John Curkovic Tanya Dundee Caleb Hayes Ben Marks Eric Plagge Jason Rowe Jamie Wuhrman

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Multichannel Retailing

John Curkovic
Tanya Dundee
Caleb Hayes
Ben Marks
Eric Plagge
Jason Rowe
Jamie Wuhrman
Multichannel Retailing

• A retailer that sells merchandise through


more than one channel.

• Stores
• Catalogs
• Internet
GAP INC.
Gap History

• Name origination

• Founded in 1969 in San Francisco, CA

• First sold only records and Levi jeans

• Originally known for turning classic clothing


into must have fashion
History Continued

• Millard Drexler President of Gap


– Responsible for developing GapKids, BabyGap and
Gap Body
• New chain of stores: Gap, Banana Republic and
Old Navy
Gap Online

• 1997- opened its online store at gap.com


• 1998- opened its online stores at
gapkids.com and babygap.com
• 2000- delivers GapMaternity in an online
exclusive debut
• 2001- awarded 4 out of 5 stars by Consumer
Reports in the categories of policies, usability
and content
Store Locations

• 4,200 stores nationwide

• Operates in 6 countries
– U.S.
– Canada
– United Kingdom
– France
– Germany
– Japan
Store Location Cont.

• Flagship store
– San Francisco, California

• When 1st founded Gap only had 5


employees, and now has more than
153,000 nationwide
In-Store Services

• Tailoring: Banana Republic


• Help Button in dressing rooms
• Credit Card: Universal use
Online Special Services

• Gift cards
• Convenient gift packaging options
• “Let Us Get It There”: will ship anywhere
the customer chooses
• Store Locator
• Shipping and handling
• Gift receipts
• E-mail updates
Website

• http://www.gap.com
Special Programs

• 1977: Established Gap Foundation


– Two National Organizations
• Boys and Girls Clubs of America
• Lorraine Monroe Leadership Institute
• Social Responsibility
– AIDS walk
– Habitat for Humanity
• “Coats for Kids”: Brannan the bear
Customer Service

• Excellent

• Management quality

• Invest in employees

• Large amounts of time spent on training


Financials

• Net Profit Margin = Net Profit / Net Sales


– 1,030,000 / 15,854,000 = 0.065

• Asset Turnover = Net Sales / Total Assets


– 15,854,000 / 10,343,000 = 1.5328

• Leverage = Total Assets / Owners Equity


– 10,343,000 / 4,783,000 = 2.1625

• Return on Equity = Net Profit Margin * Asset Turnover *


Leverage
– 0.065 * 1.5328 * 2.1625 = 0.2155
Future of Gap

• Opening a new store

• Targeting a new group of customers

• Target Market
– Mostly Women
– 30 years of age and older
Overall Impression

Store

Website
Barnes and Noble
History
• 1917 – William Barnes and G. Clifford Noble form
partnership, and open the first Barnes and Noble
• 1932 – Opens flagship store in New York
• 1975 – Revolutionizing bookselling
• 1985 – Launches publishing division, first mail-order
catalog
• 1987-1989 – Expansion
• 1991 – Super-store
• 1993 – Goes public on NYSE
• 1997 – Launches website
Mission

• We work hard to ensure that we offer our


customers a special experience each time
they connect with Barnes & Noble, whether
it’s in one of our stores or online. We are
committed to providing our customers with
a friendly, comfortable environment, helpful
and knowledgeable booksellers and the
widest selection at the best price.
Number and Locations

• 840 stores
• 50 states
• District of Columbia
• Flagship Store in New York
• New stores
• 40,000+ Employees
Special Programs

• Membership Program--$25/year
• Institutional Purchasing Program
• Corporate Purchasing Program
• Publishing
• Book Clubs
• Storytime
• Author Readings
Current Status
• Nation’s largest bookseller
• Leading on-line retailer
• Publisher
• 3rd quarter profit fell 25%
Departments

• Barnes & Noble Jr.


• Music & Movie
• Newsstand
• Calendars
• Games
• Accessories
• Café
Customer Service

• Above Average
• Knowledgeable Staff
• Friendly and helpful
• Equal product selection across channels
Financials

• Net Profit Margin = Net Profit / Net Sales


- 151,853 / 5,951,015 = .0255

• Asset Turnover = Net Sales / Total Assets


- 5,951,015 / 3,507,294 = 1.69

• Leverage = Total Assets / Owner’s Equity


- 3,507,294 / 1,259,659 = 2.78

• Return on Equity = Net Profit Margin * Asset Turnover * Leverage


- .0255 X 1.69 X 2.78 = .1206
Online Special Services

• Fast and Free


Shipping
– $25+
– Shop until Dec. 20th
• Manhattan Store
• Member’s discount Homepage
• Store Locator Author information
• Author Information
• Musician Information
Overall Impression

