Posts Tagged ‘retailing’

RON JOHNSON’S DEPARTURE FROM J C PENNEY

Wednesday, April 24th, 2013

 

The pundits are having a good time poking fun at Ron Johnson’s expense. Yes, he made big mistakes. However, he was not the real problem.

Penney’s has been declining for years. The real blame belongs to the Board and the prior management. Over the years, J C Penney focused on the same customer and followed those customers as they grew older; management failed to attract younger customer.  Everyone in retail knows the younger customers are the profitable customers. Only during the brief tenure of Allen Questrom and Vanessa Castagna did J C Penney do the right things.

I always believed the probability of success in Ron’s strategy to take JCP upscale and simultaneously attract a younger customer was unlikely. As retailers switch from one customer base to another, the retailer usually first finds the bottom of the Grand Canyon. That is where JCP is today. The old customers do not like what they see and the new customers do not like shopping with the old customers. In my mind, investors cannot afford to take the time required to successfully support a retail turnaround.

I have seen several retailers attempt to make customer base changes. Some that come to mind are:

  1.       Abraham & Straus Department Stores – Brooklyn, New York
  2.       Sears – The Softer Side
  3.       Kmart- The New Kmart
  4.       Mervyn’s – Mervyn’s California

All were colossal failures. On the other hand, Target did successfully make a  change but it was done gradually and over several years. The customer base change was also less significant.

The essence of this story is that the Board and management need to keep their eyes focused on the long-term health of the company versus short-term quarterly tactics. The truth is that a merchant prince can seldom pull off a successful major change in customer base.

PLUMMER & ASSOCIATES RECRUITS CFO FOR CHARMING CHARLIE

Thursday, May 12th, 2011

CHARMING CHARLIE APPOINTS KEITH CLINE AS CHIEF FINANCIAL OFFICER

HOUSTON –(BUSINESS WIRE)– Charming Charlie announced today that it has appointed Keith Cline as Chief Financial Officer effective February 28, 2011.

Mr. Cline comes to Charming Charlie from Express, Inc. (NYSE: EXPR), where he most recently served as Senior Vice President, Finance. During his five year tenure, Mr. Cline played a key role in both the 2007 privatization of Express and the subsequent initial public offering in 2010. Prior to that, Mr. Cline served as Director, Corporate Finance at Limited Brands, Inc. [NYSE: LTD] from 2003 to 2006. Mr. Cline’s career also includes financial leadership roles with FedEx Custom Critical, The J. M. Smucker Company, and Mettler-Toledo International, Inc. Mr. Cline began his career in public accounting with Arthur Andersen & Company and is a graduate of The University of Akron with a B.S. in Accounting as well as a M.B.A. in Finance.

“We are very pleased to welcome Keith to our team,” said Charlie Chanaratsopon, Chief Executive Officer of Charming Charlie. “Keith’s extensive background in finance combined with his retail experience and leadership capabilities will be invaluable as we continue to aggressively expand our national footprint. He is exceptionally well qualified to serve as our new Chief Financial Officer and I look forward to working closely with him to take this Company to the next level.”

DEPARTMENT STORES OF NORTHERN CALIFORNIA – HOLMAN’S – PACIFIC GROVE

Saturday, February 26th, 2011

Holman’s was founded in 1891 by Rensselaer Luther Holman who reportedly came to Pacific Grove to retire. His first store was named the Popular Dry Goods Store. The name was later changed to Holman’s Department Store.

In 1927, the new store was built. The store had three floors and a fourth was added in 1937. The store had 46 departments. On the roof was a solarium and in good weather, food was served on the terrace. A large plate glass window on the roof allowed a great view of Monterey Bay while protecting patrons from the wind. The dining room was on the fourth floor.

The store sold popular priced fashion and home goods. In buildings behind the main building the store also sold building supplies, seeds, and feed supplies.

Holman’s is known for being the store at which John Steinbeck shopped. Some of the drafts of his novels were written on notepads purchased at Holman’s. In addition, one of the company’s biggest publicity stunts was mentioned in his book Cannery Row. This is when a roller skater skated on top of the store’s flagpole for 51 hours to break a record. This event was also recorded for the newsreels that played in the movie theaters in the 1940’s. (You can view it on youtube. http://www.youtube.com/watch?v=qjXhJ3yz0yY)

Pacific Grove was a vacation spot for the wealthy from the San Francisco Bay Area. Until the late 1950’s, the Southern Pacific operated trains from San Francisco to Monterey and Pacific Grove.

For a while, the company operated a branch store in Monterey.

The Pacific Grove building now houses an antiques mall.

What happened???? …. In the 1990’s and into 2000, it became difficult to operate an independent department store. A mall opened in Monterey with all the major department stores and a host of specialty retailers. It became impossible to compete with the department and specialty stores which had better assortments with the brands the consumer desired. In 1985, Holman’s was sold to Watsonville, California based Ford’s Department Store. Ford’s was the oldest merchantile company in California as it was started in 1852. Ford’s was expanding at the time and had also acquired Riley’s based in San Louis Obispo. Unfortunately, Ford’s Watsonville store was destroyed in the 1989 earthquake. The store was rebuilt and opened in 1992. Unfortunately, This led to Ford’s filing for bankruptcy in 1993 and its closing of all eight stores, including the Holman’s store in Pacific Grove.

I visited the store a couple of times in the 1960’s when I went to the sports car races at Laguna Seca. I found the store to be clean and staffed with friendly and helpful sales people. The store had a local feel and a family atmosphere.

A good friend, Laurie Heth,  worked in the publicity department at Holman’s. She described the store as an exciting and fun place to work. She was sad to see it close.

The Holman family currently operates a guest ranch in the area. I hope that the family, customers, and former employees will feel free to add to this post so that the memories of this fine store will be kept alive. This is too important of a store to fade away.

SOUTHERN CALIFORNIA DEPARTMENT STORES – SMALLER LOCAL STORES

Sunday, February 6th, 2011

Besides the larger department stores in Southern California there were also smaller stores inside and outside  Los Angeles. These stores carved out specific niches. They are an important part of Southern California retail history.

