The Hut Group reported fast growth in 2011, with sales of £143m up by 70% on the previous year. It said 35% of its revenue now comes from international sales.
The group, which sells fast-moving consumer goods through sites including TheHut.com, Zavvi.com [IRDX RZAV], and Iwantoneofthose.com, said that 92% of its sales are made through its own sites. The remaining 8% is generated through sites and technology services such as loyalty reward schemes that it runs for clients such as DMGT, the Daily Mail group.
Chief executive Matthew Moulding said: “2011 has been another record year for The Hut Group. Our focus on delivering best in class value and service to our UK and international consumers has enabled the group to gain market share, particularly in the final quarter.
“Our business model positions us well against the backdrop of a challenging High Street retail environment and the continuing sales channel shift towards online retail and therefore the group is very well-placed to continue its high growth. Our focus for 2012 is on driving strong organic growth by further improving our service to our customers, continuing to expand our product range and increasing our international sales.”
Highlights of 2011, said The Hut Group, included 78m visits to its websites, and the acquisition of MyProtein.com in May, which contributed £16m to group sales in the seven months after it was bought.
Mentioned in this piece…
Zavvi was an entertainment retail chain in the United Kingdom and Ireland, originally Virgin Megastores. Zavvi was formed in September 2007 when a management buy-out team purchased the company from Richard Branson’s Virgin Group.
It was the UK’s largest independent entertainment retailer before being placed in administration on 24 December 2008. Store closures took place from January 2009, with the last to cease trading on 20 February. HMV purchased 19 Zavvi stores to be merged into the HMV chain. Former managing director Simon Douglas and business partner Les Whitfield purchased five of the stores to form Head Entertainment, all of which eventually closed in early 2009 after less than a year of opening. On 2 March 2009, The Hut Group relaunched the Zavvi website. (more…)