Why is Close-Out Retailer Tuesday Morning Shutting Down Its E-Commerce Store?

In Customer Experience, Featured on App, Multichannel by Julia Eisler

Why is Close-Out Retailer Tuesday Morning Shutting Down Its E-Commerce Store?

Dallas-based, close-out retailer Tuesday Morning recently posted the following image on their website announcing the shutting down of their e-commerce operations:

Tuesday Morning Shuts Down E-Commerce Operations

Is this a move that will lead to future revenue growth for their company or is it a step backward in an increasingly digital world?

Online shopping, while giving consumers the option to view a large selection of a store's inventory from the comfort of their home, requires that shoppers have a basic idea of what they want. This contradicts the type of experience that Tuesday Morning seeks to provide for their customers, as they encourage shoppers to “keep an open mind and don’t be too specific for what [they're] searching for,” creating a "treasure hunt" experience, which is extremely difficult to provide in the online shopping sphere.

Insiders at Tuesday Morning have said that the company didn't invest enough in "technology, staff and supply chain capabilities" necessary to ensure the success of their online store, which had only contributed one percent of sales to Tuesday Morning's annual revenue.

The company has announced that closing their e-commerce store will allow them to "return to [their] roots," and it'll give them the chance to really focus on improving in-store customer experience.

The shutting down of Tuesday Morning's e-commerce store comes after an announcement from the TJX Companies that they'll be making an e-commerce push in the upcoming months. The TJX Companies acquired successful e-commerce site Sierra Trading Post for $200 million in December 2012. In a press release the TJX Companies made it clear that they, "plan on launching e-commerce sites for TJX brands," explaining that, "this acquisition adds immediate scale, capabilities and infrastructure in e-commerce, which we can leverage in that regard."

What do you think about the role of close-out retailers in the e-commerce shopping sphere? Is it essential to offer online shopping in order to continue growing?

<Image: jima – Flickr>

<Image: "Here's The Deal" – Tuesday Morning website>

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