E-commerce and total sales fall for Indigo in Q1
August 25, 2011 05:11 PM
Canada’s biggest books chain retailer wants to morph into Canada’s biggest lifestyle accessories merchant. But in the meantime, e-commerce and total sales continue to slide.
For the first quarter of fiscal 2012 ended July 2, Indigo Books & Music Inc., No. 177 in the Internet Retailer Top 500 Guide, reported:
- E-commerce sales declined year over year 5.2% to $C18.1 million (US$18.4 million) from $C19.1 million (US$19.4 million).
- Total sales decreased about 1.1% to $C202.1 million (US$204.9 million) from $C204.3 million (US$207.1 million) in Q1 fiscal 2011.
- Superstore sales decreased 4.7% to $C136.2 million (US$138.1 million) from $C142.9 million (US$144.9 million).
- Small-format store sales decreased 7.2% to $C28.2 million (US$28.6 million) from $C30.4 million (US$30.8 million).
- Other revenue, which includes sales for the Kobo electronic book reader and other sources such as loyalty card sales, increased 64.7% to $C19.6 million (US$19.9 million) from $11.9 million (US$12.1 million).
- Comparable-store sales decreased 5.4% in superstores and 5.2% in small-format stores.
- Net loss was $C24.2 million (US$24.5 million) compared with $C7.3 million (US$7.8 million) in the prior year.
Internet Retailer calculates the web accounted for 9.0% of total sales in the first quarter of fiscal 2012, compared with 9.3% in first quarter of fiscal 2011.
“We are very pleased with the growth in our digital business, but in the short term our retail business will be challenged,” says CEO Heather Reisman. “We are confident that our strategy to transition to become a full lifestyle retailer will bear fruit.”
In the first quarter, Indigo rolled out an updated customer reward program called Plum that’s attracted 1.3 million new members, the company says.
In time for the holidays, Indigo also intends to add a new line of merchandise—gifts and related lifestyle accessories. “The results in the quarter were expected as we invest both in the growth of our digital business and in preparing to launch our proprietary gift and lifestyle business in the fall of this year.”