April 2, 2009
Linens ‘n Things Makes Comeback Online
While it may seem like
it was just a few weeks ago that Linens ‘n Things was closing its stores
and liquidating all its merchandise, the company has been reborn online at www.lnt.com.
According to the website, the new Linens
‘n Things carries over 200,000 top
brand products for the entire home with items in baby, bath, bedding, home
décor, kitchen, pet, etc. The website is owned and operated by LNT
Acquisition, which purchased some assets, including the company name and
website back in February.
The website offers free shipping on orders
of $150 or more and includes a weekly sweepstakes to win a $500 room as
a come-on to drive business.
Discussion Questions: Do you think the negatives
surrounding Linens ‘n Things closing will be too much for the new venture
to overcome or do you think it can succeed online? What will the new
e-tail version of Linens ‘n Things need to do if it is to be successful?
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Montgomery Ward was the first name to come to mind for me as well. The Mervyns family believes they can reinvent the recently-failed chain. I guess it’s about time to see a new iteration of Circuit City. Sears, Kmart, and Radio Shack have their die-hard loyals. It’s kind of like when they open a Walmart in a nicer area and you see this certain demographic come out of the woodwork. It’s like, “Where did these people come from?” It takes a Village.
My take: Montgomery Ward’s new e-commence site is doing well. Linens ‘n Things has an opportunity to build an online brand that may or may not include the past, core customer that once shopped their stores.
We lose sight that not all consumers are savvy at shopping all channels of distribution. My wife, for example, may shop Gap online and never walk into their retail store. My son loves to shop out of a catalog and has never logged on or walked into a store. My point: Linens ‘n Things products were not the downfall of the organization, by-and-large, it was a combination of lack of vision strategy, execution and OIBDA. Linens ‘n Things has a chance to grow a new business.
I don’t see LNT’s bricks failure as a death knell for its clicks venture, especially in this climate. As dramatic as all of that can seem within the retail community, shoppers just vaguely remember it “going away” then coming back in another form. I do think it would make sense for LNT to gird its online business with some kind of store placement. At a time when even vague brand remembrance is an excuse for a licensing deal, why not give an exclusive to one of the many retailers that are trying to fix or launch home programs as an LNT store-within-a-store?
I agree with Max that LNT has name recognition and value, and “going out of business” might even drive traffic implying better values, so they might not suffer on the demand side of it as much, but suppliers who got burned, or heard the horror stories will be hesitant to extend terms to LNT. LNT won’t have the leverage to pull from the newest and the trendiest of the products, and from a reliable supplier database.
The LNT name has value to it and there is a business case for opening online exclusively. If you look at the core LNT customers though, I have to wonder where the online shopper numbers are coming from. Is there a demand for LNT products online from past LNT customers? How are they going to acquire new ones?
I was just playing around with the site and it seems wordy and I just read their policy regarding LNT gift cards. Interesting stuff that they hope to salvage and rebuild the name but are instantly alienating past customers that have gift cards. I’m tracking this one….
While there are significant hurdles for LNT’s success here, there may be opportunities ahead They have a core shopper who could be wooed back with the right products, approach, and great customer service. Online shoppers have different purchasing habits which must be kept top-of-mind in building the new business.
Shoppers loved Linens ‘n Things, and will welcome its resurrection online. Customers who were unable to locate a suitable alternative to its value-priced merchandise will seek it out!…and won’t experience the out-of-stock issues that stores can present.
The instant poll question is really two questions, depending on the object group. For consumers, the brand should be a positive, at least for those who experienced the store. For suppliers, it’s a different story. The new holding company can expect strong doubt, which translates into tough terms and conditions. Many suppliers have been burned big time.
It’s going to be tough for LNT to overcome the perception that they are “out of business,” prompted by the reality of store closings all over the country as well as the related publicity.
A web-only business has a shot, but there are some obstacles to consider: Does LNT have the financing to support the depth of inventory needed for a SKU-intensive business? Does it have the marketing muscle to overcome perceptions that it is a dead company, and to drive searches? Are its multi-channel competitors (Bed Bath & Beyond and others) now in a stronger position online?
LNT doesn’t have an impossible task (unlike the Morris family trying to rebuild the Mervyns brand) but has some major challenges to make its online revival work.
I have to disagree with Richard. The LNT name has recognition and value. Much of the name’s goodwill will transfer to the online store.
My concern about the online store is that there is so much competition already in the marketplace that it may face the same fate as its brick and mortar stores. What differentiates LNT from Amazon, an online brand that consumers trust? You get free shipping from Amazon with a $25 purchase and the Amazon checkout and customer service processes are second to none. It is going to take much more than the LNT name to succeed.
