Online Sales Help House of Fraser Score Record Profits
27 May 2013 - 07:12 by Graham Miller
House of Fraser is just one of a growing number of high street chains that is making the most of the e-commerce boom, with reports emerging last week showing that sales and profits were at an all time high thanks largely to shopping online.
The firm saw its annual profits increase by 4.3 per cent over the past year, according to the Scotsman, in spite of the enduringly difficult economic conditions that are causing problems for many other mainstream retailers. Sales were up by 3.3 per cent in total, but thanks to major investments made in its e-commerce outlet, House of Fraser saw online sales increase by an impressive 53 per cent. This means that safe shopping online now generates 11 per cent of the retailer's revenue, with its 60 bricks and mortar stores making up the rest. Company chairman Don McCarthy said that in spite of a lack of consumer confidence which resulted in lower spending levels, House of Fraser was expected to continue its growth.
Already 2013 has proved to be another good year for the company, with sales up by 4.8 per cent. There are even reports that it is attracting interest from foreign investors with rumours of a takeover bid on the horizon. Because House of Fraser has fully embraced the benefits of e-commerce, it has been able to keep on growing irrespective of outside economic pressures.
This should be a real indication to other companies that if they buck their ideas up and refocus their efforts on e-commerce supremacy, they too could improve their performance and secure long-term success. For consumers this means that the online shopping experience should become more secure and intuitive, with competition helping to keep prices low and service levels high.