Service Merchandise Announces Strategic Internet Alliances With Three Existing Housewares Vendors
NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 14, 2000--
Line Extensions Will Allow Service to Sell Full Product Lines
Through a Combination of In-Store, Online and Mail-Order Offerings
Service Merchandise Company (OTC:SVCDQ) has announced the formation of strategic Internet alliances with three of its existing housewares vendors -- Corning Consumer Products Company, Inc., Household Products Inc./Black and Decker and Panasonic Home and Commercial Products Company -- which will culminate with the retailer offering its customers the complete product assortments available from those vendors.
These alliances represent the first stage of Service Merchandise's aggressive effort to offer full line extensions via its Internet site at www.servicemerchandise.com in categories it sells.
Current plans call for these vendors' full lines to be available online by the end of the second quarter of this year, with additional vendors being brought into the program in the coming months.
"This strategy creates a substantial benefit for our customers, since we will be offering them the widest possible assortment of the brands they want, at the values they know from Service Merchandise," said Charles Septer, President and Chief Operating Officer. "With this arrangement, customers can either buy the products we already offer in our stores, or they can purchase a significantly expanded assortment online, for home delivery.
"Historically, brick-and-mortar retailers have not offered manufacturers' entire product assortments," he continued. "Service Merchandise will break new ground by stocking the most popular items in its 221 stores and making the entire product lines available online."
The line extensions represent consumer brand names ranging from Black and Decker household products, and Panasonic personal care, to 15 Corning brands, including Corningware, Pyrex, Corelle, Visions, Ekco, Oxo, Revereware, Chicago Cutlery, Farberware Bakeware and B. Via Bakeware.
"These partnerships represent a real win for the participating vendors and for Service Merchandise," said Jerry Foreman, Senior Vice President of Hardlines Merchandising. "We will be able to maximize customer service by offering the widest possible range of products, while providing these vendors with expanded visibility and sales."
Foreman noted that Service Merchandise is working aggressively with its existing vendors to expand the number of participants, and he invited any vendor interested in exploring this expanded distribution channel to contact his office at 615/660-7023.
Septer indicated that the new program will help Service Merchandise take full advantage of the synergy offered through its three ways to shop -- in store, by phone and online -- and the long-established infrastructure which supports those sales channels.
"We have a strong track record in Internet sales, and an even stronger one in order fulfillment," he said. Septer noted that Service Merchandise's Internet sales growth last year outpaced industry averages for the holiday selling season and for the entire year.
Among the newer features the Service Merchandise Web site offers are the ability for online customers to see whether an item is in stock at local Service Merchandise stores and reserve the item for pickup; and the ability to return Internet purchases at any store nationwide.
"Holiday shoppers were especially pleased with the ability to reserve items for store pickup," Septer said. "It is just another advantage Service offers over Internet-only retailers."
Service Merchandise is a specialty retailer focusing on fine jewelry, home products and gifts, operating 221 stores in 32 states. Customers can also shop by phone at 800/JEWELRY and online at www.servicemerchandise.com. |
