Save At Venture...Save With Style!

A new field of study has emerged in the past several years. Our most esteemed institutions of higher learning – Harvard, MIT, Stanford, Triton and others - have been uncharacteristically slow to recognize it and develop the appropriate degree curriculums for it. This lack of formal recognition has not deterred those who carry on this vital work, however.

I’m talking about the Retail Archaeologists – those hardy souls who brave the elements… who risk running afoul of the law…who put their life on the line, walking on brittle abandoned department store floors and roofs, amid falling debris, in order to capture the perfect shot of a day-glo wallpaper remnant, a patch of original tile, a section of a zig-zag awning. These are the people who unearth the relics, who reveal the work of the ancient masters of the 50’s, 60’s and 70’s, buried beneath years of neglect and fake stucco remodelings. It is they who perform these arduous tasks, while the rest of us sit in relative comfort in front of our laptops, snacks at hand, while “The Office: Season Four” episodes on DVD blare from our television screens. Where would we be without them, I beg?

There is one type of relic that particularly warms their hearts, and many of ours as well. A good many of these relics are still out there, wearing one of any number of nameplates - Kmart, Big Lots, Hobby Lobby…you name it. They have a unique identifying feature – a mesmerizing, converging and diverging diagonal pattern etched into the cement facades, placed there for reasons unknown. Had Erich von Däniken looked into this, it would have surely scored him another best seller. These were the late, great Venture stores.

Venture was a relative latecomer to the discount store world. By the time the first store opened in January 1970, discount stores were part of a well-established concept. The controversial early years of discounting, which struck deathly fear into old-line department store chains and featured battles with (and the ultimate defeat of) fair-trade statutes - laws that allowed the manufacturers of goods to set minimum sale prices - were over. By this time, most of the key regional and multi-regional players were in place, from the earliest discount chains (Zayre, J.M Fields and the other former “mill stores”), through the famous ‘Class of 1962’ (Kmart, Woolco, Target and Wal-Mart, all founded that year) and a plethora of others. Indeed, within just a few years, the Seventies economy would begin to shake out some of the weaker players, the first of many unfortunate “elimination rounds” to follow.

The Venture stores were a creation of The May Department Stores Company, a proud 90-plus year old chain of – well, the name pretty much explains it, that was based in St. Louis. In 1969, just before Venture’s launch, May was America’s third largest operator of “traditional” department stores, behind Federated (Lazarus, I. Magnin, Abraham & Straus, Bullock’s, Foley’s, Bloomingdale’s and Filene’s, among others) and Allied Stores (Jordan Marsh - New England and Florida divisions, The Bon Marché, Stern’s, Maas Brothers, Donaldson’s, Cain-Sloan and others).

At the time, May had an impressive lineup of store banners, including Famous-Barr in St. Louis, Kaufmann’s in Pittsburgh, The Hecht Co. in Baltimore and Washington, D.C. and surrounding areas, and two small operations in Ohio’s steel belt (although it was starting to rust by that point, for sure) - O’Neil’s in Akron/Canton and Strouss-Hirshberg in Youngstown. There were four divisions that operated under the May name: May-D&F in Denver (the first May stores had opened in nearby Leadville in the 1880’s), May-Cohens, Jacksonville, Florida’s largest department store, “The May Co.”, a major Cleveland area chain that was struggling at the time (See comments.), and “May Co.-Southern California”, far-and-away the largest division, with 18 stores and counting in that most vital of markets. May was also a major developer/owner of shopping centers, including Northland, South County and West County in St. Louis and a number of huge Southern California centers, such as Eastland in West Covina, the classic Mission Valley Plaza in San Diego and L.A.’s legendary Topanga Plaza, among others. (“Topanga” is thought to mean “a place above”. I hate to admit that when I first heard the word years ago, it brought to mind the sound effects from Don Martin’s famous Mad magazine cartoons. Slap me.) Then there were some newcomers to the May Company fold – in November 1965, they bought out G. Fox and Co. of Hartford, Connecticut, a downtown department store that May intended to expand into suburban locations. In July of the following year, May acquired Portland, Oregon-based Meier & Frank, a downtown store with two branches, at Lloyd Center and in Salem.

