You should know that....smartbargains.com is Loemann's online.... COOL HUH?

"The world of off-price retailing is really about serving the treasure hunter: a consumer who likes to search for a great item at a great price by a fabulous brand. So a big part of the experience is going to the store and hunting, not going online and flipping through Web pages," says Madison Riley, strategist at Kurt Salmon Associates. "But for Loehmann's, this is one strategic thrust that's a good move."

Loehmann's puts bargains online
By Lorrie Grant, USA TODAY
Off-price retailer Loehmann's (LHMS) will begin selling its fashionable women's clothes online, becoming the first in its retail sector to venture there.
The 83-year-old retailer announced Wednesday that it will team with online discount retailer SmartBargains, which will handle fulfillment and shipping. Financial terms were not disclosed.

"With SmartBargains, merchandise from Loehmann's will be offered to many new consumers who share a keen interest in upscale apparel at discount prices," says Loehmann's CEO Robert Friedman. Loehmann's operates 48 stores in 17 states, with a concentration in California.

Loehmann's sees the deal as a way to broaden the appeal and customer base of the value retail sector to younger consumers.

"Doing business online opens new doors for a company like Loehmann's to more effectively reach younger consumers, since they are increasingly turning to the Web as part of the shopping process," says Dan Hess, analyst at online market research firm ComScore Networks.

Off-price retailers buy assortments of brand-name, fashion-oriented merchandise, including overstocks, from vendors who typically sell to mainstream merchants. They then resell the goods at discounts often ranging from 30% to 65%. In addition to apparel and accessories, the goods often include home fashions, fragrances, shoes and toiletries.

Other top off-price merchants include Syms, Ross, Tuesday Morning and TJX subsidiaries T.J. Maxx, Marshalls, HomeGoods, A.J. Wright and Bob's Stores.

Despite the success of their bricks-and-mortar businesses, they have avoided electronic commerce.

Their expertise is buying wisely and running their stores on the cheap — devoid of fancy fixtures and stylish displays and other costly overhead — to maintain profits on narrow discount margins.

Teaming with an existing Internet retailer could allow Loehmann's to add another way of selling, without the expense and risk of creating fulfillment centers and back-office operations.

Consumers can access the Loehmann's selection of dresses, suits, active wear, sweaters, coats and jackets, as well as formal merchandise from its "Back Room" on the SmartBargains site (www.smartbargains.com). There is a link from the Loehmann's promotional site.

"(This alliance) joins two like-minded retailers that serve similar audiences and provides a vehicle for both companies to generate potential growth," says Carl Rosendorf, CEO of SmartBargains.

Returns will be handled by SmartBargains only. Customers will have 30 days to return merchandise for a full refund of the product price.

SmartBargains has similar partnerships with furniture retailer Bombay and slipcover maker Sure Fit.

The Loehmann's deal ramps up its competition with off-price online rival Bluefly (www.bluefly.com).

It will be a new world for the Loehmann's customer.

"The world of off-price retailing is really about serving the treasure hunter: a consumer who likes to search for a great item at a great price by a fabulous brand. So a big part of the experience is going to the store and hunting, not going online and flipping through Web pages," says Madison Riley, strategist at Kurt Salmon Associates. "But for Loehmann's, this is one strategic thrust that's a good move."