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News Stories Friday, February 28, 2003   
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Q4’s top online merchandisers, as named by The E-Tailing Group


Focusing on the elusive quality of excellence in merchandising, consultants The E-Tailing Group has named 11 standouts in 10 products categories as retailers who exemplified the art of merchandising online in the fourth quarter of last year.

On The E-Tailing Group’s list are:
• Accessories: Coach
• Apparel: Lands’ End and Victoria’s Secret
• Books/music: Barnes & Noble
• Computers: CDW
• Consumer electronics: Circuit City
• Department stores: Nordstrom
• Drugstores: Drugstore.com
• Gifts: Godiva
• Health and beauty: Sephora
• Home and Garden: Bed, Bath & Beyond
• Mass merchants: QVC
• Office supplies: Staples
• Pets: Petco
• Sporting goods: Orvis
• Toys and games: KB Toys

The E-Tailing Group says it named two leading merchants in apparel based on the greater number of sites within that category relative to other categories.

“Merchandising features and functionality are definitely category specific,” The E-Tailing Group said in its report. “While some categories require extensive information to sell products others may call for more suggestive selling or impulse buying. The mark of a good merchant is a well edited selection of these tools that are contingent upon product mix and multi-channel models while addressing shopper needs and buying patterns.”

Among the elements common to most sites were Sales and Specials, Retail Locators for most sites with stores, Free Catalogs for those with catalogs. In specific categories, researchers looked for:
--gift suggestions, gift search and gift wrap at accessories sites
--brand boutiques and themed areas in apparel
--audio, what’s new, top sellers and brand promotions at books/music sites
--coupons, product comparison, how-to and streaming video/interactive tools at computer sites
--weekly print circulars, gifts sections, brand promotions and top sellers at consumer electronic sites
--frequent buyer programs, gift areas and registries, brand boutiques, top sellers and zoom at department store sites
--frequent buyer program and pre-order/re-order features at drugstores
--gift centers, suggestions, search and wrap; brand boutiques and themed areas at gift sites
--what’s new, brand promotions and top sellers at health and beauty sites
--guides and how-tos, and gift centers at home and garden sites
--print/TV ads, weekly printed circulars, shop-by-bran and zoom at mass merchants
--coupons, auctions, store returns, free catalogs and retail locators at office supply sites
--gifts suggestions, seasonal/themed areas, top sellers, pre-order/re-order, store events and newsletters at pet sites
--seasonal/themed areas, zoom, gifts areas at sporting goods sites
--seasonal area, brand boutiques, top sellers, gift areas and holiday shipping deadlines at toy and game sites.

“Factoring in the many category specific nuances, the adage that ‘Merchandising is an Art’ is more apparent than ever,” The E-Tailing Group said in its report. “Benchmarking tends to be subjective as criteria are based on a good cross-section of well-executed merchandising features and functionality, essential to enhance products relative to other sites in each category. A winning tool set must improve both site and shopper performance, with bonus points for best-of-breed branding.”

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