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Online retailers staying optimistic
(Las Cruces Sun-News (NM) Via Acquire Media NewsEdge) Sep. 27--LAS CRUCES -- Do you prefer to conduct your shopping in your pajamas? Do you think there is less hassle to cruise the Internet than a parking lot?
Online retailers are glad you are out there.
With the recent economic news, many people project that the retail world will continue to be battered by the economy. In cyberspace, though, retailers believe they will continue to find customers.
The National Retail Federation recently reported that 72 percent of online retailers believe they are "better suited to withstand an economic slowdown" than their brick-and-mortar brethren.
That does not mean online sales are great, but many Internet retailers believe they are better positioned to weather the tough times.
"Internet retailers have good reason for optimism as budget-focused shoppers head to the Web for value and convenience," said Scott Silverman, executive director of Shop.org, in a release with the report. Shop.org conducted the State of Retailing Online 2008 survey for the NRF. "Online retailers are well-positioned to make the best of a potentially lean holiday season."
Here in Las Cruces, some companies that conduct business online remain cautiously optimistic.
Charlotte Varuola owns Reflection's Choice, a
home-based company that sells skin care products online.
"Business-wise, things are going quite well," she said. "I've been surprised. The economy is in such tumult but it hasn't yet affected my business."
She said that during a recent month, when she held a sale, she grossed more than $40,000. But she still feels uneasy about where the economy is headed and what that could mean for business.
"People are really unsure," she said. "(Skin care products) are something that are important to a lot of women, and some men. Nevertheless, people could turn to cheaper alternatives."
Tom Chenault runs Sterling Tek in Las Cruces with his wife Thelma and sons Chris and Shaun. The company sells products on the Internet. The most common items are digital camera accessories like batteries, charger, adapters and cables, but the company also sells motorcycle helmets and other items.
He said the company has seen a drop-off. He said the company has conducted about 72 percent of sales compared to last year at this point.
Still, his son, Shaun Chenault, pointed out that the company has streamlined its business practices, which has cut down on employees but kept profitability on par with other years.
Tom Chenault said the company is helped by the fact that people look for bargains online.
"I think most people are going to be looking for cheaper alternatives," he said. "This is one of the slower times of year for us, but our business is actually picking up a little bit. We've started carrying Dell compatible laptops and they seem to be selling well."
Chris Chenault said Internet-based companies benefit from the fact that they can switch gears and alter merchandise and selling strategies faster than stores.
Kelli Burchell, who owns The Emerald Isle Boutique in Mesilla with her mother, Louise, said online business has been a bright spot for the store.
"It's been two years we've had our site, and in the second year we've doubled our Internet sales," she said.
Janyce Leone owns the store Solamente de Mesilla in Mesilla. She said in-store business has slowed, but, "thank goodness, Internet sales have been steady."
The NRF reports that businesses would be well-served to boost their online component or create one if they have not already.
"Although the online sales growth rate will be lower than in years' past because of lowered consumer confidence and credit working against all of retail, the good news is that this growth will still outpace nearly every other sector of consumer spending," said Sucharita Mulpuru, one of the authors of the NRF's report, via a release. "Given that the Web appears to be a preferred channel for many consumers during an economic downturn, retailers would be well served to provide offers that motivate customers to buy, and to encourage the online channel to drive sales in a channel-agnostic manner in order to provide benefits to the entire business."
Brook Stockberger can be reached at bstockberger@lcsun-news.com; (575) 541-5457
To see more of the Las Cruces Sun-News, or to subscribe to the newspaper, go to http://www.lcsun-news.com.
Copyright (c) 2008, Las Cruces Sun-News, N.M.
Distributed by McClatchy-Tribune Information Services.
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