pixmania with a well funded balance sheet and an excellent management team,' he said.
Like-for-like sales at Dixons' UK stores and internet business - which includes Currys and PC World - rose 6 per cent. Group like-for-like sales, including rapid declines from Pixmania, rose 2 per cent.
James said: 'Against some very good comparables last year, and despite a July that was sizzling in Northern Europe and chilly in Southern Europe - affecting electronics and air conditioning sales respectively for that month - we have had an encouraging start to the year. Margins have held up reasonably well across the Group.'
Wiggle Hires Food Executive Barden As Its New Chief
Cycling and bikes website Wiggle has hired a new chief executive as Humphrey Cobbold prepares to leave.
Stefan Barden previously worked at food service company Brake Bros, owned by private equity firm Bain Capital, and was chief executive of stock market-listed Northern Foods for five years previously. He worked at Brakes for 12 months until January last year.
Wiggle said, following discussions over the summer with Cobbold, 'the time is now right for a transition to new leadership.'
Cobbold has worked at Wiggle for four years increasing sales more than fourfold to £140 million. During that time it considered a stock market listing.
Cobbold said: 'I have had the privilege to work with a truly fabulous group of colleagues and business partners over the last four years. The time is now right for someone else to lead the peloton and take Wiggle forward to future success.'
Wiggle chairman Andy Bond said: 'We’re very pleased to welcome a new leader of the company whose experience includes many senior roles in industries with a strong customer service ethic.
'Stefan’s international experience and leadership of large-scale businesses will be especially relevant during this next phase of our geographic expansion as the business invests in the build-out of its operations as well as in its infrastructure and customer experience.'
In July, Wiggle revealed a 20.8 per cent sales rise to £140.8m for the year to February.
Stefan Barden previously worked at food service company Brake Bros, owned by private equity firm Bain Capital, and was chief executive of stock market-listed Northern Foods for five years previously. He worked at Brakes for 12 months until January last year.
Wiggle said, following discussions over the summer with Cobbold, 'the time is now right for a transition to new leadership.'
Cobbold has worked at Wiggle for four years increasing sales more than fourfold to £140 million. During that time it considered a stock market listing.
Cobbold said: 'I have had the privilege to work with a truly fabulous group of colleagues and business partners over the last four years. The time is now right for someone else to lead the peloton and take Wiggle forward to future success.'
Wiggle chairman Andy Bond said: 'We’re very pleased to welcome a new leader of the company whose experience includes many senior roles in industries with a strong customer service ethic.
'Stefan’s international experience and leadership of large-scale businesses will be especially relevant during this next phase of our geographic expansion as the business invests in the build-out of its operations as well as in its infrastructure and customer experience.'
In July, Wiggle revealed a 20.8 per cent sales rise to £140.8m for the year to February.
Wednesday, 4 September 2013
Gant Relaunches UK Website For Mobile Shoppers
Clothing brand Gant has relaunched its UK website to make it easier for shoppers to use from smartphones and tablets.
Gant’s UK managing director Fergus Patterson said the site already represents a ‘very significant percentage of our UK business’ and said the relaunch is part of a plan to make shopping at the brand ‘seamless’.
The brand is also launching a click-and-collect service that will be available on checkout making collection possible from the Regent Street store or 15 destinations worldwide.
He said: 'We know that a large proportion of our customers shop with us using mobile browsing technology and we want to ensure we give those customers a consistent browsing experience, so that shopping with Gant online is as enjoyable and as seamless as possible.'
Gant moved its UK and Swedish sites to a new operating platform last September. It is currently launching its New York-themed autumn collection into stores.
The brand’s UK business was the first Gant territory to launch a transactional site in 2009. Patterson, who joined in December last year, said that made it one of the first brands in the UK to operate a transactional website.
Gant’s UK managing director Fergus Patterson said the site already represents a ‘very significant percentage of our UK business’ and said the relaunch is part of a plan to make shopping at the brand ‘seamless’.
The brand is also launching a click-and-collect service that will be available on checkout making collection possible from the Regent Street store or 15 destinations worldwide.
He said: 'We know that a large proportion of our customers shop with us using mobile browsing technology and we want to ensure we give those customers a consistent browsing experience, so that shopping with Gant online is as enjoyable and as seamless as possible.'
Gant moved its UK and Swedish sites to a new operating platform last September. It is currently launching its New York-themed autumn collection into stores.
The brand’s UK business was the first Gant territory to launch a transactional site in 2009. Patterson, who joined in December last year, said that made it one of the first brands in the UK to operate a transactional website.
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