Word: linings
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Dates: during 1990-1999
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...that Schwab has proved that the clicks-and-mortar strategy works, this Christmas season we are seeing that Schwab may be the precursor rather than the exception. Robert Kenzer, CEO of Kenzer Corp., a retail executive-search firm, says retailers will have to do online, off-line and catalog in order to survive "or have strategic alliances that permit them to do all three." Companies such as Circuit City and eToys' competitors KB Toys and Toys "R" Us are proving they're not out of the game. "Clicks-and-mortar has a lot of inherent advantages," says Seema Williams...
Initially, companies with powerful off-line brands had a difficult time overcoming the notion that they would be cannibalizing their core business if they sold through the Web. But as it became clear that e-commerce was a viable and complementary retail channel--albeit one that requires a new skill set--the big off-line players gradually came around to embracing...
...line toy retailers, that kind of problem solving was intimidating enough to keep them on the sidelines during the holiday season, caroling that the Web was just a passing phase. As late as last year, Robert Nakasone, then Toys "R" Us CEO, was more eager to talk about store redesign than Web strategy. Toys "R" Us has had problems with its stores...
...last Christmas, eToys proved you could sell Barbies and Brio trains on the Web, doing $20 million in sales and capturing more than 50% of the online toy biz. So this year off-line players had no choice but to go cyber and--surprise, surprise--they've been up to the task. Toys "R" Us, the bumbling, old-economy slow mover, has in the past two quarters come on like light sabers in the toy space, setting up a subsidiary, Toysrus.com and prepping that company to go public sometime next year...
...will launch a redesign of the site, adding photo and travel services and expanding the menu to 600,000 items (superstores typically stock about 100,000). The company also promises to link the site to its 2,485 stores in 50 states, allowing online purchases to be returned off-line. "We'll even refund the shipping charges," says Glenn Habern, Wal-Mart's Web war chief...