In its second-largest acquisition, Amazon buys the company for $970 million.
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Also at Kenneth Cole Nealon started to recognize that different sales strategies were needed for the Internet than in the stores. “With the Internet, we looked at a broader customer base than what we were seeing in our stores,” Nealon says. “We were serving customers from all areas of the country, not just in those regions where we had stores. As a result, we found our Internet customers wanted a broader range of products to choose from-not just the latest thing. Also, in the stores, you want products that are going to move off the shelves quickly. But with the Internet, you can offer a lot more classic and less trendy things.”
But whatever experience Nealon has had with the Internet, in the past, it is likely to pale by comparison to where she wants to take HSN. “We intend to be very aggressive in the Internet space,” she says. “Any growth we’ve seen we’ve seen in Internet sales thus far will be deemed modest compared to the long-term potential it represents to us.”
Lauri Giesen is a Libertyville, IL-based freelance business writer.