It may not be getting the same kind of "told you so" dot-com death knell that notorious online flunkies like Pets.com, Webvan, and Kozmo.com got when they hoisted the virtual white flag, but Martha Stewart Living Omnimedia (NYSE:MSO) will be shutting down its online storefront next month. In other words, click like crazy if you want to snap up some monster deals on linen, seasonal wreaths, and gardening boots during this literal clearance sale.
This was supposed to be a big year for the company that proved to be a rewarding Motley Fool Stock Advisor recommendation back in November of 2002. The crafty guru that founded the company is gearing up to play her "Get Out of Jail" card in a few months, and with Survivor and The Apprentice programming savant Mark Burnett ready to reinvent Martha's televised persona come September, the company was a lock for heavy doses of free media exposure.
So why bury the catalog and e-commerce business, when it stood to improve once an unshackled Martha was commanding even more screen time than ever to promote her company's wares?
While the company expects to keep running its thriving online flower business, its decision to pull the plug elsewhere looks like a bad move to me. Yes, the company's wares are still brisk sellers at Kmart (NASDAQ:KMRT), and some of those items will continue to be available on Kmart's own website, but why retreat from your home turf? Why not do what so many other retail chains have done when they have struggled online? Hand the keys over to Amazon.com (NASDAQ:AMZN) or simply relaunch the sites until it works, as Wal-Mart (NYSE:WMT) and Kmart once did.
For a company that prides itself on educating folks to take care of their homes, this was one time when Martha Stewart Living Omnimedia should have stuck to its own cooking.
Will you be taking advantage of Martha's online clearance sale? Was closing down the online store "a good thing," as Martha would say? Do you think you could give Martha a run for her money? All this and more -- in the Crafty Fools discussion board. Only on Fool.com.
Longtime Fool contributor Rick Munarriz believes that Martha is worthy of a second chance. He does not own shares in any of the companies mentioned in this story and is a member of the Rule Breakers analytical team, seeking out the next great growth stock early in its defiance.
