Strategy

Our strategy is to exploit our position as a television and internet retailer to grow sales strongly, whilst maintaining operational efficiency and developing our multi-channel offer.

Products

We know that our customers want us to provide engaging and demonstrable products, exclusive deals and a convenient shopping experience across a range of price points.

Alongside our existing product lines we are introducing a range of branded products, such as Sony, Karcher, TomTom,Vitamix and Polti, and are extending many categories, such as gardening, food and animal care. We are also trialing broadcasts with a number of high street retailers, which enables us to offer our customers an extended range of products without stocking the products ourselves.

Customer service

As a home shopping retailer, delivery and customer service are a vital part of our overall offer. In 2009 we took steps to improve the speed and traceability of our product delivery and the quality of our customer service; this will remain an important area of focus for us.

Improving our TV offer

Our Ideal World channel Ideal World is broadcast 24 hrs a day, 7 days a week, 365 days a year (live between 9am - 1am) on Freeview, Sky Digital, Virgin Media and Freesat. Our Ideal World 2 and 3 channels on Sky replay a selection of the most popular shows.

Since July 2009 we have been broadcasting our Create and Craft channels live on Freeview every morning, to complement our Sky Digital channel. Create and Craft has also been on Freesat from September 2009.

Growing our online sales

Our primary growth opportunity lies with the internet, and our focus is on driving our existing TV shopping audience to our websites, as well as employing other established marketing and e-commerce tools. In 2009 we improved the functionality of our websites and introduced a range of new customer marketing initiatives, including email marketing and enhanced upselling offers.

Developing our craft business

We have a niche position in this market, which we believe has significant growth potential. Craft is our largest category with a number of sales channels, including television, internet, our Create and Craft Club and wholesale. In November 2009 we extended our product ranges and now offer pottery, art, knitting, haberdashery and more. In January 2011 we extended Create and Craft’s live TV shows to 9 hours a day on Sky and Freesat. It is also broadcast live on Freeview from 8am to 1pm.

Operational efficiency

During 2009 we focused hard on the control of working capital and stock management. As a result our cash balance was £9.2m at the 2009 half year compared with £8.4m at the 2008 year end and our stock was £3.0m compared with £3.8m at 2008 year end and down 59% compared with the 2008 half year. A thorough review of the overhead base has taken place and a number of significant cost savings negotiated. Cash, stock and costs will continue to be managed closely.

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