Technology boosts Burberry's results

Burberry is placing its bets on social media

Burberry has credited digital media initiatives with contributing to its 12 per cent sales increase over its fiscal third quarter.

The increase means total sales reached £380m at the upmarket fashion retailer, beating analysts' expectations of a three per cent boost.

According to the firm, store sales grew by 10 per cent and its digital media strategy helped to drive customer traffic.

Such initiatives included a deal with Facebook for the launch of a web site that allows members to submit and share images and stories about Burberry trench coats, as well as a presence on Twitter and 'good contact' with the blogger community.

The firm's chief executive Angela Ahrendts is aware of the potential of ecommerce. She has been quoted as saying that the online channel has now surpassed sales in many flagship stores, adding that Burberry is gearing up to cater for new customer demands and trade in the digital economy.

Burberry has also been carrying out a total revamp of its behind-the-scenes IT over the past two years, with an all-encompassing SAP rollout designed to completely change its supply chain operations.

A spokesman for the company told Computing that most of the implementation work is now complete, however there is still "a bit to go".

So far, the systems that are already in place have helped the company take two weeks out of its supply chain processes and gain efficiencies such as quicker follow-up on orders.