Homewares retailer Lakeland is ramping up its online offer with targeted merchandising on its website, as its non-store sales migrate from mail order to online.

Lakeland is relaunching its website using data on which products customers have bought or browsed in the past to place targeted products on the home page when they return to the site. The retailer said it expected its investment in online to increase sales and conversion rates.

Lakeland operations director Gary Marshall said: “It gives us a set of tools to merchandise better to our customers.”

Online sales currently make up about a quarter of total sales, with store sales providing half the company’s sales and mail order producing the remaining quarter.

Marshall said he expected online sales to grow at the expense of mail order sales. The retailer is working with retail consultancy Javelin Group to boost online business.

The new site uses 13 different integrated platforms, allowing Lakeland access to information on customers and products.

Marshall said the site would be “bedding in” over the next few weeks, and that services such as click-and-collect would be introduced in the coming year as the store side of the business integrated with the web.

Lakeland has also rolled out a product information management platform that allows staff and third-party suppliers to upload information on products.

The retailer will be investigating mobile technology this year and will release a mobile-optimised site to complement its iPad app. It is also “considering its options” on in-store loyalty schemes.

Lakeland has 51 stores and is opening more in next month.

Marshall said the outlook for 2011 was good. He said: “Obviously we have to keep an eye on the market but we are fairly positive.”

Lakeland pre-tax profits surged to £10m in the year to December 31, compared with £4.2m the previous year. Turnover increased 5.3% to £141.9m.