ShopNBC restructures once more to keep operations on track
ShopNBC has announced organizational changes and furloughed 10% of its salaried workforce, mainly at its Eden Prairie, MN, headquarters. The television and online retailer expects to meet its full year sales guidance for fiscal 2007. The company expects growth in the low single digits with adjusted earnings before interest, taxes, depreciation and amortization of $5 million to $10 million for fiscal 2007. Parent ValueVision Media Inc. reports year-end numbers in March.
ShopNBC announced organizational changes and cost-saving measures as a result of a business review conducted by management and an outside consulting firm. “The substantial cost reductions and margin improvements identified in this review position ShopNBC for significant financial improvement in 2008,” says John Buck, ShopNBC’s interim CEO.
As a result of the business review, ShopNBC’s organizational structure was simplified and streamlined to focus on profitability and accountability in key business units, the company says. The layoffs followed a previous 12% reduction of its salaried workforce in May 2007.
The business review included a reevaluation of partnerships with product vendors and major suppliers with a focus on increasing gross margins and reducing company operating expenses, the company says.
In November, Buck told analysts in a conference call that the Internet will figure prominently in future growth. “Our online business has been very successful in supporting our TV business, while also extending our retail reach to aggressively market to e-commerce buyers,” he said.
ShopNBC.com, No. 64 in the Internet Retailer Top 500 Guide, is owned and operated by ValueVision Media Inc.
ShopNBC vice president Geoff Smith is speaking at the Internet Retailer Conference & Exhibition, June 9-12 in Chicago in a session titled Implementing and using video.
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