Will Lands’ End hit pay dirt on Amazon?
If you can’t beat ‘em, join their marketplace. That appears Lands’ End’s plan with the announcement the company will begin selling its Canvas line along with other items from its apparel and footwear offerings on Amazon.com by the end of the month.
Lands’ End, which has been more up than down since its spinoff from Sears Holdings in 2014, comes off a down quarter. The company is blaming its same-store sales decline of 2.5 percent on its decision to limit promotional discounts.
Speaking on an earnings call with analysts last week, CEO Frederica Marchionni said Lands’ End is “pleased to be partnering with Amazon” and that being on the site would enable the company to open up “an additional channel for us to introduce consumers to our new brand and expanded category.”
Amazon’s increasing popularity as a fashion destination combined with Lands’ End challenges growing its business led Ms. Marchionni to take the step of siding with an erstwhile rival. She made the decision, according to a Wall Street Journal report, after receiving assurances from Amazon that it would adhere to Lands’ End pricing. Even so, Lands’ End is hedging its bet by limiting the selection of items being offered.
Interestingly, this is not the first time that the Canvas line has been linked to Amazon. In the spring, Lands’ End launched an annual subscription program with similarities to Amazon Prime called Canvas by Lands’ End Circle Membership. Customers paying $50 would receive a 20 percent discount on all regularly priced merchandise, 10 percent off sale and clearance merchandise as well as free shipping and returns.
- Lands’ End Announces Second Quarter Results – Lands’ End, Inc.
- Lands’ End’s (LE) CEO Federica Marchionni on Q2 2016 Results (Earnings Call Transcript) – Seeking Alpha
- Lands’ End to Start Selling Items on Amazon.com – The Wall Street Journal (sub. required)
- Should Lands’ End follow in Amazon Prime’s footsteps? – RetailWire
- Will things get better after being worse at Lands’ End – RetailWire
DISCUSSION QUESTIONS: Do you approve or disapprove with Lands’ End decision to sell a selection of its clothing on Amazon.com? What do you see as the pros and cons of the deal?