These last two acquisitions caused a problem that formed part of the impetus behind the founding of Venture. In the mid-1960’s, the U.S. Federal Trade Commission took a surprisingly aggressive stance in the area of retail mergers. The supermarket chain Winn-Dixie, for example, was barred from acquiring any additional grocery chains for a ten-year period starting in 1966. The following year, the five-year old merger between Von’s Grocery Co. and Shopping Bag Markets was invalidated altogether, forcing Von’s to sell off the latter chain. Sure enough, May’s recent acquisitions caught the unwanted glare of the FTC, and an investigation was announced. To avoid further scrutiny and the possibility of having to give up their newly won prizes, May executives offered a self-imposed moratorium on any further chain buyouts for a five-year interval. “Ten years and ya got a deal”, the FTC responded in the fall of 1966. (Note: the foregoing is not the actual consent decree language. Just thought I’d clarify.) Thus, an important avenue of growth was now closed off.

There were other reasons behind May’s decision to plunge into discounting. While there wasn’t a “deathly fear” of the discounters, there was certainly an awareness that some business was slipping out of May’s hands into theirs. More importantly, it would provide an expansion gateway into areas that May didn’t have a presence, notably Chicago.

As it happened, the timing couldn’t have been better for May to launch a discount operation, as one of the industry’s true visionaries was suddenly on the market, ready for a new challenge. This was John Geisse, who in mid-1968 resigned from Dayton Corporation (renamed Dayton-Hudson the following year), for whom he started Target in 1962. Geisse is widely credited as the originator of the “upscale discount retail” concept. The accounts vary as to why Geisse left Target, ranging from disagreement with fellow Dayton executives about expansion plans (Geisse favored saturating existing markets over expanding into new ones, according to author Laura Rowley in her book "On Target") to a snub for the presidency of Target (despite his key role, he only held a v.p. title), to the notion that Geisse vastly preferred the excitement of the start- up period versus the long haul of day-to-day operations, as retired May chairman and former Dayton vice president David Babcock later told Discount Store News.

When Babcock, who himself resigned from Dayton to take an executive position at May in 1967, got wind of Geisse’s resignation, he immediately contacted him. The two men had worked together at Dayton since the early 1950’s, and Babcock was well aware of Geisse’s accomplishments there. He told Geisse he “felt there was room for another Target”, and arrangements were made for Geisse to pitch the “upscale discounter” concept to May’s executive committee. On September 3, 1968, a Wall Street Journal article made it official – “May Appoints Geisse To Head Discount Venture”. No pun intended.

The new subsidiary, called Venture Stores, Inc., was organized throughout 1969 with the goal of opening the first store early the following year. On January 29, 1970, right on schedule, the first Venture store opened in the St. Louis suburb of Overland, Missouri. The book “On Target”, in noting the similarity in layout between the early Venture stores and Target, features the following quote from a Target executive: “John (Geisse) went from Target [to the May Company] with the rolled-up blueprints of the chain under his arm – and the first Venture store was identical in layout.” Considering Geisse’s intimacy with the concept, of course, the blueprints themselves were hardly necessary. A successful formula was a successful formula, and by mid-1971 six Venture stores were open: four in the greater St. Louis area –Overland, Kirkwood, Kingshighway at Christy Boulevard, and Fairview Heights, Illinois - and two more not far away in Alton, Illinois and Springfield, Missouri.

Through Venture’s first couple of years, its expansion was fairly slow and methodical. By the end of 1972, there were 12 stores - a critical milestone, because that was the point at which May management felt that the chain “would have sufficient volume and market penetration to support a professional central organization”, as stated in May’s 1972 annual report. Only two additional stores were planned for 1973, including a huge 162,000 square foot store in booming suburban St. Charles.

It was an approach that made sense, considering the plight of a number of several discounters and variety stores in the unforgiving economy of those years. Soon, the casualties would begin mounting – the Interstate chains (Topps and White Front), the American-as-apple-pie W.T. Grant, and more to follow as the decade wore on. Meanwhile, the focus at Venture was on brand building. A May 1974 article by New York Times reporter Isadore Barmash on the gloomy state of the discount biz features some great insights from Venture chief John Geisse on his advertising philosophy, which was to promote “images, rather than seek to capitalize merely on the merchandise advertised. Our gross margin results seldom pay for the ads we run, so that we have to gear our ads to produce a good over-all image for the company.” It’s a shame more retail chains didn’t take his advice.

