Ralph Lauren E-Commerce Sales Climb 31%
Ralph Lauren saw significant e-commerce sales growth during Q3 of 2012, with online sales climbing 31% compared to the same quarter the previous year. Sales via mobile devices have also made a strong showing, accounting for 20% of the traffic to RalphLauren.com and nearly 10% of sales, according to president/CIO Roger Farah.
For the quarter that ended January 19, 2012, total retail sales reached $1 billion, a 22% increase over the same period in fiscal 2011. Comparable store sales increased 12%, with the sharp rise fueled mostly by the 31% increase in online sales. At Ralph Lauren-branded brick-and-mortar stores, comp store sales increased only 7%; they rose 9% at the company's factory stores and 17% at its Club Monaco stores.
"It is clear that e-commerce has become an increasingly preferred channel for many of our customers," said Farah during a recent conference call. "And while we were pioneers in selling luxury products online, we remain committed to investing in this high-growth distribution channel and branding vehicle."
Assuring the brand experience is optimized for customers is important because repeat customers, on average, have higher transaction sizes and shop more frequently. This requires constant investment in technology and content to remain relevant to involve and enrich the customer experience. Ralph Lauren is investing in online content such as interactive fashion show videos, style guides and even a magazine. It will also create custom environments to showcase certain brands.