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BrandAlley reports sales surge driven by mobile shopping

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Private sales etailer BrandAlley has reported a 20% jump in revenues over the first half of 2012 to £14m – with the leap in sales coming from mobile shopping.

In February, the retailer launched its first mobile site, creating a revenue stream expected to be worth over 20 per cent of sales in 2012.

Already over a million shoppers regularly visit the m-commerce site, many “commuter shoppers” who now browse and purchase on the site between 7am and 9am during the work commute, while the highest spender with the largest average basket size shops online from 7pm.

Average basket size for BrandAlley has increased 21 per cent over the period to £76 and the group believes that this is thanks to a strengthening of its offering across homewares, fashion and beauty.

BrandAlley CEO Rob Feldmann said: “We are very pleased with our results so far this year in what continues to be a difficult market.

“We are reaching a critical point in our growth, heading towards a profitable business with strengthening margins and the best variety and quality of sales for our loyal customers.”

Many retailers reported poor results in June as wet weather dampened the spirits of cautious consumers, but BrandAlley saw a 60 per cent rise in unique visitors as shoppers favoured online shopping during the wet period.

As the Olympics brings thousands of visitors to the country, the retailer is also predicting a “significant uplift in sales” as Londoners choose to work from home during the busy period.

In May, BrandAlley launched a discount outlet to run alongside its private sales which saw its product offering expand across gifting, sports equipment and books as it broadened its scope following an increase in member numbers to over 2.5 million.

Fedlmann said that the new strategy is aimed at reaffirming the retailer’s unique proposition.

The private sales model was a complete unknown when we first launched. We have really opened up a new way of shopping for the online shopper and a profitable way for brands to sell their stock,” he said.

“We now see strong growth coming through mobile with many customers shopping on the site on their way into work to avoid missing popular sales.”

Last year the etailer saw sales rise 60 per cent to £28.9m and the Outlet aims to further build its offering.

“Flash sales remain core to our business model but Outlet will be a great addition to complement our sales and add an extra offering for both our members and the brands we sell on our site,” said Melissa Littler, BrandAlley’s marketing and PR director.

“Already we have seen basket sizes grow 10%, with members buying a mix of products from the daily sales and our Outlet.”

In January, the etailer announced that it had increased its number of members, with over 2.5 million consumers now signed up to the site.

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