Catalog merchant is a term for a form of retailing. The typical merchant sold
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 selected the products from printed catalogs in the store and filled out
an order form.
The order was brought to the sales counter, where a clerk would retrieve the
items from the warehouse area to a payment and checkout station. 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.
The catalog merchant has generally lower prices than other retailers and lower
overhead expenses due to the smaller size of store and lack of large showroom
space.
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.
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