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Product Mix Changes Boost Sharper Image’s Catalog Revenue

Strong catalog and Internet sales boosted Sharper Image Corp.’s sales above last year’s levels, and well above store gains for the same time period. Through May, the company generated $39.5 million through its catalog operations, up 47% from last year’s $26.8 million. Online sales, including its auction site, rose 20%, from $13.5 million to $16.3 million. Total store sales were up 24%, from $56.4

Strong catalog and Internet sales boosted Sharper Image Corp.’s sales above last year’s levels, and well above store gains for the same time period.

Through May, the company generated $39.5 million through its catalog operations, up 47% from last year’s $26.8 million. Online sales, including its auction site, rose 20%, from $13.5 million to $16.3 million.

Total store sales were up 24%, from $56.4 million to $69.8 million, while comparable-store sales increased by 11%.

May catalog sales for Sharper Image were $10.7 million, up 21% from last May’s level. Internet sales, excluding auctions, rose 25%, to $4.8 million. Store sales were up 20%, to $35.2 million for the month.

The company’s catalog circulation during 2002 has been flat, company spokesperson Mollee Madrigal said. But Sharper Image did change the featured product mix, increasing the number of items in the $50 to $300 category, which partly explained the catalog division’s success.

The catalog is also increasingly featuring Sharper Image branded items, which can’t be purchased anywhere else, Madriagal said.

San Francisco-based Sharper Image had pulled away from its high level of direct response TV channel use, but the company plans to increase infomercial spending during the summer, when lower rates come into play.

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