Catalog merchant
Encyclopedia
A catalog merchant is a form of retailing
. The typical merchant sells a wide variety of household and personal products, with many emphasizing jewelry. Unlike a self-serve retail store, most of the items are not displayed; customers select the products from printed catalogs in the store and fill out an order form. The order is brought to the sales counter, where a clerk retrieves the items from the warehouse area to a payment and checkout station.
expenses due to the smaller size of store and lack of large showroom space.
There are a few key benefits to this approach. By operating as an in-store catalog sales center, it could be exempt from the "Resale price maintenance
" policy of the manufacturers, which can force conventional retailers to charge a minimum sales price to prevent price-cutting competition; it also reduces the risk of merchandise theft, known in the industry as shrinkage
.
From the consumer's point of view, there are potential advantages and disadvantages. The catalog showroom approach allows customers to shop without having to carry their purchases throughout the store as they shop. Possible downsides include that customers may be required to give their contact information when an order is placed, take the time to fill out order forms, and wait a period of time for their order to be available for purchase. This wait may be days long, one of the chief vulnerabilities of the catalog showroom approach.
operated over 400 stores in Canada and the United States, and closed in 1996. Shop-Rite
, which operated 65 stores in Ontario, closed its doors in 1982. No general mechandise catalogue merchants remain in Canada.
, the largest general goods retailer is Argos
, a catalogue merchant. Former catalogue retailers include Littlewoods
and Kays
, which unlike Argos had no shops and sold only by postal orders. Littlewoods, Kays and existing Grattan
built their businesses around offering credit, however in the 21st century most High Street shops now offer store cards (a means of credit specific to the retailer) meaning these catalogues have lost some of their market niche.
Littlewoods also ran a smaller catalogue that did not offer credit called Index. Unlike goods from the Littlewoods Catalogue, which were purchased via postal order, Index goods could be purchased at Index branches and some branches of the Littlewoods department stores.
Unlike Littlewoods, Kays and Grattan, who focused mainly on Clothing, Argos (and formerly Index) focus primarily on furniture, electronics and white goods. In 2001, Argos started a clothing catalogue called Argos Additions, however they sold the brand to Shop Direct Group in 2004.
The repeal of the resale price maintenance
sanctioning law in 1980 meant that chain discounters such as Wal-Mart, KMart could set and change prices at will, in a more consumer- friendly environment where the customer can examine the goods and confirm availability before approaching sales staff. As a result, this retail sector went into decline in the 1980s. As big box stores and internet shopping became increasingly popular in the 1990s, the decline of the catalog merchant business accelerated.
Many companies in recent years have moved away from relying solely on catalog sales, augmenting them with on-line sales or direct retail. The move toward on-line sales includes long-established department store
chains such as Sears
and JCPenney that relied heavily on catalog sales. However, many long-established catalog merchants have gone out of business in recent years including Best Products
, Brendle's
, Ellman's
, KeyMid, Montgomery Ward
, Rink's, Service Merchandise
, Sterling Jewelry & Distributing Company and Consumers Distributing
.
However Houston Jewelry & Distributing Company, a onetime division of Sterling Jewelry & Distributing Company in Houston, successfully retooled the company in 1993 as a traditional jewelry and "fine gift" store called Houston Jewelry, which offered lower pricing on luxury products. It is widely believed by the trade press, as noted in the June 1999 issue of JCK, Jewelers Keystone Circular Magazine, that this was the only successful transformation of a catalog showroom concept into a jewelry & fine gift store. Houston Jewelry's transformation has been so successful, that in 2008 and 2009 they were honor as one of "America's Best Jewelers" by National Jeweler Magazine. In 2008, the State of Texas awarded Houston Jewelry a "Texas Treasure Award" for being one of the oldest business in Texas.
