Coldwater Tests Spa Concept

The company says the spas will be located adjacent to or within close proximity of existing Coldwater Creek retail stores. The spas will also carry an assortment of relevant apparel, as well as a line of personal care products for women.

"Coldwater Creek Spa gives us an opportunity to further leverage our national brand awareness and provide the customer with a truly service-oriented day spa experience," says Dennis Pence, chairman and chief executive officer of Coldwater Creek.

According to the company, positive response generated from focus groups comprised of customers and non-customers encouraged Coldwater Creek to move forward with the concept. "We believe the day spa concept creates excellent potential for us to cross-market Coldwater Creek retail stores and Coldwater Creek Spa to increase traffic for both concepts and generate transactions in both directions," Pence says.

A retailer launching a new concept has become commonplace with today's retail generation. Most recently, bebe Inc. announced the start of an accessories division; American Eagle Outfitters is launching Martin + OSA; Pacific Sunwear is starting One Thousand Steps, its new accessories and footwear chain; Gap Inc. has opened Forth & Towne; and Abercrombie last year launched Reuhl, a store that targets shoppers ages 22 to 30.

However, the spa concept by an apparel retailer is one trend that goes unmatched. The company says that the continuation and refinement of the concept will be based on customer response.

In other news, the company has also declared a 50% stock dividend on its common stock, having the effect of a three-for-two stock split. The company had approximately 61.3 million shares of its common stock outstanding as of Dec. 5, 2005. As a result of the stock dividend, the company will have approximately 91.8 million shares of common stock outstanding. At press time, shares were up 3.02% to $33.78.

Coldwater Creek caters to women aged 35 to 60, with average household income in excess of $75,000. The company currently has 174 retail store locations, and plans to grow its national store base to 450 to 500 during the next several years.