June 22nd, 2011
RETAINING YOUR TOP TALENT AS THE ECONOMY IMPROVES
According to all the statistics I read, one in every three employees is desiring to change jobs when another opportunity comes along. Should every employer be concerned?
As the economy improves, executive search firms will be seeking the best talent for their clients. Top talent will be contacted and wooed with opportunities at other companies. This has been the way things work for the past fifty years and I expect it will continue for the next fifty years.
Just because 1/3 of executives are looking to move does not mean it should be of major concern. I feel the question each company should ask itself is … “who are the 1/3 willing to leave?” If your key and high potential executives are willing to leave, you have a problem. It is time for you to evaluate your key executives to make sure their compensation is in-line with competition and that you have the benefits and stock options in place to keep these executives motivated and owners in the company. At the same time, you need to let them know the importance they play in the company and the future they should expect.
On the other hand, if the one-third willing to leave are not your top team members, maybe this is not a bad thing. If they leave, it will give you an opportunity to recruit and/or develop top talent. Turnover at the bottom performance level often allows new stars to develop and flourish.
Organizations which compensate key employees well, that lock them in with strong benefits and stock option programs, and that offer a bright future, seldom lose their best executives. Executive recruiters know that!
Tags: Apparel Careers, benefits, big box retail, bonus plans, careers, catalog, Department Store History, dina lokets, direct marketing, drug stores, e-commerce careers, economy, executive search firms, food service careers, food service recruiters, jobs, john plummer, key executives, la times, m-commerce careers, mass merchants, modesto, national retail federation, nrf, NY Times, plummer & associates, plummersearch.com, retail careers, retail executive recruiters, retail executive search, retail executive search firms, retail executives, Retail History, retailalumni.com, retailexecutivesearch.com, retailexecutivesearchfirms.com, salary, Senior Executives, Specialty retail, stock options, stores magazine, supermarkets, susan gill, talent retention, talent turnover, unemployment, USC, wholesale careers, wsj, WWD
Posted in Talent Development/Education | No Comments »
June 17th, 2011
For years, consultants in executive search have been explaining the difference between contingency and retained executive search firms. It has always been hard to do without sounding self-serving. I have attached a definition of Executive Search from Wickipedia (June 17, 2011) which I believe makes the differentiation quite clear.
Which process a client chooses is the client’s decision. I have a bias. After years within a client company and years as a leader in executive search, it is clear that the retained approach is best for the recruitment of key executives. The retained process is more intensive, extensive, and results in candidates with the best fit. Retained search also best represtents the client’s brand.
Executive search
From Wikipedia, the free encyclopedia (June 17, 2011)
Executive search is the consultative process of recruiting individuals to fill senior executive positions in organizations. Executive search may be performed by an organization’s board of directors, or by an outside executive search organization.
Executive search profession
Executive search is an extremely lucrative industry and successful search consultants can earn large sums. For this reason there is fierce competition to work in this sector. Generally the office is broken down into three functions: Business Development, Recruiting and Research. Generally the Business Development person receives the largest commission while the Researcher receives the smallest.
The executive search profession ranges in models from “Retained” search to “Contingency” search. Retained search firms are paid a retainer equal to one-third of the fee up front to launch the search process, a third of the fee thirty days from launch and the final third sixty days from launch. If the fee is fully paid before a candidate is hired, the retained firm continues its work until the search is concluded. Contingency search firms, on the other hand, receive their entire fee at the conclusion of the search process. Over the years, many contingency firms have begun receiving retainers while retained firms have expanded their models to include flat fees, capped fees, etc.
Search consultancies are often entrenched in particular market sectors. Their market sector networks are used along with various methods to seek candidates for a particular job. Normally the individuals are not actively seeking a new job. It is the job of the search consultant to approach these individuals with a view to taking them out of their current company and placing them in another, often a competitor.
The service is paid for by the client company or organization, not by the hired job candidate. Potential job candidates are identified, qualified and presented to the client by the executive search firm based upon fit with a written or verbal Job Specification developed in conjunction with the client. Assessing degree of potential fit of the candidate with the job specification is a key activity for the search firm, since the most common reason a search consultant is engaged by a client company is to save time and effort involved with identifying, qualifying and reviewing potential candidates for specific leadership positions.
