So what happened to Shani at Jai Jewelry on QVC?
And what’s up with former QVC host Jill Bauer replacing her on-air?
Bauer, after ending her stint as brand ambassador for Drew and Jonathan Scott on QVC, has now taken on that role for Jai. We missed her debut for the jewelry line.
When Scott Grimes left Jai, Shani replaced him on-air and was described as the brand’s director. She was awful.
Does anyone know if she’s still with Jai?
One of our favorite TV shows is quirky “Resident Alien” on SyFy, where the main character’s favorite phrase is “This is some bullshit.”
And that’s what we said after just finishing reading The Philadelphia Inquirer’s recent story on Qurate Retail, parent of QVC and HSN.
Every good story has a so-called “angle,” a hook that explains why the article is being written now. Here’s the “hede” and “deck” — as we’d say in our business — on the Qurate (stock trading for pennies) story and QVC’s financial woes:
QVC helped pioneer shopping from home. Here’s how the company is changing — and competing against TikTok.
Celebrity hosts have peddled clothes, electronics, home goods, and jewelry since the 1980s. Now they’re up against TikTok.
WTF? TikTok?
How many of us QVC shoppers think it’s main competition is TikTok? TikTok is for a younger demo, like our 24-year-old niece. She would not be caught dead watching QVC, let alone buying any clothing or anything else from it.
Amazon, briefly mentioned in the Inquirer story, is QVC’s problem. So is Target and Walmart, and T.J. Maxx and Marshalls. Any Maxinista knows you can pick up Patricia Nash and Dooney & Burke purses at fraction of what QVC charges at that off-price retailer. Same for many of the shoe brands that the home shopping network hawks. And the same for many other products.
QVC shipping charges are ridiculous, while others ship free. That’s not a problem?
Qurate CEO, David L. Rawlinson II, is one cool cucumber when he downplays QVC’s problems. He must be a great poker player. He sure knows how to shovel the sh-t.
The Inquirer story is behind a paywall, but we were able to get past it. We hope you can, too.
https://www.inquirer.com/business/qurate-qvc-rawlinson-malone-maffei-20231124.html
Here’s a graf from the article.
With traditional TV services like Comcast Xfinity losing customers, Qurate has lately launched QVC and its smaller, Florida-based HSN channel through services such as Roku, Amazon Free, and Vizio Smart TV, and are also available through Qurate’s new livestream app Sune. The company says that more than two-thirds of its revenues now comes from computer and smartphone shoppers.
Folks, hate to tell you but just because you’re on Roku doesn’t mean your sales will spike. You have been available to the world online for years, and your sales are still slipping!
And here’s another gem from the story.
Today QVC, the West Chester-based core of Qurate Retail Inc., which includes clothing brands and small U.S., Western European and Japanese shopping channels, is struggling to cover its costs. It’s competing in a new world where it can be surprisingly cheap for energetic individuals working from home to reach millions of consumers through fast, slick product posts on TikTok (which QVC also uses) and other smartphone-based media.
Yep, TikTok — not the savvy retailers we mentioned — is QVC’s big competition and problem.
Not.
But after all, Rawlinson isn’t exactly a QVC expert. He described host David Venable as a celebrity chef on a recent earnings call.
Here is part of what David Rawlinson, President and CEO of Qurate Retail — parent of QVC and HSN — said on a third-quarter earnings call last week.
Our takeaway:
Some edited excerpts from the CEO:
We expanded product margins by refreshing our merchandise assortment with higher quality products, rotating into higher-performing categories and higher price point subcategories and affecting strategic price increases.
We reinvigorated our core daily programming, the Today’s Special Value at QVC and Today’s Special at HSN with elevated merchandise assortment, enhanced programming, events and re-engaged hosts. We have also returned these specials to time limited 24-hour event, reinfusing a sense of urgency. From these efforts, we beat expectations on per minute productivity and overall TSV or TS performance at both QVC and HSN.
We effected workforce reductions throughout the company. While these were difficult decisions, they are right for the long-term health of the business. And lastly, we conducted a deep dive customer analysis and have enacted changes that are beginning to stabilize the customer file. We expect these foundational improvements and Project Athens work streams to continue to drive progress.
Now, let me discuss each of our three businesses. QXH [QVC and HSN] increased OIBDA 41%, driven by 480 basis points of gross margin improvement. From a top line perspective, QXH moderated the rate of decline in Q3 with Q3 down 3% compared to mid-high single-digit declines in the first half of 2023. Our total sales outperformed the discretionary retail market. We achieved a better balance between unit volume and average selling price.
