The office supplies retailer say it sacrificed some sales to improve online profitability. It also redesigned its business-facing e-commerce site, StaplesAdvantage.com.
Children’s Wear Digest says web sales have grown to make up about 66% of total revenue as the company shifts focus to its online store and away from its catalog. Web sales in 2008 will grow by up to 5%.
With a struggling U.S. economy and higher operations costs, Children’s Wear Digest Inc., a catalog and Internet retailer of children’s clothing and accessories, is responding by shifting resources to its online store.
“By reducing catalog mailings and adding e-mail campaigns, we have been able to generate sales without spending the high costs of printing and postage on marginal segments of our customer file,” Tracy Schneider, vice president of marketing and operations, tells Internet Retailer.
In 2008, web sales will likely account for about 66% of all revenue. Internet sales also are projected to grow between 2% and 5%, Schneider says. In 2007, online sales at CWDKids.com, which grew by 12% to $15.9 million from $14.2 million in 2006, made up 58% of total sales of $27.5 million, which were flat from the prior 12 months. CWDKids is No. 371 in the Internet Retailer Top 500 Guide.
In addition to higher postage and printing costs, the catalog’s shelf life also has declined as customers rely increasingly on the web, Schneider says. “The knowledge that you can shop for whatever you want, whenever you want, has really shifted buying habits,” she says. “We are working hard to adapt to the changing buying patterns and the web is definitely becoming more and more important.”