Leshop.ch: Increased sales are invested in marketing
Leshop.ch increased its revenue by 17 percent in the first half of 2009. However, marketing costs are so high that the Migros online store is not turning a profit.
The Swiss online supermarket Leshop.ch significantly increased its sales in the first half of 2009. It delivered food and non-food items worth over 65.5 million francs to all Swiss language regions. This is CHF 9.4 million more than in the same period last year. The stable growth is due in part to the large number of new customers (22,400 in the first half of the year) and the stable basket size of regular customers. In total, over 35,000 Swiss households do their bulk shopping at Leshop.ch one or more times a month.
Migros' Internet store was in the black for the first time in 2006. Currently, however, it is not because of high advertising investments. The company's goal is growth and gaining market share, and all profits are immediately reinvested in marketing, said Leshop Managing Director Christian Wanner when asked by SDA. If marketing were reduced to a normal level, the online store would immediately be profitable again.
Migros' Internet store was in the black for the first time in 2006. Currently, however, it is not because of high advertising investments. The company's goal is growth and gaining market share, and all profits are immediately reinvested in marketing, said Leshop Managing Director Christian Wanner when asked by SDA. If marketing were reduced to a normal level, the online store would immediately be profitable again.
