Retailers Applaud Multi-Channel

"The consumer doesn't see our business as separate entities," says Linda LoRe, chief executive officer of the 136-stores Frederick's of Hollywood. "It's really the multi-channel that's working for us."

One upside to online retailing is the ability to display more product than a brick-and-mortar store has room for, points out Dennis Hernreich, executive vice president, chief operating officer and chief financial officer, of Casual Male, the operator of about 500 units across the country. Since the apparel preferences of customers at the over-sized clothing chain may vary depending on locale, shoppers may find a broader selection online or in a catalog, he says.

A chain that still continues to have the bulk of its focus on its stores, though, is discounter Gordmans, which has about 60 units, mainly in the Midwest. "We're passionate about comparable-store sales growth," says Jeff Gordman, the company's chief executive officer. "We're really focused on bricks and mortar retailing."

Gordman also says that online retailing is "easier said than done." For many companies, like Wal-Mart and TJX Cos., it has been a money-losing initiative, he says.

But what hasn't changed in the industry is the importance of pleasing customers, LoRe says. "The customer signs your paycheck," she says. "That customer is our while reason for our being. I work for them."