Shop Direct Group sales up 7.4%

The home shopping giant reported EBITDA up 182% to £96m. Its online sales are up 31%, accounting for 49% of total group sales, and it said it remains on track to meet its 70% online sales target by the end of the financial year 2010/11.

Chief executive Mark Newton-Jones said: “We have continued to make great strides in the restructuring of our business, responding to our customers’ needs as more of them choose to shop online. This approach has delivered significant growth for the group.”

Shop Direct’s trading over the past 20 weeks of the financial year is up 1% against the same period last year. In this period, online sales have grown by 29% and now represent 56% of total sales.

Newton-Jones said: “Since the start of the new financial year in May, we have been busy re-invigorating the Littlewoods brand at home, whilst also taking it into Europe through France, Spain and Germany, as well as launching our fashion brand Very.co.uk and bringing the Woolworths and Ladybird businesses online.

“We have continued to show growth in our online performance since May but are mindful of the tough economic climate we are facing and as such we remain cautious about the outlook for the remainder of 2009 and 2010.”

The group said the trading performance reflects the continued focus on modernising the business with further investment in enhanced website functionality and presentation, along with a more responsive-led approach to fashion, technology and pricing.

Improvements have been made in customer service and stock availability throughout the year. It said last Christmas customers could order as late as 4pm on December 23 for next day delivery. This year the deadline will be extended to 8pm on December 23.

The group said it has also seen strong improvements in awareness and sales of its brands due to an £18m investment in advertising.