Catalog circulation strategy was cited as a key contributor to the implosion. According to the 10-Q statement, increased postage costs drove changes in circulation strategy. The company blamed sub-optimal catalog selection and mailing strategy, saying "... certain circulation decisions and execution problems resulted in catalog mailings to a mix of customers and prospect customers which we believe were less productive".
The company states that a new data warehouse and hiring of marketing talent are expected to improve results. Long-time readers of this blog know a pair of fundamental truths about catalog and online marketing strategy, truths that will serve Celebrate Express well:
- Smart & Experienced People + Strategy > Data Warehouse + Data Mining
- Smart & Experienced People + Data Warehouse + Data Mining + Strategy = Profit
Celebrate Express enjoyed profitable performance a few years ago. Here's hoping that Harry can help return the brand to prominence.