GOODMAN’S DEPARTMENT STORE – LOS ANGELES

Goodman’s was located at 7th & Hill Streets across from Bullock’s. It was founded by S. Goodman. It was also short-lived, operating from 1922 to 1923 and ending in a public dispute between the founder and the landlord. The building still stands and has been converted into loft apartments. You can still see the remains of the painted sign if you look from Broadway Street down 7th. The store featured four elevators and a food market in the basement.

EASTERN COLUMBIA

One of Los Angeles’ oldest retail stores, Eastern-Columbia was founded in 1892 by Mr. Adolph Sieroty. There were two divisions: Eastern Outfitting Company and Columbia Outfitting Company. The Art Deco styled building was built in 1930 and designed by Claud Beelman.  The building still stands today as a landmark and has been converted into loft apartments. I was never brought to the store in Los Angeles and it closed before I started working in downtown Los Angeles. I had visited the Columbia Outfitters store in San Francisco before it closed.  

Eastern Columbia Stores and Headquarters Broadway Street LA

 

Columbia Store San Francisco 1950

DESMOND’S

The Broadway Street store was opened in 1923. The facade was redone in 1933 in a Beaux Arts style. The first store was opened on Olivera Street in 1862. In 1921, Ralph R. Huesman purchased the store from the Desmond family and led the expansion of the retailer to several locations throughout the Southern California market. Other Desmond stores of architectural importance were built on Wilshire Blvd. and in Hollywood. The downtown Los Angeles building still stands. The first floor is for small retailers. The upper floors are still empty. Desmond’s, under new ownership, merged with Walker-Scott (San Diego) and K. Wolens (a Texas based specialty department store chain) in 1985.

 

Desmond's Downtown LA and Wilshire Blvd

MULLEN AND BLUETT

The company was founded by William Mullen and Andrew Bluett in 1889. The first store was located at the Corner of First and Spring streets. In 1910 the store was relocated to the first two floors of the Story building at Broadway and Sixth Streets. Mullen and Bluett was a high-end clothing store with a focus on menswear.

Mullen & Bluett Los Angeles 1911

   
 
 
 
 
 

 

Mullen & Bluett 1920's

 

  
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Mullen & Bluett - Hollywood and Vine - Hollywood

 

  
 

Mullen & Bluett Customer Calendar - April, 1910

COULTER’S

Founded by Kentucky-born minister and entrepreneur B. F. Coulter in 1878, Coulter Dry Goods Co. was one of the pioneering businesses in downtown Los Angeles. Built on the corner of Temple and Main streets, the original 900-square-foot building contained just $1,000 worth of merchandise that originally was purchased in New York and shipped west.

With a business philosophy of providing exceptional quality items at a fair price, Coulter quickly distinguished his enterprise — which eventually changed names to Coulter’s Department Store — from competitors with his keen attention to customer service. Advertisements described Coulter’s as “the nicest store in Los Angeles.”Over the years, the store was moved several times, finding larger homes on Main, Spring, Broadway and Seventh streets before it relocated for the last time to the Miracle Mile section of Los Angeles.

Eventually, the L.A. business economy and consumer tastes changed and Coulter’s was purchased by The Broadway Department Store chain. The company’s final — and longest-held — location at 5600 Wilshire Blvd. was razed in the 1980s. It was a prime example of modern Art Deco design. Today the location is home to an upscale apartment complex. I did visit the store before it closed. It was not elegant, but it was clean, well merchandised, and had superior customer service…even though I could not afford to buy much.

Coulter's LA on Broadway Street 1919

Coulter's Broadway Street Store Tea Room 1920

Coulter's New Store. Wilshire Blvd. 1950's

 

BLACKSTONE’S DRY GOODS

Blackstone’s Dry Goods was founded in 1895 by Nathaniel Blackstone. He was the brother-in-law of J. W. Robinson, the founder of J.W. Robinson & Company/The Boston Store, and Blackstone had worked for him. The first store was located on Broadway between Third and Fourth Streets. In 1917 he moved the store to the corner of Broadway and Eighth Streets.

Blackstone's Tea Room

HAGGERTY’S

Haggerty's Downtown Los Angeles

Haggerty's Pasadena Store

Haggerty's Beverly Hills - 1957

HARRIS AND FRANK

Harris and Frank -Broadway Street - Los Angeles - 1920

Harris and Frank - Mens Furnishings Department

Harris and Frank - Hosiery and Neckwear Department

Harris and Frank - Youth Clothing Department

Harris and Frank - Youths Hat Department

I. MAGNIN

For more information please see I. Magnin under Department Stores of Northern California.

FEAGENS JEWELRY/BROCK & FEAGANS

 George Feagans and his partner, Mr. Brock founded Brock & Feagans on Broadway Street in Los Angeles. The elegant jewelry store opened its doors in 1882. The partnership dissolved in 1903 and the store closed. George Feagans then opened a new and even more elegant store in the famous Alexandria Hotel at 502 South Spring Street. The store was the gathering place for the richest and most famous. The hotel stands vacant now. The original Brock & Feagans building also still stands on Broadway Street.

Original Brock & Feagans - Broadway Street Los Angeles

Brock & Feagans Interior - Broadway - Los Angeles

Feagans Jewelers -Alexandria Hotel - Los Angeles

Feagans Jewelry at Alexandria Hotel - Los Angeles

Feagans Jewelry - Alexandria Hotel - Los Angeles -Approx 1910

OHRBACH’S

Orbach’s, a well-known retailer of closeouts and seconds operating in New York, opened a Los Angeles office to buy goods for the New York stores as well as operate stores in the greater Los Angeles market. The Los Angeles buying office opened in 1945 and the first store was opened in 1948 on the Miracle Mile part of Wilshire Boulevard on the Mezzanine plus three floors in the Prudential Insurance Building. In 1953, they opened a branch store at Fifth and Broadway in downtown Los Angeles, That location did not do well as that area was starting to decline. The downtown store was closed in 1959. The Miracle Mile store was closed in 1965 and moved to the former Siebu store on Wilshire Boulevard at Fairfax. The company opened other stores in Los Cerritos Center (Cerritos), Del Amo Center (Torrance), La Mirada, and Panorama City. The ownership of Orbach’s transferred from the family to the Brenninkmeyer Company (AMCENA). In 1986, when Brenninkmeyer acquired the Howland Steinbach department store business from Supermarkets General, the decision was made to close the entire Orbach’s business, including the offices and stores in California. The former Siebu store which had been converted to Orbach’s on Wilshire Boulevard now houses the Petersen Automotive Museum.

