Groupon says its focus is on the bottom line, rather than top-line growth.
CircuitCity.com, which was relaunched over the Memorial Day weekend, is now averaging 900,000 unique visitors per week, new owner Systemax told analysts on the company’s Q2 earnings call. CircuitCity.com also is being updated with more merchandise.
The company stopped short of breaking out sales numbers, but the new CircuitCity.com is generating significant traffic, Systemax Inc. executive Gilbert Fiorentino told Wall Street analysts on the company’s second quarter earnings call.
Systemax acquired CircuitCity.com in an auction from bankrupt Circuit City Stores Inc. and relaunched the e-commerce site over the Memorial Day weekend. Traffic to the site is now averaging about 900,000 unique visitors per week, Fiorentino said.
“Since it went live, site traffic has consistently grown,” Fiorentino, CEO of Systemax’s technology group, told analysts. “We have been building out advertising campaigns, web site features and product categories.” Systemax, No. 21 in the Internet Retailer Top 500 Guide, acquired the assets of CircuitCity.com and certain undisclosed customer information related to the web and other intellectual property for $14 million after Systemax emerged as the winning bidder in a May 11 auction.
Since the launch, Systemax has been targeting former Circuit City shoppers with focused advertising campaigns and adding on more product categories such as video gaming. Systemax, which also owns TigerDirect.com and CompUSA.com, also added a social marketing program to CircuitCity.com with pages on Twitter and Facebook. “We are currently developing plans to leverage the customer list and offering great opportunities for our vendors to reach these known buyers with their product messaging,” Fiorentino said. “We are also expanding the product categories on the Circuit City site with categories and brands which legacy shoppers have historically been known to buy, such as music and movies, housewares and small appliances and mobile electronics.”
Systemax doesn’t break out e-commerce sales. In the second quarter total sales declined 4.6% to $721.6 million from $756 million in the second quarter of 2008. Net income declined year over year to $6.5 million from $13.5 million.