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Burberry ties together its online and offline stores

November 14, 2016 12:18 PM
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Luxury fashion brand Burberry Ltd. is leveraging its stores to make more of its products available online.

The company is now pulling from a single pool of inventory for both its physical and online stores, which has led to a 7% increase in the amount of products available to online shoppers, CEO Christopher Bailey told analysts on the brand’s fiscal second quarter 2017 earnings call.               

“We're also laying the foundations for shipping e-commerce orders directly from our stores,” he said, according to a transcript from Seeking Alpha, though he didn’t specify when the company would be rolling that out.

Burberry, No. 356 in the Internet Retailer 2016 Top 500 Guide, does not break out online sales in its quarterly earnings reports. The retailer relaunched its desktop website during the first half of fiscal 2017, and Bailey said online continues to be Burberry’s fastest-growing channel, with e-commerce traffic and conversion rates growing, though he did not specify those growth rates.

The company plans to roll out a new mobile app that will better connect its online and in-store channels, but Bailey did not give a date for the app launch or details about the platforms it will be on.

“[The app] will create a more personalized shopping experience, connecting our customers more effectively to our stores and associates, delivering seamless mobile commerce and a platform for interactive storytelling,” Bailey said. “That will give us more data on our customers. It links directly to our store associates for storytelling of the brand, and it's a very personalized experience, which will allow us to have a much more intimate relationship with our customers.”

For the first six months of fiscal 2017 ended Sept. 30, Burberry reported:

  • Retail revenue, which includes e-commerce, of 859.0 million pounds ($1.077 billion), up 11.0% from 773.6 million pounds ($970.2 million) last year.
  • Total revenue of 1.159 billion pounds ($1.452 billion), up 4.9% from 1.105 billion pounds ($1.384 billion).
  • Retail now accounts for 74.1% of total revenue, compared with 70.0%.
 

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