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House of Fraser to launch virtual department store House of Fraser is preparing to launch two “virtual department stores” designed to make it easier for shoppers to buy clothes over the internet. The group, which operates 61 department stores across the UK, is setting up two shops in Aberdeen and Liverpool, which open next month and will serve as collection hubs for online orders.
Branded “Buy and Collect”, the stores contain a customer service area and banks of changing rooms, meaning if an item does not fit, a refund or a new order for a different size can be processed immediately. The company believes this will increase online clothing sales and is the latest example of a retailer seeking to remove the “hassle factor” from internet delivery.
Amazon is trialling lockers where customers can collect deliveries in the London shopping centre One New Change, and Asos, the online fashion retailer, has experimented with processing returns through corner shops so shoppers can avoid Post Office queues.
House of Fraser’s trial stores will also offer personal shoppers, soft seating areas and touchscreen technology so customers can order any item online for next-day home delivery. “This is a personal service. It is not like [collecting goods from] a Post Office counter or a loading bay,” said John King, chief executive. “We are bringing the services of a flagship store to smaller high streets.”
Aberdeen and Liverpool were picked for the trial as neither city has a House of Fraser store, and its website processes many online orders from these areas. Mr King said he expects revenues from web sales to exceed £100m ($154m) this year, double that of a year previously. Stores in London and the south east and UK cities are outperforming the rest of the estate and account for two-thirds of revenues.
The retailer reported a 4 per cent rise in gross profits to £176.4m for the six months to July 30. Like for like sales rose 5.3 per cent compared with the same period a year ago, falling to 3.4 per cent when including VAT. This compares favourably with department store rival Debenhams, which this week reported a 0.3 per cent fall in sales, excluding VAT, for the year to September 3.
Image: Biba at House of Fraser Source: Financial Times© | |
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