Ethical Superstore set to reward its investors
Sep 6 2010 by Peter McCusker, The Journal
AN ethical online trader is on track to make its first profit on the back of strong sales growth and a new initiative to expand the range of products it offers to over 100,000.
The Ethical Superstore’s ongoing expansion is also being boosted with two new investments from the recently lunched Finance for Business North East Fund.
The Gateshead-based online retailer has recorded sales of £4.3m for the year to July 2010 which is up by almost 50% on the previous year’s £2.9m.
Established by Vic Morgan and Andy Redfern in 2003 the firm has worked towards annual sales of £6m as being the break even target.
And with revenues expected to grow beyond that level in the coming year – and up to £10m within four years – its array of investors will soon be seeing a return on their stakes.
The Team Valley-based outfit is now the UK’s largest online ethical store and now has over 9,000 products to choose from, including 4000 new lines.
Using the online book retailer Amazon’s model, it is now aiming to become a marketplace for ethical products from across the globe. The company is aiming to double its product range to 18,000 this year and on to 100,000 within five years. Co-founder Vic Morgan said: “Our new marketplace initiative is aimed at position ourselves as an ‘ethical Amazon’.
“It is open to an unlimited number of suppliers of ethical products, covering every locale and includes producers from around the globe and the company hopes to double the number of products available through it in the next year.”
“Our main focus this year will be to expand our marketplace and to open up the platform to as many suppliers as possible, which will not only benefit our customers but also producers across the globe.
“Our results already prove that consumers are already taking the eco message seriously and through ethical purchasing they can make a positive difference in the world, without compromising on quality.”
He added: “We are now at a milestone point for EthicalSuperstore.com and are once again delighted with our results for the last year.”
Ethical Superstore has also reported a record-breaking year in Fairtrade product sales, and is now one of the leading independent retailers of Cafédirect, Divine Chocolate and Traidcraft products, including many products not available in supermarkets.
Its strong growth has been boosted following its merger with Natural Collection in 2009, bringing together two of the biggest brands in the ethical and Fairtrade sector.
Investors in Ethical Superstore, include Newcastle-based Northstar Ventures, Bristol-based Rathbone Greenbank and business angels, including Newcastle-based entrepreneur Jeremy Middleton.
It has also received funding from Newcastle-based NEL and Finance Wales through the Finance for Business North East fund.
