Service Merchandise Opens Its Virtual Doors; Innovative Business Model Creates Opportunity

BOCA RATON, Fla.--()--June 15, 2004--One of the most recognized names in retailing - Service Merchandise - is re-inventing itself as an on-line e-tailer ... and reinventing how business is being conducted on the Internet. The company has created a business model that allows manufacturers and other vendors to act as partners with Service Merchandise.

Offering a wide selection of affordable quality jewelry, and also home and garden products, toys and small appliances, Service Merchandise selects the vendors carefully. Only those offering a high-quality product at a reasonable price are allowed to become part of the program. The website, www.servicemerchandise.com, gives manufacturers the ability to showcase their products without a large financial commitment.

"Service Merchandise has a heritage and tradition of innovation and creativity in the retailing world, all of which gives consumers and our vendor partners a sense of comfort," said Raymond Zimmerman, one of the founders of Service Merchandise and now the company's chairman. "It is only natural that we would channel that expertise into an aggressive and unique business opportunity."

With on-line jewelry sales charting steady growth and reaching a U.S. high of $33 billion in the first quarter of 2004, Service Merchandise is part of a growing market segment.

There is an atmosphere of partnership among the vendors and these unique relationships result in an efficient buying method, resulting in lower prices for the consumer. Through the Service Merchandise program, many vendors are able to offer their products to the on-line market for the first time, opening them up to a whole new consumer base.

"Ebay revolutionized how consumers shop on-line; Service Merchandise is revolutionizing the way vendors are able to offer their products on-line," said Yuval Moed, Service Merchandise President and CEO. "We have been thrilled with the consumer response to our site, clearly there was a need for affordable, quality jewelry that wasn't being met after Service Merchandise closed its physical doors."

Service Merchandise was founded in 1934, and had 413 stores and $4 billion in revenues during its heyday. For more information on Service Merchandise's current product offerings, visit their website at www.servicemerchandise.com.

Contacts

Intermark Public Relations
Rebecca Hart or Dave Fron, 205-803-0000

Contacts

Intermark Public Relations
Rebecca Hart or Dave Fron, 205-803-0000