Evolution of the Department Store (2024)


Evolution of the Department Store

Bon Marche ca. 1867
from Celebrations nationales 2002

Abraham Lincoln & Mary Todd Lincoln greeting Union generals, Cabinet members, & others at a reception. Hand-colored lithograph by John Smith, Philadelphia, 1865, from LC - full

R.H. Macy and Company, NY, 1908, from LC

1838 - Aristide Boucicaut started the Bon Marche store in Paris that evolved into the first department store by 1852, displaying a wide variety of goods in "departments" under one roof at a fixed price, no haggling or bargaining, with a "money-back guarantee" allowing exchanges and refunds, employing up to 4000 with daily sales of $300,000. The department store and the restaurant would become anchors of downtown urban centers in the 19th century.

1848 - Alexander Turney Stewart built his Marble Palace at Broadway and Chambers Street in New York City, a much larger version of his dry goods store at 283 Broadway that he started in 1823. The Marble Palace sold imported European merchandise to women, offered the first "fashion shows" on the second floor in the "Ladies' parlor" with full-length mirrors. In 1862 Stewart built a true department store at Broadway and 9th near Grace Church, the Cast Iron Palace, with 8 floors on 2.5 acres, up to 2000 employees. The 19 departments included "silks" and "dress goods" and carpets and toys and sports. A great glass dome skylight covered the central rotunda of the grand emporium. Organ music entertained customers, including First Lady Mary Lincoln whose compulsive clothes buying ran up $27,000 in bills by 1865. A. T. Stewart's 1862 store caused other stores with cast-iron facades to be built on the cobblestoned "Ladies Mile" of lower Broadway between 8th and 23rd Streets, including Lord & Taylor, Arnold Constable, Siegel-Cooper, James McCreery, Simpson-Crawford, LeBoutellier, and Stern Brothers.The Cast Iron Palace was demolished but an extension built for John Wanamaker in 1902 survives at Broadway and 9th, designed by the same Daniel Burnham who built the Flatiron Building in 1902 at 23rd and Fifth Avenue.

1858 - Rowland Hussey Macy was a Nantucket Quaker and whaler who failed several times as a store owner until he founded a "fancy dry goods" store in New York City on 6th Avenue near 14th Street in 1858. He began selling at a fixed price for cash, discounted and advertised his merchandise. The red star tatooed on his hand as a 15-year old boy on the whaling ship Emily Morgan became the symbol of the new store. In 1866 he bought an adjoining building for expansion, and by 1872 owned four buildings and by his death in 1877 owned 11 buildings. He was one of the first owners to employ women executives, and Margaret Getschell rose from cashier in 1866 to store superintendent and husband of one of the owners. In 1887 Isidore and Nathan Straus became part owners, and bought full control in 1898. The Strauses moved the store from 14th Street to Herald Square, and in 1902 built a new store on this site where Koster & Bial's Music Hall once stood and where Thomas Edison first projected his Vitascope motion picture. The new Macy's store was proclaimed "the largest store on earth" with 9 stories and 33 elevators and 4 escalators and pneumatic tube system. This structure grew 30 stories covering an entire city block by 1924. With a "6% less for cash" policy it attracted thousands of customers. By 1977 Macy's was the nation's 5th largest department store chain with 76 stores, sale over $1.6 billion, and full ownership of 5 regional shopping centers and 50% interest in 3 other centers.

1869 - Zion's Cooperative Mercantile Institution opened March 1, 1869, in Salt Lake City. The Mormons did not want to be at the mercy of non-Mormons who ran the railroads and wagon trains through the town. Brigham Young arranged for Mormon merchants to join together and create a new community store that became the first incorporated department store in America by 1870. A new 3-story brick and iron store was built in 1876, noted for its unique architecture and striped awnings. This store was replaced by an enclosed shopping center in 1973, and the new Zion department store preserved the gilt-edged ornate facade of the old store. In 1999 the May Department Stores bought a 14-store ZCMI chain and changed its name to Meier & Frank, a May property with eight stores in Oregon and Washington.

