New Look is upping its investment in multichannel fulfilment as it aims to win the convenience war in the fashion sector.
Speaking to Retail Week after unveiling its full-year results today, New Look boss Anders Kristiansen said one of the big differentiators in the fashion market is convenience.
“It’s about making it as convenient as possible for customers to shop with us,” he said.
The fashion retailer is aiming to increase its delivery options for customers, including extending next-day delivery cut off and introducing next-day click-and-collect in the coming weeks.
New Look today reported a 4% rise in adjusted EBITDA to £212.4m for its year ending March 28. It also revealed that 28% of online orders are now picked up in-store using click and collect, and 19% of these customers then go on to make further purchases while in store.
The retailer, which was sold to South African investment group Brait last month, also unveiled it has finally launched a delivery service with Doddle, first announced last year, allowing customers to pick up orders from railway stations and other high-footfall destinations.
More delivery choice
“You could argue why wouldn’t you want customers to come into your stores to collect the product,” said Kristiansen, who insisted giving customers more choice when it comes to delivery is only a good thing.
“Rather than us losing out on conversion, I think customers will choose us above other retailers if we make it more convenient to shop with us, so I don’t think we’re missing out,” he added.
“We have so many options for delivery, and we’re constantly moving our cut-off time so customers can shop later, and later, and later.”
New Look’s deadline for next-day delivery is 8.30pm, but Kristiansen said the target is 10pm.
When asked whether pushing back the deadline incurs additional cost, he said he is less concerned about costs and more bothered about making it easier for the customer. “So our first approach will be what can we do to help the customer, and we’ll address the cost later.”
“I read an article with the chief executive of DPD yesterday, who said in a few years from now you could get deliveries to your local pub if you’re having a beer, or your car boot parked in front of the office – I think that is super important, it’s all about convenience.”
Last year the retailer opened 37 stores and the plan is to keep the number at around 570 in the UK. A few smaller stores will close but will reopen in better locations.