Redcats eyes more organic e-commerce growth in 2008
It’s been a busy couple of years for Redcats USA Inc. with its acquisition in 2006 of The Sportsman’s Guide Inc. and the purchase of United Retail Group Inc., parent of women’s plus-size retail chain Avenue and e-commerce site Avenue.com, in October.
But now that Redcats, No. 28 in the Internet Retailer Top 500 Guide, has made the acquisitions the company will spend 2008 fully integrating all of its new e-commerce properties onto its global web platform and looking for new ways to grow organically.
“The acquisition of The Sportsman’s Guide diversified our online base by getting us into a new segment outside of women’s apparel and the purchase of United Retail broadened our business in our core market of apparel for plus-sized women,” says Redcats USA CEO Eric Faintreny. “We will spend 2008 integrating both businesses even more into our core multi-channel business.”
The acquisition of United Retail, which Redcats bought for $198 million in cash, in conjunction with organic growth from its other e-commerce properties will help Redcats grow its total annual U.S. e-commerce sales by more than 20%, says Faintreny.
In 2008, Redcats might look for more strategic acquisitions, but most web initiatives will focus on growing organically and consolidating operations, he says. United Retail operates its own e-commerce infrastructure, but next year Redcats will start to merge Avenue.com onto its global web platform. Redcats also is looking at expanding the online business of The Sportsman’s Guide into Canada and adding new lines of merchandise such as tennis equipment.
“The United Retail acquisition gives us a new multi-channel strategy to expand and another well-known Internet brand,” says Faintreny. “Our sporting goods business continues to produce very good online results and extends us further into new categories.”
Redcats USA is a wholly owned subsidiary of the Redcats Group. In the U.S. Redcats’ direct market and e-commerce brands include Chadwick’s, Roaman’s, Jessica London, KingSize and BrylaneHome.
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