1876 - John Wanamaker started his Oak Hall Clothing Bazaar in Philadelphia at Market and 5th Street in 1861. He expanded the store with aggressive promotions and advertising that earned him the titles of "Merchant Prince" and "The Father of Modern Advertising" including balloons, giant posters, and a gong inside the front door. By 1876 he had built a department store on the site of the vacant Pennsylvania Railroad Freight Depot. His original idea was to open a central market of cooperating merchants similar to London's Royal Exchange and the Halles Central in Paris. But in the new era of urban mass consumption, it became a "New Kind of Store," called the Grand Depot, with skylights and gas chandeliers in "the largest space in the world devoted to retail selling on a single floor." At the center of a series of expanding circles of 129 counters was the gaslit tent for the demonstration of elegant women's ballroom fashions. In 1896 Wanamaker bought the old A.T. Stewart Cast Iron Palace in New York and connected it with a "Bridge of Progress" to a new 16-story building next door. In 1903 he built a new store in Philadelphia on the site of the old Grand Depot, 12 stories of granite with an interior Grand Court 150 feet high. In this court was the second largest organ in the world, after the Auditorium organ in Atlantic City, and a great eagle from the 1903 St. Louis World's Fair. "Meet me under the eagle at Wanamaker's" became a familiar invitation in Philadelphia.

John Wanamaker as 1889 Postmaster-General, Duke's Cigarettes Poor Boys booklet, D0013-06 from Duke

Wanamaker's 1902 Grand Depot, from Gibbons

Wanamaker's 1903 Philadelphia store, from Gibbons

View of pedestrians walking and automobiles and streetcars moving past the Marshall Field and Co. store, located at 111 North State Street in the Loop community area of Chicago. In this image, cars are passing through the intersection of Washington and State Streets, and traffic is waiting on State Street. The view is from the south looking at the northeast corner of Washington and State Streets, 1926, from LC

Marshall Field & Company clock on State Street in the Loop community area of Chicago 1908, the hands on the clock are at 10:37, from LC

Market Street from Eighth, Philadelphia, buildings at right: Strawbridge & Clothier, 1904, from LC

Christmas shoppers, two women smiling and walking past the store windows of Marshall Field's department store on State Street, Dec. 1905, from LC

Christmas shoppers, a woman holding a parcel and walking past a covered store window at Marshall Field's department store on State Street, Dec. 1905, from LC

Looking into a Marshall Field & Co. department store window in Chicago's Loop, 1910, from LC

Bargain day at Rothschild Co. 5 and 10 cent store on 14th St. in NY, 1905 - play film

1865 - Marshall Field in 1865 joined Levi Leiter to purchase the old Potter Palmer store on Lake Street in downtown Chicago, promised to "Give the Lady What She Wants" with low fixed prices, pleasant clerks, and fashionable merchandise. In 1868 Field and Leiter moved to Palmer's marble-front building on State Street. After the Chicago Fire of 1871, they opened a new store in the Singer building on State Street in 1873. After another fire, Field bought out his partner and built a new store that would grow to cover an entire city block on State Street north of Madison. In 1907 a new 12-story building replaced the older store on State Street, and in 1914 an new giant 20-story Store for Men was built across the street that was, at that time, the largest department store in the world. It had more show windows than any other store, a feature that made the Marshall Field store famous in the growing "Electric City" of Chicago. The company built the Merchandise Mart in 1930, the largest commercial building in the world, that was sold to Joseph Kennedy in 1946. The Marshall Field flagship store became part of the 9-block State Street urban shopping mall in 1979, and the company operated 32-stores nationwide.

1868 - Strawbridge & Clothier opened their first store in 1868 in downtown Philadelphia on the northeast corner of Market and 8th streets, in a 3-story brick building that had been the office of Secretary of State Thomas Jefferson in 1790. The old building was soon demolished and replaced by a new 5-story department store offering a variety of goods under a single roof at a fixed price. This building was replaced by a new store in 1928, and this became one of the anchors in 1977 of The Gallery, an urban mall connecting Strawbridge & Clothier with Gimbels.

1872 - Lyman and Joseph Bloomingdale opened their first store in 1872 at 938 Third Avenue in New York, one of the first uptown department stores. The construction of the 3rd Avenue elevated railroad connected this uptown district with lower Manhattan, bringing more customers to Bloomingdales. In 1886 a new store was built at 3rd and 59th, growing to occupy the entire city block. In 1929 it was bought by Federated Department Stores.

1872 - Aaron Montgomery Ward mailed the first general merchandise catalog, a single sheet of 50 items that would grow in 30 years to 500 pages, a successful method of sales soon duplicated by Richard Sears and A. C. Roebuck with a catalog in 1893 that became America's "Wish Book."

1874 - Harrod's department store opened 1874 in Knightsbridge by Charles Digby Harrod, son of Charles Henry Harrod who had started a small grocery in London in 1849.

