Online health and beauty retailer Quixtar Inc., No. 20 in the Internet Retailer Top 500 Guide to Retail Web Sites, has reported web sales of $880 million for 2006, up 10% from $800 million in 2005. The web now accounts for 79% of the company’s total 2006 sales of $1.118 billion.
This is the first year Quixtar has announced sales since switching to a fiscal year ending Dec. 31. Previously, Quixtar and other Alticor subsidiaries--including Amway--operated on a fiscal year ending Aug. 31.
In 2006, Quixtar’s independent business owners also generated $84.6 million in revenues for Quixtar’s online partner stores, an increase of 9% from $75.5 million in calendar 2005. Partner store sales reported for fiscal 2005 were $76 million, and independent business owners generated another $28 million in partner store sales for the last four months of 2005. Quixtar has agreements with more than 100 stores across the country, including Circuit City and Barnes & Noble, to provide products to independent business owners.
Quixtar attributes some of its sales increases to new health and beauty products, children’s nutrition products, and dietary supplements.
Quixtar also conducted its first national advertising campaign in 2006. The ads appeared on network and cable TV in the fourth quarter, while nutrition product ads were placed in Newsweek and Maclean’s magazines and on cable TV during the same period. Tentative plans are for advertising to focus on key health and beauty brand advertising in 2007, company executives say.
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