Circuit City 2007 Annual Report Download - page 8

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We currently operate multiple e-commerce sites, including www.tigerdirect.com, www.compusa.com, www.compusagoved.com,
www.compusabusiness.com, www.misco.co.uk, www.globalindustrial.com, www.tigerdirect.ca, www.misco.de, www.misco.fr,
www.infotelusa.com, www.misco.nl, www.globalcomputer.com, www.misco.it, www.misco.es, www.globalgoved.com, www.misco.se and
www.systemaxpc.com, and we continually upgrade the capabilities and performance of these web sites. Our internet sites feature on-line
catalogs of thousands of products, allowing us to offer a wider variety of computer and industrial products than our printed catalogs. Our
customers have around-the-clock, on-line access to purchase products and we have the ability to create targeted promotions for our customers’
interests. Many of our internet sites also permit customers to purchase “build to order” PCs configured to their own specifications.
In addition to our own e-commerce web sites, we have partnering agreements with several of the largest internet shopping and search engine
providers who feature our products on their web sites or provide “click-throughs” from their sites directly to ours. These arrangements allow us
to expand our customer base at an economical cost.
Catalogs
We currently produce a total of 18 full-line and targeted specialty catalogs in North America and Europe under distinct titles. Our portfolio of
catalogs includes such established brand names as TigerDirect.com™, Global Computer Supplies™,TigerDirect.ca™, Misco®, HCS Misco™,
Global Industrial™, ArrowStar™ and 06™. Full-line computer product catalogs offer products such as PCs, notebooks, peripherals, computer
components, magnetic media, data communication, networking and power protection equipment, ergonomic accessories, furniture and software.
Full-line industrial product catalogs offer products such as material handling products and industrial supplies. Specialty catalogs contain more
focused product offerings and are targeted to individuals most likely to purchase from such catalogs. We mail catalogs to both businesses and
consumers. In the case of business mailings, we mail our catalogs to many individuals at a single business location, providing us with multiple
points-of-entry. Our in-house staff designs all of our catalogs. In-house catalog design helps reduce overall catalog expense and shortens catalog
production time. This allows us the flexibility to alter our product offerings and pricing and to refine our catalog formats more quickly. Our
catalogs are printed by third parties under fixed pricing arrangements. The commonality of certain core pages of our catalogs also allows for
economies of scale in catalog production.
As noted above, the increase in our internet-related sales allowed us to reduce the distribution of our catalogs to 57 million in 2007, which was
3.4% fewer than in the prior year. In 2007 we mailed approximately 40 million catalogs in North America, a 2.5% reduction from last year and
approximately 17 million catalogs, or 5.6% fewer than 2006, were distributed in Europe.
Customer Service, Order Fulfillment and Support
We generally provide toll-free telephone number access for our customers. Certain of our domestic call centers are linked to provide telephone
backup in the event of a disruption in phone service. In addition to telephone orders, we also receive orders by mail, fax, electronic data
interchange and through the internet.
A large number of our products are carried in stock, and orders for such products are fulfilled on a timely basis directly from our distribution
centers, typically on the day the order is received. We operate out of multiple sales and distribution facilities in North America and Europe. The
locations of our distribution centers enable us to provide our customers next day or second day delivery. Orders are generally shipped by third-
party delivery services in the United States and in Europe. The locations of our distribution centers in Europe have enabled us to market into
additional countries with limited incremental investment. We maintain relationships with a number of large distributors in North America and
Europe that also deliver products directly to our customers.
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