Online sales at Geerlings & Wade grow while overall sales shrink
Online sales at Geerlings & Wade Inc., a direct and Internet retailer
of wines and wine-related products, totaled $1.18 million for the first quarter of 2001 up from $965,000 in the
first quarter of 2000. As a percentage of total sales, Internet sales were 16.5% in the first quarter of this year
and 11.3% of sales in Q1 2000.
Net sales for the quarter ended March 31 were $7.2 million including shipping fees, a decrease of $1.3 million, or 15.3%, from $8.5 million for the
comparable quarter in 2000.
"We
believe sales declined in part because we dramatically reduced circulation by
over 2,000,000 mail pieces, 386,000 pieces to existing customers and 1,633,000
pieces to prospective customers,” said David Pearce, president and CEO. “These reductions, except for the delay of a
portion of an acquisition mailing for four weeks, were planned as part of our
overall strategy of returning to profitability in 2001 that includes reducing
unprofitable and inefficient mailings. Weaker responses to acquisition
mailings and to holiday catalogs mailed in 2000, which generally continue to
generate sales after the new year, contributed to the overall sales decline."
Net loss for the first quarter was $174,000 compared to a net loss of $413,000 for the
first quarter of 2000.
Loss from operations was lowered to $138,000 for the quarter ended March 31,
2001 from $1,601,000 for the quarter ended March 31, 2000.
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