Thursday, May 20, 2010

Say Goodbye to ShopNBC


I don’t enjoy muddling through dense text filled with financial number, so here is the bullet point version of what ShopNBC reported for the 2010 First Quarter if you’re interested (if you're not, just meet me down at the first paragraph):

  • Although ShopNBC managed to get their average price point per item down from $144 last year to $108, this is still nearly twice as much as QVC’s average selling price.
  • Overall sales sank 6.6%, which ShopNBC primarily attributed to lower sales of electronics.
  • ShopNBC increased their net shipped units by 23%, up from 877,000 to 1.1 million.
  • E-commerce sales accounted for nearly 40% of all sales.
  • New customers went up 48% and active customers were up 30% .
  • ShopNBC had a net loss of $11 million, but this was down from last year's $15 million loss.
  • Watches continue to be a strong category.
  • Jewelry outperformed expectations, especially gold, diamond, gold-plated items, and colored gemstones.

So obviously the numbers aren’t looking good for ShopNBC, but what else is new? The real news from their first quarter results is the announcement that ShopNBC is being forced to change their name.

About ten years ago, a trademark licensing agreement was struck between NBC Universal and Value Vision (ShopNBC’s original name) that allowed Value Vision to use the NBC name and logo. However, the agreement expires next year and NBC Universal, which is being bought by Comcast, does not want to extend the agreement. This leaves ShopNBC without a name and without a logo.

On top of all that, NBC Universal also acquired over 6 million shares of ShopNBC in that licensing deal and they are currently making plans to sell all of it. TV retailing no longer fits in with their strategy. To make matters worse, another company under the same umbrella, GE Capital, owns another 6 millions shares of ShopNBC and they want to sell too. When the largest stakeholder in a company wants to sell, investors get a little nervous.

ShopNBC plans to gradually roll out the new, and as of now unknown, name on social media in the near future and then slowly incorporate the change to their website and finally on air by February. No name has been chosen yet, but there is a “short list.” Rumor has it that they will retain the “Shop” part of their name and tack on something new to the end. There are no plans to enter into another licensing agreement.

According to the Star Tribune, the roll out is intentionally slow:
[ShopNBC CEO Keith] Stewart said the company "learned from the past" after ValueVision burst onto the scene as ShopNBC in 2001.
"Customers puked all over the idea," Stewart said. "Sales were crimped for a few months. It's a long lesson we've learned many times over: Never take hard turns when dealing with the customer."
So where does this leave ShopNBC? What’s going to happen to their stock price now that NBC is selling their stake? Will the new name and logo be the beginning of a whole new and successful brand, or just the beginning of the end?

21 comments:

  1. Changing their name is the least of their worries. They really need to upgrade their merchandise -- their current product offering is, to me, offensive. ValueVision used to offer quality jewelry, a decent line in Pam McCoy, but they tossed all that out the door for what? I'd rather buy jewelry from HSN, and certainly from the Q. And I question getting rid of people like Charla Rines, an honest host, and keeping some of the truly annyoing voices. ShopNBC treated their customers as they did their employees -- dirt.

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  2. I agree. I used to spend alot of time watching (and buying) all the jewelry shows as they had unique quality merchandise and very astute vendors who educated the viewers. Yes gold is pricy right now, but bringing in Mystery Metals and Suzanne Sommers sure isn't the answer. I should thank them really, I've not spent any money with them in quite some time. I'm not into plated, vermeil, steel or anything filled with silicone. Thats about all they sadly carry now. I just want to know where to go for the quality they once had.

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  3. Suzanne Somers might not be everyone's cup of tea...but she is an astute businesswoman.

    And something is up between Suzanne and ShopNBC. She hasn't been on for 2 months, she apparently was going to be on mid May, but those plans were scrapped. They also cut her previous massive airtime and didn't allow her the 'Pajama Party' she craved.

    If Suzanne jumps from ShopNBC the only place she can go is to QVC, if they'd take her. I suppose she could crawl back to HSN, but I don't think her ego, or HSN's CEO, wants that to happen.

    ReplyDelete
    Replies
    1. Suzanne's skin care is the best.
      Works very well, and non irritating. Natural and pleasant. I mostly use her firming peptides line. Works wonders.

      Delete
  4. I've been with them since almost the beginning, and it was never the same for me after they switched to ShopNBC. Shows and vendors I loved disappeared, favorite hosts disappeared, and some of the fun and uniqueness seemed to evaporate. I still shop with them (not as much because I don't buy electronics or many watches) and I really hope they can turn it around.

    And I've been wondering about Suzanne Somers, too. She was supposed to appear every month, but I guess sales were not what they'd hoped. Her jewelry is a major disappointment. I sadly predict that she will not be there much longer.

