Posts Tagged ‘specialty retailers’

DEPARTMENT STORES OF NORTHERN CALIFORNIA – HALE BROS – SACRAMENTO

Friday, March 18th, 2011

Hale Bros. San Francisco - Pre-1906

HALE BROTHERS – SACRAMENTO

In 1880 the Criterion Store was opened by Prentice Cobb Hale and his two brothers. This store was located in downtown Sacramento. The next year the store and company was renamed Hale Brothers & Company. In 1896, the company incorporated under the name of Hale Bros. In 1887, the company established a buying office in New York headed by Marshall Hale. This store was known for offering value priced merchandise.

Hale Bros opened large stores in San Francisco and San Jose and several smaller stores in California’s smaller markets. In those days some of the stores included groceries in their merchandise mix. Each store was managed as a separate entity as systems were not sophisticated enough to have chain wide merchandising. The Sacramento store was last located at 9th and K Streets. The San Jose store was at the corner of 1st and San Carlos. The San Francisco store was first located at 989 Market Street. After the earthquake, the company built a new store at 901 Market Street in a neoclassical building designed by the Reid Brothers. It lost that store in a 1944 lease dispute with the owners of the land upon which the store was built. As a result, J.C.Penney moved into this prime location and Hale Bros was forced to take over the former J.C.Penney location adjacent to the enormous Emporium store.  The foolish negotiations by Hale Bros resulted in the company opening in an older building while paying a much higher rent.

In 1949, Hale Bros. acquired their Sacramento rival, Weinstocks Lubin & Co. In 1949, Hale Bros. negotiated an all-stock merger with Los Angeles based Broadway Department Stores, then the largest and most aggressively growing chain in Southern California. The result was Broadway-Hale Stores. Prentice Hale became the Chairman and Ed Carter (Broadway) became President.

All stores were closed by 1968. Hale Brothers was facing increased competition from the Emporium and aggressive specialty retailers. Consumers were moving to the malls while Hale Bros stores were in downtown markets. Since the Emporium was merged into Broadway – Hale in 1969, I have to believe they knew that Hale Bros stores would not be relevant in that combined company. At the time, the only people crying over the loss were the employees of Hale Bros. The store was not missed.

The Sacramento store has now been restored to its original look; the unsightly aluminum sheathing has been removed. The San Jose store now houses a building and loan office. The San Francisco store was empty for years after J.C. Penney left San Francisco. It now houses big box retail venues.

What happened????…. In the case of Hale Bros you cannot blame Carter Hawley Hale for its demise. Instead, blame goes directly to the company’s management. The loss of the San Francisco store lease killed that store. They ended up with a store that was old and in decline and they paid more in rent. They just could not compete with the more customer friendly Emporium next door. Customers were also looking for more fashion but Hale Brothers did not offer it. The biggest problem was that the customers were moving to mall shopping environments and Hale Bros stores were only located in downtown venues.

I was taken to the Hale Bros stores in both Sacramento and San Francisco. In Sacramento, the Weinstock’s store was far more exciting. In San Francisco, going to Hale Bros was torture in comparison to the Emporium, the White House, or the City of Paris. Then, when Macy’s San Francisco woke-up, it was all over for Hale Bros.

I hope that all of you who know Hale Bros better than I do will be able to tell your stories in the comments section below. I would especially like to hear more about how the real estate mogul, Louis Lurie, out foxed Prentice Hale.

Hale Bros. - San Francisco - Destruction by 1906 Earthquake and Fire

Hale Bros. - San Francisco - Rebuild after Earthquake and Fire

Hale Bros. - San Francisco - New Store on Market - 1927

Hale Bros. - San Jose - Scene from 1932

Hale Bros. - San Francisco - First Floor - no date

Hale Bros. - San Francisco - Pompeian Court/Restaurant - 1914

These Hale Bros. postcards are part of the Plummer & Associates collection. Please do not copy or reproduce without permission from John Plummer.

