I frequently drive past a retail site from my childhood that was once a store called “Service Merchandise”. It had an odd concept where every item was on display and you pulled a tag (like how you bought a video game at Toys R Us back in the 1980s and 1990s). You would take this tag to the register, pay, and then go stand at a conveyer belt where your items came out (like getting luggage at the airport if memory serves). What was the perceived benefit of organizing a store this way? Were there other “catalog stores” (a term my mother uses to refer to Service Merchandise when I ask about it) or was this unique to Service Merchandise?
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Pros: Customers don’t handle the merchandise until point of sale, which reduces theft and is convenient for large items that a customer can’t/won’t lug around the store (like a dishwasher or a microwave)
Cons: Very inefficient and requires a lot of staff if customers purchase many small items, as a lot of time/energy is needed to pick them.
Oddly enough, for most of human history most stores worked in this method. You would go to a grocery store and give the clerk a list. They would have someone go in the back and pick your items for you. The first “self service” grocery store was Piggly Wiggly, which opened in 1916.
Ahh..the name Service Merchandise conjures up a lot of sweet memories from the 80s. As a kid, I used to always call that the Superman store because of their logo.
We had one in Memphis that I remember going to in the early 90’s. I believe it’s where I first saw the Atari Jaguar on display. I remember us buying some cool toys there, like the “newer” Kenner Star Wars figures (Power of the Force series).
Reduced theft, but also reduced stocking costs.
You only needed ONE item on display (My experiences are all back in the 80s, so no online…) The rest can be stacked up in the warehouse that makes up most of the back. Less stuff on the floor means less time putting it on the floor and making it look good.
Think of department stores. They have regional warehouses and separate retail stores. They need dedicated transportation. There is staff needed to stock, arrange shipments, transport, load and unload, stock again at the retail store, keep the store stocked and organized, etc.
Service Merchandise eliminated most of that. Their retail outlet was at the warehouse.
Remember, at this time the only way to purchase goods was either in person, or using a catalog and calling in or mailing in your order.
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