A new forecast from Forrester Research credits greater online spending by Canadians, lower shipping costs and more selection for the spending increase.
Overall sales and net income rise, too.
Health and beauty chain retailer Vitamin Shoppe Inc. posted a double-digit increase in third quarter e-commerce sales. Its overall revenue also increased.
For the third quarter ended Sept. 29, Vitamin Shoppe, No. 201 in the Internet Retailer Top 500 guide, reported:
- E-commerce sales, which Vitamin Shoppe calls direct sales, of $24.9 million, up 14.2% from $21.8 million for the same period last year.
- Total sales increased 14.4% to $239.0 million from $208.9 million.
- Retail sales increased 14.4% to $214.1 million from $187.1 million.
- Comparable-store sales increased 9.6%.
- Net income increased year over year by 36.8% to $16.29 million from $11.91 million.
Online sales accounted for 10.4% of overall sales in the quarter, the same as in the third quarter of 2011.
Vitamin Shoppe attributed the uptick in e-commerce sales to increased efficiency in customer acquisition and retention marketing programs in the quarter. “We are pleased with our business, our positioning and our consistent and predictable results,” says Tony Truesdale, CEO.
For the nine month period, Vitamin Shoppe reported:
- Direct sales of $76.8 million, a 14.1% increase from $67.3 million in the first nine months of 2011.
- Net sales of $732.0 million, a 14.1% increase from $641.7 million a year ago.
- Retail sales increased 14.1% to $655.2 million from $574.4 million.
- Net income increased 43.9% to $51.1 million from $35.5 million.
In addition to its direct sales channel, Vitamin Shoppe also operates 564 retail stores.