Burberry announces digital growth strategy

Burberry has said it will forge on with investment plans for its web strategy.

Burberry has said it will forge on with investment plans for its web strategy.

Capital expenditure for 2010/2011 at Burberry will increase to £130m from £70m spent last year. This will go towards new supply infrastructure to meet demands around order growth without overstocking and discounting, as well as digital commerce and new stores.

According to the firm, digital initiatives increased traffic to store outlets and e-commerce. Recent launches in that space included live streaming the Spring/Summer 2011 menswear show, offering 'click to buy' functionality, as well as Burberry Acoustic, an online showcase for British musicians.

Earlier this year, the retailer's chief executive Angela Ahrendts said the web had exceeded sales in many flagship stores, adding that the company is preparing to meet requirements prompted by the rise of the digital economy.

"Our continued investment in industry-leading digital, service and product initiatives will further increase awareness, traffic and sales, to drive long-term profitable growth for all our stakeholders," Ahrendts said in a statement today.

On the back-end, a highlight in the company's IT activity is a group-wide roll-out of an SAP platform to support supply chain - work around the implementation started two years ago.

Burberry reported a 23% profit increase to £215m for the last financial year, while revenue exceeded expectations and were up by 24% in the first quarter to 30 June.

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