PRFM is going to open a site to sell perfume over the Internet. Could do a BAMM or
AAGP when the site opens. Float is 1.9 million per Yahoo.
Largest Fragrance Retailer to Launch
www.perfumania.com
Forms Internet Division To Cross-Market With Its More Than 290
Stores
MIAMI--(BUSINESS WIRE)--Dec. 16, 1998--To take advantage of the potential for
cross-marketing between its more than
290 retail stores and the Internet, Perfumania, Inc. (NASDAQ: PRFM - news), the
nation's largest perfumery chain, announced
today that it has formed an Internet division and will open a web store at
www.perfumania.com that will benefit from in-store
promotions and at the same time drive web customers to Company retail shops.
''With over 4.5 million customers, annual sales of approximately $180 million and 15
million visitors to Perfumania stores every
year, we believe we are perfectly positioned to cross-market and become the biggest
discount retailer of perfumes on the
Internet,'' said Perfumania Chairman and Chief Executive Officer Ilia Lekach.
''In addition to implementing the marketing and advertising strategies used on the
worldwide web by e-commerce leaders such
as Yahoo (NASDAQ:YHOO - news), Amazon.com (NASDAQ:AMZN - news),
Microsoft (NASDAQ:MSFT - news),
E-Trade (NASDAQ: EGRP - news) and others, we intend to drive customers to our
web store through store synergy, banner
promotions in our 290 store locations and the special advantage we have from years of
experience selling to consumers across
the board.
''Our new website store will benefit from incentive commissions we intend to give our
sales personnel for motivating in-store
customers to shop at perfumania.com. In-store customers will also be handed scented
bonus cards for special web store
promotions and discounts.
''Our website customers will get free shipping, free gifts with certain purchases, up to 70
percent discounts and other special
promotions advertised in our retail stores and on the Internet. Our web store also will
have special offerings and discount
packages in tandem with our retail stores, with extra incentives for patronizing our retail
shops,'' Perfumania's CEO said.
The Company plans to have its website store in full operation by February 1, 1999, in
time for the Valentine's Day market.
Perfumania is presently building a special web warehouse within its 140,000-sq.-ft.
facility in Miami, which will house the web
store infrastructure and inventory.
''Perfumania expects to dominate the Internet market not only through its
cross-marketing incentives but also because of our
discounted prices, better selections, enormous buying power, market recognition and
the potential for contact with our
live-store personnel,'' Mr. Lekach said.
He pointed out that Perfumania will become a ''truly global'' Internet marketer of
perfumes since it has the solution to the
problem of the international consumer having to pay customs and shipping to their
country. The Company's affiliate already
distributes fragrances and related products through representatives in more than 80
countries.
''By year-end 1999,'' said Mr. Lekach, ''we are planning to have Internet hubs for
Europe in France and England; for Latin
America in Panama and Mexico; and for the Mid-East in Dubai. We then will be able to
ship directly to the consumer from
these hubs in local currency with prompt delivery by local carriers, thus avoiding
problems and costs of customs duties and
shipping.''
Perfumania believes its web store will also prove to be a catalyst for overall market
growth. ''We're not concerned about
affecting our retail store sales by offering lower prices on our web store,'' Mr. Lekach
said. ''TV and videotapes haven't killed
the movies; they've stimulated more interest in them. Our website should help boost
in-store sales for consumers who prefer to
touch and smell the fragrances.''
Mr. Lekach said that Perfumania.com intends to offer the lowest prices available for the
more than 2,000 different products it
will initially offer. Those products will include all major fragrances, from Giorgio Armani,
Cartier, Fendi, Ralph Lauren, Gucci
and Versace to Tommy Hilfiger and Cool Water. The offerings also will include the
Company's own manufactured bath and
body brands including Nature's Elements Skin Care, NE Sport and Jerome Privee.
''Our web store will have the widest selections of women's, men's and children's
fragrances, essential oil and accessories
available anywhere,'' Mr. Lekach said. ''And with the most powerful delivery system in
the industry, we'll enable customers
everywhere to have easy access to the world's best fragrances.''
Mr. Lekach, who founded Perfumania, Inc. in 1987, returned this September as
Chairman and Chief Executive Officer. ''I am
optimistic about the Company's prospects in general. We've been applying a strategy of
cost-cutting, closing underperforming
stores and improving our merchandise mix. Perfumania.com will benefit from this
marketing strategy,'' Mr. Lekach said.
Perfumania, Inc. is a leading specialty retailer and wholesale distributor of a wide range
of brand name and designer fragrances
with approximately $180 million in annual sales. The Company operates a chain of more
than 290 retail stores specializing in
the sale of fragrances at discounted prices up to 70 percent below the manufacturer's
suggested retail prices. The Company's
wholesale division, one of the largest in the United States, distributes fragrances and
related products to national and regional
chains and other wholesale distributors throughout North America and overseas.
This press release contains forward-looking statements that involve risks and
uncertainties that could cause actual results to
differ materially from those set forth in the forward-looking statements. Such risks and
uncertainties are described in the
Company's filings with the SEC, including its Registration Statement on Form SB-2.
This release is available on the KCSA Worldwide website at www.kcsa.com.
Contact:
Perfumania, Inc.
Ilia Lekach, (305) 889-1520
or
KCSA
Herbert Corbin/Joe Mansi
(212) 896-1200/1205 |