• Store

• Website
Lands’ End
Lands’ End History
• Founded by Gary Comer April 1963

• Started by sailors selling sailboat equipment and duffle bags

• First start in a Chicago basement

• Currently resides in Dodgeville WI


Catalog History

• 1962 first advertised selling yachting equipment in


the “one design yachtsman magazine”

• 1965 first catalog officially starts named “Lands’ End


Yachtsman’s Equipment Guild”

• 1974 Equipment fazes out

• 1977 sales $3.6 million


Online History

• Web site created in 1995

• Recognized as a e-commerce leader

• Innovative and service-oriented

• Combined Sales 1998 1.4 billion

• Currently 2 billion in sales


Lands’ End Locations

• Lands' end operates 16 outlet and inlet stores in 4


states, Wisconsin, Illinois, Minnesota and New
York.

• 3 outlet stores in the united kingdom and 1 in


Japan

• Web sites have also been launched in the


United Kingdom, Japan, Germany, France and
Ireland
Online Services

• Hemming
• Monogramming
• Virtual Model
• Swimsuit Finder
• Personal Shopper/Lands’ End Live
• Material Samples
• Tips on Dressing
Lands’ End Unique
customer service
• Incredible Return policy. If not completely
satisfied with any item, at any time during your
use of it, return it and Lands End will refund
your full purchase price.

• Shipping starts at $3.95 (one of the lowest in


the industry)

• Live toll free help 24 / 7


Lands’ End Sears Status

• Lands’ Ends clothes became available in


875 Sears stores in 2002

• Sears CEO Alan Lacy admitted that the


clothes weren't selling well in more than a
third of stores especially low income areas

• However, in 300 stores in higher-income


areas report strong sales of Lands‘ Ends
Advantages in Lands’ End Store
Channeling

• Customers view products

• Immediate gratification

• Convenient location to return product


Advantages in Lands’ End Catalog
Channeling
• Convenience

• Sense of security / shopping from home

• Visual presentation
Advantages in Lands’ End
Internet channeling
• Convenience

• Sense of security / shopping from home

• Detailed and problem solving information

• Personalization
Financials

• Net Profit Margin=Net Profit / Net Sales


• '01 = 34.7/1462 = 2.4%
• '02 = 66.9/1569 = 4.3%

• Asset Turnover = Net Sales / Total Assets


• '01 = 1462/507.6 = 2.88
• '02 = 1569/599.1 = 2.62
Financials

• Leverage = Total Assets / Owner Equity


• '01 = 507.6/314.2 = 1.62
• '02 = 599.1/400.7 = 1.49

• Return on Equity = Net Profit Margin x


Asset Turnover x Leverage
• '01 = .024 x 2.88 x 1.62 = 0.110
• '02 = .043 x 2.62 x 1.49 = 0.167
Overall Impression

• Website

• Catalog

• Store
QVC
Quality. Value. Convenience.

• Founded on June 13, 1986 by Joseph Segel

• Sets American Business record for 1st year sales


• Debuts live in November, 1986
QVC History

• 1993- 1st international venture into UK


– UK’s 1st shopping channel
• 1995- Comcast Corp. and Tele-
Communications Corp. acquire QVC
– Introduce QCut
• Automated touch-tone system
QVC History

• 1996- QVC launches website iQVC


• 1996- QVC introduces QVC Germany
– 1st retail shopping channel in Germany
• 1998- Internet sites in Canada and the UK
• 2001- QVC introduces QVC Japan
QVC Business Overview

• Virtual Shopping mall that


never closes
• Telecast to 145 million US
Germany

households world-wide UK
Japan
11.6
13.1

34 86
QVC Business Overview

• Leader in electronic retailing


• Purchase through 3 major avenues
– 50% Telephone Operator Assistance
– 40% Automated Ordering
– 10% Online at QVC.com
• 6 retail stores
• 7 distribution centers world-wide
Television

• QVCTV Live • 2 sales people


• Product Info – Host
• – Vendor
Price Display
• Ways of Ordering • Testimonials
– Live call-in program
• Urgency
– Availability guide
– Timer
Website

• International websites UK • Customer Service


Japan Germany
• QCard
– FAQ’s
• Email Services – LiveHelp
• Product Reviews – Web E-mail Forms
• Today’s Special Value – Contact Us
• TV Program Guide
• Watch QVCTV Live
• United States
QVC Financial

• Gains over 194,000 new customers per month


• 2003
– Revenue of $4.9 billion
– 11.8% growth
– Employ 11,000
Overall Impression

• Website

• Television
Conclusion

• Overall Rating
– Best store
• Gap
– Best website
• Tie
– Barnes and Noble
– Lands’ End
– Best catalog
• Lands’ End

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