NetFlorist expands into Pretoria

Pretoria, 25 January, 2010 – Online retailer NetFlorist entrenched itself more firmly as South Africa's leading flower and gifting service with the opening of a hub in Pretoria in December 2009.

Flying in the face of generally accepted online business practice, this is the second bricks and mortar business hub established by the company. The first, in Rivonia, opened at the end of 2008 to house its stock and centralise its business operations. This proved a good move for the company as it ensured more timely delivery of flowers and gifts, thus enhancing NetFlorist's reputation and its capacity to expand its range of products to the market.

"The ever-increasing pace of living in urbanised areas has intensified the need for an expanded gift and flower delivery service," says Ryan Bacher, Managing Director of NetFlorist. The company's year-on-year growth figures for 2008 and 2009 have been 30 percent and 20 percent respectively with repeat purchases at 62 percent while its conversion rate – the number of visitors to the company's website who place orders – is at 18 percent.

In addition, Internet sales account for 80 percent of transactions and call centre sales for 20 percent. NetFlorist's gifting trade (albeit off a lower base) is growing at 40 percent year-on-year. This growth, together with increased demand for its services, enforced the need to expand the company's bricks and mortar footprint with the construction of another hub, this time in Pretoria. "We see Pretoria as a tremendous growth area for the company and the city is part of NetFlorist's national growth strategy," says Bacher.

The presence of the new hub will aid NetFlorist in shortening turnaround times both in Pretoria and its surrounding suburbs. Deliveries managed in-house, as opposed to those outsourced, have jumped from 45-to 60 percent, giving the company greater control over the quality of service provided by the drivers delivering its flowers and gifts. An additional 12 new jobs have been created as a result of the opening of the second hub.

While the new hub has not long been in operation, NetFlorist's management is already planning the several additional hubs. "We are looking at all the major centres in South Africa with a view to including our current partners in the area," Bacher concludes.

/ends.