Spiegel extends services contract with Fry Multimedia
Online sales generally have been a bright spot in lackluster results reported by the Spiegel Group for the past several months, and that’s good news for the company that handles Internet professional and hosting services for Spiegel’s Eddie Bauer, Newport News and Spiegel Catalog divisions. Spiegel has extended Ann Arbor, MI-based Fry Multimedia’s contract until mid 2003, Fry announced today.
“The Spiegel Group has used the web exceptionally well to strengthen its relationship with customers, attract new customers and drive profitable sales,” says David Fry, CEO. “We will continue to work toward full integration of The Spiegel Group’s online operations with its other channels and systems to improve efficiency and customer satisfaction and increase revenues.”
Under the agreement, Fry will provide web development, application support services, Internet hosting and security, systems integration and strategic consulting. Fry has had the Spiegel assignment for the past six years. “Fry has helped us continually improve our online results. We’re pleased to be continuing this relationship,” says David Kardesh, senior vice president and CIO for the Spiegel Group.
In 2001, The Spiegel Group’s online revenues collectively totaled $332 million, an increase of 46% over the previous year and about 12% of sales; total company sales for the year dropped 9% to $2.18 billion. For several months prior to May, Spiegel continued to report declining sales in all channels except the Internet, but in May, it reported that web sales were down 3% from the previous May while total sales were down 24%. June’s Internet sales were down 3% year over year, while total sales were down 20%. In July, the Spiegel Group’s web sales rose 1% for the month over the previous year while total sales declined 16%.
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