Pyjamas a web winner for Just Jeans

The site has earned A$280,000 in revenue since it began a month ago and part of its success might be due to the fact that it is a mail order business rather than a high street retailer. However Just Jeans MD, Howard McDonald, says the website is expanding Peter Alexander's customer base rather than cannibalising existing sales.

"Around 50% of on-line sales revenue has so far come from new customers not on our mailing list. The website has allowed us to tap into a new market."

"On-line transactions represent around 15% of total revenue, and the site did more business in the first 10 days than for the entire three month run of the previous catalogue."

Peter Alexander was founded 12 years ago and bought by Just Jeans in February this year. It distributes quarterly catalogues to a mailing list of around 70,000 customers.

Mr McDonald says he expects the website to comfortably achieve profitability and remain a significant revenue driver for Peter Alexander.

"Set-up costs were relatively minor as we were able to make use of Just Jeans' existing technology, know-how and fulfillment infrastructure. Processing costs are also minimal as the website is fully-automated."

Mr McDonald says Peter Alexander is planning to launch in New Zealand shortly. The New Zealand website would be based on the Australian model and would make similar use of Just Jeans' exiting infrastructure in New Zealand.

Just Jeans has 494 stores in Australia and New Zealand and four major brands - Just Jeans, Jay Jays, Jacqui E and Peter Alexander.

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