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Multi-channel merchants: brick and click companies that have a network of physical stores as their primary retail channel, but have also introduced online offerings. these are multi- channel firms such as Walmart, Sears, JCPenney, Staples, OfficeMax, Costco, Macy's, Target, And other brand-name merchants. While brick and click merchants face high costs of physical buildings and large sales staffs, they also have many advantages such as brand name, a national customer base, ware-houses, large scale (giving them leverage with suppliers) ang trained staff. Acquiring customers is less expensive because of their brand names, but these firm face challenges in coordinating prices across channels and handling returns of Web purchases at their retail outlets. However these retail player are used to operating on very thin margins and have invested heavily in purchasing and inventory control systems to control costs, and in coordinating returns from multiple locations. B-C companies face the challenge of leveraging their strengths and assets to the Web, building and credible Web site, hiring new skilled staff, and building rapid-response order entry and fulfillment systems. According to Internet Retailer, in 2011, the chain retailers accouted for around $65 billion (around 30%) of all online retail sales. However, there remains much room for growth. (Internet Retailer, 2012)
JCPenny is the prime example of a traditional merchant based on physical stores and a catalog operation moving successfully to a multi-channel online store. In 2011, JCPenny.com ranked 20th on Internet Retailer's list of the top 500 retail Web sites ranked by annual sales.
James Cash Penny opened the first Golden Rule store in 1902, and incorporated his growing business as the J.C.Penny Company in 1913. Penny's original vision was to create a nationwide chain of stores based on the newly emerging business model called a "department store:", which aggregated a wide variety of general merchandise at a