The pace accelerated in 1974/75, however, as Venture pushed on into two important new markets – four new units in the greater Kansas City area – two on the Missouri side (Kansas City and Independence) and two on the Kansas side (Kansas City and Overland Park), all large stores. The big move, from a long-term standpoint at least, came in February 1975, when the company opened its first three stores in the Chicago area – in Oak Lawn at 95th and Crawford, Calumet City at River Oaks Center, and in Mount Prospect at Elmhurst Road/Route 83 (“eighty-tree” for you non-natives) and Dempster Street, on the former site of a National Food Store. This last one was close to my heart, and even closer to my junior high school – just a couple of blocks away.

(It was an interesting era to be in grade school. Some of my teachers had begun their careers in the early 1950’s, and twenty-five years later still had the demure manner and conservative style of dress one associates with that era. Then you had my math teacher, who wore shoulder-length hair, a ‘stache and an attitude and played rock music 45’s in class. The class’ favorite was “Bad Time” by Grand Funk, which I’ve probably heard three times since 1976 but still remember very well. He inscribed my seventh-grade yearbook “Eat a peach”, as I recently rediscovered. The school was torn down in the early 1980's due to a declining kid population.)

Interestingly, these initial Chicago area Venture stores were all teamed with A&P supermarkets, with A&P as a lessee to Venture. The Mount Prospect store sported the first A&P “tri-color” logo sign I ever laid eyes on, looking subtly attractive and modern against Venture’s trademark diagonal-patterned cement facade. The stores shared a common passageway, to the probable relief of A&P, who viewed the “Venture venture” as a lifeline. It would turn out to be A&P’s last gasp in the Chicago area.

Venture pulled out all of the stops for their Chicago launch, with month-long grand opening sales and a huge TV advertising blitz, each spot ending in the soon-to-be-familiar refrain – “It’s not just another discount store!!!” Venture chairman John Geisse hit the promotion trail as well, showing up at all three grand openings and giving a speech before that all-important audience – the Mount Prospect Rotary Club, as reported in the Daily Herald on February 25, 1975. In his talk, he gave a historic overview of the discount industry, with insights along the way as to why certain chains succeeded and others failed. He cited the example of one chain that “maintain(ed)a ’controlled dirt’ level in its stores indicating to consumers that it was a low overhead business”, and mentioned others that “always thought the next step was the big promotion” or “had no fashion sense” , while the discounters that prospered were “properly managed”, ‘’offered one-stop shopping”, and handled “presold” merchandise – “items purchased periodically which the housewife doesn’t need guidance in selecting”. He also addressed the special appeal of discount stores to the teenage market, where “peer needs exceed their ability to buy”. Oh, how I’d love to have been in that audience, especially since it took place so close to home. As it was, it was probably a typical weeknight for me… putting off my homework until the last possible second…lobbying for permission to stay up and watch Hawaii Five-O or whatever else was on at 9pm...ah, the life of a sixth grader!

Not long afterwards, Geisse left the May Company to start his own consulting firm. In 1976, he was appointed chairman of Ayr-Way stores, the former discount division of L.S. Ayres & Co., an Indianapolis-based department store chain. A decision by the FTC, which was obviously pretty active in the 70’s as well, forced Associated Dry Goods to spin-off Ayr-Way after its 1972 acquisition of Ayres. Ironically, ADG would itself be bought out by May in 1986, while the Ayr-Way stores would ultimately become Target units. (I should probably put this stuff in scorecard format, it would be easier to keep up with. For me, that is.) In 1983, Geisse would start up yet another company, called the Wholesale Club of Indianapolis, which grew to 24 stores and $650 million in volume before he sold it in 1990 to Wal-Mart (Geisse was a close friend of Sam Walton), whereupon the stores were converted to Sam’s Clubs. John Geisse passed away in March 1992 at the relatively young age of 71.

In March 1978, Venture reached an agreement that would nearly triple its presence in the Chicago area, making it the company’s most important market. After 17 years, Jewel Companies, Inc., decided to pull the plug on its Turn-Style discount store division, which had been struggling of late. Venture purchased 19 of that chain’s stores, 10 of which were in the Chicago area, including key locations in Glendale Heights, Schaumburg, Deerfield, Skokie and Merrillville, Indiana, among others. Also in the mix were locations in the Quad Cities and in downstate Illinois. At the end of 1978, there were a total of 20 Venture units in Chicagoland, including the Turn-Styles and two newly-built stores. Two additional new stores would open there in early 1979. With some of the finest store locations in Chicago under their belt, the airwaves were soon filled with a catchy new slogan, “Save at Venture…Save with Style”, which was adopted in 1981.