It is common for a potential candidate to be identified by the search firm via a telephone call. Often the phone call is the result of a recommendation from someone inside the existing network of the search firm. Quality oriented search firms work hard at cultivating and continually updating their network of contacts so that when a search assignment is awarded they will be ready to start recruiting potential candidates. Another way to identify potential candidates involves search firm “research”, which is contacting targeted people in specific companies who appear to fit the job profile in some logical manner. Some of the best candidate referrals come from people who could be candidates for the job themselves but for any number of reasons are not interested at that particular time.[1]
Retained executive search firms
Retained executive search firms are firms paid on a retainer-structure that identify, assess, and recruit Corporate Officers, Board Members, C-level executives, Diversity Candidates, and other senior talent. There are large, global firms who engage in this activity, as well as regional “boutique” firms. Some smaller firms act together as a network, thus gaining global reach and being able to compete with the large integrated ones. Some firms specialize in specific industries (for example pharmaceutical, retail, IT) or functions (i.e. sales executives), while others are generalists.
Job seekers who qualify for senior-executive level searches often mistake executive recruiters for career transition, or “outplacement” specialists. Executive recruiters work for their client companies. They do not actively place out-of-work individuals. This would not only be a conflict of interest, it would also be financially unwise. A job seeker does not pay a recruiter when he lands a job. The client company pays the recruiting firm when it fills a position. This nuance is lost on many. It may be worthwhile to contact executive search firms if you qualify, but do not expect them to take time out of their schedule to talk with you or see you. They are driven by their specific assignments for their clients: they find people for roles, not roles for people. Executive search consultants can be “career makers” for some individuals, but for most, this will not be the way they will find their next role.
When choosing a firm, it is a good idea to consider carefully what you want from the relationship. While contingency firms offer a service with no money up front, they will often only work on those searches that can be executed quickly and do not have the time to focus on high-quality candidates. Another option is to hire one firm and give them an “exclusive contingency” arrangement so that the money is still paid at the end of the search, but there is only one firm working on the search. This gives the firm the benefit of time to truly focus on quality and the hiring manager is not flooded with resumes. A third option is to pay the firm an engagement fee. Generally firms with engagement fees are exclusive as well and then have more resources available to them to purchase additional research. This also moves the search to a “retained” level which brings a level of professionalism sought by many upper level candidates. At the retained level, a client could pay a “performance retainer” which means a payment to start the search, a payment when candidates are submitted and final payment when the candidate starts. These milestones are chosen due to the fact that the firm “performed”. The more traditional retainer agreements are time based and are set at specific intervals regardless of retainers.
Types of executive search firms
There are broadly two different types of Retained Executive Search firms in operation.
Global: These tend to cover numerous different sectors including financial services, life sciences, automotive, consumer, energy, pharmaceutical, telecommunications, technology, and media companies, as well as other industries. Such executive search companies will have many offices all over the world and the consultants will typically be split by which sector they are expert in. These firms are often public listed and may have over 100 offices.
Boutique: These tend to be more sector specific. That is to say that they will cover only one sector and within this sector, they may only look at certain aspects. For instance, there are a number of boutique firms that operate within financial services and these companies tend to look at senior positions (MD, Director and Vice President) within Investment Banking (M&A, Corporate Finance), Capital Markets (ECM & DCM), Sales, Trading, Research, Interest Rates, Credit, Equities, Derivatives, hedge funds and long-only asset management. As such, these firms would have one or more offices in the major financial centers across the globe; London, New York, Chicago, Dubai, Shanghai, Beijing, Mumbai, Hong Kong, Tokyo and Singapore. While the global firms may have a presence within these areas, they tend to cover board level positions within retail banking, asset & wealth management and insurance. However the larger global firms do periodically work within the capital markets arena
Tags: big box retail, contingency search, Department Store History, dina lokets, executive careers, executive search firms, fashion careers, food service careers, heidi plummer, john plummer, modesto, nrf, plummer & associates, plummer and assocaites, plummersearch.com, retail alumni, retail careers, retail executive recruiters, retail executive search firms, retailexecutivesearch.com, retained executive search, retained executive search firms, Specialty retail, stores magazine, susan gill, USC, Womens Wear Daily, WWD
Posted in Talent Development/Education | 2 Comments »
June 15th, 2011
Plummer & Associates recruits Ms. Kim Mason as the Director – Store Planning for Five Below. Ms. Mason had been the Senior Manager - Supply Chain for Office Depot.
Five Below is a privately held chain of discount stores found in a number of states. The store (as indicated by the name) sells products that cost no more than $5.00. The chain is aimed at teenagers and pre-teens, but have many products for mom and dad. The store was founded in October 2002.
Plummer & Associates, is based in New Canaaan, Connecticut and is known in the direct-to-consumer industry (retail, retail services, food service, restaurant, catalog, e-Commerce, m-Commerce, direct marketing/selling, and apparel wholesale) segment for the quality of its executive search services. For more information, we refer you to www.plummersearch.com.
