Home-shopping bonanza as buyers shun the high street

The home-shopping giant, which also owns Woolworths.co.uk, said the snow and freezing conditions helped it in the run-up to Christmas, with record online trading in the first week of December as consumers shunned the high street.

The group also saw strong demand for cold-weather clothing and shoes as it improved its sales in the six weeks to December 31. Sales of knitwear soared 70 per cent, while Shop Direct sold 40 per cent more jackets and coats over the festive period.

Website sales saw double-digit growth, with 70 per cent of the business now traded online, while overall orders peaked at 8,000 in one hour on its busiest day, on December 6. However, sales growth was marginally lower than the 6.3 per cent rise seen the previous Christmas.

Shop Direct chief executive Mark Newton-Jones said: "We saw clothing and footwear do well, but did not see strong demand for the 'big ticket' items – we did not see people bring forward purchases to beat the VAT rise."

Shop Direct said the sales period had started well, with growth of 10 per cent over Christmas Day and Boxing Day and stock clearance rates ahead of last year.

Sales rose 36 per cent at Very.co.uk, although the group did not split out the performance of brands, including Woolworths, which was bought out of administration in February 2009.

Inflation will impact on shoppers this year, with Shop Direct expecting to increase prices by six per cent to eight per cent year-on-year for its spring and summer ranges to combat soaring commodity prices and the VAT rise.

The group is extending ranges by around 30 per cent.