MCM 100: The List is In

The Largest Multichannel Merchant companies got a little smaller in 2009. No real surprise, given that it was one of the worst retail years on record, but still a bit disconcerting to see so many numbers go down.

For the purposes of ranking 100 companies, it wasn't a matter of who grew revenue the most, but rather who grew at all. Or who didn't shrink quite as much.

Companies just trying to survive the economic meltdown that started in late 2008 were learning to do more with less — fewer staff, lower circulation and reduced marketing budgets. And most did do a good job reining in expenses.

But if a significant portion of your business is driven by print catalogs and you cut circulation, you will see reduced revenue. Growth in online sales — though perhaps not as robust as in previous years — for many kept a bad year from being worse.

Sure, some did see growth. Office supplies merchant Staples (#3) managed to add $740 million to its 2009 direct revenue, an increase of about 9%. Patterson Cos. (#13), which sells medical, dental and veterinary supplies, was up about 7%, to $3.2 billion.

On the consumer side, multititle mailers Amerimark Holdings (#43), which targets seniors, and Urban Outfitters (#61), which sells clothing, gifts and decor, were both up about 20%.

Other multititle merchants, including Swiss Colony (#38) and Redcats USA (#25), reported flat sales; many other marketers were close to flat as well.

On the downside, industrial mantainance mailer Wesco International's (#8) sales slid 24% — or by $1.39 billion. Even Dell's (#1) direct revenue was down about 13%, or $6.97 billion.

1-800-Flowers.com's (#45) direct sales plummeted sharply, from $926.7 million in 2008 to about $500 million. But that's largely due to the marketer shedding its gifts and children's' catalog titles, which it officially divested in August.

Goodbye, hello

Some long-time companies no longer appear on the ranking. Macy's, for instance, is off the list, since the department store retailer phased out its Bloomingdale's By Mail catalog in early 2009. Electronics merchant J&R also dropped its print catalog in 2009. Other slid off because their sales slid.

Then there are a few merchants making their debut on the MCM 100. Several of these have grown fairly rapidly through acquisitions, such as Gardens Alive! (#92). The merchant expanded beyond horticultural products with several acquisitions in the past two years.

Boston Apparel Group (#67) is another newcomer: It was created by private equity firm Monomoy Partners two years ago after it bought the Missy division of Redcats USA.

Not that every merchant new to the list grew via acquisition. Vitacost.com (#86), a catalog/Web marketer of vitamins, supplements and the like, managed to increase sales from $143.6 million in 2008 to $191.8 million. That's up 34% — robust, healthy growth, especially in a tough year.

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