RedEnvelope Doubles Holiday Sales

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Specialty gift retailer RedEnvelope met its goal of doubling its holiday sales by enlarging its catalog and increasing circulation, the company said yesterday.


Along with doubling holiday sales over last year, RedEnvelope said it set several company records this season. These included its first million-dollar day, its one-millionth gift shipped on Dec. 14 and a 30 percent rise in traffic to its Web site to 1 million users in December.


RedEnvelope increased its catalog circulation 40 percent to 6 million this year, including three separate, larger holiday catalogs mailed at the start of November compared with one last year. The company said it increased its customer base from 250,000 last year to 750,000 currently.


"We are particularly pleased with our sales results this holiday season in light of these difficult economic times," said Martin McClanan, CEO of RedEnvelope, San Francisco. "As we enter the Valentine's Day season, we expect to see continued sales momentum driven by high customer conversion rates and our distinctive merchandise."


Proprietary merchandise represented 50 percent of sales from both the catalog and online. The company packed and shipped about 250,000 packages this year, up 67 percent from last year.


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