Business Case Studies & Business Publications

Fingerhut's Price Strategy (B): Epilogue

West, June A.

Case

Fingerhut's Price Strategy (B): Epilogue

West, June A.

E-0289 | Published May 24, 2006 | 3 pages Case

Collection: Darden School of Business

Product Details

This epilogue tells the story of Fingerhut when it was acquired by Federated Department Stores for $1.7 billion, at the height of the internet bubble. Federated was interested in Fingerhut's order fulfillment systems as a possible prototype for its own on-line store. That on-line venture never materialized, and Federated began to sell Fingerhut in pieces. It was purchased by the original owner and a Minnesota entrepreneur who are in the process of restoring it to health. The case continues to explore the ethics of Fingerhut's business model, what attracted Federated and why it failed.