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Derby House restructures


Derby House has a new managing director. Nigel Cliffe joined the equestrian equipment business in May from Mothercare, where he was marketing director. His arrival is part of a wider restructuring at the firm, which will see it close seven of its eight stores in order to focus on its web and catalogue business. “The portfolio of stores doesn’t fit our


trading model going forward,” says Cliffe. He wants Derby House’s remaining flagship store to become more experiential and plans to hold events at the store’s grounds with the aim that the store becomes more than just a place to buy equestrian goods—it becomes a family day out. He also hopes to turn it into a centre of equestrian excellence, something “you can’t do with a high street store”. Cliffe says he was brought in to


manage Derby House because of his retail background, and says that closing its shops


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is not counterintuitive to that. “Derby House is still a retail business, but the channels have changed.” Cliffe says he’s working to improve the catalogue and website and add more products to the range, a process he calls “integrating flicks, clicks and bricks”. As part of that integration, the Derby


House catalogue has been given a revamp; it’s smaller and will now be supported by targeted minicatalogues during the year. Even just in the first few weeks of the restructuring, Cliffe has seen trading improvements, “the business has come through a difficult trading period but the new strategy is starting to show green shoots,” he says. Sales in the stores, web and catalogue are


up, says Cliffe, ahead of expectations and significantly ahead of last year, though he declined to disclose specifics.


Lush launches new site after security breach


Natural cosmetics retailer Lush has avoided a fine by the Information Commissioner’s Office (ICO) in relation to a security breach on its website between October 2010 and January 2011. The ICO found Lush to be in breach of the Data Protection Act and that its measures to keep customers’ payment details secure and monitor suspicious activity were insufficient. In January, a hacker brought the


Lush website to its knees, compromising the security of sensitive customer information. After receiving complaints from 95 customers who had been victims of card fraud, Lush took the site offline. The attack affected customers who placed online orders with Lush from 4th October 2010. Following the breach, Lush set up a temporary website taking customers away from its site through to the bank’s server, where payment is taken. As a result of the breach, the ICO


has required Lush’s managing director Mark Constantine to sign an undertaking promising that “appropriate technical and organisational measures are employed, and maintained, to prevent the unlawful processing of customer data, particularly within web-based systems”. Lush must also store just the minimum amount of personal data on customers and this will be kept for no longer than is necessary. Further, Lush must ensure that all future payment processing is PCI- compliant.


Commenting on the ruling, Lush issued a statement apologising for the distress caused to customers. It said it was working on a new site, due to launch in September, that will have “a range of security measures which exceed the requirements of the Payment Card Industry Data Security Standard (PCI DSS), as well as a range of third-party specialist security services in place.”


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