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January 24, 2000

Marketplace Aims To Reshape Retail
Market4Retail.com could cut buyers' travel, making buying and selling more efficient

By Marguerite Reardon

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nline marketplaces have changed the way some companies buy nonproduction materials. Now, they are starting to have an effect on vertical industries. Last week, MarketMax Inc., a provider of E-business and merchandise planning software, unveiled Market4Retail.com, a marketplace for retail buyers and sellers.

"We're always looking for tools to help us do things faster and cheaper," says Paul Burrows, senior VP and CIO of ShopKo Stores Inc., a $4 billion, Green Bay, Wis., discount-store chain that will test the site. "This could cut a lot of traveling for our buyers."

More marketplaces are being created for vertical industries, such as retail and automobile manufacturing. But such specialized marketplaces require a great deal of expertise, says Tim Clark, VP of publishing and consulting for Net Market Makers, a consulting firm. "You really have to know the industry; it requires much more expertise than selling office supplies," he says.

Photo by MarketMax's retail industry experience has created confidence in the site, says Burrows, whose company has used the MarketMax merchandise planning software for nearly five years.

Market4Retail.com should improve the processes of buying, product planning, design, and selection. Buyers will still have to go to trade shows and showrooms to select merchandise, but follow-up negotiations can be done via the Web. The site lets buyers search by product, vendor, price, and custom attributes to find products they want to offer. They can view high-resolution product photos and detailed specifications. Items added to a shopping cart can be reviewed before a purchase is made.

"It won't eliminate all trips for the buyers, but it will make those trips more efficient," Burrows says. "This will be a tool to help our buyers do what they do more efficiently." But Burrows says initial interest in the site may be limited by cultural factors. "People in the retail business are set in their ways," he says. "But as the technology evolves, it will be more and more meaningful to the business."

Photo by Dan Brinzac

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