Buy It Direct’s transition is reaping rewards

THE managing director of Buy It Direct said the business was continuing with its transition from pure-play “price trashing etailer” to value-driven online retailer as it reported strong revenue growth in its latest financial results.

Nick Glynne told the Yorkshire Post that the Huddersfield-headquartered company now expects profit to at least double this year as its investment in people and infrastructure starts to pay off.

The business, which sells goods including computer equipment, televisions and household appliances, said that in the year to the end of March 2013 revenue rose to £93.4m, up 34 per cent from £69.8m in the previous year, beating expectations.

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Pre-tax profits climbed from £456,000 to £532,300, up nearly 17 per cent.

Mr Glynne said that since the recession the firm has analysed costs, looked at where its growth categories are and invested significantly in systems.

“This has really been a five, six-year process which has started to come to fruition now”, he said.

“We have got a fantastic new IT platform, which means we can get products on our website quicker, we can market them much quicker, it means we are measuring things we couldn’t measure before, conversion rates, we have very clever algorithms in place which change the website depending on user behaviour so that we convert more.”

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But It Direct, which employs 210 people, the majority of whom are based in Huddersfield, has also invested in logistics.

The former head of home delivery from Amazon, Mike Mills, joined Buy It Direct six months ago to head up its logistics operation.

Mr Glynne said: “It’s just a symbol, although it’s outside our (the 2013) financial year, of our investment in how (seriously) we have taken logistics, particularly the final mile, the delivery of goods to end user and particularly around complicated products – two-man products – washing machines, range cookers, American fridges.

“We have recognised that delivery is everything. That is how we are ultimately judged by customers.”

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He said the firm has also engaged better with its manufacturers, especially on the kitchen appliances side of the business.

Buy It Direct, which was formed in 1999, introduced one of the UK’s first specialist shopping websites, focusing on laptops and notebook computers via its brand, Laptops Direct, and subsequently expanded to create new websites focusing on other markets including televisions, kitchen appliances, CCTV equipment and baby and nursery goods.

Alongside Laptops Direct, one of the firm’s key brands is Appliances Direct.

Buy It Direct also offers white-label services to retailers including Debenhams and BHS, as well as supplying insurance replacement products for and on behalf of the UK insurance companies.

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The firm also has two showrooms, mainly for televisions, laptops and kitchen appliances, in Huddersfield and Derbyshire.

Mr Glynne said collectively Laptops Direct and Appliances Direct account for more than 70 per cent of the company’s revenue.

Buy It Direct bought online furniture retailer Furniture123 out of administration in December 2012.

“Although it didn’t impact last year’s results much, this year it’s going to have a significant impact,” said Mr Glynne. “We are investing heavily in Furniture123 as a brand.”

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The laptops market as a whole is in decline, said Mr Glynne, adding: “But this means most of our competitors have gone bust.

“So although it’s a declining market we are experiencing some growth on laptops and our margins have got better.”

But kitchen appliances is the area which “has a lot more legs on it”, he said. “We are experiencing significant growth both in terms of profit and revenue and we hope to continue to see this over the next three or four years.

“It’s a key part of our plan.”

Mr Glynne, who owns Buy It Direct, said that this year is so far proving to be “cracking”, with good revenue growth and significantly better profit growth.

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Buy It Direct has taken on an extra 30 people in the last 18 months, and expects to recruit around 12 more in the next year.