Feeds

Jungle.com inches to break-even

E-commerce still a costly business

  • alert
  • submit to reddit

GUS, parent company of Argos and Jungle.com, has released its interim results, and announced an 11 per cent increase in profit and 7.8 per cent increase in sales to £2.9 billion.

However, in an almost identical statement to its last results announcement in July, it has removed Jungle.com's sales and its Argos Additions Net effort from its e-commerce sales and proudly announced they have trebled over last year.

E-commerce sales for the group - comprising online and digital TV sales from Argos and GUS home shopping catalogues - have risen from £20 million to £65 million.

However Jungle has not reached profitability, despite predictions made by founder Steve Bennett when it was bought that it would be in the black by April 2001. Sales at the online consumer electronics retailer fell three per cent to £27m in the first, but due to staff cuts and cost-cutting, operating profit and margin were increased. Continued costs still saw it make a "small operating loss".

As for Argos Additions, sales were "in line with expectations" at £63 million, but losses increased as the company expanded nationwide.

GUS' chief exec John Peace made no reference to his e-commerce ventures save that the company had invested in several new initiatives. ®

Related Stories

GUS online sales grow threefold
GUS buys Jungle for £37 million

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.