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Christmas sales: House of Fraser celebrates online surge | |
(about 2 hours later) | |
Online shoppers helped make it a Christmas cracker for House of Fraser, which defied the retail gloom to announce a 6.3% rise in like-for-like sales over the festive period. | Online shoppers helped make it a Christmas cracker for House of Fraser, which defied the retail gloom to announce a 6.3% rise in like-for-like sales over the festive period. |
The sales boost will help House of Fraser meet expectations for an 2.4% rise in earnings this year. It started slashing prices before Christmas – with discounts of up to 50% on party dresses and key gifts such as makeup and perfume – which helped drive record sales in the two weeks running up to Christmas. | |
The company's chairman, Don McCarthy, said it had been a more competitive environment, but House of Fraser had benefited from investing in its website, driving its house brands, and setting itself up as a fashion-focused department store. | The company's chairman, Don McCarthy, said it had been a more competitive environment, but House of Fraser had benefited from investing in its website, driving its house brands, and setting itself up as a fashion-focused department store. |
Online sales rose by almost 50% in the six weeks to 5 January and the company saw a huge boost in people shopping on mobile devices such as phones and iPads. | Online sales rose by almost 50% in the six weeks to 5 January and the company saw a huge boost in people shopping on mobile devices such as phones and iPads. |
UK shoppers flocked online over Christmas to avoid the trek to overcrowded shops. Market research company Experian said overall online sales jumped by 27% on Christmas Day. | UK shoppers flocked online over Christmas to avoid the trek to overcrowded shops. Market research company Experian said overall online sales jumped by 27% on Christmas Day. |
Kate Calvert of Seymour Pierce said: "Online really had a stonking Christmas, particularly when you have a look at the likes of John Lewis, that bodes well for others. House of Fraser is coming from behind relative to others, so I would expect a strong number." The department store has ploughed money into its website, which offers blogs and fashion tips as well as an online shop. | Kate Calvert of Seymour Pierce said: "Online really had a stonking Christmas, particularly when you have a look at the likes of John Lewis, that bodes well for others. House of Fraser is coming from behind relative to others, so I would expect a strong number." The department store has ploughed money into its website, which offers blogs and fashion tips as well as an online shop. |
House brands, such as Biba, continued to do well, with sales up 10% over the period. Accessories were also flying off the shelves, with the group shifting around 45,000 pairs of shoes a week and 40,000 handbags. | House brands, such as Biba, continued to do well, with sales up 10% over the period. Accessories were also flying off the shelves, with the group shifting around 45,000 pairs of shoes a week and 40,000 handbags. |
The company said the retail environment last year had been tough and it was not clear when it would pick up again. | The company said the retail environment last year had been tough and it was not clear when it would pick up again. |
McCarthy said: "There is no doubt that 2012 was a challenging year in retail and it remains difficult to predict when economic conditions and consumer sentiment will improve. However, with the strong sales performance in the period and a close focus on margins and operational efficiencies, we expect to report growth in full year earnings in line with previous indications." The company is forecasting full-year earnings of £60m. | McCarthy said: "There is no doubt that 2012 was a challenging year in retail and it remains difficult to predict when economic conditions and consumer sentiment will improve. However, with the strong sales performance in the period and a close focus on margins and operational efficiencies, we expect to report growth in full year earnings in line with previous indications." The company is forecasting full-year earnings of £60m. |
House of Fraser's fortunes contrast sharply with those of supermarket chain Morrisons, which posted a 2.5% decline in like-for-like sales over Christmas. | House of Fraser's fortunes contrast sharply with those of supermarket chain Morrisons, which posted a 2.5% decline in like-for-like sales over Christmas. |
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