Catalogue E-Business Issue 170 June 09

News
Financials
Diversify or die?
Underlying proﬁ ts at Mothercare rose to
£37.1 million in the year to 28th March, helped
It’s no secret that many merchants are
by like-for-like sales growth of 1.4 percent in the
struggling in the current economy.
“Retailers will have to become more adept
UK and 6 percent internationally. The maternity
at spotting consumer trends early and
and nursery specialist’s performance was also
reacting to them, ﬂ exing product mixes
boosted by the beneﬁ ts of the integration of
toward more successful ranges,” advised
Early Learning Centre and “very tight control of Matthew Piner, retail analyst at Verdict
costs,” said a statement.
Research, in a release promoting a study
he co-wrote. “They will need to learn to
Group sales at consumer electronics retailer/
diversify sales into complementary areas
wherever possible.”
cataloguer Maplin rose 13.3 percent, to
Three direct merchants putting at least
£203 million in the year to 31st December.
some of this into practice are Isabella
Online sales grew 8 percent. Operating proﬁ t for
Oliver, Figleaves, and Clifford James.
the year was £33.3 million.
Isabella Oliver, known for its upscale
maternity apparel, in March launched a
Multititle mailer Flying Brands posted a
nonmaternity clothing range called 365. In
2.4-percent rise in ﬁ rst-quarter revenue, to
April lingerie etailer Figleaves expanded
£12.7 million for the 13 weeks ended 3rd April.
into womenswear as well, reportedly
investing £1 million in the launch of its
Sales at Flying Flowers declined 6 percent, to
own-label offering; it also started selling
£3.1 million, while sales for the entertainment
childrenswear. According to published Retail consultant Meg Macmillan takes a
division, which includes Listen2, were ﬂ at. The
reports, Figleaves is aiming for nonlingerie more cautious stance. “Expanding into new
gardening division, which includes Gardening apparel to account for 30 percent of product categories is always fraught with
Direct, enjoyed a nearly 8-percent rise in sales,
sales within a year. Also expanding its uncertainty,” she says. “The most successful
to £8.4 million. The company, which says it is
women’s offering is menswear cataloguer ventures have been those that built on
focused on improving operational efﬁ ciency, is
Clifford James, which debuted a dedicated existing core strengths of the brand,
cutting staff to reduce its salaried employee
womenswear catalogue this spring. building on customer confi dence in quality
and value and offering products that were
costs by 15 percent.
a natural progression and held true to the
brand values.”
ArgentVive, the parent company of BookRabbit.
What’s more, Macmillan says,
com and SamedayBooks.com, is in admin- “convincing even the most loyal customer
istration. Administrator David Rubin & Partners
to buy something new is not easy”. Whilst
hopes to sell the business, which includes two
it is tempting to broaden the product
stores, as a whole or as separate entities.
offering, especially by using the relatively

low-cost online channel, “it can be an
expensive test, as the cost of liquidating
Ofﬁ ce supplies giant Staples saw fourth-quarter
stock to a customer base that has not
sales increase 16 percent, to $6.2 billion (£4.21
responded can be high.”
billion). Excluding the impact of Corporate
But Bailey-Green believes that as long
Express, however, total company sales fell 14 as companies understand their customers’
percent, to $4.6 billion (£3.12 billion). Total
lifestyles, broadening the offer can work.
sales for 2008 increased 19 percent, to $23.1
“The key here is for retailers to prove to
billion (£14.7 billion), but again Corporate
customers that buying a complementary
product will increase, enhance, or protect
Express was responsible for most of the rise;
the value of what they’re buying already.
excluding its contribution, company sales fell 3
Customers are looking for value, not just
percent, to $18.8 billion (£12.0 billion).
in terms of money but also in what they’re
getting for it.”
Sales at sports-bra cataloguer LessBounce rose
“The biggest asset home shopping
11 percent, to £535,000 in the year ended
retailers have is their customer database,”
March 2009, thanks in part to the launch of a
says Leon Bailey-Green, an online fashion
swimwear offering and its presence at Crufts
retail consultant. “It’s more cost-effective to
upsell and cross-sell to current customers
and The Vitality Show.
than it is to reach out to new audiences.” In
the case of Figleaves, he says, the company
Fixings cataloguer Ironmongery Direct reported
has “built up a massive amount of trust, so
a 40-percent increase in ﬁ rst-quarter sales. [customers are] willing to try out the new
The business is on track to reach turnover of
womenswear. We must remember there are
£10 million in 2009.
also shoppers that will only buy lingerie
in store. By branching out they have
effectively opened up to a new market.” He
Womenswear manufacturer/marketer Slimma
adds that it’s also important for Figleaves to
is shutting its direct and high-street division to
show its competitors and the retail industry
focus exclusively on manufacturing.
at large that it is an active and forward-
thinking company.
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