UK retailer Woolworths reborn online

Woolworths, the 100-year-old sweets-to-DVD retailer that collapsed earlier this year, will today be revived as an online business…

Woolworths, the 100-year-old sweets-to-DVD retailer that collapsed earlier this year, will today be revived as an online business by Britain's biggest home shopping retailer, Shop Direct, which bought the brand name in February.

Woolworths.co.uk will feature a main shop selling children's toys and clothing, an entertainment store, which sells video games, DVDs and CDs, as well as a party goods outlet selling fancy dress costumes, games and the iconic "pic n'mix" sweets, now known as "click n' mix".

"There has been a vacuum created by Woolworths' disappearance, especially in the entertainment, toys and party areas," Matthew Hardcastle, the head of Woolworths told Reuters in an interview after the launch of the site.

"This venture is firmly focused on the family and will enable people to find everything under one roof but because it is now online we'll be able to sell bulkier things and more products than you could get in a bricks and mortar store."

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The online store, which will sell over half a million products, will initially have separate checkouts for the main shop, entertainment and party stores. This will become one integrated checkout by the autumn.

Shop Direct, which operates under brands such as Littlewoods and Kays and is owned by entrepreneurial brothers David and Frederick Barclay, also bought Woolworths' Ladybird childrenswear brand.

Woolworths.co.uk has re-launched Ladybird for children between 0 and 8 years old and plans to introduce clothing, footwear and sportswear for older children in the coming months.

Shop Direct Group chief executive Mark Newton-Jones told reporters that Woolworths.co.uk would make a profit in its first full-year of operation but would not make any specific forecasts.

Woolworths.co.uk hopes to pose a challenge to pure-play online retailers - such as Amazon.com in entertainment - and act as a brand-neutral home for the maximum number of products.

"People tend to have about half a dozen websites they go to regularly and we want to be one of those “destination sites” for families," said Hardcastle.

Pioneers of the online retail scene, like British Internet fashion retailer ASOS and Italy's YOOX Group, are currently enjoying sales growth of up to 100 per cent.

Reuters