From this point, Venture’s growth settled back into a steady pace, adding a handful of new stores per year in St. Louis and Chicago, and the occasional multi-store entry here and there into other heartland markets – three stores in Oklahoma City and two in South Bend, Indiana, for example. By this time, Venture was no longer the May Company’s only “discount” division – in 1979, May acquired Topeka, Kansas-based Volume Shoe Corporation from the Pozez family. Volume Shoe was better known by their principal store banner, Payless ShoeSource. By 1985, there were nearly 1,900 Payless outlets, compared to 62 for Venture, doing only two-thirds the sales volume of Venture, but turning in more profits. In any event, Venture accounted for an impressive 20% of May’s total sales that year.

The following year, another discount chain would join the May Company fold, one with a bit more similarity to Venture. In October 1986, after months of negotiation, May bought out rival department store operator Associated Dry Goods, picking up venerable nameplates such as Lord & Taylor and J.W. Robinson, among many others. Also included were the Loehmann’s women’s apparel stores, which May quickly sold off. The “similar” operation was Caldor, the 35–year-old, Norwalk, Connecticut-based discount chain with a geographic footprint extending from New Hampshire to Virginia. ADG had purchased the company from founders Carl and Dorothy Bennett in 1981. At the time of the May buyout, Caldor was in the midst of a major expansion in New Jersey, opening five new stores there in 1986. While larger than Venture (115 stores compared to Venture’s 65), Caldor was far less profitable. May’s 1986 annual report, the first one to follow the ADG buyout, acknowledged Caldor’s problems, blaming them largely on excess inventory. Speculation arose that May would combine Caldor and Venture into a single chain, presumably to spread Venture’s winning ways throughout the entire operation.

That never happened. As the 1980’s rolled on, it was evident that the May Company was no longer interested in the discount store business. By 1989, they were looking for a graceful exit. Many factors played into this, I’m sure, including little stomach on May’s part for “fixing” Caldor, and the fact that their two discount chains combined now made up only 12% of the company’s revenue. Maybe they saw the oncoming competitive threat from Wal-Mart, but few crystal balls were that accurate at the time. And with Lord & Taylor now under their wing, they no longer needed the discounter for a foothold in Chicago, if that was a concern. A June 1989 article by the NYT’s Isadore Barmash got to the crux of the issue: “May doesn’t need to sell these discount retailers, but admittedly, they don’t fit May’s department store image”, one analyst told Barmash, and a May insider added: “The fact is that Farrell and Hays (David Farrell, then May’s CEO and Thomas Hays, its president) never really liked the discount business, with its different economics.” Enough said.

One interesting scenario that made the press was a proposed “swap” arrangement, where May would trade the Venture and Caldor chains to Dayton-Hudson Corporation (the stores would then be converted to Target units) in exchange for their namesake department store chains, Minneapolis-based Dayton’s and Detroit-based Hudson’s. While this never came to fruition, May eventually did come to own the former D-H department stores, which by that time were flying the Marshall Field’s banner, in a 2004 transaction. (Dayton-Hudson had bought Marshall Field’s from the BATUS Group in 1990 and later adopted the Field’s name for all of their department stores. Let me get that scorecard out again.)

On October 11, 1989, May announced its plan – as reported by the Times’ Barmash the following day, Caldor (118 stores then) would be sold to CAL Holdings, a new company set up by Caldor’s top management and an outside investor group. The May Company would retain a 20% equity stake in the new firm. The 73-store Venture, on the other hand, would be spun off to May shareholders as a separate company, with each May shareholder receiving a proportionate number of shares in Venture Stores, Incorporated. Delayed for over a year, the spinoff finally took place in November 1990.

Venture’s existing management, including chairman Julian Seeherman, remained in charge, and they had ambitious plans for expansion. These plans included a move into a new region that would ultimately seal the company’s fate. Up to that point, their stores had been located in or bordered the Midwestern states. In late summer 1993, Venture opened 11 brand new stores in Texas - six in the Houston area and five in the Dallas/Ft. Worth metroplex, along with a distribution center south of Dallas in Corsicana.

The focus here would be on “micromarketing”, a beloved term at Venture of late, where merchandise assortments for each store were finely tuned to the local buying audience. (As if that weren’t already required in their existing markets, we’re left to surmise.) For the Texas stores, apparently, this meant home décor themed with “cowboy boot, coyote and armadillo designs” in wall art and on throw pillows, and “leather handbags with ‘Texas’ boldly embossed on the front”, according to an August 1993 Discount Store News article. I’ve seen lots of armadillos over the years, but never a live one, just the “roadside” variety. I wonder if they were pictured “feet up” or down. (My apologies for the preceding lapse in taste.)

