Technology Helps Cigar Retailer Smoke The Competition

800-JR Cigar is the largest distributor and retailer of brand name premium cigars in the United States. 800-JR Cigar's success has resulted in an initial public offering (IPO) of 3,450,000 shares this past June (trading symbol JRJR on the NASDAQ).

Expansion & Remodeling Call For Improved Technology
According to Bob Paddock, senior information systems consultant for the company, 800-JR Cigar markets its tobacco products on a retail basis by direct mail and through two large discount outlet stores in North Carolina and six speciality cigar stores in Michigan, New Jersey and New York.

The company is planning to relocate, enlarge or remodel five of its speciality cigar stores, as well as open new stores. It will be incorporating many of the characteristics of the 8,200 sq. ft. store constructed in Whippany, New Jersey in 1996. 800-JR Cigar created its own information and POS system using off-the-shelf hardware and its own software (in RPG language). The company's proprietary software is able to identify low-stock situations and to communicate product re-orders directly to the company's warehouse instantaneously.

Receipt Printer Is Integral To POS System
A key part of the POS system has been the Series 50 printers by Ithaca Peripherals. Paddock chose the Ithaca Series 50 because of its speed, durability and ease of use. Main output from the printer is receipts although at the end of the day, price change reports are generated at each POS location to be sent to the central office for input.

800-JR Cigar is also investigating Ithaca Peripheral's Series 80 thermal printer. "We're going to put a Series 80 printer in one of our locations and see if we want to use it instead of the Series 50 printer in our current and future stores."

Examining The Thermal Receipt Printer Option
The Series 80 thermal printers features fast speed (up to 32 lines per second), a wide print zone (72mm (2.83 in.)) and use of extra large one-ply thermal receipt paper rolls (100mm (4.0 in) diameter). The speed of the thermal printer would allow for faster customer service at 800-JR Cigar's checkout counters.

Over the past several years, 800-JR Cigar has consistently invested in technology, which has enabled it to more effectively manage its inventory and sales levels. In fact, it intends to use approximately $2 million of the proceeds from its recent public offering to enhance the capabilities of its information systems.