The problem for Orbach’s was that it lost relevance as off-price stores expanded into the market and the quality of apparel increased at discount retailers. It also had a strange policy in never sharing product margins at the store level. People in the stores never felt engaged with the business.

As a competitor, Orbach’s had a bigger negative impact on May Company and The Broadway than it did on Bullock’s. Its sales really only impacted basic goods.

First LA Store on Wilshire in Prudential Building Across from Coulter's New Store on Wilshire in former Siebu Store at Wilshire and Fairfax

BARKER BROTHERS

Barker Brothers was founded by Obadiah J. Barker, Jr. The first store opened in the early 1880’s on Spring Street. Later a major store was built on Broadway Street and it operated until 1927. In 1924, a ten story store was opened at the corner of 7th Street and Figueroa. This store was the largest home furnishings store in the U.S. and was grand in style. The entrance was designed in a Moroccan style. A pipe organ on the Mezzanine floor provided music for the store. There was a huge auditorium for the customers to learn about furniture and decorating. In addition, the restaurant was operated by Mary Louise, a famous tea room operator in Los Angeles. The company was the showcase for major as well as new, upcoming furniture designers. The sales force was known as aggressive in marketing to all the new housing developments. Barker Brothers grew as the population moved to suburbia. The company opened numerous stores all through out Southern California. In 1984, the downtown store closed. In 1992, the entire chain closed. The downtown store now houses a mixture of offices and lofts.

Barker Brothers was first incorporated in California but in 1924 it incorporated in Delaware. It was later bought by Gold’s and that family continued to operate the business. They were later acquired by Gamble-Skogmo. In 1960, Gold’s/Barker Brothers was acquired by City Products, an Ohio based ice delivery company on a drive to diversify. In 1965, Household Finance Corporation bought City Products in its attempt to diversify. They later sold Barker Brothers to a Wall Street investment group in 1984. That is when the downtown Los Angeles store was closed. Unfortunately, the company had too much debt to service along with too much competition while lacking management strength. Now, Levitz, Gold Key, and other discount retailers were taking away the mid-market customers and the designers on Robertson Boulevard were capturing the up-scale customers. There was little room for Barker Bros.For a period, Barker Brothers/Gold’s owned and operated the W. & J. Sloane furniture chain. Due to stiff competition they closed the California stores and sold the stores in the East to City Stores.

I visited the downtown Los Angeles several times just to look at the facilities and the merchandise. At the time, I was still living with hand-me-down furnishings so I could not afford to shop there. I did learn home furnishings taste by looking at the designer products. I also shopped the store as a competitor. The smaller suburban stores were not really exciting as they lacked the variety and the designer fashions in the main store. The suburban stores were much more like any upper moderate home furnishing store. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Barker Brothers - Broadway Street - 1910

 

  
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Barker Bros - New Store on 7th Street.

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Barker Bros 7th Street Los Angeles Barker Bros - 7th Street - Mary Louise Tea Room in Store

 

Barker Bros-Los Angeles-Annual Christmas Decorations

Barker Bros Downtown Los Angeles - Annual Christmas Tree Decor

Barkers Owned W.J. Sloan. This LA store was first closed.

JEVENE COMPANY

The H. Jevene Company was founded by Hans Jevene in1882. It was known as the largest and best grocer in the West. The company operated retail, mail order, and home delivery services. I do not know the first location but the second location opened in 1896 at Spring and 2nd Streets. In 1907, it built its new store at 6th and Broadway Streets. The new store had the finest of grocery products on all six floors. The company reportedly closed in the late 1920’s after the founder died.

 
 
 
 
 
 

Jevne & Co 6th & Broadway - Los Angeles - 1910-1920

OVERELL’S

This home furnishings store was founded in 1906 on Main street in Los Angeles in the area known as the furniture district. Next door was another well-known furniture store, Dearden’s Home Furnishings (1909). Others nearby included: Heywood Bros. & Wakefield Company (circa 1899) and Hulse Bradford & Company (1901).

Overell's Home Furnishings Main Street Los Angeles approx 1910

SIEBU

Tokyo’s Siebu store opened a branch in 1962 in a new and modern design at the corner of Wilshire and Fairfax, across the street from a highly successful May Company store. The store executives were surprised to see the poor quality of Japanese merchandise sold in the U.S. and felt there was an opportunity to expand with an offering of upscale goods. The first day, the store was jammed with 40,000 customers. The restaurant was also a success. Unfortunately, the store was not a long-term success and closed in 1964. Orbach’s took over the store in 1965. I visited the store with friends when I was in college. It was not a warm environment and I did not see anything of interest.

I do not have a postcard of the store when it was Siebu. There is a postcard of when it was Orbach’s. I suggest you look in the Orbach’s collection to see the store.

 

HARTFIELD’S

Hartfield’s was a chain of specialty retail store located in downtown shopping areas primarily in the West. The company was headquartered in downtown Los Angeles. In the late 50′s the company started Zody’s, a discount department store in Southern California. Then, the company was renamed Hartfield-Zody’s and went public in 1961. By 1960, the Hartfield’s chain consisted of over 50 specialty apparel stores (mostly in downtown shopping areas in the West) and 5 Zody’s. As downtown shopping districts declined, Hartfield’s stores closed. Eventually the company only operated Zody’s stores. By the early 80′s Zody’s was closed and the stores sold.

On the personal side, my father-in-law did the audits for Hartfield’s in the 1930′s. He often told me about the commitment the family had towards building a successful business.

I have not been able to find a postcard depicting a Hartsfield’s store.

