Posts Tagged ‘Abraham & Straus’

NEW YORK DEPARTMENT STORES – ABRAHAM & STRAUS

Thursday, June 9th, 2011

Holiday Card 1904. Front Entrance

NEW YORK DEPARTMENT STORES – ABRAHAM & STRAUS

Abraham & Straus – Arial View – 1906

Founded in 1865 by Abraham Abraham and Joseph Wechsler in Brooklyn, New York, the company initially opened as Wechsler & Abraham on Fulton Street near Tillary. At this time, Brooklyn was a thriving community of its own; the Brooklyn Bridge had not yet been built. In the early 1880’s, the company bought and renovated an ornate cast iron building on Fulton between Hoyt Street and Gallatin Place. With continual expansion, the store eventually occupied the entire block. The building was equally ornate inside as depicted in some of the postcards shown below. A five-story courtyard with a skylight allowed daylight to show off the merchandise.  Abraham & Straus became the retail showplace in New York. The last major renovation was between 1928 and 1930 when the architects Starrett & Van Vleck designed the new building facing Fulton Street in Art Deco style. This store still stands today but is now a Macy’s.

In 1893, the Straus family along with Simon Rothschild bought out the Wechsler interest in the company and the store was renamed Abraham & Straus. The Straus family also had controlling interest in R.H. Macy & Company in New York. The two retailers were not combined but did maintain a common buying office in Europe. During the 1910s, the Straus family separated their interest in the two stores, with Abraham & Straus going to one branch of the family, and Macy’s to the other. In April, 1912, Isidor and Ida Straus went down with the Titanic.

In 1929, Abraham & Straus, Bloomingdale’s, Filene’s and Lazarus (along with its subsidiary, Shillito’s) merged to form Federated Department Stores. At this time, Federated was located in Columbus, Ohio but later moved to Cincinnati. The merger gave each division the strength to weather economic storms and also created buying clout in the U.S. and Europe.

Family members ran Abraham & Straus until 1955. Walter Rothschild was President and Chairman until 1955, and was succeeded by Sidney Solomon, the first non-family member to lead the company.

In 1950, the company purchased the Loeser’s store in Garden City and converted it to Abraham & Straus. In 1952, the company built its first suburban store in Hempstead. That store was expanded over the years until it exceeded 400,000 square feet. The company continued expansion with stores in Manhasset, Smithtown, Babylon (later replaced), Monmouth (NJ), Paramus (NJ), White Plains (NY), Short Hills (NJ), King of Prussia (PA), Willow Grove (PA), and Manhattan.

Under the leadership of Walter Rothschild and Sidney Solomon, Abraham & Straus was the powerhouse of Federated Department Stores. The division contributed more earnings per share than any other division. For years it was known as the training ground for merchants for the retail industry. Many of the top retail CEO’s came from the A& S training program.

Unfortunately, Abraham & Straus also became the funding source for Federated Department Store’s divisions in the Sunbelt (Bullock’s, Burdines, Sanger-Harris, and Rich’s). Eventually the Brooklyn market declined as did Hempstead and Babylon. The new management team relied on a strategy of opening new stores to grow their way out of the problems created by the declining markets. New stores were built in White Plains and Short Hills, but neither was an immediate success. Then, A&S made the disastrous decision to open stores in the Philadelphia market (Willow Grove and King of Prussia). These stores worsened the situation. As a final fiasco, the division opened a new store near Herald Square in NYC, a store that never could be profitable. On top of all this, a new centralized distribution center was opened, intended to reduce expenses and to increase the selling space in each store. Through management bungling, this operation became a major problem as shortage increased dramatically chain wide. In addition, costs were far above projections and merchandise got stalled in the pipeline.

Outside Porte Cochere. 1909

The Court, Silver Department, 1904

What happened???

Atop all the management mistakes in the late 1970’s and 1980’s, the final blow came when Campeau, the real estate developer, bought Federated Department Stores and combined it with Allied Stores. This led to the combination of A&S with Jordan Marsh (Boston), operating out of the Brooklyn headquarters. In 1994, Federated Department Stores purchased bankrupt R.H. Macy & Co and in 1995, combined A&S with the Macy’s New York division, converting stores to the Macy’s brand or other divisions of Federated.

