Acquisitive Fingerhut Buys Popular Club From J. Crew

Share this content:
Fingerhut agreed last week to acquire general merchandise cataloger Popular Club from the J. Crew Group, continuing a strategy of consolidation that has seen the catalog giant purchase three properties in the last four months.


Popular Club, Garfield, NJ, appeals to the same moderate income audience as Fingerhut, Minnetonka, MN. It generates annual revenues of $180 million and will add 660,000 customers to Fingerhut's huge database, primarily in the Northeast. Popular Club was formed in 1947, giving the two companies together more than 100 years of catalog experience.


"The moderate income market is underserved, yet it's the fastest growing segment," said Fingerhut president William J. Lansing. "Putting the two [companies] together just strengthens our overall commitment to serve that market."


Fingerhut intends to roll out Popular Club as a national book and will tap into its proprietary database of 31 million customers for future mailings. Fingerhut will mail its general catalog to Popular Club customers and plans to tailor specialty catalog offerings to those customers based on their purchase behavior. The national push will be supported by Fingerhut distribution centers in Minnesota, Utah and Tennessee.


Fingerhut also will share its expertise to help Popular Club grow its credit business. This will involve the introduction of its sophisticated credit models into the Popular Club database. The catalogers have some product overlap that will be addressed by integrating merchandising and marketing functions. Lansing expects the Popular Club management team, led by president Matt Rubel, to remain in place.


"Our initial inclination is to leave them alone and let them do what they do well and give them whatever support they need to continue to do that job well," he said. Those resources could include expansion capital and purchasing leverage."


J. Crew CEO Howard Socol said the sale of Popular Club is part of the parent company's strategy to divest its noncore assets and focus on primary operations. Financial terms of the deal were not disclosed.


Since July, Fingerhut has acquired a stake in online retailer PC Flowers and Gifts and purchased cataloger Arizona Mail Order.
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

PAN Communications is an award-winning integrated marketing and public relations agency for B2B technology and healthcare brands. PAN's data-driven approach allows the firm to specialize in public relations, social media, content and influencer marketing, and data and analytics. PAN partners with brands to create unique, integrated campaigns that captivate audiences and drive measurable results. PAN services clients out of the firm's four offices: Boston, San Francisco, New York City and Orlando.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above