This might make it as a niche property and since the owners are paying only $1MM for the name, e-mail addresses, etc. over a period of two years, it’s no big risk.
But, I think the original company’s reputation with consumers is shot, and many shoppers will think this is the same company. Not honoring outstanding gift cards and being unable to fulfill orders made but not received from the old version of the company certainly won’t help.
Bed Bath & Beyond’s email efforts are lame, and Linens ‘n Things has name recognition even if many shoppers remember how bad it was at the end. No one has claimed home goods online as yet–though Target does a nice job–and the opportunity is there for LNT, if done right.
I don’t see this is a big gamble. The cost of the site is low. It still has great name recognition. With a little smart marketing and some great customer service, they have a better chance at surviving and prospering than most retail ventures out there.
Too soon. Shoppers will believe they can use gift cards not previously honored in the stores. Suppliers will be shy, especially given the recent circumstances and the current economy. LNT “the name” has some value but probably not so much today, as it might well again, tomorrow.
I’m glad LNT is trying to mount a comeback online. And while I wish the merchant all the best, good tidings aren’t nearly enough to achieve success–nor is free shipping. The key is developing a compelling offering, starting with unique product. If LNT plans to simply sell the same stuff (at the same price) that consumers can get at Bed Bath & Beyond, Target, Walmart, JCPenney or Sears, then there’s no real reason to shop there.
Obviously it takes a lot to be successful as an online retailer but as to the narrow question of the value of the LNT brand, I agree that it retains significant equity in the customers mind.
I do not know how ready LNT is to go from b&m to online–it is a different business model altogether and one just does not switch over in months–may be someone can enlighten me on how much investment, time, and money it will take to ‘revitalize’.
As a consumer, this actually damages my opinion of the LNT brand. It’s going out of business “sales” dragged on and on, as if that was its new selling strategy. “We’re going out of business, so shop with us” and you’d get to the store or the website and see, wow, $3 off this blender? That’s not a great sale.
To see them launch the site again like “surprise, we’re still here!” makes me think the going out of business sales were a gimmick. It doesn’t matter what the reality is–it’s about perception. Just as stores in the past have used 50% off tags on new merchandise and just doubled the MSRP, this leaves a bad taste in the consumer’s mouth.
I won’t buy online from LNT, and I can’t tell from the website what the advantage is of buying from LNT rather than any competitor.
Same product at the same price as any other retailer, from a recently defunct company. No compelling reason to buy; in fact, the brand’s uncertainty creates a disincentive to shop there. I’d go to Target or BBB–they have stores to assist with returns and haven’t been associated with bad financial news (relative to that of LNT).
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Montgomery Ward was the first name to come to mind for me as well. The Mervyns family believes they can reinvent the recently-failed chain. I guess it’s about time to see a new iteration of Circuit City. Sears, Kmart, and Radio Shack have their die-hard loyals. It’s kind of like when they open a Walmart in a nicer area and you see this certain demographic come out of the woodwork. It’s like, “Where did these people come from?” It takes a Village.
My take: Montgomery Ward’s new e-commence site is doing well. Linens ‘n Things has an opportunity to build an online brand that may or may not include the past, core customer that once shopped their stores.
We lose sight that not all consumers are savvy at shopping all channels of distribution. My wife, for example, may shop Gap online and never walk into their retail store. My son loves to shop out of a catalog and has never logged on or walked into a store. My point: Linens ‘n Things products were not the downfall of the organization, by-and-large, it was a combination of lack of vision strategy, execution and OIBDA. Linens ‘n Things has a chance to grow a new business.
I don’t see LNT’s bricks failure as a death knell for its clicks venture, especially in this climate. As dramatic as all of that can seem within the retail community, shoppers just vaguely remember it “going away” then coming back in another form. I do think it would make sense for LNT to gird its online business with some kind of store placement. At a time when even vague brand remembrance is an excuse for a licensing deal, why not give an exclusive to one of the many retailers that are trying to fix or launch home programs as an LNT store-within-a-store?
I agree with Max that LNT has name recognition and value, and “going out of business” might even drive traffic implying better values, so they might not suffer on the demand side of it as much, but suppliers who got burned, or heard the horror stories will be hesitant to extend terms to LNT. LNT won’t have the leverage to pull from the newest and the trendiest of the products, and from a reliable supplier database.
The LNT name has value to it and there is a business case for opening online exclusively. If you look at the core LNT customers though, I have to wonder where the online shopper numbers are coming from. Is there a demand for LNT products online from past LNT customers? How are they going to acquire new ones?
