Online offer delivers big sales increase

Jan 10 2009 by Alex Turner, Liverpool Daily Post

HOME shopping group Shop Direct yesterday announced significantly improved sales for the Christmas trading period.

The Speke-based retailer delivered more than 7m items in the six weeks to January 2 as it increased like-for-like sales by 9%. The growth was led by ladies’ fashions and electrical products, including electronic games and toys.

The group sells online and through its catalogue brands which include Littlewoods, Kays and Great Universal.

It has increasingly focused on its online operations and this strategy, backed by multi-million pound advertising campaigns, is bearing fruit. An average of 1m shoppers visited the group’s sites every day during the Christmas period.

Shop Direct chief executive Mark Newton-Jones said: “We are pleased with our trading performance during the Christmas period and particularly with the continued growth of our online business as this becomes the shopping channel of choice for many of our new and existing customers.”

During the Christmas period, online sales accounted for 56% of revenues compared with 38% for the last financial year, to April 2008. It has an online sales target of 70% by 2010/11.

Shop Direct has invested in restructuring the business to become an online-led retailer with one benefit being able to offer a deadline for Christmas delivery of 4pm on December 23.

However there have been costs as the firm cut 70 management positions in October as part of the changes. It employs 1,600 people at its head office at Speke’s Estuary Commerce Park.

Shop Direct said it will continue to develop its offer in 2009 but Mr Newton-Jones expects conditions to remain difficult for retailers.

“We believe the retail outlook in 2009 will be difficult,” he said.

alex.turner