In its second-largest acquisition, Amazon buys the company for $970 million.
RedEnvelope Inc. has selected Ken Constable, a 30-year veteran of global general management, marketing and e-commerce, as its next president and CEO. He previously was a vice president and general manager with Provide Commerce.
Online gifts retailer RedEnvelope Inc. has selected Ken Constable, a 30-year veteran of global general management, marketing and e-commerce, as its next president and CEO. Constable replaces outgoing CEO Alison May.
Constable will focus on achieving profitability, strengthening the company’s brand and overseeing a strategic corporate review, the company says. RedEnvelope is retaining financial advisor WR Hambrecht + Co. to assist with the review.
Prior to joining RedEnvelope, No. 116 in the Internet Retailer Top 400 Guide to Retail Web Sites, Constable served as senior vice president and general manager of Provide Commerce, where he was responsible for strategic direction at ProFlowers.com, one of Provide’s three e-commerce sites. Provide Commerce, No. 59 in the Internet Retailer Top 400 Guide to Retail Web Sites, is now a business unit of Liberty Media Corp.
Prior to Provide Commerce, Constable served as vice president and general manager of Dell Inc. in Asia and Canada, managing businesses with annual revenue up to $725 million, and as president and CEO of Nabisco Ltd., Canada. Constable also held general management positions with several international divisions of PepsiCo Inc.
For the 2005 fiscal year, RedEnvelope had e-commerce sales of $75 million, an increase of 32% from $56.8 million in fiscal 2004. In fiscal 2005, the web accounted for 74% of total sales of $101.4 million, compared with 72% in fiscal 2004 when e-commerce comprised 72% of total sales of $79 million. In fiscal 2005, RedEnvelope reported a net loss of $5.15 million, compared with net losses of $5.12 million and $7.7 million in fiscal 2004 and 2003, respectively.
RedEnvelope Chief Marketing Officer Gary Korotzer is speaking at the Internet Retailer Conference & Exhibition June 5-7 in Chicago on the topic, Online Retailers Finally Discover Loyalty Programs.