WALKER SCOTT - SAN DIEGO

The Walker Scott Department Store was founded in downtown San Diego in 1935. The store’s original owner, Ralf M. Walker, who already owned and ran Walker’s Department Store in Los Angeles, passed away in New York six weeks before the San Diego store’s opening. A former stock boy at the Los Angeles store, George A Scott, whom Mr. Walker had sent to the New York University of Retailing (1930), opened the San Diego store with Mr. Walker’s widow, Eliza Fitzgerald Walker. Eliza Walker became president of the company while Scott held the title of vice president. Walker’s Downtown store opened on October 3, 1935, situated on 5th and Broadway. It eventually expanded to eight stories, and held San Diego County’s first escalators.

The company merged with Desmond’s (Los Angeles) in 1985 which formed Wolens-Desmonds which operated Desmonds (Los Angeles), Walker-Scott ( San Diego), and K.Wolens (Texas).

Walker's Later Walker Scott - San Diego

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Walker's Long Beach

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Paris Walker New Store Los Angeles 1920's

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Paris Walker - Downtown Los Angeles on Broadway - 1920's

 BUFFUM’S – LONG BEACH

Buffum’s was a chain of Long Beach, California based department stores founded in 1904 and for years owned and operated by the Buffum family. It grew slowly over the years to a total of 16 stores throughout Los Angeles, Orange and San Diego counties. (Dorothy Chandler was a member of the Buffum family.)

Over the years, the stores gained a reputation as the “Grand Dame” of department stores in the area. The stores interiors were known for large chandeliers and other upscale touches. The chain marketed itself as “Buffum’s Specialty Store,” in attempt to differentiate itself from other local chains including The Broadway, Bullock’s, Robinson’s, and the May Company.. It’s most famous advertising line “I’ve been to Buffum’s” was used in their advertising.

Like other local department stores of the era, Buffum’s was challenged by old-fashioned business models, changing consumer, tastes and the arrival of Nordstrom. The chain was bought in the 1970s by the Australia-based Adelaide Steamship Company, which looked to sell the struggling chain in the 1980s. AdSteam never found a buyer and liquidated the chain in March 1991.

The original downtown Long Beach building was replaced in the 1980′s. Unfortunately, the new store did not make much of a difference as downtown Long Beach had seriously declined. The newer store has since been demolished but downtown Long Beach has made a significant comeback and is considered one of the desirable parts of Southern California

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Buffum's Santa Ana Store

HENSHEY’S – SANTA MONICA

The company was founded in 1925 at the corner of Santa Monica Blvd and 3rd Street. It was the first store in the West side of the L.A. basin. The store always appealed to the value-oriented customer. The building was damaged in the Northridge earthquake. It closed in the 1980’s. Much of the building currently houses a Toys R Us store. A new shopping center was located nearby which ended the reign of Henshey’s.

MARSTON’S - SAN DIEGO

Marston was a department store based in San Diego founded by George Marston.  The store was founded in 1878, and moved several times before moving into its longtime flagship store on C Street, between Fifth and Sixth in downtown San Diego.  In 1960, Marston was acquired by Broadway-Hale. The flagship store was demolished. George Marston’s success was his ability to develop strong relationships with key vendors so he had the merchandise on an exclusive basis. For example, Marston’s was the key retailer for Gustov Stickley furniture. Mr. Marston was a politician and a philanthropist. His home is now a museum in San Diego with an incredible collection of Gustov Stickley furniture. The store Marston’s downtown store has since been demolished with the building of Horton Plaza.

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Marston's - San Diego Downtown Store - 1920's

FEDWAY – CALIFORNIA

Federated Department Stores started a new division in the 1960’s to capture small markets. The company saw the opportunity to become the dominant player in small cities (under 100,000) by acquiring local department stores and folding them into this new chain with merchandising and operating strengths. A management team was installed at the new headquarters in California and Federated started acquiring chains such as Halliburton’s in Oklahoma City, Levy’s in Tucson (1960) and others. It quickly realized that this new division was not providing the returns of the growth divisions. Plus, the settlement with the Justice Department after the acquisition of Bullocks-Magnin curtailed Federated’s ability to acquire more department store chains. The division was closed, a smart move as the department store chains they were targeting were downtown stores. Even in small cities, the retail centers were moving outside of downtown. Individual stores were sold to Dillard’s in 1971. (Keep in mind, at this time J.C. Penney, Sears Roebuck, and Monkey Wards which all had stores in downtown markets, were developing strategies to close these downtown stores and locate them in suburban strip centers and malls.)

HARRIS – SAN BERNARDINO

The Harris Company was a retail corporation, based in San Bernardino that operated stores named Harris’.  Brothers Philip, Arthur, and Herman Harris started the company with a small dry goods store in 1905, and the company eventually grew to nine large department stores, with stores in San Bernardino, Riverside and Kern counties.

The chain was acquired by Gottschalks in 1998. After the acquisition, some of the stores continued to operate under the name Harris Gottschalks. In January, 2009, Gottschalks filed for bankruptcy, and on March 31 announced they were liquidating all stores. All of the original Harris stores were finally closed in July, 2009.

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Harris Company - San Bernardino - 1935

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Harris Company - San Bernardino - 1944

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Harris Company - Riverside - 1960's

ROUSES – RIVERSIDE

Rouses was founded by Gaylord Rouse in 1895, after first owning stores in Philadelphia, Santa Barbara, and Antioch. He opened his first store in Riverside which targeted a broad audience. Mr. Rouse died in 1923.  In 1925 the store was expanded and remodeled. The store continued in operation until 1964 when the company closed in bankruptcy. Competition from other major department stores became too great. By then Harris’, The Broadway, and May Company Southern California had moved into the market.

