Sales up but margins under pressure at online retailer

Online retailer Marks Electrical has delivered another jump in annual sales with revenues now having doubled in three years.

The kitchen appliance specialist increased sales by 17% to £114m in the year to March.

However it has previously said that its average order value is under pressure from “highly price-conscious” shoppers, and so volumes were growing faster than revenues.

Chief executive Mark Smithson said: “We are very pleased with the growth in our order volumes and new customer acquisitions during the period and the strong growth we have seen in early April, giving us confidence that our fundamental strategy of continued profitable market share gains and excellent customer service will help us in delivering further growth.”

Marks Electrical has just left the Euronics buying group so that it can “establish closer, direct relationships with its manufacturer partners”. It expects this will enable it to improve its margin “and is the next natural step in our growth ambitions”.