Coldwater Creek looks at its Internet future
As it continues to grow its base of stores, the Internet over the long term will account for a smaller percentage of total sales for Coldwater Creek Inc., chief financial officer Mel Dick said during a recent presentation at the CIBC World Markets Inc. consumer conference.
Today Coldwater Creek, No. 46 in the Internet Retailer Top 500 Guide, generates about 25% of its total sales from e-commerce, “but over time I see that range becoming 15% to 20%,” Dick told attendees.
Coldwater Creek, which generated 2006 web sales of $263.7 million, or 25% of total sales of $1.05 billion, still sees the Internet as a significant channel. “It’s a very cost-efficient way to clear merchandise,” says Dick.
The Internet has helped Coldwater Creek control about 7% of its specialty apparel niche, he says. Coldwater Creek, which has an e-mail marketing database of 3.2 million names and is putting web-enabled kiosks into its network of 239 stores, sees women between 35 and 60 with annual household income of more than $75,000 as its core customers.
But even though the Internet accounts for two-thirds of all direct marketing sales, Coldwater Creek is tying its future business success to stores. “We will continue to grow our store base,” Dick told attendees. Long-term, Coldwater Creek sees an opportunity to operate 450 to 500 stores, the company says.
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