1877 - David May was a failed silver miner in Leadville, Colorado, when in 1877 he opened his Great Western Auction House and Clothing Store selling Levi copper-riveted pants and red woolen "longies" to the local miners. With partners Moses and Louis and Joseph Shoenberg, he opened a store in Denver in 1888, and in 1892 bought the Famous-Barr clothing store in St. Louis. In 1898 they bought a store in Cleveland and named it the May Company, moving the company headquarters to St. Louis in 1905. The May Department Stores Company was incorporated in 1910 and grew to a chain of 130 stores. The company expanded by acquiring other department stores, including Kaufmann's, Daniels & Fisher, Hecht's, Filenes, Lord & Taylor, L. S. Ayers, and Goldwaters. In 1993 it merged with J. W. Robinsons of Los Angeles to create the Robinsons-May stores. In 1996 the parent company reincorporated in Delaware under the name May Department Stores Company.

1879 - Frank Winfield Woolworth was a clerk in the Moore & Smith Corner Store in Watertown NY in1878 when he helped create a "5-cent counter" that became the inspiration for his new store that he opened in 1879 in Lancaster PA, the world's first "five-and-ten" store. As he expanded with a chain a similar stores, he borrowed the bright red storefront design from the A & P stores, and added his own diamond-W trademark. In 1911 the company merged with three others to create a 596-store chain. In 1913 the 50-story Woolworth Building became one of the most famous landmarks in New York.

1881 - Joseph Lowthian Hudson opened a small men's clothing store in Detroit . After 10 years he had 8 stores in the midwest and was the most profitable clothing retailer in the country. In 1893 he began construction of the immense department store at Gratiot and Farmer streets in Detroit. The 25-story tower was added in 1928, and a 12-story addition in 1946, giving the entire complex 49 acres of floor space. In 1954 the company became a suburban shopping center pioneer when it built Northland 13 miles northwest of Detroit. In 1969 it merged with the Dayton Corporation to create Dayton-Hudson headquartered in Minneapolis. George Dayton had founded his Dayton's Daylight store in Minneapolis in 1902 and the AMC cooperative in 1912, built the Southland Shopping Center in 1956, and started the Target discount store chain in 1962. The new corporation closed the flagship Hudson department store in downtown Detroit in 1983, but expanded its other retail operations. It acquired Mervyn's in 1978, Marshall Field's in 1990, and renamed itself the Target Corporation in 2000.

1887 - Adam Gimbel ran a trading post near Vincennes, Indiana, in the 1842, and opened a 3-story Palace of Trade in the 1870s. His sons Jacob and Isaac expanded to Milwaukee in 1887 with a modern department store, and to Philadelphia in 1894 with one of the largest stores in the country, today part of The Gallery urban mall in Philadelphia. In 1910 Jacob Gimbel opened a department store in New York one block from Macy's on Herald Square.

1888 - William Henry Belk began retailing in a small bargain store in Monroe, NC; in 1895 he opened a 3-story department store at 19 Trade St. in downtown Charlotte, with advertising that Belk Bros was the "Cheapest Store on Earth." When William's son John Belk retired in 2004, the family owned 225 stores in 14 states, and was the nation's largest privately owned department-store chain.

Next: Evolution of the Shopping Center

Sources

  • Abelson, Elaine S. When Ladies Go A-Thieving: Middle Class Shoplifters in the Victorian Department Store. New York: Oxford University Press, 1989.
  • Barth, Gunther. "The Department Store ," in City People: The Rise of Modern City Culture in Nineteenth-Century America. New York: Oxford University Press, 1980.
  • Benson, Susan Porter. Counter Culture: Saleswomen, Managers and Customers in American Department Stores, 1890-1940. Urbana, IL: University of Illinois Press, 1988.
  • Ershkowicz, Herbert. John Wanamaker, Philadelphia Merchant. New York: DaCapo Press, 1999.
  • Gibbons, Herbert Adams. John Wanamaker. New York: Harper & Row, 1926.
  • Hendrickson, Robert. The Grand Emporiums: The Illustrated History of America's Great Department Stores. New York: Stein and Day, 1979.
  • Schlereth, Thomas J. Victorian America: Transformations in Everyday Life, 1876-1915. New York: HarperCollins, 1991.
  • Spang, Rebecca L. The Invention of the Restaurant: Paris and Modern Gastronomic Culture. Cambridge, Mass. : Harvard University Press, 2000. 325 p.

Links

Citation: Schoenherr, Steven E. Evolution of the Department Store. http://history.sandiego.edu/gen/soc/shoppingcenter4.html [Feb. 11, 2006]

Evolution of the Department Store (2024)

FAQs

What caused the decline of department stores? ›

The gradual demise of the American department store can be blamed on many factors: competition from big box retailers, a shift to online shopping and activist shareholders fighting for control of the company's board. Another key problem: The retail industry has been split in two as inflation has taken its toll.

