HOME SHOPPING NETWORK & R.H. MACY & CO. NEGOTIATING ALLIANCE IN 'TV MACY'S VENTURE'
SAN FRANCISCO, June 7 /PRNewswire/ -- R.H. Macy & Co., Inc. and Home Shopping Network, Inc. (NYSE: HSN) announced that they have signed a letter of intent to explore a business agreement whereby HSN would provide order fulfillment and customer service functions for "TV Macy's." On June 1, 1993, Macy's announced the creation of "TV Macy's," a 24- hour cable television shopping program featuring a broad assortment of distinctive apparel, accessories, jewelry and home goods offered in Macy's and Bullock's department stores. Home Shopping, the originator of televised shopping and recognized leader in fulfillment for electronic retailing, would provide a variety of services, including telephone-answering necessary to effectively respond to customer inquiries and promptly process merchandise orders. "The addition of Home Shopping Network would demonstrate the comprehensive approach that will define 'TV Macy's' as the leader in our unique television retailing category," said Myron E. Ullman III, Macy's chairman and chief executive officer. "A retailer's ability to efficiently process customer orders is a critical component of any television shopping program. Coupled with the merchandising, programming, management and cable distribution team already assembled for 'TV Macy's,' HSN's fulfillment operations would greatly enhance 'TV Macy's' ability to provide the same quality service to our television customers as we offer in our stores." Ullman continued, "HSN's integrated data processing system would allow 'TV Macy's' to utilize fulfillment capabilities that have been tested and proven to be among the most effective in the telemarketing industry. We anticipate using HSN's systems to process customer orders, maintain records, control inventory and facilitate payments. In addition, 'TV Macy's' would use HSN's product fulfillment facilities." Other participants in "TV Macy's" include Cablevision Systems, Corp., one of the nation's leading cable television companies and veteran television executives Don Hewitt and Tom Leahy. It is anticipated that additional equity partners will be joining the venture in the future. Gerry Hogan, president and chief executive officer of HSN, said, "HSN intends to maintain its pre-eminent position in the growing television shopping business. We believe Macy's renowned merchandising skills combined with HSN's unparalleled technical infrastructure will significantly expand consumer interest in TV shopping. "HSN's systems can provide 'TV Macy's' with effective, dependable service from day one of its operations and allow HSN to more fully use its existing capacity. We view this arrangement as a vital, mutually beneficial partnership and look forward to making a significant contribution to the success of 'TV Macy's' nationwide." HSN introduced TV retailing in 1985, and its annual sales exceed $1 billion. It will report a profitable fiscal third quarter, ended May 31, 1993. While sales and earnings continue to trail last year's results, HSN is benefiting from recently adopted new merchandising strategies. Its Home Shopping Club airs live, 24-hours a day on cable and broadcast television nationwide. R.H. Macy & Co., Inc., one of the nation's leading retailers, operates 110 Macy's and Bullock's department stores, 13 I. Magnin stores and 72 Aeropostale and Charter Club specialty stores. -0- 6/7/93 /CONTACT: Laura Melillo of R.H. Macy & Co., Inc., 212-560-1779 or 415-954-6245; or Louise Cleary of Home Shopping Network, Inc., 813-572-8585, ext. 7420/ (HSN)
CO: Home Shopping Network, Inc.; R. H. Macy & Co., Inc. ST: California, Florida, New York IN: REA SU: JVN
AW-JB -- FL014 -- 6209 06/07/93 16:37 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Jun 7, 1993|
|Previous Article:||CELESTIAL SEASONINGS ANNOUNCES PUBLIC OFFERING|
|Next Article:||TYCO APPOINTS DAVID P. BROWNELL AS VICE PRESIDENT|