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Shop Direct posts record profits thanks to mobile sales boom

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It was a headline that made for interesting reading when it hit the national media last month. Only weeks after we shared the phenomenal success of progressive omni-channel retailer Argos, we were met with news that another well-known retail brand has completely revolutionised its identity, turnover and profitability, by harnessing the power of mobile.

With sales up to £1.8bn, Shop Direct has posted a staggering 78% increase in profits₁. And mobile has taken a large slice of the credit!

The story is all the more impressive if we cast our minds back to 2012, when 72% of the Group’s revenues reportedly came from its catalogue business. Now, it is the UK’s fourth largest online retailer₂, with all sales coming from digital streams and Very.co.uk staking its claim as the UK’s fastest growing department store₃.

The scale and the pace of this shift is a fantastic example of mobile shaping the retail revolution. Chief executive Alex Baldock is quoted as saying as much to City A.M., who printed his words: “Mobile is changing everything. It has gone from zero to 60% of all sales in just four years.”

And we must applaud the strategic efforts of Shop Direct in recognising this boom potential. The Group acknowledged that the catalogue market was going stale, and grabbed the opportunity to realign the brand’s routes to market, with both hands.

Mobile can’t take all the glory of course. The Very.co.uk website is thriving, the days of Littlewoods are long forgotten, and the careful choice of fashion, technology and electrical brands – not to mention the support of Myleene Klass – has projected a strong image that consumers clearly want to be associated with. Collectively, everything has come together fantastically, without the need to compete on price.

Once again the crucial role of mobile, in retail, has been catapulted into the public eye, reminding brands that apps can no longer be ignored. We wonder what other department stores think of the news… Debenhams, did we mention we’ve got an idea for you?

  1. http://www.cityam.com/227416/littlewoods-owner-shop-direct-posts-record-profits-thanks-to-mobile-sales-boom
  2. https://www.shopdirect.com/home-page/company-page/about-us/
  3. http://www.standard.co.uk/business/verycouk-becomes-uks-fastest-growing-department-store-as-sales-surge-20-a3099761.html

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