What were the old department stores in the 1960s? ›

The three biggest department stores in the mid-1960s, both in sales volume and physical size, were Macy's, Hudson's, and Marshall Field, in that order. Hudson's, shown here, had 25 stories, 16 of them selling floors.

When did Miller's department store close? ›

What were the original department stores? ›

However, the first reliably dated department store to be established, was Harding, Howell & Co., which opened in 1796 on Pall Mall, London. The oldest department store chain may be Debenhams, which was established in 1778 and closed in 2021. It is the longest trading defunct British retailer.

Will Macy's survive? ›

The storied department store chain in February said it will shutter nearly 30% of its remaining locations – a staggering 150 – leaving it with 350 core stores (from 2016 to 2023, Macy's dropped 170 locations, bringing the total of eliminated stores in the past eight years to 320, almost 50% of its store base).

Why is Kohl's losing money? ›

May 30 (Reuters) - Department store chain Kohl's (KSS. N) , opens new tab cut its annual sales and profit forecasts after posting a surprise quarterly loss on weaker consumer demand for its apparel and footwear on Thursday, dragging its shares down as much as 26% in early trading.

What was Macy's called before? ›

Macy's, Inc. (previously Federated Department Stores, Inc.) is an American holding company of department stores. Upon its establishment in 1929, Federated held ownership of the regional department store chains Abraham & Straus, Lazarus, Filene's, and Shillito's.

What department stores don't exist anymore? ›

Department stores merged with Federated and May
  • Abraham & Straus (Macy's in 1995) ...
  • Bamberger's (Macy's in 1986)
  • The Bon Marché (Macy's in 2005) ...
  • Bullock's (Macy's in 1996) ...
  • Burdines (Macy's in 2005) ...
  • Carter Hawley Hale Stores (merged into Macy's West 1996) ...
  • Davison's (Macy's in 1986)
  • The F & R Lazarus and Co. (

What is the oldest retail store that is still open? ›

On April 7, 1818, Henry Sands Brooks opened H. & D.H Brooks & Co., which later became Brooks Brothers. Brooks called upon his sons to help run the store, creating a family business that would last over 200 years. Today, the company is the longest-running retailer in the US and can even be seen worn by presidents.

What happened to Gertz department store? ›

The Gertz department store was sold to Allied Stores in 1941 and closed in 1981.

What is the oldest department store closing? ›

Lord & Taylor was the oldest-surviving department store chain in the United States. The company operated full-line department stores from 1826 until it filed for bankruptcy in 2020. The following year, in 2021, it closed all its brick-and-mortar stores.

When did Gold Circle go out of business? ›

Gold Circle was a discount department store chain based in Ohio. Founded in 1967, it was a division of Federated Department Stores with 76 stores when the chain was sold and dismantled in 1988.

What old department store is called best? ›

Best Products (also known simply as BEST) is a chain of American catalog showroom retail stores founded by Sydney and Frances Lewis and owned by Retail Ventures, headquartered in Richmond, Virginia. It was founded in 1957 and almost went out of business in 1997 before they got bought out by Montgomery Ward.

What was the store called before Walmart? ›

Walmart
Logo since June 29, 2008
Walmart location in Onalaska, Wisconsin
PredecessorWalton's Five and Dime
FoundedJuly 2, 1962 in Rogers, Arkansas October 31, 1969 in Wilmington, Delaware (incorporation)
FoundersSam Walton, Bud Walton
22 more rows

When was the peak of department stores? ›

With the boom of the 1880s that inflated the city's profile and standard of living, Los Angeles' muckety-mucks wanted all that big, sophisticated cities had on offer too, and the great department store era was on.

What caused the decline of malls? ›

By the 1980s, the mall had become the center of American social life and accounted for the bulk of all retail sales. But a shrinking middle class, the rise of online shopping, and the fact that there were simply too many malls contributed to the decline of the American mall.

What is the biggest cause of loss to retailers? ›

Retail shrinkage refers to the actions a business takes to reduce theft and fraud. These preventable losses, caused by human error or deliberate efforts, are known as “shrinkage.” Shoplifting and employee theft make up the bulk of a $61 billion annual problem for the retail industry.

Why are brick-and-mortar stores failing? ›

Recently, the rapid emergence of e-commerce as well as the COVID-19 pandemic are threatening the survival of brick-and-mortar stores.

Why is the office supply industry declining? ›

Changing demographics have accelerated the decline in office products. Today, there are more than 15,000 competitors online, and that's accelerating. Changes stemmed from e-commerce and demographics, and even in how office products were being used. Companies like DocuSign basically tried to eliminate paper globally.

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