Tag: Retailing

UK retail sales fall for first time in two years

Posted by | Apr 16, 2008 | |

UK retail sales fell by 1.6% in March 2008, despite the early Easter, according to the latest figures from the British Retail Consortium (BRC).

The fall in like-for-like sales, compared with March 2007, was the worst since July 2005.

The squeeze on retailers helped contain inflation, with official figures also out today showing the consumer prices index remaining static last month at 2.5%.

The BRC said that although comparisons were difficult because of the early Easter, poor weather and staggered school holidays, “the additional spending for Easter being in March this year but in April last year would normally be expected to result in a year-on-year increase in sales.”

Food sales slowed after two strong months and clothing and footwear were the worst for at least eight years.

BRC director general Stephen Robertson said: “This is the first year-on-year fall in like-for-like sales for two years and the worst result for nearly three years.

“Here is the strongest evidence yet that customers are making serious economies and are increasingly concerned about the future. With recent retail profit warnings, it is further proof that trading is extremely tough but retailers are fighting back by keeping prices low and delivering extra value.

“Almost every sector except food saw sales down on a year ago. It’s clear customers are concentrating on essentials.”

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US online retail spending to rise – study

Posted by | Apr 10, 2008 | |

A new study from Forrester Research predicts that despite the current economic gloom, online retail spending by US consumers will rise by 17% this year to USD 204 billion.

The study of 125 retailers for Shop.org, the online arm of the National Retail Federation, found apparel is likely to be the largest online sales category in 2008, accounting for an expected USD 26.6 billion. This is followed by computers at USD 23.9 billion, and autos at USD 19.3 billion.

But Scott Silverman, executive director, Shop.org, warns that despite the bullish predictions, e-retailers are still vulnerable to the economic situation.

“From higher shipping costs to changes in consumer shopping habits, online retailers are not immune to the current economic climate,” he says.

However the report does say that growth in the online retail market will slow as the number of people new to the Internet begins to wane and retailers struggle to decide whether to invest in strategies that retain current customers or those that attract new ones. According to the study, online retailers allocate 53% of their marketing budgets to customer acquisition and 21% to retention.

The research also suggests that online retailers will increasingly look to social networks to attract new customers. Of those questioned, 65% say they will increasingly focus on social network advertising and 55% will turn to widgets.

But Forrester strikes a note of caution, claiming social networks have been considered more effective for brand-building and less proven for driving revenue or sales conversion. Therefore retailers need to continue investments in proven techniques like e-mail marketing and free shipping promotions to drive sales.

Search engine marketing continues to be the most effective way to reach new customers, accounting for 35% of online sales. But one technique that looks to be losing favour is the offer free shipping to customers. While 85% of online retailers say they used some shipping promotions in the past, just 35% say they will focus more on these types of offers in 2008.

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Arcandor Sees Russia Becoming Top Mail-Order Market

Posted by | Apr 8, 2008 | |

Arcandor AG, the owner of Karstadt department stores and the Quelle catalog company, said Russia may become its largest overseas mail-order market next year as sales surge in the country.

The retailer’s annual sales in Russia may reach 1 billion euros (USD 1.58 billion) in 2013, said Marc Sommer, the head of Arcandor’s Primondo mail-order unit. Primondo’s Russian sales may rise 57 percent to USD 180 million this year and will increase by about 60 percent annually through 2010, he added.

“The mail-order market is undergoing a boom in Russia,” Sommer said today at a press conference in Moscow. “People begin to realize how convenient it is to order by catalog and get goods delivered to your home.”

Arcandor’s Russian mail-order sales have more than doubled annually since it entered the market with Quelle in 2005. Russia’s apparel and footwear market will increase by 16 percent to 37 billion euros this year and may reach 55 billion euros in 2011, Sommer said today at a company presentation.

“People are buying European fashion very eagerly,” Sommer said. Rising incomes in Russia, the world’s biggest energy supplier, fuel consumer spending and lure international companies such as Inditex SA, Europe’s largest clothing retailer, and Stockmann Oyj, a Finnish department-store company. Hennes & Mauritz AB plans first Russian stores in 2009.

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Grocery websites drive UK online sales growth

Posted by | Apr 1, 2008 | |

Sophisticated web offerings from the UK’s grocery retailers are driving the growth of internet retailing in this country, making it the fastest growing online market in Europe, according to a new report from Mintel.

The report found UK online sales were worth euro 18.5bn (GBP 12.8bn) last year, compared with just euro 13bn in Germany, the next largest market.

And the UK was also the fastest growing market with sales up by 75% since 2005.

“The UK has by far and away the most developed online market in Europe,” said Richard Perks, director of retail research at Mintel.

“The main reason for this is the sophisticated online offering of the UK’s food retailers and the fact that so many of us now more than happy to turn to the internet to do our weekly shop.”

Tesco is the largest online food retailer in Europe, says Mintel, with www.tesco.com more than twice the size of its nearest rival (www.ooshop.fr) run by Carrefour.

Meanwhile, the latest figures from IMRG Capgemini showed a record GBP 4.3bn was spent online during February 2008.

Beers, wines and spirits saw a rise of 38%, perhaps in anticipation of the higher alcohol taxes announced in March’s Budget.

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Personnel changes on the Managing Board of HUGO BOSS

Posted by | Mar 5, 2008 | |

The Supervisory Board of HUGO BOSS AG and Dr. Werner Lackas who has been the Managing Board member responsible for Purchasing, Production, and Logistics since October 1, 1997, have agreed that Dr. Lackas will leave the Managing Board of the Company as of today’s date. Dr. Lackas will be leaving on excellent terms in a move supported by all concerned. The Supervisory and Managing Boards of HUGO BOSS AG wish to thank Dr. Lackas for his many years of successful service for the Company.

Hans Fluri has now been appointed Managing Board member responsible for Purchasing, Production, and Logistics. Mr. Fluri will take up his post as Chief Operating Officer (COO) effective immediately.

Hans Fluri can look back on three decades of international management experience. Until the end of February 2008, he was CEO of Deutscher Paket Dienst (DPD) and DPD GeoPost Deutschland as well as a member of the Group Management Board of the French parent company, GeoPost S.A. Mr. Fluri has an extensive background in the brand name and consumer goods areas. He led Philip Morris Deutschland to market leadership as a member of the Management Board of the consumer goods group. From 1993 to 1999, Mr. Fluri was president of Philip Morris Eastern Europe, where he was in charge of establishing and developing the business in the former Soviet block. After this, he successfully headed up Philip Morris’ European business as president for four years, during which time he was also responsible for the global duty free business. All together, Mr. Fluri worked at Philip Morris for 24 years.

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