Online catalogs have several advantages for both the seller and the buyer. They allow the integration of the online catalog with the seller's order database
and this translates into an additional sales channel. Online catalogs make it easier to find new clients on line without spending on more printing materials. These catalogs allow for more flexibility as they can be changed, corrected, and updated more easily.
However, even though sales can increase, an investment is also necessary to make online catalogs work successfully. This system requires adding a search engine
friendly shopping cart system
to the website and some kind of customer service
might be necessary in the form of e-mail
or live chat for instance. Some companies also invest on a toll-free number so their clients use this channel to place their orders.
The online buyer also benefits from online catalogs. This system usually offers good prices because the seller does not invest on large buildings or apparels and these savings are reflected in better prices for the consumer. Because the seller does not need to manage a physical inventory, they can offer an ample selection of products that cannot be offered by retail stores.
Another benefit is the convenience to buy from home. Buyers do not need to spend time or fuel to drive to one store and another looking for the products they need. This is an advantage for elderly people, impaired people, and also for people who already spend time and fuel driving from their works to their homes. Online catalogs also allow the buyer to compare prices and choose the articles that are more convenient for them any time and to place orders during the day or night.
Online catalogs can be enjoyed immediately as opposed to physical catalogs that one has to wait until they are mailed. Another advantage of these catalogs is that they are paperless, therefore, people using them do not litter.
One convenient aspect is that once one chooses what to shop and where to shop it, one can go immediately to the specific website and buy the article without wasting time trying to look for a specific item throughout the web.
For those people who still prefer a printed catalog, many sites offer the possibility to send a hard copy catalog as well.
There are also some disadvantages when this system especially with the shipping costs. Buyers have to be careful because at times shipping costs may end up increasing the costs of the products and reverting the original better price it seemed to offer.
Retailing
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
. The typical merchant sells a wide variety of household and personal products, with many emphasizing jewelry. Unlike a self-serve retail store, most of the items are not displayed; customers select the products from printed catalogs in the store and fill out an order form. The order is brought to the sales counter, where a clerk retrieves the items from the warehouse area to a payment and checkout station.
Purpose
The catalog merchant has generally lower prices than other retailers and lower overheadOverhead
Overhead may be:* Overhead , the ongoing operating costs of running a business* Engineering overhead, ancillary design features required by a component of a device...
expenses due to the smaller size of store and lack of large showroom space.
There are a few key benefits to this approach. By operating as an in-store catalog sales center, it could be exempt from the "Resale price maintenance
Resale price maintenance
Resale price maintenance is the practice whereby a manufacturer and its distributors agree that the latter will sell the former's product at certain prices , at or above a price floor or at or below a price ceiling...
" policy of the manufacturers, which can force conventional retailers to charge a minimum sales price to prevent price-cutting competition; it also reduces the risk of merchandise theft, known in the industry as shrinkage
Shrinkage (accounting)
In financial accounting the term inventory shrinkage is the loss of products between point of manufacture or purchase from supplier and point of sale. The term shrink relates to the difference in the amount of margin or profit a retailer can obtain...
.
From the consumer's point of view, there are potential advantages and disadvantages. The catalog showroom approach allows customers to shop without having to carry their purchases throughout the store as they shop. Possible downsides include that customers may be required to give their contact information when an order is placed, take the time to fill out order forms, and wait a period of time for their order to be available for purchase. This wait may be days long, one of the chief vulnerabilities of the catalog showroom approach.
Canada
Consumers DistributingConsumers Distributing
Consumers Distributing was a catalogue store in Canada and the United States that operated from 1957 to 1996...
operated over 400 stores in Canada and the United States, and closed in 1996. Shop-Rite
Shop-Rite
Shop-Rite was a chain of catalogue stores in Ontario, Canada that operated from the 1970s to 1982. In a catalogue store, customers would browse the catalogue in the store, select their merchandise and apply to the store clerk for the item....
, which operated 65 stores in Ontario, closed its doors in 1982. No general mechandise catalogue merchants remain in Canada.