Tags: dina lokets, executive search firms, FIT, heidi plummer, john plummer, LATimes, nrf, NY Times, pennsylvania, philadelphia, plummer & associates, plummer and associates, plummersearch.com, retail careers, retail executive recruiters, retail executive search, retail executive search firms, retail executives, retailexecutivesearch.com, retailexecutivesearchfirms.com, small box retail, Specialty retail, stores magazine, susan gill, toy retail, USC, wsj
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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
Brooklyn Orphan Asylum . 1906. pub by A&S
A&S Rear View Showing Service Center 1904
Tags: A & S Alumni, A & S History, A&S, Abraham & Straus, Allied Stores, Associated Dry Goods, Beauty, big box retailers, bloomingdales, Brooklyn, carter hawley hale stores, City Stores, cosmetics, Department Store History, dina lokets, executive recruiting, executive searh fimrs, Fashion Institute, FEDERATED DEPARTMENT STORES, FIT, grand dames of retail, heidi plummer, john plummer, la times, macy's, Merchantile Stores, merchants, New York, New York Department Stores, New York History, New York Retail, nrf, NY Times, plummer & associates, plummer and associates, Plummersearch, plummersearch.com, retail careers, retail executive recruiters, retail executive search, retail executive search firms, retail executives, Retail History, retail recruiters, retailexecutivesearch.com, retailexecutivesearchfirms.com, Specialty retail, stores magazine, susan gill, USC, wsj, WWD
Posted in NEW YORK STORES, Retail Postcards | 37 Comments »
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.”
Tags: big box retail, CFO, CFO search, charming charlie, COSTUME JEWELRY, department stores, dina lokets, direct marketing, ecommerce, executive search firms, fashion, fashion careers, heidi plummer, JEWELRY, john plummer, modesto, plummer & associates, plummer and associates, plummersearch.com, retail, retail careers, retail executive search, retail executive search firms, retail recruiters, RETAILER, retailexecutivesearch.com, retailexecutivesearchfirms.com, retailing, Specialty retail, susan gill, USC
Posted in Candidate Information, Talent Development/Education | No Comments »
May 12th, 2011
 |
| True Religion Apparel, Inc. Names Jordan Daly as Vice President of Brand Strategy, Public Relations and Marketing |
| VERNON, Calif., May 12, 2011 (BUSINESS WIRE) –True Religion Apparel, Inc. (Nasdaq: TRLG) today announced that the Company has named Jordan Daly as Vice President of Brand Strategy, Marketing and Public Relations effective May 1, 2011. Ms. Daly will be responsible for developing the direction for, and managing all aspects of brand management, marketing, public relations and special projects on a global basis. She will drive a strategic multi-platform communication plan, oversee brand identity and positioning, campaigns, public relations, special events, product launches and internal communications to further build the Company’s market leadership position and maximize profitability. Mr. Jeffrey Lubell, the Company’s Chairman, Chief Executive Officer and Chief Merchant will be directly involved in overseeing Ms. Daly’s initiatives.Ms. Daly was most recently Vice President Public Relations Americas for Burberry Group, PLC. Prior to that, she served as Managing Director with HL Group, LLC specifically overseeing strategic marketing and communication platforms for consumer, fashion and lifestyle clients. Ms. Daly’s additional professional experience includes serving as Public Relations Director with kate spade and she worked in account management and advertisement roles with Factory Communications. Ms. Daly began her career at Harrison & Shriftman and has a B.S., Fashion Merchandising and Marketing from the University of Alabama.Jeffrey Lubell, Chairman, Chief Executive Officer and Chief Merchant of True Religion Apparel, Inc. stated, “Jordan brings a wealth of knowledge in all facets of brand development that will help further increase our overall brand awareness and affinity. As we continue to expand and further evolve our global presence, Jordan will be instrumental in guiding our efforts to reach our target customer while enhancing our reputation as one of the world’s premier denim and lifestyle brands.” |
Tags: dina lokets, executive search, executive search firms, heidi plummer, john plummer, MARKETING, modesto, plummer & associates, plummer and associates, plummersearch.com, PUBLIC RELATIONS, retail, retail executive search, retail executive search firms, Retail History, retail recruiters, retailexecutivesearch.com, retailexecutivesearchfirms.com, Specialty retail, susan gill, USC, WHOLESALE SALES
Posted in Candidate Information, Talent Development/Education | 1 Comment »
April 28th, 2011
Viva International Group Appoints Jan Cory as Senior Vice President of U.S. and Canada Sales
Press Release Source: Viva International Group On Thursday April 28, 2011, 9:00 am
SOMERVILLE, N.J.–(BUSINESS WIRE)– Viva International Group, a worldwide leader in ophthalmic frames and sunglass distribution and manufacturing, has appointed Jan Cory as senior vice president of domestic sales. In her new role, Cory will oversee both the U.S. and Canadian sales forces, and will report to Viva President Frank Rescigna. Reporting to Cory will be Robert Dunn, Viva’s director of east coast sales; Kelly O’Grady, director of west coast sales; William Munch, general manager, Viva Retail Sun Division; and Don Fatula, manager of corporate accounts.
