The top 10 retail Web sites ranked by apparel purchases in February.
In September, Forrester Research estimated that online retail sales (defined as B2C sales of goods including auctions and travel) will grow to $329 billion in 2010 from $172 billion. Nielsen/NetRatings has provided a ranking of leading retail Web sites by total apparel purchases for the month of February. “We track online purchases by collecting data from confirmation pages of those purchases — apparel is just one product category that we analyze,” said Heather Dougherty, senior retail analyst for Nielsen/NetRatings. She said multichannel retailers such as QVC and eBay are the most dominant, but brick-and-mortar stores such as Old Navy are moving up the rankings. “Cataloguers such as L.L. Bean are also now popping up in the rankings, because it’s such a nice marketing tool,” she added. “Shoppers will browse the catalogue, then come online to make their purchase.”
1. EBAY
Number of apparel purchases during the month of February: 2,085,000
From Prada to used T-shirts, eBay has become a must-browse for fashion mavens worldwide. For the fourth quarter of 2005, eBay had gross merchandise volume for the clothing, shoes and accessories category of $3.9 billion. In fact, the single highest-priced item sold in the fourth quarter was an Hermès Birkin bag, which went for $28,500. “EBay typically comes out on top in our rankings,” said Heather Dougherty of Nielsen/NetRatings. “There’s clearly a lot of reselling — for apparel, in particular, the prices are of course going to be lower because either there’s liquidation going on or people are clearing their closets.”
2. QVC
Apparel purchases: 445,000
Selling brands such as Bradley Bayou, Anne Klein and Me by Emme (a clothing line from the plus-sized model), the shopping network is continuing to give women lots of apparel choices. Part of February’s lure might have been the licensed apparel items from the Olympic Winter Games in Turin, Italy. In March, QVC bowed “For the Bride and Beyond,” a segment that gives customers gift ideas for the bride-to-be. QVC also launched a beauty catalogue last fall, highlighting makeup and hair product trends for its beauty customers.
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3. VICTORIA’S SECRET
Apparel purchases: 445,000
Though Limited Brands-owned Victoria’s Secret is currently working to expand its beauty business, that doesn’t take away from the popularity of apparel purchases on its Web site. In February, WWD reported that Victoria’s Secret “led the way as a gift destination for Limited Brands Inc. during the holidays, helping the company deliver a 35.7 percent increase in fourth-quarter net profits.” Leslie H. Wexner, chairman and chief executive officer of Limited Brands, said in a statement regarding its fourth-quarter performance: “Victoria’s Secret, our largest brand, had a solid performance.”
4. J.C. PENNEY
Apparel purchases: 243,000
In January, J.C. Penney announced its Web site had reached a milestone that few online retailers have attained: $1 billion in annual sales. “The rapid growth of jcpenney.com into a billion-dollar business is a great tribute to the efforts of the entire J.C. Penney team,” said Myron E. Ullman 3rd, chairman and chief executive officer. The company claims it has been a pioneer in integrating the site with its department store and catalogue channels into the concept known as “multichannel” shopping — now an important part of the company’s business strategy. More than 300,000 items, including apparel, are available, while private label brands such as The Original Arizona Jean Co., St. John’s Bay and Worthington are sold on the site.
5. COLDWATER CREEK
Apparel purchases: 166,000
Specializing in women’s apparel, jewelry, accessories and gifts, Sandpoint, Idaho-based Coldwater Creek offers merchandise through a number of channels: at retail stores across the country, on the Web site and in its direct-mail catalogues. Its Web site, launched in July 1999, offers the company’s entire line of products and currently represents approximately one-quarter of total company business. The company acknowledges that its customer profile is a professional woman 35 to 60 years old who “enjoys the ease and convenience of e-commerce and catalogue shopping.”
6. HOME SHOPPING NETWORK
Apparel purchases: 162,000
Celebrities such as Susan Lucci and Patti LaBelle have found a home for their apparel and accessories collections, while other well-established brands such as Nicole Miller, Gloria Vanderbilt and Etienne Aigner also are sold through HSN. In January, hsn.com reorganized its management in an effort to broaden its multichannel opportunities. Said the company in a statement: “The new appointments are part of HSN’s concentrated efforts to continue growing its TV and online business through strategic multichannel initiatives that benefit both HSN TV and hsn.com. The versatile retail site, which began in 1999, now has grown to represent more than one-fifth of HSN’s domestic business.”
7. LANDS’ END
Apparel purchases: 147,000
In his letter to shareholders last week, Edward Lampert, chairman of Lands’ End owner Sears Holdings, defended the future strategy for his company. One bright spot seems to be the receptiveness of customers to the more complete Lands’ End apparel brand, Lampert pointed out. The chairman wrote, “Our customers are embracing the quality and value represented by Lands’ End. We have provided customers with the ability to order from in-store — either online or by phone — Lands’ End products that would not otherwise be available in the store.”
8. OLD NAVY
Apparel purchases: 118,000
In February, Gap noted that its online sales increased 20 percent during the fourth quarter, supported by a major redesign of its three brand Web sites: Old Navy, Banana Republic and Gap. Old Navy launched its Web site almost six years ago, and popular features on the site include its “famous $5 shipping,” closer looks at television and print advertisements and sweepstakes for shoppers. In its 2005 annual report, parent company Gap Inc. pointed to Old Navy’s ongoing success with both its maternity and denim lines.
9. EDDIE BAUER
Apparel purchases: 108,000
At the end of last year, the National Retail Federation ranked the top retailers by customer satisfaction: Eddie Bauer came in 10th. The company distributes a catalogue and sells via its award-winning Web site, while its stores have grown to more than 380 retail and outlet shops throughout North America. The company attributes its success to its guarantee to deliver sincere service and complete satisfaction. WWD also reported in January that Eddie Bauer is one of the latest targets in the sights of strategic and financial players. Financial sources said those eyeing the outdoor lifestyle firm are said to include VF Corp., Liz Claiborne, Kohlberg Kravis Roberts & Co. and Texas Pacific Group.
10. L.L. BEAN
Apparel purchases: 98,000
Founded in 1912 by Leon Leonwood Bean, the Freeport, Maine-based company has grown into a global organization with annual sales in excess of $1.4 billion. L.L. Bean’s Web site offers an easy-to-navigate section for women’s apparel, including outerwear, dresses and fitness collections, among a slew of other products such as totes, bags and organizers. Shoppers can utilize their gift cards on the site, along with the no-annual-fee L.L. Bean Visa card, which offers free regular shipping and handling on all orders.
Source: Nielsen/netratings; *indicates a tie