Mobile devices bring in 60% of digital sales at QVC
March 2, 2017 04:45 PM
Small screens drove big sales for TV and web merchant QVC Group.
The retailer reported this week that sales via mobile devices accounted for almost 60% of global e-commerce sales in the fourth quarter ended Dec. 31, an increase from 51.6% in Q4 2015. For the year, mobile devices drove 58.4% of digital sales, an increase from 50.4% in 2015.
E-commerce sales for QVC Group totaled $1.33 billion in Q4 2016, roughly the same as Q4 2015. For the year, QVC Group’s e-commerce sales increased 5.2% to $4.05 billion for 2016 up from $3.85 billion in 2015. QVC.com and Zulily.com are both part of QVC Group, whose parent company is Liberty Interactive Corp. Liberty Interactive acquired Zulily on Oct. 1, 2015.
In the U.S., the mobile results are similar, with mobile devices driving 58.6% of e-commerce sales in the quarter, up from 50.4% in Q4 2015. For the year, mobile device drove 57.4% of digital sales in the U.S., up from 49.2% in 2015, the company reported.
“Our digital strategies continue to maintain a mobile-first approach,” QVC CEO Mike George told investors on an earnings call, according to a Seeking Alpha transcript.
In Q4, QVC revamped its search and navigation functionality on its website, and the retailer focused on how the functions would work on a mobile device, George said. The retailer is also testing a new iPhone experience, which it expects to roll out in the first half of this year.
“As mobile continues to be the fastest growing part of our business, we're leveraging our multiyear investment in both talent and technology by continuing to increase the amount of personalized content our customer sees to ensure [we are] providing the most relevant shopping experience we can, even on the smallest screen,” he said.
Within QVC’s mobile sales, the mobile web represents two-thirds of sales and the app is about one-third, George said. “Both play somewhat different roles in the portfolio, and we're trying to just continue to learn from consumer behavior and refine both in ways that are relevant to them,” he said.
E-commerce sales represent 50.1% of total QVC Group revenue, up from 47.4% in Q4 2015, the retailer reported. For the year, e-commerce sales represented 46.6% of sales in 2016, up from 44.0% the previous year.
QVC is No. 10 in the Internet Retailer 2016 Top 500 Guide.
For the three months ended Dec. 31, QVC reported:
- Total QVC Group revenue of $3.13 billion a 3.1% decrease from $3.23 billion in Q4 2015.
- Total sales in the U.S. of $1.95 billion a 6.7% decrease from $2.09 billion.
- QVC Inc. international sales of $2.66 billion a 5.0% decrease from $2.80 billion. Outside the United States, QVC operates in the U.K., France, Germany, Italy, Japan and China.
- Zulily revenue of $467 million a 9.6% increase from $426 million.
- QVC Group net income of $266 million a 14.7% decrease from $312 million.
For the full year, QVC reported:
- QVC Group revenue of $10.2 billion, a 10.9% increase from $9.2 billion in 2015.
- Total U.S. sales of $6.12 billion, a 2.2% decrease from $6.26 billion.
- QVC Inc. international sales of $2.56 billion, a 2.8% increase from $2.49 billion.
- Zulily Group revenue of $1.55 billion.
- QVC Group net income of $812 million a 7.5% decrease from $878 million.