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Unit 5: Buying for Off-site Retail Operations

Notes
Example: Fortunoff specializes in jewelry and home furnishings; Bergdorf Goodman
restricts its goods to apparel and accessories for women and men; and Nordstrom sells upscale
fashions for the family.
Some of the aforementioned companies feature more than one type of catalog, with each marketed
for a different purpose. One organization that subscribes to this philosophy is Neiman Marcus,
the Dallas-based retailer. In the Retail Buying Focus, some of its distinctly different catalogs are
discussed.
One of the more recent adjustments to these and other department store catalog offerings is
merchandise that is available only through catalogs and not in the stores. The items featured
might not generate a sufficient amount of interest inside the store, but with the vast audiences
reached by catalogs, different merchandise might be warranted. In looking through the catalogs,
notations such as “available by mail only” indicate that the store is looking for sales outside the
normal trading area.

Task Make distinction between Full-line Department Stores and Specialized Department
Stores.

5.1.2 Specialty-Chain Organizations

Specialty chains and specialized department stores, although using similar merchandising
approaches that restrict merchandise offerings, are technically different types of businesses. The
former is a company with anywhere from two to more than a thousand “small” units, with the
latter usually having “large” stores that feature a flagship and, perhaps, no more than one
hundred branches.
As is the case with department stores, the chains have also embraced the catalog as a means of
generating increased sales. Some of the leading chains include The Limited, which has several
different divisions such as Express and Bath & Body Works in its organization, with each
specializing in a different type of merchandise; Ann Taylor, a company that promotes private-
label fashion merchandise for women; and Williams-Sonoma, a housewares merchant.

The chains also rely on the catalog to provide additional revenue for their companies. Some
merely send a catalog that features the same assortment found in the stores, whereas others
focus on additional merchandise for their direct-mail customers.

Example: Victoria’s Secret sells women’s sportswear in the catalog in addition to lingerie.
This expansion of the merchandise offering for the catalog necessitates a different buying team
to make these purchases.

Notes This is to note that however, catalogs for specialty chains are generally not as
frequently used as are those of department stores, but nonetheless they do bring in a great
deal of business. There are some exceptions such as Pottery Barn and Crate & Barrel.
5.1.3 Catalog Operations

Retailing by mail and phone is by no means restricted to companies with brick and-mortar
operations. There are more and more organizations being formed each day for the purpose of

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