Department store Allders launched a transactional website this week, which chief executive Andrew MacKenzie said could turn over more than its high street store in the next three years.
Although MacKenzie ruled out more store openings for the retailer – which has just one store in Croydon that Jaeger boss Harold Tillman bought out of administration when the chain folded in 2005 – he anticipated additional warehouses would be needed to facilitate Allders’ new online channel.
MacKenzie said: “The website is a huge opportunity. [In the next three years] it could have higher sales than the store. I can see a roll-out of warehouses to fulfil national web orders.”
MacKenzie said research showed the Allders brand is still recognised across the UK despite all stores bar Croydon closing six years ago. At its peak the chain had 45 stores and an annual turnover of £700m.
The retailer began marketing the website in the Southeast this week and will push the button on a nationwide marketing campaign, focusing on locations that used to have an Allders store, this autumn.
MacKenzie said the online store had a focus on homewares, as it looked to capitalise on the recent spate of high street administrations in that sector. Habitat, Homeform and TJ Hughes all fell into administration last month.
The site has been in development for the past nine months and launched on Tuesday with 2,000 products on offer. MacKenzie said Alders was rapidly expanding the online offer and expected to add hundreds of items each week.
The website has a standard delivery period of three to seven days, although customers can pay for next day delivery. Shoppers can also collect in store.
MacKenzie said the Allders store – the fourth largest store in the UK – is profitable and trading well. In its last reported financial year ended August 29, 2009, it made a £369,000 pre-tax loss against sales of £15.3m.
Allders collapsed in 2005 after losses escalated following over expansion.
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