I was just playing around with the site and it seems wordy and I just read their policy regarding LNT gift cards. Interesting stuff that they hope to salvage and rebuild the name but are instantly alienating past customers that have gift cards. I’m tracking this one….
While there are significant hurdles for LNT’s success here, there may be opportunities ahead They have a core shopper who could be wooed back with the right products, approach, and great customer service. Online shoppers have different purchasing habits which must be kept top-of-mind in building the new business.
Shoppers loved Linens ‘n Things, and will welcome its resurrection online. Customers who were unable to locate a suitable alternative to its value-priced merchandise will seek it out!…and won’t experience the out-of-stock issues that stores can present.
The instant poll question is really two questions, depending on the object group. For consumers, the brand should be a positive, at least for those who experienced the store. For suppliers, it’s a different story. The new holding company can expect strong doubt, which translates into tough terms and conditions. Many suppliers have been burned big time.
It’s going to be tough for LNT to overcome the perception that they are “out of business,” prompted by the reality of store closings all over the country as well as the related publicity.
A web-only business has a shot, but there are some obstacles to consider: Does LNT have the financing to support the depth of inventory needed for a SKU-intensive business? Does it have the marketing muscle to overcome perceptions that it is a dead company, and to drive searches? Are its multi-channel competitors (Bed Bath & Beyond and others) now in a stronger position online?
LNT doesn’t have an impossible task (unlike the Morris family trying to rebuild the Mervyns brand) but has some major challenges to make its online revival work.
I have to disagree with Richard. The LNT name has recognition and value. Much of the name’s goodwill will transfer to the online store.
My concern about the online store is that there is so much competition already in the marketplace that it may face the same fate as its brick and mortar stores. What differentiates LNT from Amazon, an online brand that consumers trust? You get free shipping from Amazon with a $25 purchase and the Amazon checkout and customer service processes are second to none. It is going to take much more than the LNT name to succeed.
This might make it as a niche property and since the owners are paying only $1MM for the name, e-mail addresses, etc. over a period of two years, it’s no big risk.
But, I think the original company’s reputation with consumers is shot, and many shoppers will think this is the same company. Not honoring outstanding gift cards and being unable to fulfill orders made but not received from the old version of the company certainly won’t help.
Bed Bath & Beyond’s email efforts are lame, and Linens ‘n Things has name recognition even if many shoppers remember how bad it was at the end. No one has claimed home goods online as yet–though Target does a nice job–and the opportunity is there for LNT, if done right.
I don’t see this is a big gamble. The cost of the site is low. It still has great name recognition. With a little smart marketing and some great customer service, they have a better chance at surviving and prospering than most retail ventures out there.
Too soon. Shoppers will believe they can use gift cards not previously honored in the stores. Suppliers will be shy, especially given the recent circumstances and the current economy. LNT “the name” has some value but probably not so much today, as it might well again, tomorrow.
I’m glad LNT is trying to mount a comeback online. And while I wish the merchant all the best, good tidings aren’t nearly enough to achieve success–nor is free shipping. The key is developing a compelling offering, starting with unique product. If LNT plans to simply sell the same stuff (at the same price) that consumers can get at Bed Bath & Beyond, Target, Walmart, JCPenney or Sears, then there’s no real reason to shop there.
Obviously it takes a lot to be successful as an online retailer but as to the narrow question of the value of the LNT brand, I agree that it retains significant equity in the customers mind.
I do not know how ready LNT is to go from b&m to online–it is a different business model altogether and one just does not switch over in months–may be someone can enlighten me on how much investment, time, and money it will take to ‘revitalize’.
As a consumer, this actually damages my opinion of the LNT brand. It’s going out of business “sales” dragged on and on, as if that was its new selling strategy. “We’re going out of business, so shop with us” and you’d get to the store or the website and see, wow, $3 off this blender? That’s not a great sale.
To see them launch the site again like “surprise, we’re still here!” makes me think the going out of business sales were a gimmick. It doesn’t matter what the reality is–it’s about perception. Just as stores in the past have used 50% off tags on new merchandise and just doubled the MSRP, this leaves a bad taste in the consumer’s mouth.
I won’t buy online from LNT, and I can’t tell from the website what the advantage is of buying from LNT rather than any competitor.
Same product at the same price as any other retailer, from a recently defunct company. No compelling reason to buy; in fact, the brand’s uncertainty creates a disincentive to shop there. I’d go to Target or BBB–they have stores to assist with returns and haven’t been associated with bad financial news (relative to that of LNT).