Internet Retailer - Strategies For Multi-Channel Retailing


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News Stories Wednesday, May 2, 2007   
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Picture this: Best Buy teams with Kodak for digital photo services


Best Buy Co. is borrowing a page from the playbook of chain drug stores and getting into the digital photo business.

In conjunction with Kodak Imaging Network Inc., Best Buy, No. 11 in the Internet Retailer Top 500 Guide, on May 3 is launching an online photo center where shoppers can send digital images for storing, sharing, printing and creating unique photo gifts such as personalized greeting cards, calendars, mugs and photo books.

The new digital photo center also will feature prepaid cards for product merchandise and services such as a one-year subscription for premier membership. A classic photo book and one-year premier subscription is $34.99. "Best Buy Photo Center combines the best of the web with our customized retail store experience,” says Kevin Winneroski, vice president of merchandising for Best Buy Digital Imaging.

Other web-only and multi-channel retailers, such as CVS Corp., No. 84 in the Internet Retailer Top 500 Guide, Walgreen Co., No. 72 in the Internet Retailer Top 500 Guide and Martha Stewart Living Omnimedia, No. 367 in the Internet Retailer Top 500 Guide, also are expanding their digital photo services. Under an agreement Martha Stewart has with Eastman Kodak Co., the two companies launched a line of personalized photo products such as cards, stationery, invitations, photo books, calendars and stickers. Martha Stewart designs the product line and carries the items online at MarthaStewart.com while Kodak supplies materials and photo processing services. Kodak also markets the service on its web site.

At Walgreen consumers using Fujifilm’s "Get The Picture Online Service" network can now upload film from their computer or handheld device by clicking on YourPix.com, use a store locator to find a nearby Walgreens store and then complete the upload process. Online photo pricing starts at 19 cents per print, the retailer says.

Best Buy sees digital imaging as a new way to generate more multi-channel sales as the new service is rolled out to BestBuy.com and 833 stores. “Best Buy sales associates will be trained to assist customers as they look for ways to get the most enjoyment from their digital cameras and captured images,” says Winneroski.

Each store will feature a digital kiosk next to the photo center. “Customers know us for cameras, camcorders and photo printers,” says a Best Buy spokesman. “Beyond the hardware, we wanted to give our customers an online option for the final component of digital imaging.”

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