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  5. After getting a lousy piece of jewelry last year that I wanted to give as a Christmas gift, I stopped buying anything there as to return it was a joke with the return shipping along with some HORRIBLE sheets in the same order.

    They need to be revamped, get rid of all those watch shows and axe all the hosts, which are all just awful, other than the one gal who does the fashion in the morning. The voices of some of them makes my skin crawl.

    And, lastly, I don't think there is room for a shopping network like this, they will end up like JTV, peddling stuff that seems like seconds with a limited crowd, but, at least the hosts will have the same shrill voices.

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  6. The quality and variety of merchandise, particularly jewelry, has gone way, way down since new management from QVC came on board. I have an exquisite collection of very upscale, couture type authentic gold pieces I bought throughout the years at SNBC that will be with me for the rest of my life, but the crappy jewelry selection now being sold is awful and cheap. Passport to Fine Jewelry, Carlo Viani, Tagliamonte, Sonya Bitton, Dallas Prince, Meredith Borowski, and so many others are all gone. I think Stefano is hanging by a thread. I haven't bought a piece of jewelry in at least 2 years.

    I am sick and tired of seeing all the Invicta shows too, so they should rename the network "The Watch Channel." I miss the variety of jewelry shows you could watch any time of day. Just about any time of day I turn the station on, watches are on.

    I miss the coupons I used to get regularly for being a good customer, and those great free shipping deals are practically history. Same goes for the hosts: I sorely miss Charla, Wes and Pam.

    Now I rarely make purchases, except for Isomers. If they leave, I'm gone for good. Writing to management and writing/speaking to customer service has proven useless. They blame the economy and won't listen to the customers. I dearly miss the old SNBC.

    ReplyDelete
    Replies
    1. New reply to old post...but...I totally agree with everything you say. And I miss Charla!!!!

      Delete
  7. I just can't wait to see what happens with Suzanne Somers.

    Her & Allan won't stay on the sinking Titanic of home shopping networks.

    I really would love to see her on the Q -- Suzanne & Lisa Robertson, a girl can dream!

    ReplyDelete
  8. For those interested in following the former ShopNBC people, the Ramsey's are on Direct TV channel 225 (west) called EmVeeTV.com.

    I am a bereft SNBC jewelry addict and the only saving grace is that I am saving money.

    SNBC has shifted to watches and cheap, drugstore jewelry.

    Another good channel is The GemShoppingNetwork...228 0n Direct TV.

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  9. I tried to place an order at ShpNBC and they would not approve my coupon!! I guess they don't care if they lose money!! Hopefully, they won't sell FAULTY COLORS OF GOLD LIKE QVC!!!!!

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  10. Lisa Robertson said the colors of gold is like Joseph's coat of many colors!! The Colors of gold are MADE POORLY!!! QVC'S CORPORATE KNOWS!! I wish Lisa would cover herself up with Joseph's colorful coat!!!!!!!!!!!!! SHAME ON YOU QVC!!!!!!!!!!!!!!!!!!!!

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  11. nice guide! thank you!/I love it ! Very creative ! That's actually really cool Thanks.
    Shop Electronics

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  12. When ShopNBC first became available in my cable area (about a year and a half ago), I was in jewelry heaven! I just loved to keep up with the fine quality gold jewelry. Now so many of my favorites are gone. Is there anyplace to buy Dallas Prince GOLD jewelry? (I don't want the silver/vermeil on HSN.) What about Omar Torres?

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  13. I wanted to find out a blog with facts like this one because it was so clear for me, I've seen others which don't say anything this one is different with a clear objective and a real subject.m10m

    ReplyDelete
  14. The coupon, I got a welcome coupon and I was told it was either used or invalid. Odd. I'm not the only person who had a problem with a 15% coupon.
    Wonder where this channel will end up?

    ReplyDelete
  15. Just to say Bravo! Very nice submit, i definitely love this web site, carry on it. Thanks for sharing such an useful and awesome post with us.

    ReplyDelete
  16. Answers a lot of questions floating around in my head :)

    ReplyDelete
  17. When ShopNBC first became available on my cable network (3-4 years ago) I was in jewelry heaven. I was really upset when they downgraded their jewelry lines. Omar Torres is one of my favorites and he's rarely seen anymore. And I'm sooo sick of all the watch shows!

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  18. i used to buy jewerly and watches on shopnbc, but they got rid of jim skelton, and alot of host i like. now they sell alot of crap. so i een shopping on qvc lately.

    ReplyDelete
  19. Did you know that you can create short links with Shortest and earn cash for every click on your shortened urls.

    ReplyDelete

If your forbidden love is home shopping and you love all the latest dirt, then come on in ... Queen Bea is holding court!

You can also email me at homeshoppingqueen@gmail.com

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