Online sales surge boost for Visualsoft e-site work
Dec 18 2008 by Andrew Mernin, The Journal
A WEB development firm has signed a lease which will see it double the size of its headquarters as it battles to deal with surging demand from heavyweight retailers looking to cash in on the e-commerce boom.
Visualsoft has signed a lease agreement to move from its 1,500 sq ft headquarters on Stockton’s Preston Farm Business Park into a 3,000 sq ft premises on Portrack Lane, also in Stockton.
The £1.5m-a-year group expects to add £1m to its annual turnover by the end of next year and also plans to take on a handful of project managers and designers in the coming weeks to accommodate growth at the firm.
In the last two years the business has developed around 120 e-commerce websites and is currently working on a further 54 sites including sites for a number of businesses above the £10m-a-year turnover mark.
While half of Visualsoft’s business comes from North East firms, it lists a growing number of national clients among its ranks and also has customers in South Africa and Australia.
Recent months have seen high street retailers take a battering, culminating in the death of age-old brands like Woolworths and last-ditch rescue measures for companies such as CD and DVD seller Zavvi.
However, the web has been a far less hostile place for retailers and figures released this week show online sales are up 16% on last year as consumers avoid the high street in favour of internet bargains.
Ahead of the festive party season, sales of shoes and accessories grew by 32% and 108% respectively from October, according to Interactive Media in Retail Group (IMRG) and Capgemini.
Sales of clothes were up by 18%, while shoppers also turned to the internet for alcohol purchases, with spending up 53% in November compared with October.
The 11-year-old Visualsoft is looking to take advantage of this changing trend and expects to land contracts to develop websites for more national retailers, such as current client, shoe retailer Charles Clinkard.
Director Richard Bendelow said: “The credit crunch is really, really working for us. We have taken on some clients that have already been trading online and quadrupled their online business. One of our clients has shut his shop and is now trading from an industrial estate.
“When people are let down by poor e-commerce sites they never go back. We ensure that our clients’ customers always get what they want – a smooth and easy online sales experience.”
PAGE TWO: More on this year's surge in online sales.
