PetSmart acquired Pet360 for $130 million in cash and up to $30 million more in future performance-based payments.
Home Décor registered about $10 million in appliance sales in 2005, a figure the company expects to grow to around $20 million in 2006, says CEO Michael Golden.
Now that it has an established e-commerce platform, Home Décor Products Inc. is focusing on new lines of merchandise that bolster the company’s presence in various home improvement and furnishings categories.
For instance, Home Décor, No. 111 in the Internet Retailer Top 400 Guide to Retail Web Sites, registered about $10 million in appliance sales in 2005, a figure the company expects to grow to around $20 million in 2006, says CEO Michael Golden. “Selling appliances for the first time is turning out to be a pleasant surprise,” he says.
Home Décor, which operates six e-commerce sites focusing on different segments of the market, including HomeClick.com, AbsoluteHome.com, Barbecues.com and KnobsandThings.com, is enhancing its appliance product pages with features such as customer product reviews and bigger and deeper images. “We’re catering to the customer with broadband access who wants more information,” Golden says.
Golden believes selling appliances at the best possible price is among the reasons Home Décor is finding more customers for higher-end appliances, such as certain ranges that start at $1,650. “We have the inventory, but we also offer lots of product information along with our established brand,” Golden says. “We are getting more upper-end appliance buyers because we aren’t competing on price alone.”
Home Décor’s 2006 business plan calls for delving deeper into various home improvements and furnishings categories, including flooring and window treatments. “There is a lot of growth in the segments we are in,” Golden says. “Our target goal is sales in excess of $100 million this year.”
For 2005, Home Décor grew its e-commerce sales 58.3% to $79 million from $49.9 million in 2004, the company says. Golden will be a speaker at the Internet Retailer 2006 Conference & Exhibitionin an educational session titled What Venture Capitalists Expect of E-Retailers .