Consumers Distributing
Consumers Distributing was a Canadian-American catalogue retailer that used warehouse-style fulfilment to sell general merchandise at discount prices from 1957 until its bankruptcy and closure in 1996.
Last updated October 14, 2026
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Overview
Consumers Distributing was a catalogue-based discount retailer founded in Toronto in 1957 by Jack Stupp and Sydney Druckman. Its stores combined a customer-facing showroom with a largely non-public warehouse. Instead of displaying a complete assortment on conventional shelves, each location provided catalogues and order forms. Customers selected products by catalogue number, submitted their requests to clerks, and waited while staff retrieved the merchandise from stock areas behind the counters. This format reduced the amount of expensive retail floor space required and allowed the company to offer a broad range of products in relatively compact stores. The model was later described as resembling Internet shopping before the Internet became widely available. The assortment covered much of the general-merchandise spectrum, including jewellery, small appliances, kitchenware, toys, personal-care products, discount furniture, consumer electronics, seasonal goods, batteries and photographic services. The company generally issued two major catalogues each year, supplemented by smaller seasonal publications. Most of the assortment changed with each major catalogue, although some small items and accessory lines were sold from counter displays rather than through the catalogue system. Consumers Distributing expanded substantially through organic growth and acquisitions. It became a public company in 1969. In 1981, it acquired the 42-store Cardinal Distributors chain from Steinberg and the 70-store American Consumers chain from May Department Stores, bringing its network to roughly 400 locations. At its peak, the company operated 243 Canadian outlets and 217 American outlets. Its Canadian stores covered every province, while its United States operations included locations in New Hampshire, Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Maryland, California and Nevada. Revenue exceeded one billion dollars in 1988. Ownership changed several times. The Oshawa Group sold a 50 percent interest it had acquired in 1978. Provigo, the Quebec-based grocery retailer, purchased Consumers Distributing in 1987. In 1993, Provigo sold the business to a group controlled by Ackermans & van Haaren, a Belgian holding company. During the 1980s, the company also developed a related toy-store chain under the Toy City name, called Toyville in Quebec. Some locations were later combined with Consumers Distributing stores, but the toy operation disappeared during the mid-1990s. The catalogue model created an important operational weakness: customers could spend time selecting an item and waiting in line only to learn that it was unavailable. The company experimented with a 1984 Flashboard system that identified out-of-stock catalogue numbers in selected stores. It also introduced larger superstores, free delivery or inter-store transfers, real-time inventory checks, prepayment for products held elsewhere, and software that could recommend substitute products. These measures were intended to improve service but increased costs and complexity. By the 1990s, Consumers Distributing faced competition from Zellers, Walmart Canada and other department, warehouse and catalogue retailers. High operating expenses, inventory problems, changing shopping habits, a recession, deflation in categories such as electronics and jewellery, and Walmart's Canadian expansion weakened the business. The company sought bankruptcy protection in 1996 and its original retail operation ceased. A separate online revival was attempted roughly a decade later by former employee Marc King. The relaunched website accepted orders for furniture and branded electronics and operated around the 2012 holiday season, but it closed in January 2013. The later venture was associated with allegations concerning unpaid employee wages and regulatory action in British Columbia over deceptive practices and unissued refunds. It did not restore the former chain, and Consumers Distributing remains defunct.
