Multi-Channel Retailing Grows With Internet
By Jody Orshal
Associate Editor
Web Posted: June 20, 2000.
New York (June 20, 2000)?Multi-channel retailers are companies with more than one channel of distribution, and they1re becoming a force to be reckoned with in the jewelry industry. Most multi-channel retailers are traditional, bricks-and-mortar retailers that also conduct e-commerce.
"We are seeing more and more multi-channel retailers," said Ken Gassman, retail analyst at Davenport & Co., Richmond, Va. "If you1re not on the Internet, you1re losing business. If you are only offering an information site, someone is taking business away from you. If your site does not offer online purchasing, customers will go to a site that does."
Zale Corp. is one of the leading multi-channel retailers in the jewelry industry.
"They have the financial security to sustain the cost and loss of starting an online e-commerce business," Gassman said. "Zale also has the infrastructure in place to fulfill orders and has clout with vendors and with customers."
Zale recently appointed Philip N. Diehl, former director of the U.S. Mint, president of Zale.com, to further develop its Web-based business, which was launched in 1997. Last year the company revamped Zales Direct, its e-commerce site. Zales.com now features a new look, easier navigation and more interactive features . Zale also has agreements now with Shop@AOL, Yahoo! and with GiftCertificates.com. Zale claims to be the largest online provider of jewelry, offering consumers more than 1,350 products.
Target, the 12th largest jewelry retailer in the United States, and America Online have formed an alliance under which Target will become one of America Online1s premier retail partners. Target1s merchandise will be available in the Shop@AOL online shopping destinations and other areas across AOL, AOL.COM, CompuServe, Netscape Netcenter, and AOL Digital City.
Target receives approximately 1 billion visits each year to its approximately 900 stores in the United States, and AOL and CompuServe combined have more than 24 million members.
"The Target-AOL alliance is a new standard for how to combine the power of physical retail stores with the power of the Internet," said Jerry Storch, president of Target financial services and new businesses. "This agreement is just one more example of how committed Target is to integrating the Internet into the way it does business. With AOL, we will be creating new offerings and introducing more consumers to the Target brand."
The alliance calls for prominent links to Target.com, allowing easier access to Target1s products. Exclusive benefits will be offered to new Target-AOL members who subscribe to the service through Target, and members will be able to use their Target Guest Card as a payment option. The service will also include an "e-zine," informing new AOL and Target customers of special offers.
Wal-Mart, the nation1s largest jewelry retailer, will soon relaunch its SamsClub.com Web site. The site will emphasize luxury goods, including jewelry.
"The jewelry on the site will not be affiliated with Jan Bell," said Melissa Barryhill, spokesperson for Sam1s Club.
Sam1s Club1s contract with jewelry department lessee company Jan Bell Marketing, Sunrise, Fla., expires on Feb. 1, 2001.
In January, Wal-Mart relaunched its Wal-Mart.com site. Company spokespersons admit Wal-Mart has lagged behind on e-commerce and is seeking to boost its online marketing share.
Service Merchandise is in the process of strengthening its Web presence and plans to increase its jewelry offerings online.
"We sell the same ratio of jewelry on the Web that we do in the store," said Charles Septer, president and chief operating officer. "People trust our credibility."
Television retailer QVC is looking at the Internet as a tool for fueling its future growth.
"The Internet is an important part of our future. We want to make our products more accessible to our customers. The Internet offers the opportunity for our customers to buy jewelry 24 hours a day," said Debbie Schaffer, vice president and director of jewelry at QVC.
According to Schaffer, QVC1s Internet sales doubled in 1999 and are expected to do as well in 2000.
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