“Critical to our success in sales is excellence in strategic planning and the development of a solid collaboration of partnerships across our organization,” said Rescigna. “Jan has a proven track record in these areas in her more than 30 years of achievement and leadership in premium brand retail consumer products. Her experience will help us to continue to flawlessly execute our goals and ‘super serve’ our customers.”
Cory joins Viva from Luxottica where she recently lead the optical sales team as vice president of independents and sun specialty, including creating new customer-centric strategies, which lead to the 2010 sales force transformation. Previously, she was vice president of department stores and special markets, where she helped to establish her division as the premier resource in the department store channel of trade. Prior to her 12 years at Luxottica, she was vice president of sales for the U.S and Canada for Grosse Jewels, which had the licenses for Christian Dior and Burberry fashion jewelry.
Cory is a graduate of Miami University where she earned a bachelor of arts degree in public administration and political science. She is on the board of the Accessories Council, and a member of the Fashion Group.
Tags: big box retail, department stores, dina lokets, Executive Search Firm, executive search firms, Eyewear, heidi plummer, john plummer, modesto, plummer & associates, Plummersearch, plummersearch.com, retail, retail executive search firm, retail executive search firms, retail recruiters, retailexecutivesearch.com, retailexecutivesearchfirms.com, Specialty retail, susan gill, USC, Viva International
Posted in Candidate Information, Talent Development/Education | 1 Comment »
March 26th, 2011
I. Magnin on Union Square - San Francisco
For years, I. Magnin & Company was the leading high fashion/luxury goods chain in the West serving the ‘carriage trade’ customer with exclusive fashion from leading designers. It earned these exclusive relationships by providing a facility and customer service that showcased the brands. She became known for bringing the latest fashions from Paris.
Magnin & Company was started in 1876 by Mary Ann Magnin and she named the company after her husband, Isaac Magnin. She came from the Netherlands and he from England. Her first store carried lotions and high-end clothing for infants. She then expanded into bridal. Her first store was located on Market Street. She later moved to 918-922 Market Street, right across from the Emporium. The new store was 10,000 square feet, two stories, and renowned for its elegant ladies room. In 1906 the company had a second location under construction on Grant Street but it never opened. The earthquake and fire destroyed both the Market Street store and the incipient one. Mrs. Magnin built a new store at the corner of Stockton and Geary Street. In 1948 that building was replaced with a new flagship store, dubbed the ‘White Marble Palace’ by Christian Dior.
Three of the Magnin’s sons (John, Grover, and Sam) joined the company. The fourth son, Joseph Magnin started his own company, J. Magnin.
In 1910, I. Magnin’s began opening boutique shops in luxury hotels in California. Eventually, there were six of these shops. In 1939, the company expanded into Southern California with its first store on Wilshire Boulevard, a block from the Bullock’s Wilshire store.
In 1944, Bullock’s Department Stores bought I. Magnin & Company and formed Bullock’s-I.Magnin. This partnership funded the new I.Magnin flagship store opened in 1948. It also led to the expansion of I. Magnin & Company to Santa Ana, Sherman Oaks, and Del Amo.
In 1964, Bullock’s-I.Magnin was acquired by Federated Department Stores in a hostile takeover. As a result, Bullock’s and I.Magnin’s became separate divisions of Federated. Federated did fund the expansion in the 1970’s of I. Magnin & Co into Chicago and Washington, D.C.
In the late 1970’s and the early 1980’s, Federated Department Stores realized that I. Magnin’s customer base was shrinking as the ‘carriage trade’ passed. The company realized that the younger customers were not shopping at I. Magnin’s. Management changes were made to attract the younger customer. These strategies did not provide the expected results and in fact, often resulted in offending the older customers. Sales continued to decline. High end boutiques were doing a better job of attracting the young and wealthy.
