Arnotts buys into online expansion

ONE MORE THING:IT IS BEST known for its 27,871sq m (300,000sq ft) of bricks and mortar on Henry Street but the executive team behind Arnotts are planning to expand the retailer's presence online in a bid to grow sales and help the group back into profit.

This week Arnotts chairman Mark Schwartz told me that its website – arnotts.ie– currently constitutes a "few million [euro] business" for the department store group.

“Our target is to add a zero to that,” he added. That would be €30 million or so. Over what timeframe? “Three to five years,” Schwartz says. “We’ve expanded our merchandising mix online significantly.”

Arnotts relaunched its online business in November of last year.

“It has started to perform well,” chief executive Nigel Blow says. “It’s early days but the signs are good.”

Online sales in January were up 30 per cent year-on-year, albeit from a modest base. “It’s a big step forward,” Blow adds.

Schwartz says the move is a recognition that people are simply “shopping differently today”. Some still want to visit the store but others are happy to shop from home.

“We’re looking at providing an integrated shopping experience.”

In the long term, Schwartz would like online to drive about 20 per cent of Arnotts sales. “We’ve a way to go but it’s an opportunity, not a challenge.”