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New Bear Creek unit will concentrate on Web Company expects online sales to rise 150 percent a year By DAVID PRESZLER With its e-commerce sales topping the $25 million mark in 1999, Bear Creek Corp. will create a division to focus on Internet opportunities, the Medford company announced Wednesday. The new Internet division will work not only to expand the sales of Harry and David, Jackson & Perkins and Northwest Express -- the company's existing product lines -- but to seek new markets that complement them. Bear Creek anticipates its Internet sales growing 150 percent during each of the next five years, a projection that works out to $190 million in sales by 2004. Bill Williams, Bear Creek's president and chief executive officer, said the new division will help the company realize its e-commerce potential. "To look for new opportunities, we really needed to bring in specialized talent," said Williams. The company will hire a senior vice president of Internet marketing and operations to oversee the new division, which will start with eight to 10 employees. The search for the division's leader has begun but the company hasn't filled the position. "It's a real competitive field," said Williams. "We are competing with companies like Wal-Mart that have launched separate Internet divisions. It's probably the most competitive talent market that we operate in." There's little question that e-commerce is a potentially rich marketplace. In recognition of its growing importance, the U.S. Commerce Department recently began tracking online retail sales for the first time. Consumers spent $5.3 billion online in the last three months of 1999, 0.6 percent of retail sales for the quarter. Bear Creek launched Web sites in 1996 to match its three product lines: harryanddavid.com , jacksonandperkins.com and northwestexpress.com . Since then, its online sales have roughly tripled each year. The company's overall sales have also been growing. When its fiscal year ends March 31, Williams said revenues are expected to have topped $400 million. Its leading product line, gifts sold under the Harry and David name, makes up about 60 percent of that. Bear Creek had $300 million in sales in 1997 and $375 million in 1998. In addition to its in-house e-commerce efforts, Bear Creek has purchased a stake in Catalog City, a California company that allows users to scan thousands of catalogs online. Williams sits on Catalog City's board. Williams said the formation of Bear Creek's Internet division was a business-driven move that will help the company's expand its reach into new markets. He declined to identify specific markets that Bear Creek might seek to enter. He said the company would look at areas that complement its current products and spread its sales more evenly throughout the year. "We're a highly seasonal business," he said. "Anything that would be counter to our seasonality would be a target." The new division has been in the works for six to seven months, and Williams hopes creating it will help the company lure the talent it needs. In addition to the senior VP, the company has created vice president positions for Internet business development and Internet operations. Initially, the division will have eight to 10 management-level employees who will work closely with other portions of the company. Some current employees will be moved to the new project, while others will be hired from outside. The ultimate size of the division hasn't been decided. "It just depends on where it goes," Williams said. Bear Creek already employs about 1,200 people year-round in Medford and about 1,800 throughout its operations. The company also hires thousands of seasonal workers each year to meet the holiday rush. It hired 7,700 seasonal employees for last year's holiday operations. Today's Edition : News | Sports | Business | Weather | Tempo | Classifieds Mail Tribune Copyright � The Mail Tribune 2000, Medford, Oregon USA