United Kingdom
In the United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, the largest general goods retailer is Argos
Argos (retailer)
Argos is the largest general-goods retailer in the United Kingdom and Ireland with over 800 stores. It is unique amongst major retailers in the UK in that it is a catalogue merchant...
, a catalogue merchant. Former catalogue retailers include Littlewoods
Littlewoods
Littlewoods is the name of a former retail and gambling company founded in Liverpool, Merseyside, England by John Moores in 1923.It started as a shopping catalogue company, processing orders by post in the early 1970s. In 1981, it expanded to a call centre, processing orders via telephone. At its...
and Kays
Kays Catalogues
Kay and Co Ltd was a mail-order catalogue business, with offices and warehouses throughout the United Kingdom. It was a very successful company, especially during the latter part of the 20th century....
, which unlike Argos had no shops and sold only by postal orders. Littlewoods, Kays and existing Grattan
Grattan plc
Grattan is a British catalogue clothing retailer based in Bradford, UK with 18 stores and 2 main catalogues and a number of specialty catalogues. Grattan has approximately 2,600 employees....
built their businesses around offering credit, however in the 21st century most High Street shops now offer store cards (a means of credit specific to the retailer) meaning these catalogues have lost some of their market niche.
Littlewoods also ran a smaller catalogue that did not offer credit called Index. Unlike goods from the Littlewoods Catalogue, which were purchased via postal order, Index goods could be purchased at Index branches and some branches of the Littlewoods department stores.
Unlike Littlewoods, Kays and Grattan, who focused mainly on Clothing, Argos (and formerly Index) focus primarily on furniture, electronics and white goods. In 2001, Argos started a clothing catalogue called Argos Additions, however they sold the brand to Shop Direct Group in 2004.
United States
Catalog merchants in the United States have declined since 1980, in favor of chain discounters, big box stores, and internet shopping.The repeal of the resale price maintenance
Resale price maintenance
Resale price maintenance is the practice whereby a manufacturer and its distributors agree that the latter will sell the former's product at certain prices , at or above a price floor or at or below a price ceiling...
sanctioning law in 1980 meant that chain discounters such as Wal-Mart, KMart could set and change prices at will, in a more consumer- friendly environment where the customer can examine the goods and confirm availability before approaching sales staff. As a result, this retail sector went into decline in the 1980s. As big box stores and internet shopping became increasingly popular in the 1990s, the decline of the catalog merchant business accelerated.
Many companies in recent years have moved away from relying solely on catalog sales, augmenting them with on-line sales or direct retail. The move toward on-line sales includes long-established department store
Department store
A department store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories...
chains such as Sears
Sears, Roebuck and Company
Sears, officially named Sears, Roebuck and Co., is an American chain of department stores which was founded by Richard Warren Sears and Alvah Curtis Roebuck in the late 19th century...
and JCPenney that relied heavily on catalog sales. However, many long-established catalog merchants have gone out of business in recent years including Best Products
Best Products
Best Products is a defunct chain of American catalog showroom retail stores founded by Sydney and Frances Lewis, formerly headquartered in Richmond, Virginia.- History :...
, Brendle's
Brendle's
Brendle's was a chain of catalog showrooms based in Elkin, North Carolina, USA. Its showrooms carried jewelry, toys, sporting goods, and electronics...
, Ellman's
Ellman's
Ellman's was a major catalog merchant, similar to now-defunct Service Merchandise. It was located in suburban locations of Georgia and North Carolina, mainly Atlanta and Charlotte. Directly competing with Service Merchandise, Ellman's was ultimately bought out by Service Merchandise in 1985 and...
, KeyMid, Montgomery Ward
Montgomery Ward
Montgomery Ward is an online retailer that carries the same name as the former American department store chain, founded as the world's #1 mail order business in 1872 by Aaron Montgomery Ward, and which went out of business in 2001...
