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Intershop struggling with sales



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Intershop is a German software manufacturing company. It has been found slow and significant deterioration compared to the forecasts, as well as to the previous year’s results. It is really alarming when sales declined. Intershop has to adjust its early prediction for both the current and the coming year. Thereafter, the company that produces software for Internet retailing, above all the Intershop Commerce Suite , generated sales of around 24 million euros in the first nine months, which is another one million lower than the already poor prior-year sales in the same period. The fact is alarming and significant. The problem of the company is that it has to survive a change of strategy. If Intershop had sold its e-commerce solutions so far, the company now have to trust on a rental model. Of course the model on a cloud solution. It is always questionable whether and how quickly a sufficient number of customers can be found or converted to raise the naturally much lower. But time has come to follow a steady sale. While looking to cloud revenue, has increased by 19 percent . However, this was insufficient to reach the earlier targeted sale for the current and the coming year. Rather, the management expects now for the year 2019 only a slight increase in sales of ten percent, as well as a negative financial result in the mid-single-digit million range.Similarly, the forecast for 2020 with an annual turnover of 50 million euros is unstoppable.  A new forecast for 2020, the company will set in February next year and this forecast is important. By this time they found that transformation to a cloud business will be profitable.

Earlier Intership wins German E-commerce award in category of Shop. It was in month of February 2019.

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