Consumers Distributing
Encyclopedia
Consumers Distributing was a catalogue store
in Canada
and the United States
that operated from 1957 to 1996. At its peak it operated 243 outlets in Canada and 217 in the United States, including stores in every province in Canada and in the states of New Hampshire
, Massachusetts
, Connecticut
, New York
, New Jersey
, Pennsylvania
, Maryland
, California
and Nevada
. Its Canadian headquarters was at 6303 Airport Road, in Mississauga, Ontario
and it US corporate headquarters was 205 Campus Plaza in Edison, New Jersey
.
Consumers Distributing aimed to reduce costs for customers by stocking merchandise in a warehouse type stocking system instead of displaying them in a costly showroom. Customers made their selections from a catalogue, filled out a form with product identification, and waited for stock staff to retrieve the items from the warehouse.
. The company was taken public in 1969. In 1978, Oshawa Group
sold the 50% interest it had acquired. The company was bought by Provigo
, a Quebec
-based grocery retailer in 1989, and in 1993 was again sold to a group controlled by Ackerman Van Haaren, a Belgian holding company.
Consumers bought the 42-store Cardinal Distributors catalogue chain from Steinberg Inc. and the 70-store Consumers chain in the U.S. from May Department Stores
, leading to a total of 400 stores in 1981.
Hudson's Bay Company
, which operates Canadian department stores under the Bay
and Zellers
names, acquired the small "Shop-Rite
" catalogue chain in 1972 and quickly expanded it in competition. It was closed in 1982. U.S. competition was mainly from the shuttered chains Best Products
(also known simply as Best) and Service Merchandise
, both of which operated chains of catalogue showroom retail stores in the United States.
The main focus of the retailer was jewellery, appliances, kitchenware, toys, personal care, discount furniture, electronics and seasonal goods. The retail store layout consisted of a series of glass cabinets that displayed merchandise. Customers were for the most part required to select their products from catalogues that were located throughout the store, filling out a request form for the item they desired. This form was given to the store clerk and processed for fulfillment, with the goods stored in non-public space in a warehouse system stock area, behind the counters.
Consumers Distributing sought bankruptcy protection in 1996, a fate that befell its US competitors Best Products and Service Merchandise and most major jewellery chains in Canada. Argos
, which was modelled on the format of Consumers Distributing, continues to thrive in the United Kingdom and Republic of Ireland.
Consumers Distributing was plagued by the perception of things "always being out of stock" due to the catalogue shopping nature of the store. With the catalogue concept, the customer selects the item either at home while looking through the company's catalogue, or by a group of catalogues in the showroom of every store. It was not uncommon for a customer to wait in line only to be told by a clerk that the merchandise was not in stock. In 1984, a concept called the "Flashboard" was introduced. The "Flashboard" was a steel bulletin board with magnetic catalogue numbers for out of stock items. Customers were able to look at the "Flashboard" for their item and if it was listed, they knew that it was out of stock and they did not have to wait in line. This concept was used in certain New York, and New Jersey stores before computerization became mainstream.
Consumers Distributing undertook several initiatives to dispel this "out of stock" perception, including "super stores" that had all of the available, in-stock products on display; and free home delivery or store to store transfer for items that were not in stock. They also implemented a state-of-the-art inventory system that could check the availability of other stores in real time, and also would suggest alternate products at the store which were in stock.
Consumers Distributing was one of the first to initiate this "real time" stock check and prepayment of products available at other branches and the main warehouse. These initiatives, including the superstore expansion, costly free delivery, and costly new inventory management software, overextended the company.
This, and increasing competition, changes in retailing (such as warehouse format stores) in the retail sector, deflation in several product categories, including jewellery and electronics, a deep lingering recession and the expansion of Walmart into Canada contributed to the company's bankruptcy in 1996.
once represented Consumers Distributing in television commercials based on the theme "Consumers, we wrote the book on savings!"
Catalog merchant
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...
in Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
that operated from 1957 to 1996. At its peak it operated 243 outlets in Canada and 217 in the United States, including stores in every province in Canada and in the states of New Hampshire
New Hampshire
New Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian...
, Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
, Connecticut
Connecticut
Connecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
, Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
, Maryland
Maryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...
, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
and Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
. Its Canadian headquarters was at 6303 Airport Road, in Mississauga, Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
and it US corporate headquarters was 205 Campus Plaza in Edison, New Jersey
Edison, New Jersey
Edison Township is a township in Middlesex County, New Jersey. What is now Edison Township was originally incorporated as Raritan Township by an Act of the New Jersey Legislature on March 17, 1870, from portions of both Piscataway Township and Woodbridge Township...
.
Consumers Distributing aimed to reduce costs for customers by stocking merchandise in a warehouse type stocking system instead of displaying them in a costly showroom. Customers made their selections from a catalogue, filled out a form with product identification, and waited for stock staff to retrieve the items from the warehouse.
