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Logan's Global Mart thriving in brave new world through e-sale of electronics, outdoor equipment By
Paul Edwards
Global Mart president Brett Peterson, right, works with his VP James Daines on business plans in their Logan office. / Photo by Kellie Holladay Editor's note: This story was written for Comm 3110, "Beyond the Inverted Pyramid," an advanced news-feature writing class in the USU department of journalism and communication. There was a time when shoppers pushed close to down town windows, eager to catch a glimpse of the hottest new items. Then the department store chains invaded and shoppers were lured by the convenience they offered. Now, the scene has changed again. Global Mart, based in Cache Valley, is among the companies that have joined a hot new trend in retail. Cyber-shopping is the newest wave, bringing shopping mall convenience right into the comfort of your home. Shopping in today's world just isn't what it used to be. Global Mart has not only felt ripples on the changing retail scene, but is riding the wave that has crashed into millions of homes world wide. Global Mart specializes in electronics and outdoor equipment, but a visit to globalmart.com reveals that its selection rivals many retail stores as well. After a visit to Global Mart's user-friendly web site, it may become as their telephone slogan says, "your favorite place to shop on the Internet." The sweet and sour smell of fresh white paint and the inviting aroma of new carpet are evidence of where this high-tech company is going. Global Mart's new administrative office in Logan is still in disarray. Computer boxes are piled in the corners and office furniture still needs to be straightened and cleared off. Outside, traffic hums and rushes by, in as big a hurry as Global Mart's head man as he rushes in the open glass door. "It was hard to tell what was popular. Most of the people online in the early days were computer geeks." "Smell is still kind of strong, huh," he comments to Julie Allen, the receptionist as he extends a welcoming hand to his visitor. After meeting Global Mart's president, Bret Peterson, it is easy to see where this young business gets its drive. This soft-spoken father of four talks freely about his company, but it seems to be unnatural for him to just sit and discuss on a busy workday. He talks about Global Mart with the excitement of a young executive, but there is also a hint of wisdom and confidence in his voice that only comes from years of experience. Since he graduated in 1988 from Utah State University in finance, Peterson made several career changes. He took his experience from working at the University Inn in Cache Valley, and went to work managing hotels for the Marriott Corp. in Phoenix after graduation. Peterson then moved to investment work in Arizona, then on to become a controller and director of human resources at two biotech companies. It wasn't long however, before Peterson saw a great opportunity back at home. He jumped on with Northern Utah Financial Group, based in Cache Valley. It was there that he became part of a new enterprise called Global Mart, a company that would grow into an independent operation that produced over $5.3 million in online revenue in 1999. Global Mart began in 1996 with just a few products produced in Northern Utah. "We spent the first several months experimenting with different products, trying to find what would sell," Peterson says. The company first tried a few sample sites, marketing them through online malls and sites such as Alta Vista and Excite. It wasn't until 1997 that it launched its own online catalog carrying around 200 products, mostly global positioning system (GPS) units and accessories. A GPS unit uses a series of positioning satellites to pinpoint its position on the earth's surface. The units that Global Mart sells are popular with campers and hikers who like to keep track of where they are. "It was hard to tell what was popular," says Peterson. "Most of the people online in the early days were computer geeks." "Today the Internet has gone more mainstream and has much more potential," he said. "The Internet is going forward now and we can target new people." Global Mart's corporate strategy is basic. Growth is the order of the day. Get bigger, get new customers, increase productivity and don't stop growing. Global Mart's programmers, affectionately known as web monkeys, are adding new products to Global Mart's web site daily. The web site serves as the company's showroom. The products can be found on Global Mart's web site and clicked on to open up a page with more detailed information and pictures of the product. If a customer decides to purchase the product, he or she can order it on-line, or order over the phone. Today, Global Mart offers more than 15,000 products on its web site. "We can't stop growing in this game," said Peterson, "Stop growing and you're dead." The number of products it carries isn't the only way Global Mart is growing. The staff it has hired to serve its customers has grown as well. Peterson says that Global Mart started with two employees in 1997. By 1998 it had a staff of eight and by the end of 1999, it had a staff of more than 50. From 1998 to 1999, Global Mart grew more than 400 percent. Peterson claims that if the company was