NI hires Conchango to boost retail activity on websites

Conchango declined to comment.

The Sun's website has a wide-ranging shop that sells goods from CDs to
fashion. The Times Online has no retail section, but Conchango is
believed to be looking at how News International can extend its use of
retail, which currently relies on a relationship with online shopping
provider eDirectory.

News International views retail as a key plank in its online strategy,
according to a source. And such a strategy is already being investigated
at magazine publisher Emap, which sees e-commerce as a natural spin-off
from titles such as Grazia. Emap sites will launch e-commerce stores
this year as part of its three-pronged digital strategy dubbed "content,
community and commerce". Hello! magazine is also exploring the
possibilities.

Steve Thomson, managing director of consumer products and retail at
research firm GfK NOP, said that e-commerce could provide News
International with a valuable revenue stream if handled correctly.

Thomson said: "News International has very strong brands and the strong
attachment readers have can spill over into other activities. This,
however, won't be enough in itself. News International needs to work out
what type of products suit the separate brands.

"For example, there's no reason why The Sun doing digital downloads
wouldn't work. The Sun writes a lot about music and entertainment, so it
would have credibility in this area.

"The Sunday Times already has a wine club, and food and drink would have
a good resonance with its readers. It has always taken food and drink
seriously and has the top writers in this area."

But Thomson warned that advertisers could be put off should NI take the
direct retail route. He said: "It could potentially put off advertisers
if they sell goods in the wrong areas, and wouldn't work if it simply
offers goods that are available on existing channels at a better rate."