Dell's Twitter Revenues

Back in June, we reported on Dell's experiments with Twitter. Now, a new article in Fast Company says that Dell has generated $6.5mn in Twitter-driven sales. And as Dell's Twitter Follower list has grown by some 23% in the last three months alone, it's quite likely that their revenues from Twitter will increase considerably in 2010. Here's a case study on Dell Outlet written up by Twitter, and see Dell Outlet on Twitter here.

Amazon Fulfilment Centre

If you've never seen the madness that is an Amazon fulfilment centre, have a look at this two minute video from The Guardian showing the Milton Keynes centre in the UK.

Valuing El Corte Inglés

El Corte Inglés: Plaça de Catalunya, Barcelona

A report in today's Financial Times [subscription required] says that a long-running family feud at El Corte Inglés will be back in court this week, with a panel of three judges meeting to establish a method for valuing the closely-held company. Their decision is expected over the coming month or so.

The feud goes back to 2005 when one family member wanted to sell off his stake in the company. Initially, the valuation was set at the department store group's book value. Needless to say, this inadequate valuation method was challenged, with the result that two business school professors came up with a valuation of 2.3 times book value, or between €14.7bn and €16.6bn. [For more details, see this earlier article in the FT.] But their work was also challenged, and to date, there has been no agreed valuation method which has been acceptable to all parties.

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DSGi Interim Statement

Back in November, DSGi published its Interim Statement for the 24 weeks to 17th October. Group sales were down by 1% [4% on a like-for-like basis]. But sales in the Nordics were up by a remarkable 22% [although just 11% on a like-for-like basis], while everywhere else, apart from the e-commerce business, DSGi's sales were down. As the Interim Statement explains:

The Nordic business is the preferred operating model for the Group. Management continues to simplify the business, taking out costs and reducing complexity. The efficient central operating structure and strong market shares have enabled Elkjop to leverage margin and exploit its strong market positions and gain market share from distressed competitors.

In other words, DSGi's business in the Nordics has been aggressive with its discounting policy, to the detriment of some of its weaker competitors.

Non-core at PPR

It's been an open secret that PPR would dispose of its Fnac subsidiary some day. Well, last week, in an interview with the Wall Street Journal [subscription required],

Cyber Monday in the UK

A few years ago, the first Monday after Thanksgiving was called Cyber Monday because an analyst found that online orders seemed to jump on that Monday, presumably following a pattern of window shopping over the weekend. And since then, the Cyber Monday sales lift has been quite noticeable in the US. Now it's making its way over to Europe.

The UK broadsheet, The Guardian, has published an interesting article on the preparations being undertaken by Amazon in anticipation of this sales peak. It says that last year [on 8th December], Amazon sold 1.4mn items from its UK web site, over 16 items a second and the most orders it had ever received in a single 24-hour period. This year, Amazon is forecasting that sales will be between 21 - 36 per cent higher.

To demonstrate the scale of Amazon's operations in its UK Distribution Centre in Milton Keynes, The Guardian produced a short video.

RIP JSP

Jessops, the troubled UK-based photography retailer, will be de-listed from the London Stock Exchange early next year according to an interview with Chairman David Adams in Amateur Photographer magazine.

Just six weeks ago, Jessops announced that its main operating company was being sold to a newly formed company called Snap Equity Limited, of which 47% is owned by HSBC, 33% is owned by the company's pension fund, and 20% is owned by an Employee Benefit Trust. As part of the deal, HSBC withdrew its claim on a £34mn debt owed to the bank by Jessops plc.

The private equity arm of ABN Amro floated Jessops in November 2004 at £1.55 a share. Today's share price is £0.01 and the company is capitalised at just £1.14mn.