Etailer vs bricks-and-mortar bust-up spreads

Stephen Withers
Thursday, 04 November 2010 14:41

IT Industry - Market

It seems like online-only retailers have declared open season on their more traditional rivals in the lead-up to Christmas. Following Kogan's spray at Harvey Norman, Millennius is sinking the slipper into David Jones.

Earlier this week, iTWire reported online electronics retailer Ruslan Kogan bagging Harvey Norman boss Gerry Norman over that company's declining profits and misguided (in Mr Kogan's opinion) takeover of Clive Peeters.

Now Pierre Boutros, CEO of Millennius (another online electronics retailer) is following his counterpart's example. Mr Boutros has criticised department store chain David Jones for opening an online store that offers the customer nothing other convenience.

"The only thing David Jones is providing through its online site is convenience, and they should be applauded for that from a customer service perspective," said Mr Boutros. "But online shoppers are actually looking for the best deal, regardless of what you are selling, so if the prices are identical to what you'd find in store, where's the real benefit to customers?"

"If you look at their technology products offering online the prices are identical to in store and not competitive with prices offered by other online retailers for the same products," he added.

Like Kogan, Millennius obtains products from overseas manufacturers and sells direct to the public, cutting out middlemen and the overheads of a traditional storefront operation.