 

Rouses - Riverside, Ca - 1948

Rouses - Riverside, Ca - 1935 - Main Aisle

Rouses - Riverside, Ca - 1935 - Men's Clothing/Furnishings

GEORGE W. REYNOLDS DEPARTMENT STORE

George W. Reynolds Department Store - Riverside, Ca - 1925

* * * * *

YAMATO – LOS ANGELES

Yamato Store - Broadway Street - Los Angeles - 1911

Yamato - Los Angeles - Tea Garden - 1911

INNES SHOE – LOS ANGELES

Innes Shoe - Downtown Los Angeles

CALIFORNIA FURNITURE COMPANY – LOS ANGELES

California Furniture Company - Los Angeles - approx 1900

WOOD BROS – LOS ANGELES

Wood Bros Spring Street Los Angeles approx 1900

Mosgroves Los Angeles Spring Street approx 1900

 MYER SIEGEL

The company operated stores in Los Angeles on Wilshire Blvd, in Pasadena, Hollywood, and in Fresno, California. These stores offered better women’s apparel. The company closed in the late 1950′s.

Wilshire Boulevard - Los Angeles - 1952

Wilshire Blvd - Los Angeles - 1952

Fresno, Ca Store, 1937

Myer Siegel 1926

Myer Siegel 1926

FOSGATE’S

Fosgate's Fountain and Confectionery Broadway Street LA approx 1910

Fosgate's Fountain 4th and Broadway Los Angeles approx 1910

METROPOLITAN BARBER SHOP – LOS ANGELES

Metropolitan Barber Shop Spring near Broadway Los Angeles approx 1910

CHRISTOPHER’S CONFECTIONERY AND FOUNTAIN

Christopher's on Broadway near 7th Los Angeles approx 1920's

REDLICK’S DEPARTMENT STORE – BAKERSFIELD

Redlick's Department Store Bakersfield, Ca 1919

BROCK’S DEPARTMENT STORE – BAKERSFIELD

Brock's Department Store Bakersfield, Ca. 1950's

DONAVAN & SEAMANS – JEWELERS- LOS ANGELES

Donovan & Seamans Jewelers Broadway Street Los Angles approx 1920

J. JESSOP & SONS JEWELERS – SAN DIEGO

This wonderful jeweler was later sold to Dayton Hudson Jewelers.

Jessop & Sons Jewelers - San Diego

THE ERNSTING COMPANY – JEWELERS – SAN DIEGO

Ernsting Jewelers Downtown San Diego

THE ELITE – CATERERS AND CONFECTIONERS – LOS ANGELES

The Elite Caterers and Confectioners - Broadway - Los Angeles - 1926

PARMELEE COMPANY – GAS AND ELECTRIC FIXTURES – LOS ANGELES

Z.L.PARMELEE COMPANY 2nd & Broadway Los Angeles approx 1900

THE GREAT WARDROBE – SANTA BARBARA

The Wardrobe Company Santa Barbara approx 1910

 

 

EASTERN STORE (LEFT) BAKERSFIELD, CALIFORNIA APPROX 1954

Department Stores in Southern California – J.W. Robinson & Co

Saturday, January 22nd, 2011

The Boston Store - Los Angeles - 1910

J.W. ROBINSON & CO – Los Angeles

James Winchester Robinson opened his first store in 1881 under the banner of The Boston Store. The original store was located at Spring and Temple Streets. In 1914, the name was changed to J.W. Robinson & Company and it moved to a new location at 7th and Grand in a building designed by Noonan and Richards. In 1934 the building was modernized by Edward L. Mayberry. The downtown store had six floors of selling space. On the seventh floor were the restaurants, the beauty salon, and customer service. The women’s rest area and lavatory were reputed to be exquisite.

Robinson’s catered to the carriage trade as did Bullock’s and Coulter’s. The store presented better fashions and offered excellent customer service. For years the store competed well with Bullock’s in the downtown market because it was located west on 7th street in an area attractive to the upper-end customers.

In 1957, the company was acquired by Associated Dry Goods and became their fashion headquarters for the West.

In 1952, the company opened its first branch store in the Beverly Hills market. Robinson’s needed that store to capture the carriage trade: customers that were now shopping at Bullock’s, I. Magnin’s, and Sak’s stores located out on Wilshire and at the specialty shops on Rodeo Drive. Even Coulter’s had closed its downtown store and moved to Wilshire. Later, Robinson’s opened a winter-only store in Palm Springs to serve the customers who wintered there. Other suburban stores opened in Panorama City, Anaheim, Santa Barbara, Glendale, Pasadena, Newport Beach, Cerritos, Woodland Hills and the City of Industry.

In 1986, Associated Dry Goods was acquired by The May Department Stores Company (St. Louis). In 1993, the Robinson’s division of Associated Goods was merged with the May Company Southern California division to form Robinson’s May. This was a difficult marriage as May Company was targeting the moderated market and Robinson’s catered to the carriage trade. In 2005, after the acquisition of The May Company Department Stores by Federated Department Stores, the stores were either renamed Macy’s, Bloomingdale’s or were sold.

What happened????      Although Robinson’s had relatively good positioning in Los Angeles, it relied too long on its one store downtown. It did not have the clout with vendors to develop exclusive relationships. As the customers moved west to Beverly Hills and south to Orange County and  when the downtown retail market declined, Robinson’s was slow to expand and gave up market share to Bullock’s, I. Magnin’s, Sak’s, and other retailers. Robinson’s started to rebound when Michael Gould became the CEO, but he did not get full support from the parent, Associated Dry Goods. When it merged with May Company, the company quickly lost the carriage trade customer.

I knew Robinson’s well as a competitor when I worked at Bullock’s. The downtown LA and the Beverly Hills stores were well-maintained and operated at high customer service levels. The management was not known as sophisticated. The management development program was not strong so the company was never able to develop talented merchants. I remember when the Attorney General for California looked into price fixing amongst the Southern California department stores. They found a folder amongst the corporate office files at Robinson’s entitled “Price Fixing Agreements”.

I wish there were postcards showing the interior of this wonderful store. I have only one which shows the women’s restroom. As soon as I locate it I will post it.

