The World: New York - Publicis pulls plug on shopping site Honeyshed

Publicis Groupe is shutting down Honeyshed, its online shopping venture, just months after it began operating.

The initiative was the brainchild of Dave Droga and a partnership between his agency, Droga5, and the production house Smuggler. Publicis is reported to have backed the venture to the tune of about $25 million.

Honeyshed's aim was to reinvent the online shopping experience and make it more appealing to 18- to 35-year-olds.

Stephen Greifer, its chief executive, admitted the business challenges were bigger than anticipated, with advertisers retrenching and concentrating on proven communication routes.