Levi Strauss to Shutter Online Store

Levi Strauss and Co. is close to pulling
the plug on its ambitious
e-tailing plans. The clothing maker confirmed Friday that it intends to
phase out its online store after this holiday season — just a year after
it launched.

Levi spokesperson Jeff Beckman told InternetNews.com the company was
generally very satisfied with traffic and sales at the site. But the cost
of those sales was too high. “During the past year, it has become clear
that the cost of running a world-class ecommerce business is unaffordable
right now when we look at our other competing priorities,” said Beckman.

Gaining intimacy with consumers is one of the lures of e-tailing, but the
Levi’s experience suggests that manufacturers may need to consider all the
risks before going it alone online. When Levi’s launched its online store
last November, the firm reportedly angered retailers by forbidding them
from selling Levi’s products over the Web in their own online stores.

The privately-held San Francisco company may still sell some items online
after the holidays, according to Beckman, but the site will primarily
direct shoppers to its brick and mortar stores or to the web sites of its
retail partners, Macy’s and JC Penney.

“We need to look at what’s right for us, our brands, and our consumers,”
said Beckman, “and we are absolutely going to have the best apparel
marketing web site in the world and offer consumers who come there a really
rich presentation.”

Among the partners that helped launch the ill-fated Levi’s store were
Internet consulting firm USWeb/CKS,
which provided strategic and technical
services, and San Francisco-based Andromedia, which supplied
personalization technology.