New Downtown LA J.W. Robinson Store Drawing

J. W.Robinson & Company - Los Angeles - 1917

J. W. Robinson & Company - Los Angeles - 1920's

J. W. Robinson & Company - Los Angeles - 1920's

J. W. Robinson & Company - Los Angeles - 1940 - After 'Remuddling'

Utopia Yarn/ J.W.Robinson & Co - 1940

Rogers Peet Suits/J.W. Robinson & Co. - 1941

J.W. Robinson & Co. - Beverly Hills Store

J. W. Robinson & Company - Newport

Department Stores in Southern California – The Broadway

Sunday, January 16th, 2011

The Broadway . Original Store 1900

The Broadway Department Stores was founded in 1896 by Arthur Letts, Sr, an English immigrant. He built his first store on Broadway at Fourth Street, farther south on the street than the other retail establishments. His store, targeting the cost-conscious customer, was an immediate success and led to the 1920′s replacement of the building with a new, larger facility at the same location. In 1907, Mr. Letts funded two of his best employees, John Bullock and P. G. Winnett, to form Bullock’s at Seventh & Hill Streets.

The Broadway acquired the B.H. Dyas Specialty Emporium on Hollywood Blvd during the beginning of the Great Depression. This gave Broadway an important store in West Los Angeles. This store later declined with the decline of Hollywood Blvd and the growth of Beverly Hills.

The Broadway Street store was closed in 1973 and reopened at the newly built Broadway Plaza on Seventh Street. In later years, Broadway acquired many competitors to become a major retailer operating in the Southwest (Southern California, Nevada, Arizona, Utah, Colorado, and New Mexico. Acquisitions included: Coulter’s (Los Angeles), B.H. Dyas (Los Angles), Milliron’s (Los Angeles), Walker’s (Long Beach), and Marston’s (San Diego). In 1979, Broadway was split into two divisions, Broadway Stores based in Los Angeles, and Broadway Southwest based in Phoenix.

The Broadway merged with Hale Stores (Sacramento) in 1950 to form Broadway-Hale Stores. This put Hale Stores (Sacramento/San Francisco), Weinstock Lubin (Sacramento), and Broadway under one company ownership. In 1969, the company acquired Emporium-Capwell. Emporium was based in San Francisco and Capwell’s was based in Oakland. In 1969, CHH acquired the three unit Neiman-Marcus chain based in Dallas. In 1972, the company acquired Bergdorf-Goodman (New York), Holt-Renfrew (Montreal), Sunset House (Los Angeles), and Waldenbooks (Stamford, Ct). In 1977, CHH attempted to takeover Marshall Fields, but was unsuccessful. Licking their wounds they ended up taking over the troubled John Wannamaker chain based in Philadelphia. In 1979, the company acquired Contempo Casuals based in Los Angeles. For a time, CHH also held a major interest in the House of Fraser which included Harrod’s. Through all these acquisitions the company increased sales and debt but profits remained low. The company was ripe for a takeover and Limited stepped up to the plate in 1984 and 1986. To fend off the takeover, CHH spun off the Specialty Group (Neiman Marcus, Contempo Casuals, and Bergdorf Goodman), sold Waldenbooks to Kmart, sold Thalheimers to the May Company, sold Wannamaker’s to Woodward & Lothrop, and Holt Renfrew to the Weston family. In 1991, CHH filed for Chapter 11 bankruptcy protection. In 1992, the Zell/Chilmark fund took the company out of bankruptcy and formed a new company called Broadway Stores, Inc. A new management team was recruited led by Mr. David Dworkin. Unfortunately, this new team misread the customer base and took Broadway Stores into a direction which proved disastrous. In 1995, the Zell/Chilmark organization sold Broadway Stores to Federated Department Stores. Within months the headquarters were closed and the stores were converted to Macy’s and Bloomingdale’s or were sold to Sears and other retailers.

What happened???      The Broadway never had the merchandising talent in fashion found at the competitors. It had few exclusive relationships with vendors and, because it was targeted towards the value-driven customer, it faced stiff competition from Sears, the rejuvenated J.C. Penney Company, discount stores and specialty retailers. Because the parent company was deep in debt due to the aggressive acquisitions, the Broadway did not have the funds to invest in the maintenance of their stores. The facilities were showing wear, carpets worn, and the fixtures and decor were outdated. Broadway also fell into advertising addiction; they relied heavily on costly advertising to drive whatever customer traffic they had. Most importantly, employee morale was low as the value of their profit sharing retirement plan declined with the company’s eroding performance. Probably the largest portion of blame goes to the lack of leadership at Carter Hawley Hale, the parent.  Competitors lovingly called the company Carter Farter & Hoopla. Reportedly, the Wall Street Journal commented … God gave them Southern California and they blew it”.

The downtown store on Broadway Street was kept open far longer than it should have. The store in the later years was in a transitioning area of downtown LA, surrounded by closeout shops, closed theatres, and empty store fronts. The store had narrow wooden escalators which were scary to use and very noisy. You could hear the thump, thump of the escalators all over the store. At the end, the store misrepresented the brand as the merchandise assortment was targeting a customer in the lower income strata.

Broadway Store During Shriner Convention . 1907

New Broadway Store. Los Angeles. 1930

New Broadway Downtown LA . 1930's

Millinery Department - Broadway

The Broadway . Drapery Department . 1907

Corset Department . 1907

Drapery Department 1907 Another View

Fourth Floor Restaurant . 1907

New Eighth Floor Restaurant . 1930's

Garden Restaurant . 1930's

Broadway . New Van Nuys Store

Broadway Santa Card (reverse side below)

Reverse of above Santa card

Home of The Broadway Founder

More on the home of the founder of The Broadway

Founder's Home in Hollywood

The Broadway . Employee Handbook . 1920

1920 Broadway Handbook pgs 2 & 3

Employee Handbook pgs 4 & 5

The Broadway . Employee Handbook . pgs 6 & 7

Employee Handbook . The Broadway. 1920 . pgs 8 & 9

The Broadway . Employee Handbook. pgs 10 & 11 . 1920

Note: Please do not make any copies of these postcards without the permission of John Plummer. It has taken years and a great deal of expense to compile this collection.

Should an unemployed retail executive suspend his/her job search during the holidays?

Monday, November 22nd, 2010

Should an unemployed retail executive suspend his/her job search during the holidays?

Every retailer knows the holiday season is a busy time. Store executives are working iron days, merchants are following sales trends closely to ensure inventories are balanced, human resources are keeping the stores staffed with temporary employees, and senior management is in constant angst about the season’s prospects. Your natural fear is that retail executives will not have the time to consider you for employment or that you will be seen as a pest if you bother them.