, Rink's, Service Merchandise
Service Merchandise
Service Merchandise is an online retailer and former retailer chain of catalog showroom stores carrying fine jewelry, toys, sporting goods, and electronics that existed for 68 years...
, Sterling Jewelry & Distributing Company and Consumers Distributing
Consumers Distributing
Consumers Distributing was a catalogue store in Canada and the United States that operated from 1957 to 1996...
.
However Houston Jewelry & Distributing Company, a onetime division of Sterling Jewelry & Distributing Company in Houston, successfully retooled the company in 1993 as a traditional jewelry and "fine gift" store called Houston Jewelry, which offered lower pricing on luxury products. It is widely believed by the trade press, as noted in the June 1999 issue of JCK, Jewelers Keystone Circular Magazine, that this was the only successful transformation of a catalog showroom concept into a jewelry & fine gift store. Houston Jewelry's transformation has been so successful, that in 2008 and 2009 they were honor as one of "America's Best Jewelers" by National Jeweler Magazine. In 2008, the State of Texas awarded Houston Jewelry a "Texas Treasure Award" for being one of the oldest business in Texas.
Online catalogs
Nowadays, companies are turning their print catalogs to sell their products into online catalogs. This new trend is intended for consumers to shop on line and enjoy several discounts and some other advantages. A catalog supply website includes prices, discounts, tools, shipping options, different methods of payment, and more.Online catalogs have several advantages for both the seller and the buyer. They allow the integration of the online catalog with the seller's order database
Database
A database is an organized collection of data for one or more purposes, usually in digital form. The data are typically organized to model relevant aspects of reality , in a way that supports processes requiring this information...
and this translates into an additional sales channel. Online catalogs make it easier to find new clients on line without spending on more printing materials. These catalogs allow for more flexibility as they can be changed, corrected, and updated more easily.
However, even though sales can increase, an investment is also necessary to make online catalogs work successfully. This system requires adding a search engine
Search engine
A search engine is an information retrieval system designed to help find information stored on a computer system. The search results are usually presented in a list and are commonly called hits. Search engines help to minimize the time required to find information and the amount of information...
friendly shopping cart system
Shopping cart software
Shopping cart software is software used in e-commerce to assist people making purchases online, analogous to the American English term 'shopping cart'...
to the website and some kind of customer service
Customer service
Customer service is the provision of service to customers before, during and after a purchase.According to Turban et al. , “Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer...
might be necessary in the form of e-mail
E-mail
Electronic mail, commonly known as email or e-mail, is a method of exchanging digital messages from an author to one or more recipients. Modern email operates across the Internet or other computer networks. Some early email systems required that the author and the recipient both be online at the...
or live chat for instance. Some companies also invest on a toll-free number so their clients use this channel to place their orders.
The online buyer also benefits from online catalogs. This system usually offers good prices because the seller does not invest on large buildings or apparels and these savings are reflected in better prices for the consumer. Because the seller does not need to manage a physical inventory, they can offer an ample selection of products that cannot be offered by retail stores.
Another benefit is the convenience to buy from home. Buyers do not need to spend time or fuel to drive to one store and another looking for the products they need. This is an advantage for elderly people, impaired people, and also for people who already spend time and fuel driving from their works to their homes. Online catalogs also allow the buyer to compare prices and choose the articles that are more convenient for them any time and to place orders during the day or night.
Online catalogs can be enjoyed immediately as opposed to physical catalogs that one has to wait until they are mailed. Another advantage of these catalogs is that they are paperless, therefore, people using them do not litter.
One convenient aspect is that once one chooses what to shop and where to shop it, one can go immediately to the specific website and buy the article without wasting time trying to look for a specific item throughout the web.
For those people who still prefer a printed catalog, many sites offer the possibility to send a hard copy catalog as well.
There are also some disadvantages when this system especially with the shipping costs. Buyers have to be careful because at times shipping costs may end up increasing the costs of the products and reverting the original better price it seemed to offer.