Boohoo.com and Shoezone: multichannel strategy updates
Boohoo.com today announced sales up by more than a third in the first quarter of its financial year.
The fast fashion pureplay, a Top100 retailer in IRUK Top500
research, reported total sales of £58.2m in the three months to May 31, 41% up on the same time last year, or 42% up at constant exchange rates. In the UK, sales of £37.4m were 42%, while rest of Europe sales of £6.9m were 43% up at constant exchange rates, and rest of world sales up by 40% at £13.9m, on the same basis.
Joint chief executives Mahmud Kamani and Carol Kane said international sales now accounted for 36% of sales, while at home, sales through third-party retailers supported a strong UK performance. At the same time, active customer numbers grew by 30% on last year.. "Profitability has improved as marketing expenditure, as a percentage of revenue, has been reduced, in line with our strategy of improving the customer proposition to build customer lifetime value.
"We continue to broaden our product range, increase our fashion appeal and offer incredible prices. Active customer numbers, order frequency and conversion continue to climb."
They said they would continue to invest in the ecommerce platform "to deliver a market-leading shopping experience for fashionable product at incredible prices".
• Meanwhile, Shoezone set out its multichannel strategy as it reported first-half results. It said its mobile-first strategy would continue to be the "primary focus of our digital strategy" after a period in which 70% of visits to the responsive website were not from desktop computers. Revenue from the non-desktop – presumably mobile – channel now accounts for more than half of online revenue.
The footwear discounter, a Top150 retailer in the IRUK Top500 research, has also invested in a new online fulfilment area at its Leicester distribution centre that it says will enable it to grow ecommerce sales without presenting any logistical challenges. Overall, multichannel revenues grew by 10% during the first half of the year, contributing more to sales growth than the average high street store. Sales via Amazon now represent 25% of multichannel revenue, while eBay sales account for 10%.
The update from Shoezone, which sells online via shoezone.com and through 518 stores, came as it reported a 4.6% fall in sales in the six months to April 2, to £74.6m, from £78.2m last time, following the closure of 23 loss-making and temporary stores. Pre-tax profits of £1.9m were down 5% from £2m last time.
Anthony Smith, chief executive of Shoe Zone , said: "We have continued to make good progress with our store portfolio upgrade and rationalisation programme and I am pleased with the performance of the group in what was another difficult period for the clothing and footwear industry."