Online affiliates have generated almost $6.3 million in added Internet sales since last April for Coldwater Creek, the company reported today.
And the online channel is so strong that Web sales are “no longer reliant on catalog circulation for growth,” said CEO Georgia Shonk-Simmons in a statement.
The company, which last month said that it was cutting 200 jobs following a drop in net income, sees the Web as an efficient channel.
“It costs us nothing to establish these links, and we only pay a small commission after the customer makes a purchase on our Web site at 222.coldwatercreek.com,” Shonk-Simmons continued. “And because we are conducting virtually all of these promotions using in-house talent, we are realizing this growth in a very cost-effective manner.”
The affiliate program, in which the company is linked with 3,100 major search engines and consumer and charitable sites, has produced a 35% increase in new Web buyer names.
“The Internet now represents one-third of our total company sales, with much of the growth in new customers coming directly from these affiliates,” Shonk-Simmons continued.
Coldwater Creek reported in December 2001 that online sales rose by 26.% to $45.3 million during the third quarter. However, total sales for the direct channel, which includes catalogs, slipped from $125.6 million to $124.6 million, compared with the same period during the prior year.
In January, the Sandpoint, ID-based firm also said it would close its Home catalog and Gallery Web side and consolidate the offerings into its core catalogs.
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