Unit volume declined 3% and which was an improvement from the high single-digit decline in the first half of 2023, largely a function of higher quality product assortment. We continue to drive higher pricing primarily through our merchandise mix with average selling price up 1% in Q3.
From an operational perspective, QXH continues to lower cost and improve delivery times. Rates from our new domestic parcel contract took effect in late July and our operational cost per unit declined 12% in Q3. Our order to delivery time declined 2%. Our refresh merchandise assortment and enhanced programming are contributing to this improving revenue performance. In terms of viewership, minutes viewed on our five linear channels increased 15% year-over-year in Q3.
The number of new own items grew low-double digits in Q3 and which were met with strong consumer demand. QVC continues to enhance its programming for its core customer. Earlier this year, I told you about a limited-run series, “Over 50 and Fabulous.” We broadcast Season 2 of the series for six weeks from mid-August to late September. We enhanced strategies from Season 1 and improved the shows sales per minute productivity.
To date, there are more than 26.5 million views of “Over 50 and Fabulous” across social and digital platforms. For the series finale, we hosted customers for an in studio live show an after-party live stream. Tickets for that event sold out in five minutes. Looking at the category performance in the third quarter; QXH saw a turnaround in the home category, driven by fresher products, exciting events and inspiring personalities.
We experienced year-over-year growth in demand during our Christmas in July event at QVC as well as at HSN during its July birthday month. Food and kitchen gadgets were particularly strong as we leaned on our celebrity chefs like David Venable and Wolfgang Puck, proprietary brands such as Kitchen HQ and specialty events and programming, such as our foody Travel series and Moody Fest.
Home decor demand improved, driven by seasonal products, candles, storage and a 30th anniversary event with Valerie Parr Hill. QVC U.S. continues to have strength in its wellness and supplements product offering. At HSN, the relaunch of Joy Mangano has drawn a number of our reactivated customers back to the platform. In fashion, we experienced growth in accessories, led by higher demand for footwear and loungewear, including loafers, wellness footwear and brands like Barefoot Dreams.
In September, QVC refreshed as Monday night fashion line-up featuring Logo by Lori Goldstein, the relaunch of “PM Style” … and new shows “Accessorized with Shawn” and “Shawn on Style.” Each show was developed to deliver a strong fashion point of view and include special sets and fresh production elements.
At HSN, we were pleased to launch new brands and offers including C. Wonder by Christian Siriano, Birkenstock for the first time as a today’s special Sharp flexstile hair tool and Sofia Vergara’s Toti beauty line. Now, let me touch on QX customers. On a quarterly basis, total count declined 8% in the third quarter, partially offset by a 6% increase and average spend per customer, resulting in an overall 3% decline in revenue. The rate of declining count moderated in Q3 from the low double-digit declines in the first twoquarters of 2023.
We’re seeing the biggest churn from the low end of our customer file. On Slide 8 of our earnings presentation, you can see we are stabilizing the trailing 12-month count near $8.2 million, down only modestly from $8.3 million at the end of the second quarter. Please note that while our press release discloses customer count on a trailing 12-month basis, this is a lag-on indicator and does not reflect the progress in Q3.
The increase in average spend was driven by our existing and best customers and reflects our higher quality product assortment. The average dollar spend for each of these cohorts was the highest of any quarter in 2023. We are taking a variety of actions to attract new customers, retain customers and reactivate former customers.
We have launched new programs and formats on both linear and digital forms. We have offered gifts and vouchers and have refined and enhanced our marketing spend, both of which have yielded high returns. We have created new on-site experiences to have letters from the business presidents to recognize and appreciate our best customers and we are testing a pilot loyalty program.
As a result of these efforts, we’re pleased to report that new customers grew 8% at QXH in Q3 which was the first quarter of growth since Q1 2021. This growth was primarily attributed to strategic targeting of promotions based on marketing channel and product categories. We are constantly reviewing our customer acquisition costs and carefully managing overall return on our marketing efforts.
We shift marketing spend to capitalize on opportunities in the market where we can efficiently acquire customers in our target demographic and track their lifetime value. We will continue to test, learn and scale initiatives. We are executing with more success at a faster pace now than a year ago and I look forward to telling you more on future calls.
