MERCHANDISING AND STRATEGY CHANGES
A glance at retailers that are restrategizing
Posted October 7, 2003
Amazon.com deepened its e-commerce agreement with Target Corp., extending the original five-year contract to August 2008. Amazon provides the technology platform, order fulfillment and customer service for the Target store at Amazon.com as well as Target.com, MarshallFields.com and Mervyns.com. Target reported that its online sales have increased significantly year-over-year within the first two quarters of 2003. The two companies have also integrated baby and wedding registries with Amazon.com's technology platform.
Banana Republic began selling a line of women's petite clothing at four of its flagship stores. The merchandise, which had previously been available on the retailer's Web site, can now be found in New York City (Rockefeller Center), San Francisco (Grant Avenue), Chicago (Michigan Avenue) and Santa Monica, Calif., (Third Street Promenade).
Best Buy began selling subscriptions to a digital music service from RealNetworks. Termed Rhapsody, the service recently became the first legal online source for Rolling Stone downloads. For $9.99 per month, Rhapsody subscribers are allowed music streaming and downloads of individual songs for 79 cents each. Best Buy offers access to Rhapsody kiosks in approximately 700 of its stores and through its Web site.
Borders Books acquired Hawley-Cooke Booksellers, which operates two stores in Louisville, Kentucky. The stores will be converted into Borders locations by early September. Borders also plans two more locations for Louisville by mid-2004.
Eddie Bauer will debut a new collection of apparel this fall in select locations and via its Web site and mail-order catalog. The new line, which ranges in price from $22 for T-shirts to $50 or more for jeans, is driven by the need for comfort, functionality and durability. The Sport Shop line will be sold at 16 Eddie Bauer stores in Chicago, San Francisco, Washington, D.C., and the Pacific Northwest.
Peet's Coffee & Tea announced plans to begin selling its coffees in 29 Haggen Food & Pharmacy and Top Food & Drug stores. The coffees will be available in both whole bean and ground form, according to the Emeryville, Calif.-based company.
Safeway began offering online grocery delivery to 34 cities in the metropolitan Seattle area. Safeway.com delivers from five Safeway stores in King, Pierce and Snohomish counties. The company charges a delivery fee of $6.95 and does not mandate a minimum order size.
Starbucks introduced a new game, This Vs. That, via its stores. The game pits two teams against each other, asking the same question of each and requiring them to attempt to answer. Following that, each team has to guess about how the other team may have answered the question, with the team that demonstrates the most knowledge of its opponents taking the win.
Trick & Murray, a 98-year-old, Seattle-based office supply company, sold to a new owner. The company will be re-named Complete Office Solutions LLC and repositioned to focus on selling directly to businesses.