Monday, 13 January 2014

Shop Direct and Jaeger post online sales boost over Christmas

Online shopping
Jaeger and Shop Direct both got a boost from online shopping over Christmas. Photograph: Brian Jackson / Alamy/Alamy
The Barclay brothers' Shop Direct and fashion brand Jaeger have both reported big increases in online and mobile sales over Christmas.
Shop Direct, which Daily Telegraph owners Sir David and Sir Frederick Barclay own via their offshore family trust, reported record Christmas sales with online accounting for 84% of sales in the six weeks to 27 December. Overall sales were up 5% as growth of newer websites Very.co.uk and isme.com offset falling sales from the traditional Littlewoods business.
Alex Baldock, chief executive, said mobile sales had "just exploded" and purchases via a smartphone or tablet now accounted for 43% of online sales.
He said consumers were becoming much happier shopping on their phones and tablets despite having to make do with smaller screens than on desktops or laptops. "People look at it on the way to work, and continue on the bus," he said. "People quite often buy on the bus, buy in the queue at McDonalds. People are even prepared to buy furniture through their mobile."
Baldock said the company, which returned to profit last year for the first time in a decade, was "ahead of sales and profit targets". The company is involved in a long-running dispute over a decades-long £1bn VAT and interest claim.
He described the company's "bullseye customer" as a "25-year-old plus female, aspiring and striving".
Colin Henry, chief executive of Jaeger, described his customers as an "affluent demographic" of mostly older women, but has also been struck by their desire to shop online and on mobile.
Online sales in the 13 weeks to 28 December were up 57%, and 30% of that was from mobiles. He said he expected all transactions to include a mobile device at some point in the browsing and sales process by next year.
Like-for-like sales were up 23% compared with the same period last year and Henry said the business, which lost £13.1m last year and £35m the year before, is "going to lose much, much less money" this year.
Private equity tycoon Jon Moulton's Better Capital bought Jaeger, which dates back to 1884, from fashion entrepreneur Sir Harold Tillman in April 2012.
Henry said Moulton was "very inspirational with very clear objectives" and was often on the phone asking questions and offering advice.
He said they would look at the option of expanding the brand to new stores and countries when they have stabilised the company and returned it to profit.
Best sellers in the run up to Christmas were coats, knitwear and cashmere. Womenswear accounts for 70% of sales.
The company has brought in former Daks and Oscar de la Renta designer Sheila McKain-Waid as womenswear creative director, and Jsen Wintle, who previously ran his own popular Wintle label, to reinvent its menswear.

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