Jumping into two markets that were among Wal-Mart’s strongest and best-established territories was not the biggest problem with Venture’s new strategy. Far worse was the diversion of resources that should have been used to shore up Venture’s key market, in the face of “an onslaught of new Wal-Mart and Target locations in metro Chicago”, as Discount Store News later put it. The same article revealed that “(by) mid-1995, fewer than half the beleaguered Chicagoland stores had been through major remodeling”.

It would be some time before the seriousness of Venture’s expansion miscue was fully realized, and during that interim they tried some new initiatives. One was a new logo, an update of the “equity-invested diagonal stripe concept of the previous Venture logo but replac(ing) its industrial-looking, hard-edged lines with softer ones that suggest a furled flag”, according to a July 1995 Chain Store Age article. The logo’s “softer lines’’ tied in with another management decision, a move to reposition Venture upmarket, emphasizing higher end apparel sales while downplaying consumable items. Then came a dip in the U.S. clothing sales market. Without the traffic-driving aspect of consumable items to offset this, the results were calamitous.

By mid-1997, it was painfully clear that the Texas move was a mistake, that most of the company’s stores there would not be profitable over the long haul. At that time, Venture made the decision to sell 20 of its stores to Kmart Corporation, including ten stores in Houston, five in Dallas, two in Indianapolis and one each in Tulsa, Des Moines and Waterloo, Iowa, as Discount Store News reported on June 21st of that year. The chain would now have 93 stores, down from its 117-store peak in 1996. The company’s stated goal was “to focus on its core markets of Chicago, St. Louis and Kansas City”, although eight of the better-performing Texas stores – three each in Dallas and Houston and one each in Corpus Christi and Amarillo – would be retained for a while.

Not a long while, as it happened. In May 1998, after yet more store closings, the company threw in the proverbial striped towel, declaring bankruptcy and announcing the closure of the then remaining 73 Venture stores. Some 45 to 50 of them ended up as Kmarts. (And more than a few of those are now something else, I’m sure.) Discount Store News summed up Venture’s demise as the result of a string of bad decisions – “failure to move into food” or to “compete promotionally with Target”, and “turning its back on tired, old stores in its core markets and heading to Texas’’ as previously discussed. At the most basic level, the company’s management “wasn’t hungry enough to beat the competition”, and they fell into a “middle zone” of not knowing whether to position Venture as “a lead(er) in price, assortment or service”. And so they bowed out, instead of facing the fiercely competitive retail world we’ve grown accustomed to in the 21st century. But I miss those diagonal stripes.

The first two of the May Company photos above depict scenes from the earliest Venture stores in 1970. Note the old, sliding credit card machines at the end of the checkout lanes, a good distance from the checkers, something I remember seeing in a number of discount stores. Funnily enough, I can remember my grandfather’s bank-issued Master Charge card (they’ve gone by the name MasterCard for eons now) actually had a photo I.D. section, back in 1971!

While the other three photos, from 1978, 1979 and 1981 respectively, are focused on the checkout areas as well, they provide a nice overall feel for the “golden age of Venture”, as well as an interesting glimpse of some fads and fashions of the time. The music: Neil Diamond (of course), Eric Clapton’s “Backless” album (panned at the time and underrated today – I think “Promises” is one of his very best songs) and Kenny Rogers’ Greatest Hits (I didn’t know anyone actually bought that album – I thought it was automatically issued to every American household at the time. Whether you wanted it or not.) Atari game systems make a couple of appearances, and then there’s the ubiquitous Milton Bradley “Simon” electronic game. (With a brain. Do what it says or go down the drain.) These photos also capture a tectonic shift in American life, the aftershocks of which are still felt today – the Transition from Paper to Plastic. In the last photo, you can see a lady buying a blue-and-white striped dress. She obviously wanted to continue the “Venture experience” at home. That’s the spirit!

