Women are increasingly passing up the cosmetics counters at department stores, shopping for their beauty products on TV and in specialty stores like those operated by Sephora USA Inc. and Ulta Salon, Cosmetics & Fragrance Inc. The new predilection, in fact, is part of the reason why HSN and QVC reported such strong first quarters, and also why department store sales fell 9.3% between May 2007 and May 2010, according to the U.S. Department of Commerce. What’s more, these alternative distribution channels for cosmetics are cross-pollinating. The Perricone MD and Philosophy skin care lines initially made their names on QVC, then expanded their distribution into Ulta and Sephora stores, and finally opened up their own retail locations. The Deal Jun. 24, 2010
Beauty Sales Migrating to DRTV and Other Alternative Channels
Brick-and-Mortar Retailers are Doubling Down on Online Sales
It’s not just the DRTV retailers for whom web sales are growing faster than their primary sales channel. Brick-and-mortar retailers, who for years outsourced their web sales to fulfillment houses, are placing new emphasis there, the better to compete with Amazon.com. Macy’s, for example, has invested in new checkout stations that enable clerks to place orders for consumers on the spot, in the event that a desired item is out of stock in a particular store. The penetration of web sales is generally lower at store retailers, compared to the DRTV networks, but they’re paying closer attention to it. And it’s growing. The Los Angeles Times Jun. 18, 2010
Accessories King Steve Russo Signs Licensing Pact with Carlos Falci
In a seemingly odd match, Steve Russo — whose New York-based company imports and sells Hello Kitty- and Hannah Montana-emblazoned back-to-school gear — has signed a five-year licensing agreement with handbag designer Carlos Falci, one of whose distribution channels is electronic retail on HSN. “Sources said the agreement is a cornerstone for Russo’s plan to build a New York-based empire in luxury handbags.” The New York Post May 25, 2010
QVC Opens 9,000 Square Foot Outlet Store in Myrtle Beach
The QVC Outlet Store at Tanger Outlet Center on U.S. 501 in Myrtle Beach, South Carolina, opened last month and stocks SKUs in fashion, shoes, jewelry, accessories, cookware, home decor and electronics. “Additional QVC outlet stores are located in Lancaster and Frazer, Pa., and Wilmington and Rehoboth Beach, Del.” The Sun News/MyrtleBeachOnline May 11, 2010
Barnes & Noble Names William Lynch CEO
Trading Markets (press release)
Lynch came to Barnes & Noble from HSNi, where he was Executive VP of Marketing and General Manager of HSN.com. From 2004 to 2008, he was CEO of gifts.com, …
U.S. Same-Store Sales Rose 0.5% Last Week
That report of a week-over-week sales gain comes from the International Council of Shopping Centers and Goldman Sachs, which today released seasonally adjusted data on U.S. chain store retail sales. The ICSC expects same-store sales for the full month of July to be down by 5.5% from the prior year. Reuters July 21, 2009
Wet, chilly weather in much of the country — certainly the northeast — in June contributed to another poor showing for same-store sales, which are expected to be down by 4.8%, the same rate of decline as in May, when retailers report results tomorrow. The drop would mark the 10th straight month of same-store-sales declines, the longest since Thomson Reuters began collecting the data in 2000. Dow Jones Newswires via The Wall Street Journal July 7, 2009
“The retailer, which operates Saks Fifth Avenue, said Wednesday that it lost $98.75 million, or 72 cents a share in the quarter ended Jan. 31. That compared with a profit of $39.47 million, or 26 cents a share, in the period a year ago.” Same-store sales dropped 15 percent in the fourth quarter compared to the year-ago period. Earnings season also brought a sign of trouble at the discount end of retail. TJX Companies, which operates T.J. Maxx and other discount stores, reported a drop in net income to $250.7 million, or 58 cents a share, from $301.1 million, or 66 cents a share, a year earlier. The New York Times Feb. 25, 2009
Retailers Confirm Weak Sales with 4Q and Full-Year Earnings Reports
Macy’s, Home Depot, Target are among the American retailers reporting steep profit declines, amidst what Macy’s president and chief executive, Terry J. Lundgren, characterized as, “the worst economic environment of our generation.” The New York Times Feb. 24, 2009
Same-Store Sales at Most Retailers Drop in January
Retail sales fell 1.8 percent in January, according to Retail Metrics, a research firm Factoring out Wal-Mart’s trend-bucking 2.1 percent increase, the industry-wide sales decline would have been 5.6 percent. Department stores and mall retailers fared especially badly. The New York Times Feb. 5, 2009
