Retailers shift their ad spending from TV, radio and print ads to digital ads.
But the Swedish web merchant forges ahead with its global e-commerce plan.
Online sales in 2013 for online Swedish retailer CDON Group were flat. But in the months ahead CDON is accelerating efforts to diversify its product base and become more of a mass merchant, says CEO Paul Fischbein.
For the year ended Dec. 31, CDON, No. 38 in the Internet Retailer 2013 Europe 500 reported:
- Web sales decreased .05% to $677.02 million (493.9 million euros) from $680.15 million (496.2 million euros)
- Net loss was $10.3 million (7.5 million euros) compared with a net loss of $23.1 million (16.9 million euros) in 2012.
- Web sales for its apparel products increased 11.0% to $142.2 million (103.7 million euros) from $128.1 million (93.5 million euros).
- The company didn’t break out sales for its books and related entertainment products segment.
- Web sales for its sports and health products increased 36.5% to $103.3 million (75.6 million euros) from $75.7 million (55.2 million euros).
- Web sales for its home and garden products increased 4.3% to $100.4 million (73.2 million euros) from $96.3 million (70.3 million euros).
In the final months of the year, CDON launched an online marketplace that will give other European web merchants access to its more than 2 million active customers, the company says. “We now continue to deliver on our strategy to turn CDON.com into a full-range department store on the Internet,” Fischbein says.
In 2013 CDON also took steps to become more of a global e-commerce company when it began shipping orders to more than 60 countries from Nelly.com, which sells apparel, accessories, and other beauty and fashion products to men and women age 18-35. Previously Nelly.com sold online primarily to apparel shoppers in Austria, France, Germany, Scandinavia and the United Kingdom. All items are shipped from CDON’s Swedish fulfillment center with a delivery window of between four and 10 days.
“The group will increase its investments in growth in 2014, mainly in the fashion, sport and health segments,” Fischbein says. “The initiatives, which are in line with the group's long-term strategy, have already begun through the recently announced geographical expansion of Nelly.com.”
For the fourth quarter CDON reported:
- Web sales decreased 4.5% to $224.4 million (163.7 million euros) from $234.9 million (171.3 million euros).
- Net income was $2.4 million (1.8 million euros) compared with a net loss of $13.8 million (10 million euros) in Q4 2012.
- Web sales for its books and related products declined 44.6% to $42.8 million (31.2 million euros) from $77.2 million (56.3 million euros).
- Web sales for its apparel products increased 1.6% to $45.8 million (33.4 million euros) from $45.1 million (32.9 million euros).
- Web sales for its sports and health products increased 35.5% to $26.7 million (19.5 million euros) from $19.7 million (14.4 million euros).