Thursday, December 24, 1998

Online shoppers a small but growing force

By JEAN NASH JOHNSON

The Dallas Morning News

Darlene Hazelwood shrugs at the suggestion that online shopping may be for the computer-savvy only. The Dallas retiree has been browsing Internet catalog shops for years and doesn’t consider herself a “tech-head.”

Shopping in cyberspace is a way of life for Hazelwood and a godsend. Because of a disability, she doesn’t get out much.

Hazelwood may not be the typical online shopper, but she is among a growing number of buyers motivated by the virtual mall. Almost 16.8 million consumers will purchase products online in 1998, compared with 10.1 million in 1997 and 5.2 million in 1996 an increase of more than 300 percent in three years, according to the market research firm Jupiter Communications.

As the holiday shopping season begins in earnest, shoppers are likely to spend more at Web sites — much more. Jupiter expects online shopping during the holidays to hit $2.3 billion, compared with $1.1 billion during the 1997 period.

Anytime, anywhere, toll-free catalog service revolutionized shopping in the 1970s, but the Internet takes remote buying to the new level. Control over the buying experience is the difference; service is as immediate as connection speed and traffic at the site.

“I’ve never had any problems, and I’ve been shopping online for almost four years,” Mrs. Hazelwood says. “I’ve shopped all the catalogs, especially Penney, and I’ve bought everything from videos to my groceries.”

Catalog companies have made the transition to virtual shopping almost seamlessly. Shoppers at most major catalog Web sites are treated to a plethora of exclusives as well as merchandise found in the company’s mailers. Some merchants have their entire catalogs online.

Others, such as J.C. Penney, provide an online order blank for buying items not specifically featured on the site.

In 1994, Penney became one of the first catalog merchants to jump into cyberspace. Its Web site, spruced up for the holidays, currently features 3,000 items and a gift guide as diverse as the company’s in-store stock.

“Because we offer such a wide variety of clothing and household items, we get a lot of traffic,” says spokeswoman Stephanie Brown.

After Thanksgiving Day, Penney began airing a series of 30-second television ads to promote its Web site.

“We look at it as our third destination after shopping in-store and through the catalog. So what we are saying is, Come in, call in or log on,’ ” Brown says.

One of its online competitors, the 35-year-old mail-order company Land’s End, followed customers to the Web.

“Land’s End always has kept an eye on the Internet; now our customers are asking for the option,” says spokesman Thane Ryland.

Nevertheless, he says, the company won’t lose its reputation for friendly, efficient service.

“We still have customers who see things online and will pick up the phone and call Dodgeville (Wisconsin, the catalog’s center) to speak to a favorite customer service rep about it.”

The Land’s End customer, Ryland says, “tends to be 40 percent more likely to own a personal computer and 70 percent more likely to live in a household with access to the Internet than the general population.”

What’s more, he says, the online power shopper tends to be female.

At http://www.landsend.com, there are virtual dressing rooms, personal shopper services and unusual gift items. Among the online merchandise: a handmade vintage cedar sleigh for $9,500 and a $12 set of taper candles.

Many retailers tout ease of use and convenience. Catalog sites such as Eddie Bauer, J. Crew and L.L. Bean offer features to assist shoppers new to the Web. In addition, many companies now make security guarantees to credit card customers afraid of fraud.

Despite a recent survey by Jupiter Communications showing that some people are reluctant to buy online because of high prices — not credit card security — the bargains are there for the diligent. Land’s End, for example, regularly features closeouts available exclusively to the online shopper.

Companies offer other services, too, only to those with a computer, including real-time inventory checks and complimentary electronic holiday greeting cards.

Competition is stiff for the online shopper, who can expect goods to be delivered at least as quickly as products from traditional catalog companies. During the 1970s, when catalog shopping became big, merchants had only like companies to compete against.

These days, however, anyone on the Web can hang out a sign, making it a world of endless virtual catalogs. Last week, for instance, America Online opened shop for the holidays with its Shop Around the Clock site, featuring books, music, videos, toys, apparel and more.

There are those who say they are not convinced that the time is right for online shopping. Of area shoppers in The News’ survey, 72 percent say they definitely will not be shopping online. Sixteen percent said they probably won’t; 9 percent say they probably will.

For Dallas computer programmer Tori Beveridge, who participated in the poll, credit card security is still an issue, no matter what measures individual companies take.

“Encryption is still a big deal. I know because of what I do,” she says. “I’m just not convinced that it (security measures) will keep your information safe and that your credit cards won’t end up in the hands of some of those folks you see on 60 Minutes.”

Beveridge concedes that it is a tempting, convenient way to shop and that some of her colleagues have joined the bandwagon.

“One of the guys I work with says he’s doing all of his holiday shopping online. ... Next Christmas, with better sites and more security, I’ll consider it.”

Ken Cady of Dallas says that no matter what improvements are added, he’ll never be convinced. The 30-year-old PAX-TV sales representative, who uses his computer at work and at home, says shopping is something he wants to do in the real world.

“I don’t like to buy anything I can’t touch, smell or try on.”
 
 

(c) 1998, The Dallas Morning News.

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