
Skymall
Online shopping magazine that retails home and garden, health and beauty, electronic, clothing and accessories, and more.
Date | Investors | Amount | Round |
---|---|---|---|
investor investor | €0.0 | round | |
N/A | Acquisition | ||
Total Funding | 000k |
In 1989, on a flight from Seattle to Phoenix, an accountant named Bob Worsley had an idea. He envisioned a retail service where passengers could order goods from their seats and have them waiting at their destination airport. This concept, aiming for instant gratification, was the genesis of SkyMall, which launched the following year. The initial model of stocking inventory in warehouses near airports proved financially challenging. A pivotal shift occurred around 1993 when SkyMall changed to a marketplace model, essentially leasing catalog space to other merchants and becoming a high-flying advertising platform. This move was credited with saving the company. For years, it thrived as a staple in seat-back pockets, reaching an estimated 88% of domestic U.S. air passengers at its peak. However, the rise of in-flight Wi-Fi and the permission for passengers to use personal electronic devices during all phases of flight eroded SkyMall's captive audience. The company that had once been an early adopter of e-commerce found itself unable to compete. After being passed between several private equity firms, SkyMall's parent company, Xhibit Corp., filed for Chapter 11 bankruptcy in January 2015. In April 2015, the brand was acquired for $1.9 million by C&A Marketing, which continues to operate SkyMall as an online-only retailer.