Web retailer NoMoreRack rebrands as Choxi
April 27, 2015 12:54 PM
One of the fastest-growing retailers in the Internet Retailer 2015 Top 500 Guide has changed its name.
NoMoreRack.com Inc., No. 66 in the Top 500 Guide, now calls itself Choxi and began redirecting visitors from NoMoreRack.com to Choxi.com last week. At the same time the e-retailer also unveiled a redesigned website with a new color scheme and what the company calls a more contemporary design.
The new name is a hybrid of the phrase “chock full” and the word “choice.” Choxi’s chief marketing officer Vishal Agarwal tells Internet Retailer that as part of the rebranding, Choxi plans to expand product categories and offerings, though he did not specify which categories or how many products will be added.
Part of the motivation for the rebranding was to better position the company globally. “NoMoreRack is a very literal English word,” Agarwal says. “We wanted to have a more global name, a more world-recognized brand that would be easier for everyone else. We wanted to be able to set the right platform for the future.” While the company has what it considers to be a more global name, international expansion plans aren’t yet in its future, he says.
Top500Guide.com data shows that NoMoreRack.com experienced explosive growth during the past five years, going from $375,000 in sales when the site launched in 2010 to an Internet Retailer-estimated $700 million in sales in 2014. Agarwal declined to confirm that number or provide an exact sales figure in an interview.
The move comes three years after Nordstrom Inc. (No. 19) filed a trademark infringement lawsuit against NoMoreRack on the grounds that Nordstrom, which operates the Nordstrom Rack chain of discount stores and NordstromRack.com, had staked its claim to the “Rack” name when it came to online commerce. However, the Nordstrom case was dismissed in February 2014. Agarwal says the retailer had been considering a name change before Nordstrom took legal action. “The Nordstrom case was a factor in us changing it, but it was not the only factor,” he says. “We had actually decided about changing our name before the Nordstrom case.”
Nordstrom isn’t the only retailer to unsuccessfully sue NoMoreRack. In December 2013, Overstock.com (No. 31) sued NoMoreRack for alleged trademark infringement for using the word “Overstock” prominently on NoMoreRack’s site and for buying keyword advertising under “Overstock.” That case was dismissed in early March after Overstock filed a motion to dismiss.
Choxi might sound familiar to some consumers, especially those who shop at Target Corp., No. 16 in the 2015 Top 500 Guide. Target sold a house line of chocolates under the brand name “Choxie” starting in 2005, but discontinued it a few years ago.
Agarwal says NoMoreRack, to avoid potential legal conflicts, did its due diligence on the Choxi name and found “no problems with it with regards to availability, trademark or IP [Internet Protocol address] restriction.”
The company didn’t test the Choxi brand with consumers before unveiling the new name and design, choosing instead to test it on employees and vendors as part of what Agarwal calls “a very long warmup process.”
Because repeat business accounts for the majority of Choxi’s revenue, Agarwal says, the retailer is sending emails to customers about the name change. He says he doesn’t plan to increase his paid search spend or otherwise change his marketing strategy to explain the name change beyond his existing customers.