History
Consumers Distributing began in Toronto in 1957, established by Jack Stupp and Sydney Druckman. From the outset, it pursued a retail format different from a conventional department store. Customers browsed printed catalogues, either at home or in the store, wrote down catalogue numbers on request forms and handed them to clerks. Staff then retrieved the products from a warehouse-style stock area that was not open to customers. By limiting showroom displays, the company aimed to reduce space and merchandising costs while maintaining a wide assortment. The retailer became publicly traded in 1969 and expanded across Canada and into the United States. The Oshawa Group had acquired a 50 percent interest by 1978 and later sold that interest. A major expansion took place in 1981, when Consumers Distributing bought Cardinal Distributors, a 42-store Canadian catalogue chain owned by Steinberg, and Consumers, a 70-store American chain owned by May Department Stores. The acquisitions increased the network to approximately 400 stores. At its height, the chain had 243 Canadian outlets and 217 American outlets, with Canadian coverage extending to every province and American operations concentrated in several northeastern, mid-Atlantic and western states. Revenue passed one billion dollars in 1988. The assortment included jewellery, appliances, kitchen products, toys, electronics, personal-care merchandise, furniture and seasonal goods. Two principal catalogues were published each year, with smaller seasonal catalogues used for particular categories. Most products changed when a new catalogue was issued. Certain small or frequently purchased products, including batteries, photographic film and some jewellery, were sold from counter displays. Many stores also offered photo processing. The company diversified into toys during the 1980s with Toy City stores, known as Toyville in Quebec. Some locations were later combined with Consumers Distributing outlets under dual branding. The toy stores were closed by the middle of the 1990s. Ownership shifted again in 1987, when Provigo acquired Consumers Distributing. Provigo sold it in 1993 to a group controlled by Ackermans & van Haaren. Meanwhile, the retailer attempted to resolve the service problems inherent in catalogue fulfilment. Customers often waited in line only to discover that an item was out of stock. A 1984 Flashboard system, tested in parts of New York and New Jersey, identified unavailable catalogue numbers before customers reached the counter. Later initiatives included superstores with broader displays, free home delivery, store-to-store transfers, real-time inventory visibility across branches and the ability to prepay for merchandise sourced from another location or the central warehouse. The system could also suggest substitutes that were available immediately. These initiatives improved the theoretical convenience of the format but imposed substantial delivery, technology and operating costs. Consumers Distributing also encountered competition from conventional department stores, warehouse retailers and catalogue specialists. Zellers and Walmart Canada were particularly important pressures in the Canadian market. Deflation in electronics and jewellery reduced the value of existing stock, while a recession and changing consumer expectations made the catalogue process less attractive. The company sought bankruptcy protection in 1996 and the original chain disappeared. Around a decade after the bankruptcy, former employee Marc King attempted to revive the name as an online retailer. The new website accepted orders for furniture and branded electronics and was active around the 2012 holiday period, but it closed in January 2013. The revival was later connected with complaints about unpaid wages and a Consumer Protection BC compliance order in 2015 concerning alleged deceptive practices and failure to issue refunds. A further complaint led to a reopened investigation in 2016. This later online venture did not re-establish the former store network.
- 2016
Regulatory investigation reopened
[1]Consumer Protection BC reopened its investigation after receiving another complaint and noted that penalties from the earlier matter had not been paid.
- 2015
Consumer Protection BC compliance order
[1]The British Columbia regulator issued a compliance order to the later online venture concerning alleged deceptive practices and failure to issue refunds.
- 2013
Online relaunch shuts down
[1]The revived website was closed in January, ending the later attempt to bring back the brand as an online retailer.
- 2012
Online relaunch operates during holiday season
[1]A later online business using the Consumers Distributing name accepted orders for furniture and branded electronics around the holiday period.
- 1996
Bankruptcy protection and closure
[1]After mounting competitive and operating pressures, Consumers Distributing sought bankruptcy protection and the original retail chain ceased operations.
- 1993
Ownership passes to Ackermans & van Haaren-controlled group
[1]Provigo sold Consumers Distributing to a group controlled by Belgian holding company Ackermans & van Haaren.
- 1988
Revenue surpasses one billion dollars
[1]The company reached more than one billion dollars in revenue during its period of peak scale.
- 1987
Provigo acquires Consumers Distributing
[1]Quebec grocery retailer Provigo bought the catalogue chain.
- 1984
Flashboard out-of-stock system introduced
[1]Selected stores used a magnetic bulletin-board system to warn customers that particular catalogue items were unavailable before they joined the fulfilment queue.
