More than half of the maternity apparel retailer’s online traffic comes from mobile shoppers.
Operating profit for the e-commerce division declined 92%.
E-commerce and total sales declined in fiscal 2011 for Dixons Retail Plc, one of the biggest consumer electronics chains in the United Kingdom.
For the fiscal 2011 year ended April 30, Dixons, No. 10 in the Internet Retailer Top 300 Europe, reported:
- E-commerce sales generated by Dixons.co.uk and Pixmania.com declined 8.5% to 842.7 million pounds ($1.34 billion) from 921.2 million pounds ($1.47 billion) in fiscal 2010
- Total sales declined year over year 2% to 8.15 billion pounds ($13.01 billion) from 8.32 billion pounds ($13.28 billion).
- Operating profit declined 7.6% to 140.4 million pounds ($224.2 million) from 152.0 million pounds ($242.7 million) in fiscal 2010.
- Operating profit for the e-commerce division was 900,000 pounds ($1.43 million), down 92% from 11.3 million pounds ($18.04 million) in fiscal 2010
- The retailer didn’t break out fourth quarter metrics in its year-end earnings release.
Internet Retailer calculates the web accounted for 10.3% of total sales compared with 11.1% in fiscal 2010.
Dixons says e-commerce sales declined primarily because of lost business attributable to the rollout of a new e-commerce platform. “We have implemented a new platform in the
U.K. to support our web sites, which has caused disruption while being integrated into the systems and trading platforms,” the retailer says.
E-commerce sale also declined as a result of softer sales in southern Europe and increased competition from other electronics retailers in various European markets. “Positions in southern Europe have been adversely impacted by reduced consumer demand and in several markets we had increased competition from store-based brands expanding their e-commerce business,” says Dixons.