The fear that initially pushed large brick and mortar firms to invest online was that a new dot com would come and along and eat their lunch. With weak business plans and a poor understanding of the customer experience many of these venture funded startups simply disappeared in the dot com bust.
Today the tides are turning. The largest growth rates in online spending are no longer coming from Amazon or Buy.com. Traditional brick and mortar firms are seeing that their goals for growth are increasingly being accomplished online.
For instance take a look at J.C. Penney. J.C. Penney’s change from a challenged retailer with slowing sales and a weak brand image is now being helped by the online channel. CEO Myron Ullman, presented a plan in 2005 to replace a five-year turnaround effort launched in 2000. Today Ullman, with success under his belt, is seeking growth and looking for a place to invest this new free cash flow. His new plan dubbed ’07-Eleven includes a stronger role for the web channel.
Sales at JCP.com climbed 27% last quarter making it one of the fastest growing online stores. Investors are thrilled with the stock up over 50% from last year.
This trend is especially exciting for Extractable. The opportunity to help brick and mortar firms leverage the online channel and provide the highest growth rates within the organization is what gets us up in the morning and what makes Extractable such a great place to work.