Nothing could be further from the truth! In fact, if you suspend your job search during the holidays you might be losing out on some significant opportunities. Keep in mind…

1. Retailers traditionally make executive changes after the fiscal year ends on January 31. January, February, and March become the busiest seasons in the recruitment of retail executives. As a result, the holiday season is a good time for you to make an impression with retail executives; and,
2. Retailers with positions open want to fill them before the fiscal year ends.

Your approach during the holiday season is important. Following are some things to think about for your holiday season job seeking activities:

• Retailer executives, like everyone else, think about family and friends during the holiday season. This is a good time to keep in contact with your network by sending a holiday email with your resume attached and letting them know that you appreciate any referrals as they hear about opportunities. You might also consider making a short call to wish them the best. Your object is just to stay in front of them.
• If you know a specific company has a current opportunity, be aggressive. No matter how busy they are, they need to fill that position before the end of the fiscal year.
• This is also a good time to build your relationships with recruiters, and industry consultants. They are not as harried as those in the retail industry.

How Do I Explain A Gap In My Employment History

Monday, October 4th, 2010

 

I often discover a gap in a candidate’s employment history while reviewing their resume. What is surprising is that so many individuals do not know what to do about these employment gaps. Some individuals try to hide it, which is lying. Others try to stumble through an explanation which makes an employer suspicious.

There are many reasons for a gap in your employment history. These could be:

  • Your employer went out of business leaving you looking for employment.
  • Your employer terminated your employment due to a staff reduction.
  • Your employer terminated you for cause.
  • Or, you quit.

 

Any of these reasons could leave you with an employment gap while you were looking for a new career. Sometimes, the gap is longer because of an economic downturn or because your family did not want to relocate.

What ever the reason, you should show the employment gap on your resume and be ready to fully explain what you were doing during that time. If you do not have a prepared and honest explanation it will lead prospective employers to think that something else was going on in your life … maybe incarceration.

The last thing you want to do is cover up an employment gap. If your perspective or, worse yet, your new employer finds out about the cover up, you will most likely be not hired, or terminated. Now, it is too easy for employers to verify accurate dates of employment; and, employers do check.

Honesty is the best explanation. An example of a good explanation is ….” after I left company xyz, I started looking for opportunities in my city. Unfortunately, there are no other retailers there so I tried to transfer my skills to another industry. My son/daughter was in his/her senior year in high school so our family made a choice not to relocate. A year later, I found myself still looking. With my son graduating, our family has now agreed to relocate.”

There are many other reasons. Do your best to honestly explain the situation.

Retail Executives: Education of the Highest Paid CEOs

Tuesday, August 31st, 2010

 In 2009, our firm published an article (listed below) indicating the level of higher education held by the CEOs of the top 100 retail companies. We have now identified the ten currently highest paid retail executives and have discovered that this group confirms our previous study. The complexity of the retail business is such that executives who possess the most intellectual tools rise to the leadership roles. The statistics are as follows:

Education of Highest Paid CEOs             Education of Top 100 Retail CEOs

BA degrees                 90%                                             85%

MBA degrees              10%                                            23%

JD degrees                   10%                                             6%

According to our research, the following executives fall into the category of the top ten highest paid executives. Total compensation for each is based upon current public records of publicly traded retail companies in the U. S.

Andrea Jung. Chairman and CEO – Avon

             Total Compensation: $13.7 million

             Education: Bachelor’s – Princeton University

 Michael T. Duke. President, CEO and Director – Wal-Mart

             Total Compensation: $13.3 million

              Education: Bachelor’s – Georgia Tech

Terry Lundgren. Chairman, President and CEO – Macy’s

              Total Compensation: $8.7 million

              Education: Bachelor’s – University of Arizona

Francis S. Blake. Chairman and CEO – Home Depot

              Total Compensation: $8.3 million

              Education: Bachelor’s – Harvard College 

                                 JD – Columbia University

Myron E. Ullman – Chairman and CEO – J.C. Penney Company

              Total Compensation: $8.0 million

              Education: Bachelor’s – University of Cincinnati

Trudy Sullivan – President and CEO – Talbots

             Total Compensation: $6.9 million

            Education: Bachelor’s – Manhattanville College

Katherine L. Krill – CEO, President and Director – Ann Taylor Stores

             Total Compensation: $6.9 million

             Education: Bachelor’s – Agnes Scott

Robert A. Niblock – Chairman and CEO – Lowes

             Total Compensation: $6.1 million

             Education: Bachelor’s – University of North Carolina

Gregg W. Steinhafel – Chairman, President and CEO – Target

             Total Compensation: $6.0 million

             Education: Bachelor’s – Carroll College

                               MBA – Northwestern University

Carol M. Meyrowitz – CEO – TJX

             Total Compensation: $5.7 million

             Education: no degree

Following is the study we released in April, 2009, on the education level of the CEOs for the top 100 retail chains.

TOP RETAIL EXECUTIVES HAVE TOP EDUCATIONS!

A new study conducted by Plummer & Associates on the Chief Executive Officer education at the top 100 retailers in the United States shows that today over 85% have college degrees. This represents a significant increase over Plummer & Associates’ 2002 study that showed only 60% had earned college degrees. The number with advanced degrees has remained about the same; however, the new study shows the breakdown at 23% with MBA degrees and 6% with JD degrees.

Does this continuing trend mean that the industry can no longer be led by the person who starts with a push cart? Our research shows that while working your way to the top may have been a viable career path in the past, the constantly evolving and complex nature of today’s retail landscape requires that executives must couple their ground up experience with the sophistication and strategic vision gained through earning a college degree.

Retailers have consolidated from regional companies led by founding families into massive, complex businesses requiring sophisticated tools to manage them effectively. This new breed of retailers is intensely competitive and constantly looking for cost and marketing advantages to secure their market position.

Some of the complexities facing retailers today demand a command of the following disciplines:

  • Marketing – Sophisticated reporting systems have elevated the ability to forecast demand, measure customer buying pattern changes, brand awareness and customer loyalty, and help build brand value. Each retailer now operates through more than one channel, (retail, e-commerce, catalog, direct marketing) requiring that the decisions made for each channel are highly strategic.

