March 17, 2010, 12:00 AM

Web sales dropped for the second consecutive year at PC Connection

Web sales declined year over year 9.1% to $468.6 million in 2009 as total revenue declined 10.3%. The direct marketer also is forming a new company—PC Connection Express—to attract more consumers and small businesses.

Annual web sales dropped for the second consecutive year for PC Connection Inc., a direct marketer of computer gear to consumers, businesses and government.

For the year ended Dec. 31, 2009, PC Connection, No. 38 in the Internet Retailer Top 500 Guide, reported:

  • Web sales declined year over year 9.1% to $468.6 million from $515.7 million.
  • Total sales declined 10.3% to $1.57 billion from $1.75 billion in 2008.
  • Net loss was $1.2 million compared with net income of $10.4 million in the prior year.
Based on calculations by Internet Retailer, the web accounted for 29.8% of total sales compared with 29.5% in 2008.

PC Connection doesn’t break out quarterly web sales, but for the fourth quarter also reported:

  • Total sales increased 5.5% to $463.1 million from $439.1 million in Q4 2008.
  • Average order size increased 18.2% to $1,572 from $1,330.
  • Net income was $4.0 million compared with a net loss of $2.7 million in the fourth quarter of the prior year.
“We are encouraged by the improvement in our overall performance,” says CEO Patricia Gallup. “During the quarter, the company grew sales and earnings, improved operating margins, and made progress in our efforts to improve the productivity of each of our three sales organizations.”

Although the company has yet to supply details, PC Connection is forming a new company-PC Connection Express Inc.-to identify new direct marketing opportunities, including online, among consumers and small businesses.

“Recognizing that we have a loyal following of customers who purchase from us for their personal and home office needs, in January we started PC Connection Express,” says Gallup. “This company will focus on the specialized product requirements of the consumer and small office/home office market. We will continue to monitor the changing landscape and identify opportunities that allow us to better serve the marketplace and position us well for future success.”

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