Shop Direct to run more promotional events after Black Friday success

Alex Baldock, chief executive of the group that includes Littlewoods and Very, said that it had an “excellent” response to its Black Friday hourly deals that it launched for the first time in November.

Baldock said: “There are a numbers of events that are in the public consensus which we could capitalise on – Valentine’s Day, Mothers and Fathers Day – and we can create our own.”

Shop Direct was one of many retailers to adopt Black Friday deals in the run up to Christmas. Black Friday originated in the US and falls the day after Thanksgiving. The shopping event, which was pushed by retailers including John Lewis and Asda in the UK, is one of the biggest days of the US retail calendar.

Shop Direct sales jumped 5% in the six weeks up to and including December 27.  Baldock said that the market was very promotional and admitted that the proportion of goods sold on promotion did “tick up”. However, he said “disciplined stock management” helped EBITDA grow ahead of plan.

Baldock said that it was on track to “substantially improve” on the £6.6m profit it made in the year to June 30, its first pre-tax profit in a decade.

Consumers’ budgets remained “strained” over Christmas, according to Baldock, who said its credit offer helped woo shoppers.

Baldock said: “What’s helping us is that we make good things affordable.”

Shop Direct’s newer brands Very and Isme powered growth at the etail group. Very, which Baldock said would become a £700m retailer in the year ahead, grew 20% over the Christmas period.

Baldock said that mobile sales “exploded” over the period. Sales via the device increased 64% and accounted for 43% of online sales, against 28% last year.