Consumers Distributing

Consumers Distributing

Company type	Public (from 1969)
Industry	Retail (Catalogue showroom)
Founded	1957 (1957) in Toronto, Canada
Founder	Jack Stupp, Sydney Druckman
Defunct	1996 (1996)
Fate	Bankruptcy protection filed; ceased operations
Headquarters	Mississauga, Ontario , Canada
Area served	Canada and United States
Products	Jewellery, appliances, kitchenware, toys, personal care products, furniture, electronics, seasonal merchandise
Parent	Ackermans & van Haaren (1993–1996)

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Consumers Distributing—referred to as Distribution aux Consommateurs in Quebec and commonly called Consumers—was a catalogue retail chain operating across Canada and the United States from 1957 until 1996. At its height, the company managed 243 outlets in Canada and 217 locations in the United States, covering every Canadian province and several U.S. states including New Hampshire, Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Maryland, California, and Nevada.

The company’s business strategy focused on cost savings by utilizing a warehouse-style inventory system rather than traditional showroom displays. Customers selected products from a catalogue, completed an order form specifying desired items, and then awaited retrieval of those goods by store personnel from storage areas. This approach has been characterized as an early form of "Internet shopping before the Internet."

History

The inaugural Consumers Distributing store was launched in 1957 in Toronto by founders Jack Stupp and Sydney Druckman. The company transitioned to a public entity in 1969. In 1978, the Oshawa Group divested its 50% stake in the business. By 1988, the company’s annual revenue surpassed $1 billion.

In 1981, Consumers Distributing expanded significantly by acquiring two catalogue chains: Cardinal Distributors’ 42 stores from Steinberg Inc. and the American chain Consumers’ 70 stores from May Department Stores, resulting in an approximate total of 400 outlets.

Throughout the 1980s, the company operated a toy retail subsidiary known as Toy City (branded Toyville in Quebec). Between 1990 and 1991, some locations were converted into combined Toy City/Consumers Distributing stores before these outlets were shuttered in the mid-1990s.

In 1987, Quebec-based grocer Provigo acquired Consumers Distributing, before selling it in 1993 to a consortium controlled by Belgian holding firm Ackermans & van Haaren.

During the early 1990s, Consumers Distributing faced increasing competition from retailers such as Zellers and later Walmart Canada. These challenges led to the company seeking bankruptcy protection in 1996.

A decade after the bankruptcy, former employee Marc King revived Consumers Distributing as an online retailer. The relaunched website operated through the 2012 holiday season, offering furniture and branded electronics for sale; however, it ceased operations in January 2013. King faced allegations of unpaid employee wages. In May 2015, Consumer Protection B.C. issued a compliance order against the company for deceptive practices and failure to provide refunds. The regulatory body reopened its investigation in October 2016 following new complaints and noted outstanding penalties had yet to be paid.

Store format

The retailer primarily concentrated on jewellery, appliances, kitchenware, toys, personal care products, discount furniture, electronics, and seasonal merchandise. The store’s design featured multiple glass display cases showcasing the items. Customers typically selected their desired products from catalogues placed throughout the premises, completing a request form for each item. These forms were handed to store staff who then processed the orders for fulfillment. The inventory was stored in a warehouse area located behind the counters, inaccessible to customers.

Twice annually, two major catalogues were released, with additional smaller seasonal catalogues issued more regularly to promote specific products. Except for a few exceptions, the entire product range was refreshed biannually. New merchandise appeared exclusively in these catalogue editions. Certain specialty lines—such as batteries, film, and some jewellery displayed on counter racks—were not included in the catalogue. Many locations also provided photo processing services.

Competitors and similar retailers

In Canada, Hudson's Bay Company, operating department stores under the The Bay brand and formerly Zellers, acquired the modest Shop-Rite catalogue chain in 1972. They rapidly expanded this chain in an effort to rival Consumers Distributing; however, Shop-Rite never achieved profitability and shut down in 1982.

In the United States, main competitors included catalogue showroom chains such as Best Products (commonly referred to as Best) and Service Merchandise. Both competitors eventually filed for bankruptcy and ceased operations.

Business model issues and attempts to address them

Consumers Distributing struggled with a widespread perception that many products were often unavailable due to its catalogue-based shopping system. Customers either browsed the company’s catalogue at home or reviewed catalogues available within each store showroom. It was common for shoppers to wait in line only to be informed by staff that their selected item was out of stock. To address this issue in 1984, Consumers Distributing introduced the Flashboard—a steel bulletin board displaying magnetic catalogue numbers of out-of-stock items. This allowed customers to check availability before waiting in line. The Flashboard was implemented in select New York and New Jersey locations prior to widespread computerization.

To counteract the out-of-stock reputation, Consumers Distributing launched several initiatives including "super stores" that showcased all available products on display, as well as offering free home delivery or transfers between stores for items not immediately available. Additionally, they adopted an advanced inventory management system capable of real-time stock checks across other locations and suggesting alternative in-stock products within the store.

Among the first retailers to enable real-time inventory verification and prepayment for goods held at other branches or central warehouses, Consumers Distributing invested heavily in these innovations. However, the expansion of superstores, costly free delivery services, and implementation of sophisticated inventory software ultimately stretched company resources too thin.

The combination of high operational costs, intensifying competition, evolving retail formats such as warehouse-style stores, price deflation in categories like jewellery and electronics, a prolonged recessionary environment, and Walmart’s entry into Canada all played significant roles in driving Consumers Distributing into bankruptcy by 1996.

Corporate offices

The last Canadian headquarters for Consumers Distributing was situated at 6303 Airport Road in Mississauga, Ontario.

See also

• Catalogue of Canadian department stores
• Service Merchandise — a now-defunct U.S. retailer that operated under a comparable business approach