History
The first Consumers Distributing store was opened in 1957 by Jack Stupp in TorontoToronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
. The company was taken public in 1969. In 1978, Oshawa Group
Oshawa Group
Oshawa Group was once a leading owner of supermarkets in Ontario, but it was sold to Sobeys in 1998.Stores under Oshawa Group included:* IGA* Tradition Market Fresh Food* Knechtel* Pharma Plus Drug Stores...
sold the 50% interest it had acquired. The company was bought by Provigo
Provigo
Provigo is a grocery retailer based in Quebec, Canada, consisting of over 300 stores and franchises throughout the province. A majority of the stores are located in the Montreal area. It is owned by Loblaw Companies Limited. Provigo is similar to Ontario's Your Independent Grocer/Zehrs banners, as...
, a Quebec
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....
-based grocery retailer in 1989, and in 1993 was again sold to a group controlled by Ackerman Van Haaren, a Belgian holding company.
Consumers bought the 42-store Cardinal Distributors catalogue chain from Steinberg Inc. and the 70-store Consumers chain in the U.S. from May Department Stores
May Department Stores
The May Department Stores Company was a national department store chain in the United States, founded in 1877 by David May. The company ceased to exist in 2005 when it was merged with Federated Department Stores, Inc . Prior to the merger it was headquartered in Downtown St. Louis, Missouri...
, leading to a total of 400 stores in 1981.
Hudson's Bay Company
Hudson's Bay Company
The Hudson's Bay Company , abbreviated HBC, or "The Bay" is the oldest commercial corporation in North America and one of the oldest in the world. A fur trading business for much of its existence, today Hudson's Bay Company owns and operates retail stores throughout Canada...
, which operates Canadian department stores under the Bay
The Bay
The Bay is a chain of 91 department stores that operate across parts of Canada. It is the main brand of Hudson's Bay Company , North America's oldest company. It has its headquarters in the Simpson Tower in Toronto. In French, the chain is known as la Baie, short for "Compagnie de la Baie d'Hudson"...
and Zellers
Zellers
Zellers Inc. is Canada's second-largest chain of mass merchandise discount stores, with locations in communities across Canada. A subsidiary of the Hudson's Bay Company , it has 273 locations across the country....
names, acquired the small "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....
" catalogue chain in 1972 and quickly expanded it in competition. It was closed in 1982. U.S. competition was mainly from the shuttered chains 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 :...
(also known simply as Best) and 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...
, both of which operated chains of catalogue showroom retail stores in the United States.
The main focus of the retailer was jewellery, appliances, kitchenware, toys, personal care, discount furniture, electronics and seasonal goods. The retail store layout consisted of a series of glass cabinets that displayed merchandise. Customers were for the most part required to select their products from catalogues that were located throughout the store, filling out a request form for the item they desired. This form was given to the store clerk and processed for fulfillment, with the goods stored in non-public space in a warehouse system stock area, behind the counters.
Consumers Distributing sought bankruptcy protection in 1996, a fate that befell its US competitors Best Products and Service Merchandise and most major jewellery chains in Canada. 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...
, which was modelled on the format of Consumers Distributing, continues to thrive in the United Kingdom and Republic of Ireland.
Consumers Distributing was plagued by the perception of things "always being out of stock" due to the catalogue shopping nature of the store. With the catalogue concept, the customer selects the item either at home while looking through the company's catalogue, or by a group of catalogues in the showroom of every store. It was not uncommon for a customer to wait in line only to be told by a clerk that the merchandise was not in stock. In 1984, a concept called the "Flashboard" was introduced. The "Flashboard" was a steel bulletin board with magnetic catalogue numbers for out of stock items. Customers were able to look at the "Flashboard" for their item and if it was listed, they knew that it was out of stock and they did not have to wait in line. This concept was used in certain New York, and New Jersey stores before computerization became mainstream.
Consumers Distributing undertook several initiatives to dispel this "out of stock" perception, including "super stores" that had all of the available, in-stock products on display; and free home delivery or store to store transfer for items that were not in stock. They also implemented a state-of-the-art inventory system that could check the availability of other stores in real time, and also would suggest alternate products at the store which were in stock.
Consumers Distributing was one of the first to initiate this "real time" stock check and prepayment of products available at other branches and the main warehouse. These initiatives, including the superstore expansion, costly free delivery, and costly new inventory management software, overextended the company.
This, and increasing competition, changes in retailing (such as warehouse format stores) in the retail sector, deflation in several product categories, including jewellery and electronics, a deep lingering recession and the expansion of Walmart into Canada contributed to the company's bankruptcy in 1996.
Toy City
During the 1980s, the company built a chain of toy stores called "Toy City". In 1990/1991, some stores became Toy City/Consumers Distributing stores. They closed in the mid-1990s.Advertising
American actress Shirley JonesShirley Jones
Shirley Mae Jones is an American singer and actress of stage, film and television. In her six decades of television, she starred as wholesome characters in a number of well-known musical films, such as Oklahoma! , Carousel , and The Music Man...
once represented Consumers Distributing in television commercials based on the theme "Consumers, we wrote the book on savings!"
See also
- List of Canadian department stores
- Service MerchandiseService MerchandiseService 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...
— a defunct American company with similar business model