Why Blyth is focusing on web retailing
Blyth Inc. is spinning off its wholesale business to devote more time and resources to direct marketing, including growing its Internet channel.
On Sept. 19, Blyth, No. 287 in the Internet Retailer Top 400 Guide to Retail Web Sites announced that it is establishing its wholesale business unit as a publicly traded decorative home expressions retailing company. The new entity will have approximately 3,200 employees and estimated revenues of $700 million.
By spinning off a larger part of its operation, the move also frees up Blyth to concentrate on growing its catalog and e-commerce operations. “Following the spin-off we will be able to sharpen our focus further on our core direct selling, catalog and Internet businesses,” says Blyth chairman and CEO Bob Goergen.
Blyth competes primarily in the home fragrance, home decor, seasonal decorations and gifts industry. The company designs, markets and distributes candles, home fragrance products, decorative accessories, seasonal decorations, household convenience items and other merchandise.
The company is a relative newcomer to e-commerce. In January 2004, Blyth acquired Walter Drake, a leading direct marketer of value-priced household products, in a deal valued at $53 million. Blyth also acquired Miles Kimball Co., a cataloger and web retailer of home decor and household convenience items, premium photo albums, frames and holiday cards, in April 2003 for approximately $65 million.
For the first six months of its 2006 fiscal year, Blyth had combined catalog and web sales of $70.8 million, a decrease of 7.8% from $76.8 million in the same period a year ago.
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