Designer discount etailer, BrandAlley, grows shopper base and lifts sales by 60%

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BrandAlley: expanded range fueling growth

BrandAlley: expanded range fueling growth

Designer discount etailer, BrandAlley, has reported a 60% increase in sales to £28.9m in the year to 31 December 2011.

According to the company, the growth has been driven by the addition of 160,000 active customers during the year, a 43% hike on 2010. F-commerce also generated £450,000 in the fourth quarter, the company said.

Despite the wider challenging economic climate, BrandAlley said it had achieved strong growth and maintained its market leading position in UK private sales through innovation; particularly with social media platforms, mobile commerce, and by increasing its offering to customers.

BrandAlley has further developed its active membership base by continuing to offer a wide range of luxury brands at affordable prices, it said.

In addition, the company has grown its lifestyle proposition, which now encompasses womenswear, menswear, kidswear, accessories, beauty, homewares and lifestyle offers.  

With spa deals and theatre tickets sold for the first time during the period, BrandAlley said it has evolved into a one-stop site for guiltless, affordable shopping for the savvy shopper who wishes to maintain a luxury lifestyle despite the challenging economic environment.

Rob Feldmann, CEO of BrandAlley, said: “At a time when there is continued pressure on consumer spending, BrandAlley saved its members over £67m last year. 

“Our ongoing growth has been driven by the consumer need for value, quality products at a great price. With UK consumer spend still increasing online, BrandAlley, as the leader of private sales in the UK, is suitably placed to further capitalise on these market trends. The emergence of the savvy shopper certainly shows no sign of declining with the ONS recently confirming one pound in every 10 is now spent online.

“BrandAlley’s growth of 60% during 2011 is a fantastic result and testament to the growing range of brands we offer as well as improving service levels and engagement with our loyal membership base,” said Feldmann.

According to the company, a continued area of focus will be a social media strategy.

This focus on social media has increased customer engagement, loyalty and generated 5% of revenue in the final quarter of last year, BrandAlley said.

The company reports it now uses Facebook as its second homepage and in Q4 2011 generated £450,000 by launching sales exclusively to Facebook followers a day early. 

The average spend per basket is on average £4.00 higher through the Facebook page than on BrandAlley’s main website, the company said.

BrandAlley launched its mobile site in February 2012 and said it sees this as a significant area for growth. In the launch month BrandAlley achieved more than double its original sales targets via the mobile platform, and going forward 20% of revenue is expected to be generated through the mobile site, it said.

BrandAlley has recently launched an outlet as part of it growing online offering, a catalogue of permanent products including fashion, beauty and homewares, with delivery in three to five working days. The outlet was initially launched in France and given its success, BrandAlley said it is now looking to replicate this success in the UK. 

With online retail sales growing at around 16% year-on-year (source: IMRG Capgemini e-Retail Sales Index), BrandAlley is confident of continued organic growth and is targeting a sales uplift of 40% in 2012, the company said.