Mobile sales mushroom in 2013 for ShopHQ
March 12, 2014 08:31 AM
TV and web retailer ShopHQ ended fiscal 2013 with a nice increase in e-commerce revenue and an even bigger emphasis on mobile commerce.
For the 2013 fiscal year ended on Feb. 1, 2014, ShopHQ, which is operated by ValueVision Media Inc., reported:
- The web accounted for 47% of total sales compared with 46.3% in fiscal 2012. Based on those numbers Internet Retailer estimates that e-commerce sales totaled $301.0 million, an increase of 10.8% from $271.7 million.
- Total revenue increased 9.1% to $640.48 million from $586.82 million.
- Net loss was $2.5 million compared with a net loss of $27.7 million in the prior year.
- Mobile commerce accounted for 25%, or $75.25 million, of all e-commerce sales, compared with 17%, or $46.19 million. Based on those numbers mobile commerce grew 62.9% for ShopHQ in fiscal 2013.
In 2013 Shop HQ, No. 98 in the 2013 Internet Retailer Top 500 Guide, saw a distinct trend toward more consumers shopping on mobile devices and is taking steps to draw in even bigger numbers of shoppers with web-enable smartphones and tablets. “The customer continued to engage across our online channels, with a substantial shift to mobile shopping,” chief operating officer Carol Steinberg told analysts on the company’s year-end earnings call. To facilitate more m-commerce ShopHQ, which in May rebranded from its previous name of ShopNBC, is taking steps to stream its TV programming across the mobile web, especially for web-enabled tablets. ShopHQ also wants to make buying online via m-commerce even easier, but didn’t release any specifics.
“Our tablet and smartphone apps offer a dynamic and complementary experience to both the web site and our broadcast,” Steinberg told analysts. “Our mobile focus will be on simplicity, ease of use, relevant content and a more personalized shop anytime, anywhere experience.” While not disclosing many specifics, a big goal for ShopHQ is to automate more of its fulfillment process beginning with an expansion of its distribution center in Bowling Green, KY. “We plan to expand our distribution fulfillment capabilities with our Kentucky facility,” she told analysts. “This is to meet the needs of our growing customer base and higher shipped-unit volumes. Benefits expected from this expansion include reduced expense from elimination of offsite storage, more streamlined shipping operations and an improved customer experience.”
For the fourth quarter ShopHQ reported:
- The web accounted for 47% of total sales compared with 46.3% of all revenue in the fourth quarter of fiscal 2012. Based on those numbers Internet Retailer estimates that e-commerce sales totaled $90.82 million, an increase of 10.5% from $82.18 million.
- Total sales in the fourth quarter grew 8.9% to $193.25 million from $177.50 million in the prior year.
- Net loss was $1.5 million compared with a net loss of $11.4 million in the fourth quarter of fiscal 2012.
- Mobile commerce accounted for 29%, or $26.33 million, of all e-commerce sales, compared with 20%, or $16.43 million. Based on those numbers mobile commerce grew 60.3% for ShopHQ in fiscal 2013.