Lastly, a 1971 Venture grand opening ad, for store number six, in Alton, Illinois:

Kroger in the "Big D", 1965

These photos of the new Kroger at Dallas’ much-ballyhooed NorthPark Shopping Center were taken shortly after opening, which occurred in July 1965. They show the store’s entrance (the young girls are wearing outfits that don’t appear all that out-of-style today), the floral department, increasingly a standard part of supermarkets in upscale areas but by no means universal yet, the gourmet foods shelf, same story, the bakery and produce areas, the frozen dessert case (They just taste expensive!) with a colored strip panel matching the bakery area walls, the straightforwardly named toiletries section and the paper goods section, flanked by a relatively small greeting card display. In the early 1970’s, supermarket greeting card sections would be vastly expanded due to the products’ high margins, larger average store footprints and relentless promotion on the part of the card manufacturers. The décor package for this store, including the two-toned valances, was used on a number of Krogers, both newly constructed and remodeled, during the 1965-66 period.

Remembering JFK, 45 Years Later

The photograph above was taken in Dallas, Texas on November 22, 1963, 45 years ago today. It depicts President John F. Kennedy and his wife Jacqueline, along with Texas Governor John Connally and his wife Nellie en route from Love Field Airport to the Dallas Trade Mart, where the president was scheduled to give a speech. The photo was taken at approximately 12:25 pm, as the motorcade passed in front of a new Safeway store at 3707 Lemmon Avenue. Just minutes later, the limousine would make its fateful turn into Dealey Plaza, and the course of history would be forever changed.

This photo was taken by Safeway Dallas Division employee Jack Zeller, who was assigned to follow up on the Lemmon Avenue store’s grand opening which had taken place the day before. Zeller had his camera along to take pictures of the new store for the company magazine. The president’s motorcade route and approximate timing had been published days earlier in the Dallas papers (something that would never happen today), and in a bit of serendipity, would pass right in front of the Safeway. As you can see, he managed to capture a fine picture as the Lincoln Continental passed in front of the store.

If anyone finds this combination of retail history and that tragic moment in American life to be in poor taste, please forgive me. I do think, however, that there is something moving and patriotic in the fact that one would be proud enough of the president to want to photograph him in front of their business. And it reinforces my appreciation of the risk our presidents assume in interacting with the public, even with today’s far stricter security practices.

I can remember the sense of pride I felt (and still feel, when I think about it) in grade school at having been born during the Kennedy administration. Our class was roughly split between Kennedy and Johnson era babies. More than once it came up as a topic of conversation in class, although certainly none of us had any personal memories of his presidency - just some facts, our parents’ memories, and exposure to the growing Kennedy legend. To be sure, this admiration was by no means limited to those of us born during his presidency.

Would President Kennedy be revered in the same way had he lived to finish his term, or been reelected in 1964, or if he were still alive today at age 91? I’m not sure that’s even possible. Then as now, the country faced monumental challenges, including the Vietnam War, the Cold War and the struggle for civil rights, just to begin a list. More likely, he would have ended up with the mixed legacy that most presidents seem to have. But perhaps he would be. Who’s to say?

One thing is assured - that John F. Kennedy stands as a symbol of America’s promise, forever young and vibrant, frozen in time.

Pictured below is a similar scene from a happier day. Taken on March 23, 1962, President Kennedy’s motorcade is shown passing the Berkeley, California Safeway en route to the University of California to accept an honorary degree and speak at the University’s Charter Day ceremonies at Memorial Stadium. Over 93,000 people were on hand for the speech – a record for both the University and the President.

It's a Wal-Mart World Out There

Two of the many notable developments of the 1980’s were first, the ascent of Wal-Mart to the top of the American retailing world (the peak itself would be reached in 1991) and secondly, the establishment of Sam Walton as a modern-day American folk hero.

As mentioned, the company closed out the seventies with $1 billion in sales and 278 stores. Ten years later, in 1989, their profits were $1.6 billion (surpassing Kmart’s profits for the first time) on a sales total of nearly $26 billion, with a store count of 1,402 Wal-Mart Stores and 123 Sam’s Wholesale Clubs. Their market area, far too big to fit in a circle, magic or otherwise, comprised 29 states.

In many ways the catalyst for Wal-Mart’s explosive growth was their acquisition of the Big K stores. Overnight, the company’s store base grew by 20 percent, adding Georgia and South Carolina as new states, more than doubling their presence in Tennessee and Kentucky, and picking up some nice new locations in Mississippi and Alabama. Within a year, sixty percent of the Big K stores had been converted to the Wal-Mart format, not a simple process. Most importantly, the episode built the confidence of the Wal-Mart management team, convincing them that the company’s growth rate could be stepped up big time with relatively few problems.