In 1988, Federated was taken over by real estate developer Campeau Corporation. In a settlement with the R. H. Macy Company which was also a bidder, Campeau sold the Bullock’s and I. Magnin’s divisions to Macy’s. The following year, Macy’s combined the Bullock’s Wilshire and I.Magnin’s divisions and started shuttering stores. The 1992 Rodney King riot in Los Angeles made it easy for the original Bullock’s Wilshire store to be closed.
The secret sauce for I. Magnin’s was creating an environment to showcase high fashion and luxury goods. Everyone who visited the San Francisco flagship I. Magnin store will tell you stories about the store, especially the marble ladies room with the gold plated fixtures. The store and all its facilities were elegant. Designers preferred to have their goods showcased at I. Magnin’s versus other retailers. And this set the company apart from all other department stores. In addition, the sales associates developed strong relationships with all the carriage trade customers and would call them to let them know about new goods and would hold those goods until the customer visited the store.
For a while, Rose Marie Bravo ran I. Magnin’s and she set plans in place to rebuild the chain’s image. After she left, the business again lost merchandising direction. In 1994, Federated Department Stores reached an agreement with the creditors of the R. H. Macy Company to buy it out of bankruptcy. Before the deal closed, they shuttered the remainder of the I. Magnin’s stores. Many of the stores were converted to Macy’s. The upper floors of the San Francisco flagship were converted to Macy’s; the lower floors became a duty free store.
What happened????…. For years the I Magnin & Company served the high end customers well. This was while the family was heavily involved in the business. In the 1960’s and 1970’s, the company continued to cater to the carriage trade but missed the growth of the baby boom generation. The company’s executives did not change their strategies, they just focused on the same for far too long until the high end and luxury specialty retailers had captured the younger wealthy customer. By the time Federated Department Stores recognized this, it was too late. I. Magnin & Company was seen by the customers as a store for the past generation. The company had lost its cache. Rose Marie Bravo did implement good strategies, but it was simply too late and the return on a turnaround simply was not a good investment. Many retailers fall into this trap. Federated put in an executive to reduce costs. This executive did not understand the importance of the sales people in the store. He implemented a plan to reduce full-time employees and add more part-time employees. This nearly resulted in the employee’s joining the union and definitely led to the departure of some of the best sales people and a serious decline in morale and customer service.
I knew I. Magnin & Company too well. Harriet, the aunt of a good friend of mine, worked in the candy department on the first floor at the Kearny Street entrance. She would tell us how it was her responsibility to let the management know when someone famous or a well-known customer would come in the door so they could be met and given individual service. Harriet showed us all around the store, including the ladies’ restroom.
Later, when I worked at Bullock’s, I shopped I. Magnin’s at the various stores. I had visited all except the store in Washington D.C. The stores were well maintained, elegant, and the customer service was exemplary. It was evident that the store in Chicago did not get the exclusive designer goods that were in the big stores in San Francisco and Los Angeles. Many of smaller stores (Del Amo, Sherman Oaks) also lacked the breadth of merchandise. At that time it was clear that the younger customer was not going to feel comfortable in that environment.
I had a great relationship with one of I. Magnin’s most delightful carriage trade customers. Mazie Donovan had inherited vast sums. Because she was virtually blind and lived near me, I used to do bookkeeping for her every week. She maintained strong relationships with the San Francisco flagship store even though she lived in Hermosa Beach. Ms. Jolly from the fur department would always call Mazie when she had some fur item she wanted Mazie to consider. I can remember the Russian Sable Bolero that Ms. Jolly sent to Mazie on approval which Mazie purchased. Within a week after a call from Ms. Jolly, Mazie would arrange a trip to San Francisco to see what was being held for her. I knew each trip would end with a new jacket or coat.
I have shared my memories. I trust you will too. Please leave them in the comments section below.
I. Magnin & Co. Union Square -San Francisco - mid 1950's
I. Magnin & Co Collector's Stamp 1930's
I. Magnin & Co -Union Square San Francisco 1950's - Macy's Expanding
I. Magnin & Co Calendar 1912
The following postcards depict the store in Los Angeles at Wilshire Boulevard and New Hampshire, near Bullock’s Wilshire. This store had access to the affluent Hancock Park neighborhood.
Please keep in mind that these postcards are part of the Plummer & Associates collection. Please do not copy or reproduce any of these postcards without permission.
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Posted in CALIFORNIA STORES, Retail Postcards | 7 Comments »
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.
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Posted in CALIFORNIA STORES, Retail Postcards | 19 Comments »
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.
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Posted in CALIFORNIA STORES, Retail Postcards | 12 Comments »
