Online retailer The Hut Group has reported a 70% rise in sales after a “transformational” year that saw it launch six new sites, make three acquisitions, and create international sites for Zavvi in Spain and Holland.
The company said that sales grew from £51m to £87m in 2010, with organic sales rising by 57%. Its non-entertainment sites, specialising in areas from fashion and footwear to toys and gifts, saw even faster growth, at 600%. Entertainment sales rose by 45%.
During 2010 the company, whose sites include TheHut.com and Zavvi.com, also launched Mybag.co.uk, Gifted.com, Washbag.com, Intersport.co.uk, Sportdiscount.com and Allsole.com. It bought IWantOneofThose.com, LookFantastic.com and Mankind.co.uk, and launched Zavvi.es and Zavvi.nl. By the end of the year, to December 31, its customer database had grown from two million to six million.
Its busiest day so far came in December, when orders worth £1.8m were taken. On the busiest despatch day of the month, 160,000 parcels were shipped.
Matthew Moulding, chief executive, said: “2010 has been a transformational one for the group. We have been fortunate in significantly strengthening both the management team and the shareholder base during 2010, providing the platform to deliver substantial growth in a demanding consumer environment.”
That broadening of the shareholder base has included raising £32.5m from investors including Artemis, Balderton capital, William Currie Group and Angus Monro, former chief executive of Matalan who is now The Hut Group’s chairman.
Moulding said that in 2011 the company would focus on “strong organic growth by further improving the offering to our customers while delivering improved service.”
