advertisement
advertisement

Walmart, Safeway Fighting For Control Of .Grocery

Written by Frank Hayes
June 13th, 2012

There’s a .grocery domain in our future, and Walmart and Safeway are fighting over which chain will control it, while Amazon and Google battle to own .buy, .shop and .store. On Wednesday (June 13), the organization that oversees domain names—ICANN—unveiled 1,930 applications for new top-level domains (TLDs) to use instead of .com, and the list includes some of the biggest retail chains—and doesn’t include even more big chains.

The retailers who shelled out $185,000 per name to buy their E-Commerce sites’ domain names all over again include Macy’s, Gap, TJX and Home Depot. But Kroger, Walgreens, CVS and Lowe’s gave the vanity domains a pass.

In the case of .grocery, both Walmart and Safeway applied for their own chain names, too, so they’ll begin using them relatively soon. But because they’re both going after .grocery, their applications will enter ICANN’s labyrinthine resolution process, according to which each retailer will be rated by a committee for how well it qualifies as a part of the grocery “community.”

When that fails to pick a winner, if Walmart and Safeway haven’t cut a private deal for one or the other to drop out, they’ll end up in an auction—which means the ultimate price of .grocery could be much higher than $185,000. According to ICANN’s applicant guidebook, “There is a possibility that significant funding will accrue to ICANN as a result of one or more auctions.”

There’s also a possibility of lawsuits involving competing retailers or ICANN when somebody is unhappy with the results of the process.

But none of this should be a surprise. ICANN kept the applications secret, so there was no way for retailers to know which of their competitors were paying for their own top-level domains, whether anyone was trying to cybersquat on their brand name or whether a name like .grocery was in play. ICANN also refused to say if (or when) there will be a second chance for retailers to apply for their own names. For the foreseeable future, this might have been the only chance. That means chains had to make a competitive decision flying blind.

(A cynic might conclude this was a lousy way to use fear to extort money out of retailers who don’t really need to purchase their domains again. To the contrary, it was a very effective way to do that—ICANN collected about $350 million from applicants that also included car companies, hotel chains and banks, along with lots and lots of would-be domain resellers.)

Which retailers bit on the bait? The biggest buyers among conventional chains were TJX (which applied for .tjx, .tjmaxx, .tkmaxx, .marshalls, .homegoods, .homesense and .winners) and Gap (going after .gap, .oldnavy, .bananarepublic, .athleta and .piperlime). Macy’s went after .macys and .bloomingdales, Walmart snapped up .walmart, .samsclub, .asda and .george, and Safeway applied for .safeway and .vons (but not domains for any of the smaller chains it owns).

But the largest grocery chain in the U.S., Kroger, didn’t try for any vanity domains. Neither did Walgreens, CVS or Rite-Aid. While Home Depot paid for .homedepot and .thd, Lowe’s stayed home. There will be a .visa, .americanexpress and .discover, but no .mastercard. And no .paypal—or .ebay.

Apple, Target, JCPenney, Best Buy, McDonald’s, Staples, Polo (but not Ralph Lauren) and Tiffany also paid to have their own TLDs—or at least try to get them, since they’ll have to be legally vetted even though no other applicant filed for those names.


advertisement

Comments are closed.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.