E-commerce

Session Objectives• Focus• E-tailing Growth• Industry Trends• Current Status of E-tailing• A Walk Through the Store • How to Make Money• What’s Next?

Focus– Assist Representatives in creating new

business volume by building strong relationships with their customers through high-tech, high-touch value-added services.

– As part of our service, provide your customers with product purchase opportunities targeted to their needs.

– Competitively priced with easy ordering.

E-tailing Growth• Households buying Online

• 1996 3.2 million• 1997 7 million (BancAmerica, Robertson Stephens SF)

• 1998 Sales Online $6.3 billion • eMarket study conservatively predicts

consumers will spend $26 billion online by 2002 (7/6/98 Techweb News)

Industry Trends"The Internet… represents a strategically

important complement to our department stores in an era when convenience is becoming a more important component of the value equation for customers,"

James Zimmerman Chairman

Federated Department Stores

Where We are Today• Original Launch Date

December 1998

• Grand Opening Late July 1998

Where We are Today• Categories

• Electronics• Computer Hardware• Sporting Goods• Personal Care• Nutrition• Jewelry & Accessories• Apparel• Books & Audio

Brands• Polo Jeans• IBM• Compaq• Hewlett Packard• Toshiba

• Callaway• Rawlings• Hitachi• Pioneer• Seiko• Franklin-Covey

Walk the Store

• Main page• Demonstrate dropdown categories• Pricing and PV

What’s Coming?• New products each month• Music / DVD / Video - Thousands of titles• Office supplies • Specialty foods• Books (over 2,500,000 titles)

Development Plans• Special of the Day via E-mail

• 50% off Regular Retail• New Specials Every Business Day

• Reminder Service• Anti-Doghouse Effect• Key Business Relationships

Re-cap• Industry growth - E-tailing Today• Open for Business July 1998• Over 500 Items Now• Leverage Your Recruiting Efforts• Value Added Service - Proactive Selling