Lands’ End’s Web Site Profitability Beats Catalog
Lands’ End Inc.’s web site’s profits topped those of its catalog for the first time in fiscal 2002, reports Internet Retailer. Landsend.com recorded four straight years of profits up to the period ended February 1. Meanwhile, its online merchandise sales reached $299 million, an increase of 37 percent compared to the prior year’s online merchandise sales of $218 million.
Although overall merchandise sales for Lands’ End, including catalog and brick-and-mortar outlets, are also rising sharply, online sales are rising faster. Online merchandise sales were 21 percent of total merchandise sales of $1.4 billion in fiscal 2002, compared to 16 percent of $1.35 billion in the prior year.
Online performance adds to the retailer’s multi-channel strategy, which appears to be important to customers. The company notes, for example, that 75 percent of Lands’ End’s online customers also use its catalog.
Moderator Comment: Is the sales migration to online unique to Lands’ End among catalogers? Will catalogs primarily become a marketing medium to promote online sales in the future? [George
Anderson – Moderator]