House of Fraser to launch virtual stores

In an effort to make online shopping easier, House of Fraser is launching two virtual clothing department stores. Currently, the retailer operates 61 bricks-and-mortar stores across the U.K., and plans to open two shops in Aberdeen and Liverpool to help distribute products from online orders to consumers.

The retailer has branded the new stores as "Buy and Collect," meaning shoppers can order their items online, try them on at the store and then decide if they want to keep the purchase or
process the return and refund immediately on site. The Financial Times reported that the company hopes the virtual stores will boost online sales by removing some of the hassle associated with delivery of internet purchases. In addition, the trial stores will offer customers personal shoppers, a seating area and touchscreen technology to order items online for next-day delivery to their homes.

The retailer selected Aberdeen and Liverpool for the trial stores because shoppers in these locations place a large number of online orders, and there is currently no House of Fraser store nearby.

Another reason House of Fraser may have transitioned its marketing focus to online sales is the impact England's recent riots had on the retailer's sales. The Scotsman reported that the retailer showed a 5.3 percent increase in sales for the first six months of the year compared to the first half of 2010, but reported a 1 percent decrease in sales due to civil unrest during the first three weeks in August.