Ideal Shopping Direct’s new chief executive Mike Hancox has initiated a review of the business that could lead to the disposals of some of its shopping channels.
Hancox, who took the helm a month ago, has also cut 15 per cent of staff at the business – around 70 employees – as trading in its fourth quarter continued to be volatile.
In the six weeks to December 7 revenues were 17 per cent down on last year. Hancox said: “The number of customers we have is growing but they are spending less. I don’t expect an improvement for the rest of the month and cannot rule out more cuts across the business.”
He added that although the job cuts were “regrettable” he believes retailers that do well in the present climate would be those who “were lean and reacted quickly”.
Hancox will also test selling other retailers’ goods on Ideal’s channels. It has so far carried out trials with Shop Direct Group, womenswear retailer Ann Harvey and Freemans. He said he was in talks with other retailers for similar pilots, the success of which he will assess in the new year.
In 2006, Ideal ran a similar trial with Next but did not take it any further. Hancox believes it is a great opportunity for other retailers as it puts them in millions of households without the high cost of TV advertising.
In its update, Ideal said it expects to make a trading loss of£4 million in the 52 weeks to December 28. He said that for the year Ideal would be level on a like-for-like basis.
It has also appointed former Charles Tyrwhitt finance chief Ian Jebson as group finance director.
In the six weeks to December 7 revenues were 17 per cent down on last year. Hancox said: “The number of customers we have is growing but they are spending less. I don’t expect an improvement for the rest of the month and cannot rule out more cuts across the business.”
He added that although the job cuts were “regrettable” he believes retailers that do well in the present climate would be those who “were lean and reacted quickly”.
Hancox will also test selling other retailers’ goods on Ideal’s channels. It has so far carried out trials with Shop Direct Group, womenswear retailer Ann Harvey and Freemans. He said he was in talks with other retailers for similar pilots, the success of which he will assess in the new year.
In 2006, Ideal ran a similar trial with Next but did not take it any further. Hancox believes it is a great opportunity for other retailers as it puts them in millions of households without the high cost of TV advertising.
In its update, Ideal said it expects to make a trading loss of£4 million in the 52 weeks to December 28. He said that for the year Ideal would be level on a like-for-like basis.
It has also appointed former Charles Tyrwhitt finance chief Ian Jebson as group finance director.
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