 

  • Supply Chain Management/Logistics – Today there are tools available to help retailers secure significant cost advantages throughout the supply chain while simultaneously improving customer service. This gives retailers significant competitive advantages.

 

  • Merchandise Management – Advanced technologies are now required to source merchandise for product development, assortment planning, SKU rationalization, customer knowledge, trend analysis, and inventory and category management. The most important part is using these technological advances to increase profitability.

 

  • Finance – This function has quickly progressed from recording history to active involvement in creating value through analytics and is now vital in allowing a retailer to compete for capital against all other industries.

 

  • Legal – Our society has become more litigious making larger businesses more of an attractive target. The complexity of new regulations has resulted in an increase in legal staff. A retail leader is now required to be more involved and responsible for setting the tone of legal strategies.

 

  • Human Resources – Once considered just a major expense, Human Resources managed effectively must now create differentiation versus competition. A company’s culture and devotion to the customer are now more important than ever.

 

  • Information Technology – In the past, technology seemed to be the sole domain of the IT department. With advanced POS systems, the retailer has learned the power of information and no longer relies solely on market information provided by the vendor. Leading edge IT departments now interrelate with the entire organization by providing useful information to aid in decision making, control costs, forecast, and analyze. Companies are now operating enterprise-wide systems and the CEO must know the capabilities of these systems to ensure the company gains a competitive edge.

 

  • Global Reach –The days when retailers only operated stores in the U. S. with product only secured from U. S. sources are gone. The implications of the global activities are enormous.

 

Forward-looking retailers who saw the need for talented executives brought highly educated executives into the retail industry. In the late 60s and 70s the retail industry started recruiting top students from colleges and graduates from MBA programs. The top leaders at that time were: Jewel Tea, Federated Department Stores, J.C. Penney Co, Sears Roebuck & Company, Kroger, The Dayton Hudson Corporation, and The May Department Stores Company. Those recruiting programs have produced many of the CEOs of today’s successful retailers.

For those looking to progress up the ladder in retail, the data indicates that the career path from bagperson to CEO is no longer viable, nor practical. Retailers striving to be successful must compete for the best educated. And future leaders in retail must strive to educate themselves and that education must include minimally the rigors of earning a bachelor’s degree. Earning an MBA and/or a JD degree greatly improves one’s chances. This is not because one needs a degree to punch up a resume; rather it is the intellectual tools gained through formal education combined with on-the-job training that prepares an executive for the rigorous and evolving challenges facing retailers today.

While the 2002 study indicated no particular school had the lead in producing future CEOs, the current research indicates that a new trend is starting to develop. Harvard University has taken the leadership position having five CEOs with undergraduate degrees and five with MBA degrees. Second is The University of Pennsylvania’s Wharton School of Business with three CEOs holding an undergraduate degree. Columbia University and the Kellogg School of Management at Northwestern University are tied with three CEOs each holding MBA degrees. The University of Illinois has three CEOs with undergraduate degrees.

It is clear the retail industry needs to compete in the market place to bring the brightest talent with superior intellectual tools and education to manage the business for the future.

Retail Executives: Recruiting Executives To A Family-Owned Company

Wednesday, August 18th, 2010

 

The first blush comment from most in the recruiting industry is that recruiting executives to family-owned private businesses is difficult or near impossible. But, if you look at the facts, there are large family-owned companies that have successfully grown and have successfully recruited top talent. For example, look at Hershey, S. E. Johnson, H. E. Butt, Wegman’s, Jockey International, and Carlson Companies as prime examples of successful family-owned businesses.

In my opinion, it is not the family ownership that makes recruiting difficult. The issue is the management style of the ownership. The style of the executive evaluating the opportunity is equally important.

An executive considering joining a family-owned business has several questions to ask. These are:

What will be my future with the company? Is there opportunity for personal growth? Are there family members involved who will limit my chances for promotion?

What is the financial health of the company and is the family willing to invest more or dilute their ownership through debt or equity? Is the family willing to be open about the financials and their strategies?

How willing is the family to invest in new equipment, research, systems, etc?

Is the family open to new ideas?

Is the family willing to share interest in the business to key executives? Will this interest be developed on an open basis? Will this be on a true partnership basis?

Is the family really willing to delegate responsibilities to non-family members?

How long does the family plan to own/control the company? What will be the exit strategy for the family ownership: IPO, strategic sale, or other? Are all family owners on the same page in terms of the exit strategy?

At the same time, family owners have questions to ask the prospective executive. Among the questions are:

Is this executive really committed? Will he/she put in the effort required to take the business to the next level?

Is this executive willing to share the risk? If the economy gets soft, will this executive pitch in and work harder and smarter and also accept the earnings declines that the ownership suffers…or will this executive just move on when times are tough?

Will this executive work with us as we ponder through difficult times and difficult financing issues?

Is this executive willing to put skin in the game (i.e.: personal finances, or extraordinary effort)?

The success or failure in both parties trying to develop an effective working relationship depends on both parties’ questions being put on the table and answered truthfully and in an open manner.

The company that is not willing to provide full and honest disclosure and not truly willing to answer all the executive’s questions will make recruitment difficult. A recruiter will be able to bring in a hired hand but will not be able to recruit a true partner for the business.

The executive who wants the upside but who also wants guarantees is probably not the right executive either.

For a recruiter, the challenge is to quickly learn about the family and their willingness to answer the questions candidates will ask. To the degree the family is willing to answer those questions will determine the level of candidate the recruiter will be able to bring to the table. This requires a skilled executive recruiter who knows how to assess family organizations and also assess candidates for their ability to fit the circumstances.

As a side note: These issues are not as important with larger family-owned public companies. In smaller family-owned public companies these issues and the management style are still important. Even though the ownership and the financial data is public information, the family involvement in the business and their longer term intentions need to be disclosed to potential executives. What is most important for the executive to discover in these circumstances is whether the family self-interests are aligned with the short- and longer-term needs of the business.