The John Lewis Partnership has confirmed it is to step up its web
presence by taking over struggling electronics internet retailer
Buy.com’s UK operations. The Buy.com site was the fourth most
visited in the UK in December 2000.
“We know that many of our customers already
shop on-line, and with Buy.com we will be moving quickly to create
the UK’s best on-line department store”, said Luke Mayhew, John
Lewis’ trading director. The company intends to continue
development of its own department store’s web site, which currently
offers a limited range of merchandise, in parallel with further
development of Buy.com in the UK.
Buy.com was launched in the UK in March 2000 and was quoted as
being the fourth most visited e-commerce web site in the UK in
December 2000, with 550,000 unique visitors.
The UK arm of Buy.com has been for sale, however, since its US
parent company ran into troubles in the US and cancelled plans to
open in Continental Europe. It is currently in the process of
shutting down or selling its operations in Canada and Australia,
after reporting fourth-quarter losses of $27.4 million
(£18,674,196).
Market analysts and e-commerce consultants are reporting a
growth in alliances or acquisitions of this type, with traditional
retail companies looking to develop their e-commerce strategy by
acquiring the management skills of an existing dot.com. Market
analysts are seeing deals like this as part of a rapidly growing
trend by traditional ‘bricks and mortar’ companies buying the set
up and ideas of troubled ‘clicks and mortar’ dot com companies.
The deal is set to close by the end of this month, but the terms
are not being disclosed.
