Ted Baker and Joules say their multichannel models mean they are well-placed as fashion sales shift online, as identified by Forrester research this week.
Ted Baker said its multichannel model enables its customers to engage with it in the way that they want to – with the result that a third of its retail sales took place online in the 16 weeks to December 1.
Ecommerce sales increased by 18% over the period – and accounted for 30.3% of retail sales at the retailer, ranked Top250 in IRUK Top500 research. That’s up from 26.3% at the same time last year. Wholesale was down by 6.5% as deliveries were made earlier than usual. Overall, retail sales including ecommerce rose by 2.3% during the period. In the last eight weeks of the period, retail sales increased by 4% as, said Ted Baker, “the weather became more typical for the season.” That period also covers Cyber Week and Black Friday. The retailer said that trade in the UK, Europe and the East Coast of America had been affected by unseasonal weather, while, it said, “trading in the UK continues to be impacted by the well-publicised challenges facing some of our trading partners.”
“We are pleased with the brand’s continued expansion, which is a reflection of the strength of the Ted Baker brand and the design and quality of our collections,” said Ray Kelvin, founder and chief executive of Ted Baker.
“The investment in our flexible business model ensures that the Ted customer has multiple channels to engage with the brand and underpins our long-term development. Our global ecommerce business continues to grow well and is complemented by our digital marketing strategy and unique stores that showcase the brand.”
The retailer also said that it had appointed a law firm, Herbert Smith Freehills, to investigate concerns of forced hugging at the company.
Almost half of all retail sales at Joules took place online in the first half of its financial year, the retailer, rated Top150 in IRUK Top500 research, said this week. In a pre-close trading update the retailer said that after performing “particularly well” during the first half of its financial year, ecommerce accounted for almost 50% of all its retail sales. Group sales came to £113.1m in the 26 weeks to November 25, up by 17.6% on last time, while retail sales, including ecommerce, reached £79.9m, up by 21.2% on last time.
Wholesale revenues, of which around half are made overseas, benefited from “strong growth in our target international markets, the US and Germany”.
Colin Porter, chief executive, said: “In the UK, our ‘total retail’ cross-channel model, underpinned by investment in infrastructure, has proven to be well suited to today’s rapidly changing consumer shopping behaviours. In addition, our international wholesale business continues to make excellent progress by both increasing sales to existing accounts and developing new accounts.
“We have an outstanding brand, good momentum and a growing customer base and we look forward to the second half of the financial year with confidence.”
The research context
The updates came as Forrester research into online fashion retail sales showed fashion sales moving online much faster than other sectors. It said the category was much more mature online than other sectors, with 911m people, or 31% of all online shoppers, set to buy fashion over the internet by 2022. By that date, online fashion sales are predicted to reach $765bn, accounting for 36% of total fashion sales around the world.
The UK, said the report, leads Europe for its online fashion sales, ahead of Germany. Fashion sales in this market are ahead of the 15% online share seen around the world.
“Fashion is the second-largest retail category after grocery. A quarter of clothing, accessories, and footwear spending already occurs online and is still rapidly growing,” said senior analyst Satish Meena.
Image courtesy of Joules