to simply maintain its present operation, that level of growth would continue throughout the next decade. With growth as his stated goal, Peterson has no intention of simply maintaining current operations. The three buildings Global Mart leases in Logan are already filling up. Plans are in the works to build its own building and Peterson indicates that the company is exploring the possibility of expanding to other cities as well. "We are currently doing the groundwork that could lead to overseas offices," Peterson said. Ten to 20 percent of the orders Global Mart receives are for international addresses. Canada and Western Europe are the company's biggest international buyers. Siri Elkins, one of Global Mart's employees who process orders, said that the most popular items among international buyers are electronics. "A lot of our international orders are for DVD players, GPS units and stuff like that," Elkins said. "We also get a few large orders for tents and things like that when there is a disaster somewhere in the world." Elkins said she finds it interesting that Global Mart even offers some products such as night visions goggles that can't be shipped out of the United States because of government or industry regulations Peterson says that the international market is where the company would like to concentrate some of its growth. As part on that international growth, Global Mart is working with a large international cargo company in Miami that will help expand their operations in South America and Europe. How big will Global Mart become? Peterson said that at this point, it is primarily concerned with growth. Becoming too big isn't something they have considered much. "As long as it continues to be profitable, we will continue to grow," he says. In a season when many online shopping companies such as Amazon.com are reporting huge losses, Global Mart's profits are increasing. Peterson says that it is due to the way many companies are set up. "Most corporations are backed by millions of dollars of venture capital and are looking to buy customers rather than make money," he said. While many companies such as buy.com, shopping.com and amazon .com are "basically giving products away" just to gain name recognition, Global Mart bases its growth on profitable sales. Peterson said that Global Mart's growth is based on solid financial profits, not rich investors. Its goal is to be profitable and as long as its current path continues to meet that goal, Global Mart will continue on that path. If it ceases to be profitable, it will alter its course in order to meet those goals again. Peterson does recognize some other sites such as REI's web site and Campmor's site as additional competition to its outdoor and camping lines, however, he says, "I have not seen a site with the product mix like we have." Global Mart carries products as advanced as flat panel plasma televisions that are 42 inches wide but stick out from the wall only a few inches to products as strange as outdoor speakers disguised as rocks and giant frying pans the size of car wheels. Global Mart's camping and electronics lines are the most complete, but all of the departments have many products. That product mix helps the company stand out in the minds of cyberspace shoppers as the one-stop site to find what they need. Global Mart sees the Internet as a growing market place, with plenty of space. "We are looking for partnerships with people who are doing good things on the Internet," says Peterson. Alliances with other solid, progress-minded companies is one way that Global Mart plans to grow. He said that other, less progressive companies will come and go quickly. In order to meet the desires of every shopper, Global Mart has opened a retail store in Logan for people who like the hands-on approach to shopping, and Global Mart plans to launch a print catalog soon so people who aren't into virtual shopping can get in on the action. Peterson says some people feel better about doing business on-line if they know there is a real store backing the web site. Selling stock on the public market has even been considered by the Global Mart administration, but Peterson made it clear that while many options were being looked at, not all would materialize. "Global Mart is in Cache Valley to stay." Peterson said. Among the advantages the company sees to doing business in the valley include inexpensive real estate and the large labor pool of 20,000 students. Peterson explained that because of the large labor pool in Logan, local businesses can pay less per hour for the same work that would cost much more somewhere else. From a business standpoint, that is a tremendous advantage that many local companies appreciate. To members of the labor pool, that advantage is debatable. Global Mart does recognize that there are some disadvantages to staying in Cache Valley as well. It's hard to be connected to other large companies when you are in Logan, Utah. "It's not like you see these people at lunch every day," Peterson said. He also recognizes that being closer to a major airport might be an
advantage for shipping, but Cache Valley is home to Peterson and his
partners. They value doing business with friends and neighbors and they
are determined to offer shoppers the products they desire.
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