Todd Sullivan of Value Plays recently posted some retail numbers and discussed Sears' (NASDAQ:SHLD) internet presence. However, I noticed it included numbers for ValueVision’s (VVTV) competitors QVC and HSN so I went to the source of data to try and find some more information.
[click to enlarge]
From the list we can see that QVC.com is 7th and HSN.com is 13th. To my disappointment, VVTV - i.e. ShopNBC.com - is not on the list. Considering all three businesses have similar product mixes, cable channels close to each other and websites looking and feeling similar, I am curious as to why Shopnbc.com didn’t break the top 20 list.
When I first wrote about VVTV, I mentioned that retail is a tough business and I didn’t really feel their shopping website was as valuable as it seemed. I wasn’t taken in with the whole concept of “shop as you watch a video presentation” experience since it is distracting, time consuming and difficult with a slow internet connection. So when I checked back in to the ShopNBC shopping website today after a few months, I was glad to see the site redesigned. No more bandwidth hogging, time consuming and dominating videos. It now looks very similar to the other websites.
For VVTV, it is just a matter of gaining some online retail presence to support its home shopping business. If VVTV can market its way into the top 20, that’s when I’ll start getting excited about future aspects. We’ll also have to wait and see whether the negotiation in carriage contracts with the cable companies will improve margins in the home shopping side.
An obvious point at this time is that there is no way anyone can dethrone Amazon (NASDAQ:AMZN) from its dominating number 1 position for now. I’m not hoping VVTV becomes number 1. I’m just hoping it can somehow break the top 20 online retailers.
Disclosure: I own shares of VVTV at time of writing.