August 2011
Has this Lancashire-based firm solved the problem of online versus retail?
While uptake of internet at home has risen massively in the last decade and more and more people are going online to make purchases, it is often forgotten than some people are still not able or willing to buy online, and that’s still a sizeable market to be missing out on.
So one homeware retailer has decided to combine the best of shop with online by enabling customers to shop online while they are inside the phsyical store.
The Lancashire-based firm, The Original Factory Shop, are retailers of everything from furniture, through electricals, to clothing. They began trading in 1969 selling surplus orders and seconds from Marks & Spencer but have this summer begun rolling out an instore ‘webshop’ terminal in stores.
The system allows customers to browse the full website range online (much wider than the range instore) and choose what they would like. Orders can then be placed and purchases paid for at the store counter (meaning customers can pay without the need of a credit card that is often a barrier to buying online). Just like an online order purchases are then delivered to the customers home in due course.
It’s an interesting concept and not one likely to break the bank. Most retail outlets now equipped with internet access and the cost of a terminal to operate the ‘site’ on the concept could be quickly rolled out to many businesses. Many people still don’t have an email address or even a credit or debit card and even those that do are often reluctant to hand over that information over the internet.
Giving them this opportunity gives them an opportunity to see what it is all about without scaring them. It will be interesting to see if more retailers follow suit and for those that do, how they address the issue of price differentials between web and in-store.
Read the article here.
Cumbrian firm gives you chance to shop online - without using the internet
A Maryport company has developed a way its customers can shop online – without using the internet.
The Original Factory Shop is offering access to extended online offers by ordering in store. Bestsellers from the online exclusive ranges include beds, outdoor toys, furniture and electronics.
The new development enables customers to order and pay for goods from the website at the tills, by cash if they want to. It is aimed at people who don’t have access to the internet or a credit card.
Purchases will then be delivered to their homes.
Store manager Mark Hodgson said: “The UK has seen phenomenal growth in online retail over the past year and this is a great way to make all of our deals accessible to those without internet access, an email address or a credit or debit card. This will particularly help shoppers who don’t have access to, or prefer not to shop online.”
The launch of the new service at the local low price department store at Senhouse Street coincides with the retailer’s biggest-ever week for online sales last week.
The Original Factory Shop’s website experienced a record number of sales last week.The Original Factory Shop also has a branch in Wigton
Read the full article here
Original Factory Shop offers high street hope
Discount department store chain The Original Factory Shop has bucked the ongoing gloom on the high street to post a 16 per cent increase in annual sales.
The retailer, which owns more than 160 stores across the UK, said the results were "credible" given the challenging economic conditions. It reported a turnover of £136.1m in the 12 months to 27 March 2011, up from £116.9m a year earlier.
The increase came in a year when the Burnley business, led by Angela Spindler - the former managing director of Debenhams - opened 31 new stores, equalling the record number of new stores openings in the prior year.
Its strategy is to open outlets in catchment areas with a population of about 15,000, rather than city centre locations, and brands itself as the only "national non-food convenience retailer".
Like-for-like sales in its last financial year dipped 0.8 per cent although they were 5.9 per cent up over a two-year period. Since private equity firm Duke Street backed a secondary buyout in 2007, it has grown from a £60m turnover business.
The Original Factory Shop said it opened five stores in the three months to June 2011 and plans to open a further eight before next April. Its directors believe the company has the potential to trade from more than 500 stores.
Speaking last month, Spindler said: "Our breadth rather than depth of offer has helped us to buck the overall retail trend experienced over the past few years.
"For example, we were one of the few retailers to benefit from the snow in December as our customers were able to avoid treacherous journeys and walk to our stores to pick up their Christmas gifts.
"Not only did Christmas gifts sell well, but we sold large amounts of electric heaters, fleeces and jackets, boots and snow shovels."
EBITDA in the year to 27 March 2011 was £13.3m, down £1.6m from the £14.9m recorded last year. The company said gross profit erosion was the biggest factor following the increasing rate of VAT and higher rents. Pre-tax losses were £2.6m.
The company, which employs more than 2,500 staff, was reportedly put on the block by Duke Street in May 2010 with a price tag of up to £200m, but a sale has so far failed to materialise.
The chain was set up in 1969 as part of retailer Peter Black’s empire and sold surplus orders and seconds from Marks & Spencer.
Read the Full Article Here
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