CDW web sales grow 12% in 2006
CDW Corp., direct marketer of personal computers and related gear, grew web sales 8% in the fourth quarter and 12% for 2006, while companywide sales grew 14% in the quarter and 8% for the year.
In Q4, CDW, No. 8 in the Internet Retailer Top 500 Guide, posted web sales of $491.2 million vs. $455 million in Q4 2005. Overall the web represented 27% of companywide sales of $1.82 billion in the quarter, compared with 28% of companywide sales of $1.6 billion in the same quarter a year earlier.
For 2006, CDW recorded e-commerce revenue of $1.9 billion, compared with web sales of $1.7 billion in 2005. Overall the web made up 28% of total revenue of $6.8 billion in 2006 vs. 27% of total sales of $6.3 billion in 2005. “In 2006, we expanded our platform for growth, which resulted in a challenging and productive year for us,” says CDW chairman and CEO John A. Edwardson. “As we enter 2007, we will focus on leveraging our enhanced infrastructure and increasing our ability to profitably outpace market growth."
In the competitive market for selling computer equipment online, CDW acquired Berbee Information Networks Corp., an information technology services provider, in a deal valued at about $175 million in October. CDW says Berbee will round out its information services market and grow market share in its business-to-business and government IT markets. “Berbee has significantly increased our ability to offer customers a single source for their core technology needs and more advanced IT services and solutions,” says Edwardson.
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