Online retailer The Hut Group is to start looking for agencies to work on a brand awareness campaign after buying Zavvi’s brand, rights and 1 million-strong customer database this week.
Hut Group is looking to compete with HMV, Play and Amazon for the “£5-600m” sales displaced by the collapse of Woolworths and the former entertainment retailer Zavvi.
Hut Group chief executive Matthew Moulding told Marketing Week that the company will be looking for agencies to advise on the best methods to grow its customer base both online and offline, including the possibility of a Christmas TV campaign.
Moulding admits the Zavvi brand has suffered some “damage” in the last few months, but is confident it can use its competitive price positioning and customer data to re-build sales.
The Hut Group currently runs and fulfils sales of entertainment, electronics, perfumes and lingerie via its site, and as a white label service for partners, including Asda and Tesco.
It plans to expand into further categories for its own brands and partner retailers this year, taking it into direct competition with Amazon and woolworths.co.uk, which it attempted to buy before being trumped by Shop Direct earlier this year.
The debt-free, privately-owned group expects to increase its turnover from £25m to £75m by the end of this calendar year.