Catalog Sales Explore the Shift Toward Digital and the Power of Physical

It was 72 pages and every kid’s dream. Before the tsunami of Amazon and eCommerce turned the industry upside down, the Toys R Us catalog was the bible for holiday gifts, promising the best for good little boys and girls and more than $1,000 in savings for parents who had a lot of wishes to fulfill.

As announced Monday (Nov. 18), the TRU catalog is now online and subject of a cross-promotion with the U.S. Postal Service Operation Santa letter-writing campaign. In some ways the new arrangement is a microcosm of the catalog business. Catalogs might not be the cornerstone of many brands’ marketing strategies as direct-to-consumer brands are prioritizing digital channels such as eCommerce and social media to engage with consumers, causing a decline in traditional print catalogs.

Print Catalogs Fill Niche

However, some niche markets, particularly high-end and luxury retailers, continue to leverage catalogs as part of their omnichannel strategies, emphasizing personalization and premium product offerings. Despite the challenges, catalogs still play a key role in reaching certain demographics, particularly older consumers, and remain a valuable tool for driving customer loyalty and brand recognition.

In an interview with PYMNTS, Shirley Chen, assistant professor of marketing at Wilfrid Laurier University, discussed a distinct trend in the catalog industry.

“We have definitely seen more of a shift toward digital catalogs throughout the years,” she said. “From both cost and environmental perspective, it makes a lot of sense. But it is also interesting to see eCommerce websites like Amazon introducing physical catalogs.”

The holiday season is the busiest time of year for many retailers, but does a move toward more digital catalogs mean physical ones will fade from memory?

“Not necessarily,” Chen said. “It depends on the type of purchase and the individual. Digital catalogs are great when you have a general idea of what you are looking for, and shoppers can find and search for items relatively more quickly. Physical catalogs are great for when the shoppers don’t know what they are looking for. Flipping through a physical catalog can give people more inspirations than a digital one because you are dedicating time to task. We do see that people are getting tired of screen time. Having physical catalogs can give people a nice break.”

This blend of digital and print catalog strategies remains relevant, even as companies like women’s apparel retailer Boston Proper, historically driven by its print catalog, move to an eCommerce-first platform. While the brand has embraced Shopify to modernize its operations, the tradition of print catalogs, which continues to resonate with certain customers, is far from obsolete. By integrating both formats, Boston Proper looks to strike a balance that elevates the customer experience while driving its digital strategies.

The Print Catalog Advantage

In fact, the continued use of physical catalogs taps into deeper consumer psychology, Chen said.

“Psychologically, people could feel greater ownership toward the purchase when it’s done through physical rather than digital catalogs because they’ve interacted with something more tactile and they have invested more effort,” she said.

The effectiveness of each format depends on the nature of the product and the customer’s purchasing behavior, Chen said.

“It depends on the business and the brand,” she said. “For the type of purchases where consumers do relatively little search, digital catalogs are great because they offer shoppers an opportunity to look for things quickly and easily. Other purchases, like toys, can benefit from having physical copy. Having an opportunity to sit down with a child and flip through a physical catalog together creates a moment of bonding. This helps to enhance the brand relationship with the customers, which could be beneficial in the long term. Additionally, physical catalogs can offer additional senses, olfactory and tactile, that digital ones can’t, which creates an opportunity for businesses.”

Digital natives will “definitely prefer a digital catalog than a print one,” Chen added, “however, as we have seen with the shift toward analog, there is still a place for physical catalogs if they are done in a special way. Digital catalogs will offer more personalization. However, it could also mean that consumers could miss out on items that didn’t cross their minds. Digital works well for the efficient shopper, but maybe not those who are using catalogs as a way for exploration.”

Neil Saunders, managing director, retail, at research firm GlobalData, told PYMNTS there will always be a place for catalogs.

“Catalogs have their place and, when used properly they can drive sales — especially for brands that are visual, and which consumers like to browse,” he said. “However, the cost of producing and distributing the catalog — along with environmental considerations — needs to be balanced against incremental sales. Especially so given that this could be done digitally. There is also a creative approach — like Uniqlo’s, which is to produce a magazine which showcases products alongside articles and other information. It makes for a more compelling and engaging read.”

This Year’s Holiday Spending Outlook

Whether through print, digital, or a combination of both, brands must adapt to meet the changing preferences of today’s consumers as spending habits change. The National Retail Federation predicted holiday spending will increase 2.5% to 3.5% this year, translating to between $979.5 billion and $989 billion in total holiday spending in November and December, compared with $955.6 billion for the same timeframe last year. Consider the rise in holiday spending since 2013, when it was $583.5 billion.

The challenge for businesses is to blend the strengths of print catalogs while also embracing the efficiency and reach of digital, crafting a strategy that serves both the tangible and the virtual.

“There will always be a place for physical, as we have seen with vinyls, film cameras,” Chen said. “Businesses just need to use them in a more mindful way, being aware of the unique benefits a physical catalog offers that digital catalogs cannot.”