Year by year, more states were added – Nebraska and Florida in 1983, North Carolina, Indiana and Florida in ’84, Virginia in ’85, Wisconsin in ’86, Minnesota in ’87, Colorado in ’88, Ohio and Arizona in ’89, and Michigan and Wyoming in 1990. The following year, Wal-Mart, that good old “southern chain”, became a coast-to-coast operation with stores in California, Nevada and Utah. Of course, Wal-Mart has been a 50-state (and international, for that matter) operation for many years now. Here is an amazing animated graphic illustrating Wal-Mart’s growth from 1962 up to now. Watch as the slow progression gives way to a frenetic pace. Kinda gives you pause, eh?

In 1987, Wal-Mart launched a new concept that quickly came to be regarded as a failed experiment - Hypermart USA. The peripatetic Sam Walton’s travels had by this time led him around the world – to South America, Australia, South Africa and all over Europe in search of retailing ideas. Walton was most impressed with the French-owned Carrefours (pronounced car-four) Hypermarket stores in Brazil, and got the itch to try out the concept in the United States. Carrefours’ Hypermarkets were huge 200,000-plus square foot stores offering general merchandise and a huge selection of food under one roof. While other American companies had tried or at least dallied with the hypermarket idea, Chicago’s Jewel Food Stores among them, no one had been able to make it fly.

Garland (suburban Dallas), Texas was the site of the first Hypermart USA opening in 1987. A second Dallas-Fort Worth store would follow, along with Hypermarts in Topeka and Kansas City. The stores – gaudy monstrosities with excessively high ceilings and massive entrance archways overwhelmed both the company and their customers. Although traffic was good, profits, due to the huge scale and overhead of the Hypermarts were not. Only four of them were ever opened. Author Robert Slater quotes Rob Walton as saying the Hypermart program failed “because of a lack of commitment and focus” – unusual attributes indeed for a Wal-Mart initiative.

Failure or not, the Hypermart experience paved a reliable highway for what would become Wal-Mart’s bread-and-butter, the Wal-Mart Supercenters. Scaled down and toned down, the Supercenters nonetheless were good-sized (150,000 plus square feet) and featured a similar merchandising mix to the Hypermarts. The first Supercenter opened on March 8, 1988 in Washington, Missouri. Wal-Mart was a bit more cautious at the outset, with only 100 Supercenters in operation over the first six years, but would step up the pace from there – 250 Supercenters were in existence by 1996 and an astounding 1,060 Supercenters by 2002. A by-product of the Supercenters’ success was Wal-Mart’s eventual dominance of the grocery industry. In 2001, Wal-Mart became America’s number one grocer, surpassing longtime industry leaders Kroger and Safeway, companies whose history goes much further back. Since we live smack in the middle of the Supercenter era (and goodness knows I try to stay away from the present on this site), I guess not a lot more needs to be said about them.

Sam Walton was not averse to publicity for Wal-Mart’s sake. In 1984, he splashed onto America’s front pages when he did his famous “Hula on Wall Street”, fulfilling a promise he made to Wal-Mart employees if the company met a certain earnings-per-share goal. Standing there on a summer day, with a crowd gathered around, a large contingent of TV cameras present, and outfitted in a suit, tie and grass skirt, the 66-year old Walton danced what he termed “a fair hula” to the music. A star was born.

What Walton was totally unprepared for was the media feeding frenzy that came his way a year later, when Forbes magazine featured him on its cover with the tagline “The Richest Man in America”. Shocked and a bit resentful of the publicity and encroachment on his privacy that ensued, Sam made a point of being seen driving his truck, wearing a casual denim shirt and jeans (Walton customarily wore suits to the office and on store visits) and hauling his hunting dogs around everywhere he went, in hopes that the media would be bored silly by his modest lifestyle and leave in short order. If anything, the opposite proved to be true, and it only fed the mystique. Eventually, he learned to live with the newfound attention, all the while trying to shift the focus to Wal-Mart’s amazing growth instead of his own story. It was never to happen during his lifetime. The story of Sam Walton - a true rags-to-riches, All-American saga was far too hard to resist.

In April 1992, after a long illness, Sam Walton passed away, followed three years later by his brother Bud. Control of Wal-Mart remained in the family hands of Sam’s wife, Helen, and their four children. Eldest son Rob Walton became chairman. The management of the company remained in the hands of trusted veterans David Glass and Don Soderquist, among others, who had highly developed skills in merchandising and distribution and were well-suited to take the company to new heights. Wisely, none of these men even attempted the impossible task of filling Sam’s shoes as the “Face of Wal-Mart”.

