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Non-Store Retailers

Consumers who want to shop without leaving their homes have been opting to patronize online retailers rather than buying from home-shopping broadcasters. Amazon.com has been a prime beneficiary of this preference, as evidenced by a 29.2 percent jump in revenues last year.

Playing from an already strong hand, Amazon opened an office supply store and acquired online sewing goods merchant Fabric.com. It also launched Windowshop.com featuring bargain merchandise and promotional goods, unveiled an upgraded version of its Kindle e-book reader and opened a video game recycling store. Amazon’s footprint is so great that as much as one-third of all e-commerce is conducted via its website, according to RBC Capital securities analyst Stephen Ju.

It’s been a hectic year for the two Power Players that cut their merchandising teeth on beaming TV programming to home shoppers. HSN was spun off in Barry Diller’s reorganization of his collection of Internet-based businesses and is now a freestanding, publicly-held company. QVC has been through a number of changes, including a downsizing that reduced its workforce nearly 6 percent and a rearranging of functions at its network of distribution centers.

QVC also has been displaying its creative side and boosting transaction figures by tying in personal care appliances with its health and beauty products. One of these was an $800 laser hair removal device; another was a $200 gadget that essentially replaces a wash cloth. During last fall’s Fashion Week in New York, QVC took the opportunity to stage a runway show featuring designers who regularly appear on the network; the two-hour telecast sold out 22 of the 29 featured items.

QVC was an early adopter of communicating with customers via their mobile devices, not only keeping them updated on merchandise, but also allowing them to purchase items via its mobile website.

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