Selling products on Amazon drives traffic to Chico's boutiques: CEO

  • In April, the parent company of Chico's announced plans to sell products on e-commerce giant Amazon.
  • "This is also driving traffic to our boutiques," says the company's CEO, Shelley Broader.
  • Amazon now has more than 100 million paid Amazon Prime members around the world — consumers who will now have an easier time purchasing Chico's apparel and accessories.

Selling its products on Amazon is driving traffic to Chico's boutiques, CEO and President Shelley Broader told CNBC on Tuesday.

"Customers may have been introduced [to the Chico's brand] through their Prime Membership to Amazon, but they can also return that item [or] seek additional matching items in our boutiques," Broader told CNBC's Courtney Reagan on "Power Lunch."

In April, Chico's FAS — the parent company to three brands, including the namesake, White House Black Market and Soma — announced the company's plans to offer Chico's brand apparel and accessories on Amazon. The move came at a time when many retail companies are concerned about the dominance of the e-commerce giant.

But Broader said working together is a strategic business move.

A Chico's store in New York.
Scott Mlyn | CNBC
A Chico's store in New York.

"Finding alternative channels to introduce our products to new customers is what 2018 is all about for us," said Broader, who took over as CEO of the company in December 2015 and who also serves on the company's board of directors. "When you have so many Prime members — we all know the number now — who better to partner with ... to gain those new customers for us?"

Amazon CEO Jeff Bezos revealed in an April letter to shareholders that the company has exceeded 100 million paid Amazon Prime members globally.

Chico's FAS stock has fallen on hard times recently, with share prices dropping from around $13 last May to lows of about $9 on Tuesday.

Select Chico's items are available now on Amazon through the partnership, but Broader said other products and brands may be available on the platform at a later date. The company will also maintain control of marketing, pricing and promotions on its products.