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Coldwater Creek looks to give its customers the Spa treatment
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Feature Coldwater Creek looks to give its customers the Spa treatment Having already cornered the market in women’s apparel, Coldwater Creek has decided to expand its horizons just a little bit further. The national retailer of women’s apparel, jewelry, accessories and gifts, plans to build on its reputation of providing exceptional customer service as it tries out a new concept — Coldwater Creek Spa. The company plans to launch its newest concept during the spring. Coldwater Creek will initially open six spas nationwide, which will offer a complete menu of treatments, including massage, facials, manicures and pedicures. After the initial roll out of six spas, the company will test and refine the concept based on consumer response. The spa locations will occupy spaces of 5,000 sq.ft. and will feature a relaxed setting with soft wood accents and ambient lighting. The staff will be made up of experienced professionals in all treatment areas. The company plans to have the spas located adjacent to or within close proximity of existing Coldwater Creek retail stores. The spas also will carry an assortment of relevant apparel from the Coldwater Creek Line, as well as a line of personal care products for women. The company anticipates that the day spas will create an opportunity to cross-market its retail stores with the spas and increase traffic for both concepts. Courtesy of focus groups that were made up of Coldwater Creek customers and non-customers, the company learned that its name is very well known. The groups also generated a broad consensus that Coldwater Creek is more than capable to provide the new service. The company has a customer email list of more than 2.6 million addresses and will send out 100 million catalogs in fiscal 2005 to promote the spas. The company is hoping the spa will help it gain even more popularity across the country and build its brand recognition for the 20-year old entity. Approximately 60 percent of Coldwater Creek customers live east of the Mississippi River. The company has such a high confidence in its merchandise, it offers a 100% guarantee that if any Coldwater Creek purchase ever fails to meet its customer’s expectations for any reason, it can be returned for an exchange or a full and prompt refund of the merchandise purchase price. There’s no time limit to its guarantee, so there’s absolutely no risk. If the customer does not have a receipt or packing slip, the company issues a store credit for the current selling price of the merchandise. Coldwater Creek’s preferred demographics include women ages 35 to 60 earning $75,000 as the average household income. The company currently operates 174 ladies apparel and accessories stores nationwide using 4,000 sq.ft. to 6,000 sq.ft. The company plans to have up to 500 stores operating nationwide during the next several years. Locations have been confirmed and approved for this year and the company currently is reviewing locations for 2007. The Coldwater Creek stores planned for 2006 will be approximately 500 square feet larger than previously planned and will now average 5,500 square feet. The publicly traded company recently declared a 50% stock dividend on its common stock, having the effect of a three-for-two stock split. For more information, contact David Gunter or Jeffrey Parisian, Vice President of Real Estate, Coldwater Creek, Inc., 1 Coldwater Creek, Sandpoint, ID 83864; 208-263-2266, Fax 208-263-1582; Web site: www.coldwatercreek.com. |