Coldwater Creek To Close 3 Outlets

Apparel retailer Coldwater Creek will close three of its outlet stores, which carry discounted and overstocked merchandise, after strong Internet sales last month.

But retail stores are still a "critically important part of our strategy," said David Gunter, a spokesman for the Sandpoint, Idaho, company, which plans to open its flagship store in Seattle's former Nordstrom building next month,.

"The Internet for anyone in merchandising and retail is an exciting new frontier," Gunter said. But the retail side of the business is "our one chance to get face to face with our customers."

The company's Internet sales last month rose more than 50 percent to $2 million from August's $1.3 million. In September 1998, electronic-commerce sales were $25,000. The company's fiscal sales in 1998 were $325.2 million.

The outlet stores are closing, Gunter said, because the clearance items also are sold online, at http://www.coldwatercreek.com, where there's no overhead and a higher profit margin.

The company has 12 outlet stores throughout the country, including one in Pasco, one in Boise, and two in Oregon. Although Coldwater Creek has not decided which stores it will close, "Northwest outlet stores are performing very well for us," said Gunter. The stores will close by February.

Coldwater Creek, founded in 1984, sells women's apparel, gift items, jewelry, home accessories and furniture. It operates two retail stores - in Jackson Hole, Wyo. and Sandpoint - and, in addition to the Seattle store, will open one in Kansas next month.