Posts Tagged ‘Weinstock Lubin’

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.

DEPARTMENT STORES OF NORTHERN CALIFORNIA – GOTTSCHALK’S – FRESNO

Monday, March 14th, 2011
 
 
 
 

 

Gottschalk’s – Fresno – 1914 – New Downtown Fresno Store

 

GOTTSCHALK’S

Gottschalk’s was founded in 1904 by Emil Gottschalk, a German Jewish immigrant. The store opened in downtown Fresno, California, a city in the great San Joaquin valley rich in agriculture. The store focused on moderate priced dry goods. This strategy was so successful that the company opened a new larger store (100,000 square feet) in downtown Fresno in 1914. About 1960, Irving Levy, the grand nephew of the founder, took control of the company as CEO. He remained Chief Executive Officer until his death in 1980. During his tenure, he opened the first branch store in Merced, California which served an agricultural based population plus those at Castle Air Force Base. He continued expansion in California growing the chain to six. In addition, he launched Bobbie West, a juniors chain, and Village East, a plus-sized women’s chain.

Gottschalk’s found its niche in small markets in the West. In these smaller towns the retailer became the dominant store and was able to operate with lower real estate costs and often lower labor costs than retailers in major markets. The company expanded through acquisition. In 1987, it acquired Malcolm Brock, the privately held chain operating in Bakersfield. A year later, it acquired the Harris Department Stores chain based in San Bernardino. In 2000, the company acquired Seattle based, Lamont’s which operated stores in the Pacific Northwest, including Alaska.

Gottschalk’s became a public company in1986 and was listed on the NYSE.

The downtown Fresno store was closed in 1998.The downtown area had been upgraded with an outdoor mall area, but that was not enough to save the store as customer preferred shopping in suburbs.

Gottschalk’s filed for bankruptcy protection in January, 2009. In March 2009 the company announced that it would be liquidating; the last stores were closed on July 12, 2009.

What happened????…. The small market strategy worked for Gottschalk’s. In many of the markets it was the dominant store allowing the company to flourish. The acquisition of Lamont’s quickly became a problem. Some of the Lamont’s stores were in malls which were not a good competitive format for Gottschalk’s. Those stores were the first to be closed. Competition also got stiffer as Mervyn’s, Kohl’s, Target, Wal-Mart, and a rejuvenated J.C. Penney entered Gottschalk’s markets. The biggest blow came from the Great Recession. It hit California hard. The final blow came when the company could not secure financing to emerge from bankruptcy protection.

When I was a child I did visit the downtown store. I had an aunt and uncle who lived in Fresno. To me it was just a big store, nothing remarkable. When I visited the store later, it was not well-maintained. It was not long afterwards that the store was closed. The suburban stores were the best store in each of their markets. The merchandise mix was moderate, but they were the only store that offered major national brands. That was the clear edge they had over Mervyn’s, Target, and Wal-Mart.

Since the demise of Gottschalk’s is recent, I am sure there are many around who can add their memories of the company to the comments section below.

Gottschalk’s – Fresno – Postmark 1918 – note recolored

Gottschalk’s – Fresno – New Years Greetings!

These postcards are from the Plummer & Associates collection. Please do not copy or reproduce any of these postcards without written permission from John Plummer.