- 1981
Cardinal and American Consumers acquisitions
[1]The company acquired Cardinal Distributors in Canada and the American Consumers chain from May Department Stores, increasing its store network to approximately 400 locations.
Products and positioning
A value-oriented catalogue showroom retailer that sought to offer broad general merchandise at lower operating costs than conventional department stores. Its distinctive proposition was catalogue selection combined with back-room warehouse fulfilment rather than full product display on the sales floor.
General merchandise retail · 1957
Catalogue general merchandise
The core offering was a broad catalogue assortment covering jewellery, household goods, appliances, kitchenware, toys, electronics, furniture, personal-care items and seasonal products. Customers selected catalogue numbers and submitted order forms while store employees retrieved merchandise from stock areas behind the sales counter. The format allowed the company to carry many products without displaying every item in the showroom.
Toys · 1980
Toy City / Toyville
Toy City was a dedicated toy-store chain developed by Consumers Distributing during the 1980s. In Quebec, the stores used the Toyville name. Some locations later combined the toy concept with Consumers Distributing merchandise under dual branding, but the chain was closed during the mid-1990s.
Retail service
Photo processing
Many Consumers Distributing stores offered photographic processing alongside merchandise sales. This service complemented the retailer's sales of photographic consumables such as film and formed part of the convenience-oriented assortment available at selected locations.
E-commerce · 2006
Online furniture and electronics store
The later revival of the Consumers Distributing name operated as an online retailer selling furniture and brand-name electronics. It accepted orders around the 2012 holiday season but closed in January 2013 and did not recreate the former store network.
Controversies
2015
Consumer Protection BC compliance action
The later online venture using the Consumers Distributing name was subject to a Consumer Protection BC compliance order concerning alleged deceptive acts and practices and failure to issue refunds. The regulator reopened its investigation in 2016 after receiving a further complaint and stated that penalties associated with the earlier investigation remained unpaid.
Brand decisions
1996
Seek bankruptcy protectionOtherBackground
The retailer faced competition from Zellers and Walmart Canada, changing retail preferences, high operating expenses, recessionary conditions and deflation in categories including electronics and jewellery.
Action taken
Consumers Distributing sought bankruptcy protection.
Aftermath
The original Canadian-American store operation ceased and the brand became defunct as a physical retail chain.
1990
Combine selected Toy City and Consumers Distributing storesStrategyBackground
The company was attempting to use its toy-store concept alongside its established catalogue retail network.
Action taken
Some stores were converted into combined Toy City and Consumers Distributing locations, with the Quebec operation using the Toyville name.
Aftermath
The toy stores and combined formats were closed during the mid-1990s.
1990
Expand inventory and fulfilment servicesStrategyBackground
Frequent stockouts damaged customer confidence in catalogue ordering, while competitors were offering more immediate access to merchandise.
Action taken
Consumers Distributing invested in superstores, real-time inventory checking, store-to-store transfers, prepayment for externally sourced products, free delivery and substitute-product recommendations.
Aftermath
The initiatives addressed some availability problems but added substantial operating and technology expenses. Combined with broader market pressures, the higher cost structure contributed to the company's financial difficulties.
1987
Sell the company to ProvigoM&ABackground
Consumers Distributing had become a large Canadian-American catalogue chain and was operating within an increasingly competitive general-merchandise market.
Action taken
Quebec grocery retailer Provigo acquired Consumers Distributing.
Aftermath
Provigo later sold the retailer in 1993 to a group controlled by Ackermans & van Haaren.
1984
Introduce the Flashboard out-of-stock warning systemStrategyBackground
The catalogue format frequently required customers to wait for staff to retrieve products before discovering that the requested item was unavailable.
Action taken
Selected New York and New Jersey stores installed steel bulletin boards with magnetic catalogue numbers identifying out-of-stock merchandise.
Aftermath
The system provided an early operational response to inventory visibility problems before computerized stock systems became widespread.
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