Shop Direct customers migrate online

HOME Shopping giant Shop Direct Group, which owns the Littlewoods, Woolworths, Great Universal and Kays brands, has reported bumper sales of £1.7bn having refocused the business on the internet.

The Liverpool-based group, which has been restructuring to respond to the growing trend to shop from home using the internet, saw sales rise 7.4% to £1.7bn for the year to the end of April 2009.

Online sales were up 31%, and now account for 49% of total group sales, compared with 38% of sales a year ago. The group added that it was on track for 70% of sales to be online by 2010.

Chief executive Mark Newton-Jones said: “We have continued to make great strides in the restructuring of our business, responding to our customers’ needs as more of them choose to shop online. This approach has delivered significant growth for the group.”

But Mr Newton-Jones was more cautious about the company’s performance during the current financial year and, following last year’s £18m advertising and marketing campaign, said it would continue to invest in multi-channel advertising during 2010.

He said: “We have continued to show growth in our online performance since May but are mindful of the tough economic climate we are facing and as such we remain cautious about the outlook for the remainder of 2009 and 2010.”

In August the group launched Littlewoodseurope.com, which offers more than 250 fashion brands and own-label products, toys, homewares and electrical goods to customers in France, Germany, Spain and Portugal, particularly the ex-patriot community.

In June it relaunched the Woolworths brand online after the collapse of the high street retailer.

Mr Newton-Jones said: “Since the start of the new financial year in May, we have been busy reinvigorating the Littlewoods brand at home, whilst also taking it into Europe through France, Spain and Germany, as well as launching our fashion brand VERY.co.uk and bringing the Woolworths and Ladybird businesses online.”