I first saw Abraham & Straus in the late 1960’s when it was a powerhouse. I was working at Bullock’s in Los Angeles and was asked to visit with A&S to gather information on some of their personnel policies and procedures. I was impressed. The customer traffic was unbelievable. The fashion displays were incredible as the volume justified the costs. I joined A&S in 1976 and it was then on a fast downhill slide. Management’s response was to take the business upscale. This new direction worked in Manhasset, Smithtown, Paramus and the smaller Garden City store but in the other stores the new direction was a disaster. In Brooklyn, for example, we added a Pappagallo shop and put $12 million into an upscale renovation of the Brooklyn store when in fact all that sold in front of the store were Jellies and incense on cardboard boxes. The employees lost confidence in management as customers objected to the new higher priced merchandise. Unions started organizing attempts because of separation of the associates from management. One day over 6,000 people demonstrated in support of the unions in front of the Brooklyn store. The store also became a magnet for criminals. Organized gangs came into the store to steal merchandise. One Christmas Eve a gang came into the jewelry department during business hours, broke all the cases and stole the majority of the merchandise.

A&S Rotunda .. 1904

Picture Gallery. 1907

The postcard collection primarily shows the store pre-1930 when it was grand. Like all the other cards in the Plummer Collection, I ask that you do not reproduce or copy any of these postcards without gaining my written permission.

Grocery Department. 1904

Grocery Department in 1907

I trust that you will feel comfortable to leave your comments about your history with A&S, either as a customer or as an employee. We need to preserve this important part of retail history.

Straus Family Summer Home. View 1 . 1907

Straus Family Summer Home . View 2. 1907

Anniversary Day Parade . Prospect Park. 1907 . Pub by A&S

Lawn Tennis Prospect Park . 1905 . pub A&S

OUR NEW BLOG: RETAIL HISTORY -1880 TO 1950 – DEPICTED IN POSTCARDS

Monday, December 13th, 2010

In January, 2011, we will launch our blog which will show the history of retailing in downtown North America. We will employ our collection of over 10,000 postcards of these famous stores. Our purpose is to bring to life these Grand Dames that existed in major metropolitan areas as well as in small town America. We also want to make this interactive so customers and associates of these retailers can memorialize their thoughts in the Comments Section for the Blog.

Our first series will be about the stores in Southern California. We will feature Los Angeles stores such as Goodman’s Department Stores, Coulter’s, Hamburger’s, May Company, Broadway, Bullock’s, Bullock’s Wilshire, I Magnin & Co, Desmond’s, Mullen & Bluett, and others. San Diego stores will be Marsten’s and Walker-Scott. Harris Stores in San Bernardino is another.

The second series will cover Northern California. This will include San Francisco Bay Area stores such as: City of Paris, White House, Gump’s, Emporium, Capwell’s, Kahn’s, Rhodes, Hale Stores and more. The Sacramento store, Weinstock-Lubin, and the Fresno’s Gottschalk’s will be included.

During the year we will continue to post blogs on other states and provinces in North America.

Collecting the postcards for these Grand Dames has been enormously satisfying. I don’t want this important part of retail history to be forgotten. I hope you will have as much fun reviewing this collection and adding your comments and memories of these institutions in the Comments/Leave A Reply section below. If you have postcards of any of these stores which are different from my collection I would be honored to have the opportunity to post your card on the Blog.

Elmira, New York

Note: Elmira, New York, like most small towns has variety (five & dime) stores next to local department stores. Sometimes they also had a chain department store such as J.C. Penney, Sears, and/or Montgomery Ward. The variety stores always had excellent real estate in the busiest part of downtown. The local department store catered to both value-oriented and upscale customers with their good, better, and best merchandising program. The rest of the stores included a local drug store, a millinery store, a gift store, a hardware store, an automotive tire & battery store, a cinema/theatre, a candy/soda fountain, a cigar/tobacco/news store, a feed/farm store, a cafeteria, auto dealerships, a barber shop, and a restaurant or two. Of course, there was always a grocery store.

Downtown areas in major metropolitain areas were different as the stores were bigger. Department stores were what we today would call a shopping center. They were large and catered to different customers (budget, moderate, and luxury).