Amazon predicts strong growth after festive sales boost

Jan 30 2010 Huddersfield Daily Examiner

THE UK boss of retail giant Amazon predicted further strong growth this year as cautious shoppers hunt out the best bargains online.

The group took 2m UK orders on its busiest day in the run-up to Christmas – with 23 items bought every second.

The best-selling item in 2009 was hit video game Call of Duty: Modern Warfare 2.

Managing director Brian McBride said: “I’m not saying we’re recession-proof, but when times are tough, people are looking for value.”

His comments came as the US-based firm posted a 71% hike in profits to £238m in the three months to December 31 and forecast sales up to 43% higher than a year ago for the current quarter.

Other UK top-sellers for Amazon included the DVD of Harry Potter and the Half-Blood Prince and the CD from Britain’s Got Talent star Susan Boyle, I Dreamed A Dream.

The firm also launched an Amazon application for the iPhone – the first dedicated mobile shopping “app” to help users browse and buy using their handsets.

This year, Mr McBride expects video games and the new book from Da Vinci Code author Dan Brown to be among the biggest sellers. It also expects to see a rise in demand LCD televisions ahead of the World Cup this summer.

The company opened a new distribution base in Swansea in 2008 to cope with increased demand, but the UK chief added that he had “no doubt” the group would need more capacity in coming years at the current rate of growth.

Sales across the overall group reached £5.9bn in the fourth quarter – 42% ahead of the same period in 2008.

Founder and chief executive Jeff Bezos launched Amazon.com’s online store in July 1995, a year after setting up the business.

The shares were listed in 1997.