Mall rats make way for computer geeks at PCM (formerly PC Mall). The multi-channel retailer sells computers, software, and other electronics online and through its various catalogs. Titles include PCM, MacMall, PCMG (formerlyPC Mall Gov), and PCM SARCOM. The firm sells Apple, HP, Cisco, Lenovo, and Microsoft products, among others, through Web sites, including its catalog names, as well as sarcom.com, abreon.com, clubmac.com, and onsale.com. PCM operates several retail shops in California. Customers include: businesses; federal, states, and local government agencies; schools; and individual consumers. In 2015 PCM bought California-based IT solutions provider En Pointe Technologies Sales for $15 million.
PCM sells primarily to customers in the US, and has offices here and in Montreal, Canada, and Manila, Philippines.
The tech products retailer operates three business segments: Commercial, Public Sector, and MacMall.
Sales and Marketing
PCM employs a sales force and field service teams, various direct marketing channels, and a small number of retail stores under the MacMall banner to sell its tech products. The company has taken a leading position as a marketer of Apple and HP products, which together account for 38% of its 2012 sales. In March 2012 PCM opened a new MacMall store in Chicago. (Its other MacMall stores are all in California.) The MacMall locations seek to extend Apple's retail reach into markets where it does not have an Apple store.
PCM also offers products from other manufacturers such as Adobe, Cisco, IBM, Lenovo, and Sony. The firm greatly expanded its products portfolio in 2011 when it acquired eCOST.com, an online discount retailer of some 260,000 products, from brand names Garmin to Sony to BISSELL. As part of the $2.3 million deal, PCM retained former owner PFSweb to support the eCOST.com operation by providing IT and customer-care services. (Adding eCOST.com to its operations brings PCM's affiliation with the e-tailer full circle. PCM established subsidiary eCOST.com in 1999 and spun off the company in an IPO in 2004; PFSweb had purchased the discount e-tailer in 2006.)
PCM's sales dipped 2% in 2012 to $1.42 billion, compared with a record $1.45 billion in sales in 2011. Net income jumped 63% over the same period. Only the retailer's mid-market and enterprise-sized businesses (MME) posted a gain, with sales up 8% versus 2011. PCM's three other segments, which combined account for 60% of total sales, each saw their sales decline. The company attributed the uptick in MME sales to increased sales of its products and services. The company's public sector business posted annual sales declines in 2012 and 2011 due to federal budgetary constraints.
Over the past two years PCM has reduced the number of business segments it operates from five to three. After combining its primary commercial subsidiaries (PC Mall Sales, Sarcom, Inc., and PC Mall Services) into one, rebranding under the PCM banner, and changing its name from PC Mall, Inc. to PCM, Inc. at the end of 2012, the tech products retailer reorganized to serve three primary markets: Commercial, Public Sector, and retail with MacMall stores. By reorganizing around customer type PCM hopes to serve customers more effectively and increase sales. In late 2012 PCM hired new managers to lead its commercial sales efforts and increase the productivity and tenure of its existing sales force.
Not to be left behind in the rush to the cloud, PCM has purchased 7.9 acres of land for a new cloud data center that is expected to open in late 2013 or early 2014. The new facility in Albany, Ohio complements PCM's two existing data centers and an Operations Center in Atlanta. The new facility is designed to enhance PCM's managed service offerings, including cloud services, data center hosting and management, remote monitoring, and disaster recovery.
The company's strategy is to keep inventory levels on the slim side. PCM maintains a low inventory by working with distributors and manufacturers to link available products and drop-ship them directly to customers.
Chairman and CEO Frank Khulusi owns about 20% of the company's shares.
The company was founded in 1987 as PC Mall.