NORTHERN CALIFORNIA DEPARTMENT STORES – WEINSTOCK LUBIN & CO – SACRAMENTO

Wednesday, February 16th, 2011

Weinstock Lubin & Co. Sacramento 1908 New Store After Fire

In 1875, David Lubin, a Polish émigré via New York opened Lubin’s One Price Store in downtown Sacramento. This first store was 16 by 24 feet. A year or two later, his half-brother, Harris Weinstock, and his sister,  Jeanette Levy, joined the business as it expanded from just a store to a major mail order house and the company name changed to Weinstock Lubin. Soon after, the store was expanded to 80,000 square feet with four stories. In 1875, the company was the largest mail order house on the Pacific Coast.  The company grew and soon opened buying offices in New York and San Francisco. In 1888, the company was incorporated and renamed Weinstock Lubin & Co. A store in San Francisco was opened in 1897. In January, 1903, the downtown Sacramento store was destroyed by fire. A fireman was killed. Not to be stopped, the company quickly proceeded to build a new store, a building which became the biggest in Sacramento. The company targeted the value driven customer. As time continued, the retail business took over and became the majority of the business.

The company developed a culture which allowed employees to have a stake in the business. The company started a profit sharing plan which shared profits by employee level. The company also hired teachers to provide younger employees with skills in writing and mathematics.

David Lubin was impatient and wanted to do more than just run the family department store and mail order house. He let Harris Weinstock become the CEO while he engaged in agriculture. He started orchards in the Sacramento area and brought European farming methods. His knowledge of agriculture assisted him when he helped found the California Fruit Growers’ Union. He then helped settle Eastern European Jewish refugees who worked on various farms in the area and, in 1891, he became the director of the International Society for the Colonization of Russian Jews. He then began to campaign for subsidies and protection for farmers, initially in California but eventually on an international scale. His son, Simon, helped him develop a proposal for an international chamber of agriculture; in 1896, David Lubin moved to Europe to implement the proposal. In May, 1908, with the sponsorship of Italy’s King Victor Emmanuel III, the International Institute of Agriculture (the IIA) opened, in Rome. The Institute’s goals were to help farmers share knowledge, produce systematically, establish a cooperative system of rural credit, and have control over the marketing of their products. In 1906, David was permanently appointed as the U.S. delegate to IIA. (Note: The IIA was folded in 1945 and merged into the United Nations.

In 1949, Weinstock Lubin & Company was acquired by its arch rival, Hale Bros. In 1979, the new parent company Carter Hawley Hale Stores expanded Weinstock Lubin & Company (now just called Weinstock’s) into Reno, Nevada, and Salt Lake City, Utah.

In 1991, Weinstock’s was combined with the Emporium division which took over all operations including merchandising.

The downtown store in Sacramento is now an office building.

What happened???      Weinstock Lubin & Company was once a powerful retailer in Central California. It unfortunately became a part of Hale Bros which later merged with Broadway Stores and became Broadway Hale and later merged with Emporium Capwell to become Carter Hawley Hale Stores. Wall Street jokingly called the company EGO, Inc. The parent company immersed itself with debt as it went on a drive to acquire other retail chains in an effort to become the biggest retail chain in the U.S. The impact of this debt reduced the amount of capital available to maintain the stores. Macy’s became a better competitor in California and Nordstrom also entered the market along with a host of specialty retailers and big box retailers. The department store divisions of Carter Hawley Hale no longer were relevant to the customers. After Carter Hawley Hale Stores were sold to an investor group, Zell/Chilmark, the new management team made key marketing mistakes which finished off the parent company and resulted in the 1995 sale to Federated Department Stores. With the sale, all divisions, including Weinstock’s were either converted to Macy’s or sold.

I visited Weinstock Lubin & Company when I was young as I only lived 80 miles south in Modesto. Although Weinstock Lubin had an enjoyable lunch bar for kids, it was not as magnificent as the stores in San Francisco. Weinstock Lubin was a major participant in the holiday festivities and always had wonderful window displays.

Weinstock Lubin & Co. Sacramento 1906

Weinstock Lubin & Co. Sacramento 1924

Weinstock Lubin & Co. Sacramento 1927

I encourage you to leave your memories of this store and department store chain in the comments section below.