Before closing on QXH, let me provide a view on the important holiday season. Our customers are looking forward to activities with friends and family and more importantly, ready for holiday shopping. Our target customer is mindful of our budget and cognizant of inflation, particularly for groceries and gas. Therefore, it is important for us to incite and inspire her with fresh products and compelling value.
From a merchandise point of view, we feel good about our assortment and are in a substantially better inventory position than one year ago. At QVC, we are excited about several brand extensions and limited time collections from key brands. These include Susan Graver, Kim Gravel, Dennis Basso and Denim & Co.
We have new product launches, including Laurence Zaria and a new private label cashmere sweater collection from Pure Splinter. We are extending our shaft family with new culinary lines … and a cookware line from Carlyle. In beauty, we have exclusive holiday packages from key brands. These include philosophy … Peter Thomas Roth and more. In addition, QVC is the exclusive retailer for Beekmans launch in November of its Toll House partnership.
A customer selecting the perfect item on an Internet shopping platforms with a mobile device in hand.
HSM will also inspire with new merchandise, including an exclusive widely Dolly Parton for the launch of our new rock album; Catherine McPhee’s Radiance by Absolute collaboration. Aaron Andrew’s license sports launch with Vanadis and the launch of Tarte Beauty as of today’s special. We’ll also have all our celebrity chefs cooking their holiday favorites and celebrity designers bringing new and exciting assortments.
Qurate Retail, owner of QVC and HSN, reported its third-quarter earnings last week, and revenue was down for the two home shopping networks.
It decreased 3%, to $1.62 billion from $1.66 billion in the same year-ago period, according to Qurate, which doesn’t break out individual figures for the two channels.
“QxH [QVC and HSN] revenue declined primarily due to a 3% decrease in units shipped, which was partially offset by a 1% increase in average selling price,” Qurate said. “QxH experienced a 6% increase in average spend per customer. QxH reported declines in electronics, apparel and beauty, with growth in accessories, jewelry and home.”
The parent company also said, “Product margins increased primarily due to mix shift to higher-margin products and fewer clearance items as a result of improved inventory health and initiatives to increase initial margin. Inventory obsolescence declined due to an improved mix of inventory. These gains were partially offset by higher administrative expenses from certain costs related to Project Athens, including outside services, and to a lesser extent from increased commissions.”
Quarate’s stock has tanked, but the company’s head honcho made it sound like things were just great.
“We are delivering on our Project Athens transformation as planned and have made tangible progress toward building a materially stronger profit and cash flow profile,” said David Rawlinson, president and CEO of Qurate Retail, said in a statement . “We produced strong Adjusted OIBDA growth of over 50% as reported with increases at each of our businesses, sustained gross margin gains in our core video commerce businesses and grew free cash flow, all while moderating the decline in revenue compared to the first half of the year.
“While we have meaningful work still ahead of us, our third quarter results strengthen our confidence in our ability to navigate the current challenged environment and to meet our Project Athens objectives. We reiterate our expectations for a double-digit CAGR on Adjusted OIBDA and free cash flow with stable revenues through 2024 compared to 2022.”
ShopHQ was acquired for $55 million earlier this year by IV Media, the producer and distributor of 5-hour Energy shots. And the man in charge, billionaire Manoj Bhargava, has been making some noticeable changes of late.
The first thing, and we’ve heard this story a dozen times from the network’s hosts, is that he had its buyers fly to New York City on the spur of the momen to buy some diamond jewelry from a 90-store chain that had gone out of business.
We cover national retail, including bankruptcies, at our day job and we can’t figure out what chain they are referring to. Be that as it may, the hosts said the new ownership wanted to once again elevate the quality of ShopHQ’s merchandise.
The “close-out” jewelry was high quality, with diamonds of incredible color and clarity. We actually ordered a diamond pendant, but sent it back because although they diamonds were good, they were princess cut and to us didn’t have much sparkle.
But this is a step in the right direction, if you ask us. But then, we are jewelry geeks.
ShopHQ also has a new logo. It’s kind of retro-looking, with a shopping bag and fancy script. It’s cute, but we don’t know if it’s the right messaging.
When our friend Ann designed the logo for this blog, she had shopping bags in it. We told her that didn’t make sense, that if you are home shopping you get boxes — not shopping bags. And she changed the logo for the blog.
We would voice the same issue with ShopHQ about its logo.
It’ll be interesting what else the home shopping network has up is sleeve.
Homeshoppingista's Blog By Linda Moss 