Q2 web sales drop 10% at Indigo Books & Music

E-commerce sales at Indigo Books & Music Inc. dropped by 9.8% in the second quarter while total sales declined 2.41%.

Despite the drop in web revenue, Indigo, No. 139 in the Internet Retailer Top 500 Guide to Retail Web Sites, is adding an online toy store.

For Q2 Indigo reported e-commerce sales of $15.5 million and total sales of $161.5 million compared with web revenue and total revenue of $17.2 million and $165.5 million, respectively, for Q2 2005.

The company, Canada’s largest multi-channel book seller, cited a lack of major new releases as the reason for slower sales. "The challenge of the Harry Potter anniversary in this quarter was compounded by a weaker line-up of new releases this summer,” says Indigo CEO Heather Reisman.

Indigo expects to make up for slower e-commerce sales by diversifying its online channel. In October Indigo launched a new online toy store that features more than 2,000 items from Lego, Playmobil, Cranium and other brands for children up to age 12.

The online toy store is supported at Indigo retail locations through online kiosks as well as with a limited selection in the Kids section of some larger stores. “Early sales results show the new toys store has been enthusiastically adopted by consumers,” says Reisman.