NRF Expo: Internet and Multi-Channel Retailing Strategic Priorities
Strategic priorities for retailers today may be the same online as they are offline—it’s all a matter of enticing customers to come back by offering value prices and creating a shopping model that’s easy to use.
Ken Seiff, CEO of New York-based discount fashion site Bluefly.com, who will sit on a panel at the NRF’s Annual Convention and Expo on Internet and MultiChannel Retailing Strategic priorities, says there may not be much difference between the endeavors of online and offline retailers in terms of business models and performance. "You have to look at the customer, and customers today, particularly in this economic environment, are looking for value and convenience,” he says. Having a web site that is easy to navigate is a big factor in making online shopping an easy experience for consumers, he says.
A key issue for online retailers today is to focus on delivering at least what the customer expects, be it customer service, merchandise quality or fulfillment issues, he says. "As our online industry has matured, most online retailers are delivering more than half of their sales to repeat customers," Seiff says. “Generating repeat business is very cost effective for the online retailer, while failing to serve customers ensures a higher cost structure which requires more capital investment to succeed," he says. And, he adds, today’s economic climate has created many impediments to securing funding.
As for Bluefly, Seiff says the company had a very strong fourth quarter, partly due to having the opportunity to secure more discounted high-end fashion pieces. "We¹ve benefited from the current retail climate because there has been a lot of excess inventory in the market,” he says. “We had better prices than we’ve ever seen and had more clothes available that are in-season." Gross revenues for Bluefly were up 37% compared to last year’s fourth quarter, Seiff says.
Seiff, Dennis Honan, vice president of Sears, Roebuck and Co. and other panelists will speak Tuesday, Jan. 15, 11:45 a.m. to 12:45 p.m. in Room 1E14.
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