MERCHANDISING AND STRATEGY CHANGES
A glance at retailers that are restrategizing
Posted February 2004
Bon-Macy's began adding LensCrafters optical boutiques and American Greetings ministores to some of its locations as part of a new initiative by its parent company, Federated Department Stores Inc. According to Federated, merchandise in the LensCrafters units will be tailored to the Macy's customer and will include designer brands such as Brooks Brothers, Kenneth Cole, Tommy Hilfiger, Prada, Ray-Ban and Versace. The LensCrafters boutiques will be full-service, featuring an optometrist for in-store eye exams 40 hours per week. American Greetings ministores, which will be available at 41 Federated-owned stores nationwide, including five Bon-Macy's locations, will carry the company's upscale card line, Winking Moon Press.
Drugstore.com signed an agreement making it a non-exclusive wholesaler and fulfillment provider for some of the products sold on Amazon.com's new health and personal care store. Additionally, the company purchased International Vision Direct Corp., an online retailer specializing in contacts and vision accessories.
FedEx purchased Kinko's, a photocopy and office supply retailer, for a reported $2.4 billion. Once the transaction closes, each of the existing 1,200 Kinko's locations worldwide will be outfitted to offer new or expanded FedEx shipping options. Kinko's, which will remain headquartered in Dallas, says it will significantly expand its international operations in Asia, Europe and North America because FedEx serves 215 countries worldwide.
Home Depot, the Atlanta-based national home center chain, acquired Creative Touch Interiors, a provider of flooring, countertops and window treatments for homebuilders in Las Vegas and Southern California. The purchase expands the company's Builder Solutions Group, which was established in 2002 to specialize in flooring and design services for new homes.
Lowe's announced a New Year's resolution: effective January 1, 2004, it expanded from three to five operational divisions nationwide. The move, which is intended as a way to better support the home improvement chain's growth around the country, gives the company Northeast, Southeast, North Central, South Central and West divisions.
OfficeMax was sold to Boise Cascade Corp. for approximately $1.3 billion. The company will retain the OfficeMax name in the retail sector but will operate under Boise Office Solutions within its contract business. In time, both businesses will merge under the OfficeMax brand name.
7-Eleven has given its shoppers the ability to buy online from inside its stores. At the chain's Vcom kiosks, which are located in approximately 1,000 of its locations, customers can now make purchases via the Internet. Web sites that are currently accessible at the kiosks include 1-800-FLOWERS.com, eBags, TopWebBuys.com and U.S. Health Services.
Wal-Mart launched a digital music download pilot on its online store. The experiment, which allows customers to download songs for $.88 each, is expected to be followed by an official launch at some point this year.
Whole Foods spent $38 million in stock to acquire Fresh & Wild Holdings Ltd., a U.K. natural-and organic-food chain with six stores in London, one in Bristol and another London-area location slated to open later this year.