October 25, 2004

The Journal Report: Leadership

A Strong Net Game

In its three decades in one location in downtown Manhattan, J&R had managed to build a strong reputation around having knowledgeable sales staff, a broad selection and low prices.

The web has helped J&R extend its reach beyond New York, reaching a national audience and dramatically boosting its growth. Web sales have increased for the past few years, and the company says it experiences additional growth through customers who "preshop" online and then go to the physical store to complete the purchase.

"We tried to re-create the feel of our brick-and-mortar store.," says Ms. Friedman. So rather than having a web contact form or listing a toll-free phone number, the site lists actual sales people you can call, with their working hours and direct extensions, as well as photos and brief bios. (One salesman, for example, referred to as"Dave," has been with J&R for 19 years, enjoys rock music and is an avid soccer fan.) The site also has a picture of the Manhattan storefront at the top of every page, with a logo trying to reinforce its history and key elements of its brand: "33 years of savings, selection and service."

J&R has also not abandoned growth strategies that worked well in its "offline" days. The company still buys a lot of newspaper advertising every week, still sends its mail-order catalog, and tries to link its web site to the physical store by posting information on store events and sometimes having live webcasts. Ms. Friedman says many of its customers browse online and then visit the store to complete the purchase, or vice versa.