Second quarter sales at ShopNBC.com rose 41% over last year’s second quarter to $19.3 million, parent ValueVision Media reported today. Total second quarter revenue for ValueVision grew 22% to $128.3 million from last year’s Q2. The web accounted for 15% of revenue vs. 13% a year ago.
The company says sales would have been higher but for problems created when the company switched to a new enterprisewide computer system that replaced the company’s order entry, inventory, and customer service support systems. “A number of unplanned and unexpected conversion issues led to delays in processing shipments and other customer transactions,” said Dick Barnes, ValueVision Media COO & CFO. “This impacted sales in the quarter to some extent and led to incremental expenses to cover additional talk time in our call centers, customer discounts, overtime, and outbound customer communications.”
Barnes says representatives of the vendor have been on-site for seven weeks trying to resolve the problems. "The majority of the implementation problems associated with the systems conversion can be attributed to certain aspects of the software not functioning as promised or expected,” he said.
ValueVision had a Q2 operating loss of $845,000.