Here in the 21st century, Wal-Mart is the largest company in the world, a spot that was for many years the domain of General Motors. Reviled by many, defended by many - but ignored by few.

The first photo above shows the 1980's standard triple-soffitted Wal-Mart facade in a 1984 photo. The second photo, from 1982, shows the somewhat more economical alternate facade that appeared on a good many stores, including most of the renovated Big K units. Photos 3 through 10 are from 1981 to 1984 and show the checkout area, the service desk (with ironclad guarantee on the wall in back), the mens' and girls' clothing departments, the record department featuring a poster of Billy Joel from his "Glass Houses" era along with signs for Blue Oyster Cult, Cheap Trick (I saw them in concert back then!) and the late great Dan Fogelberg. Not a compact disc in sight. Next is the TV department with an Atari display and some outdoor antennas looming above (now there's a tribute to outdated technology), and Sam and Bud Walton cheering on the troops. The last photo, from 1988, shows the 80's glitz monster (by Wal-Mart standards, at least) that was Hypermart USA.

Searsizzle

One final look at Sears for now, and this time we’ll move inside for a gander at some indoor entrances to Sears stores within the context of the far-out, groovy atmosphere of a couple of brand new circa 1971-2 malls, in photos taken when they were new. (Ok, those expressions were already dated by 1971, but what the hey…)

In my opinion, the real action from a design standpoint was inside the malls by this time; the exteriors of most new malls appearing fairly subdued compared to those that had opened in the previous decade. Subtle browns and tans began to prevail on the exteriors, while the mall interiors were a blitz of marquee lights, globed fixtures, exquisite fountains and wonderful modern sculpture. “The mall” had really come into its own by this time.

The first picture is of the Town East Mall, located in Mesquite (suburban Dallas), Texas, a mall developed and owned by Sears’ Homart Development subsidiary, one of – malls Homart developed in 1971. Town East was solely developed by Homart, but a number of other malls were developed in partnership with other companies, most notably Chicago’s gigantic Woodfield Mall, which Homart co-developed that same year with lead developer Taubman.

This mall, already impressive in appearance, is beautifully decked out for its first Christmas. If you look in the foreground of the picture, you can see two stores that absolutely scream “70’s!” - Love Is (Woodfield had one!) and Rings’n’Things. Ah, those were the days. Town East Mall was the site of partial filming for one of Ron Howard’s earliest films, the teen film "Cotton Candy” (featuring Howard’s brother and legendary sidekick Clint Howard) in 1978. The mall, complete with its Sears store, still exists.

The second photo is of Richmond, Virginia’s Cloverleaf Mall, where Sears was strictly an anchor tenant. This mall, opened in 1972, was owned by New York-based Arlen Realty and Development, one of the seventies’ major developers of malls, who at the time also held the (by then dubious) distinction of being Korvettes’ parent company. By the end of the decade, both Arlen and Korvettes would be no more.

Sears remained open at Cloverleaf for thirty years, moving to nearby Chesterfield Towne Center in 2002. The mall, profiled last year on Labelscar, has undergone some disappointing changes, namely the removal of the delicate, beautiful fountain work and a typical remodeling given to malls of this vintage – the deadly “country pink, tan and cream” tile treatment.

The mid and late 1970’s would prove to be difficult for Sears for a number of reasons. One reason, of course, was the general difficult economic environment of the time, with stagflation and the resulting major squeeze on consumer purchasing power. Another problem was an unforeseen result of a strategy that had actually served Sears pretty well up to that time.

The fifties and sixties saw Sears expand into virtually every market where an economic case could be made for it. Of course, this new store growth provided fuel for explosive sales and profit growth. By the mid-sixties, they were closing in on a saturation point, and continued expansion at the same pace would have required building in “marginal markets”, as author Gordon Weil put it in his excellent 1977 history “Sears Roebuck U.S.A.”.

In part to offset the effects of fewer new stores, Sears began a move toward more upscale merchandise at higher price points, figuring it made sense to move up the ladder with their customers as they became more affluent. Sears, whose reputation throughout its history was built on providing values to middle and lower middle income customers, now made a concerted effort to shift their offering to an upper middle class audience. High income families, of course, would remain out of reach, and Sears made no serious effort to go after them.

Another factor was that by the early seventies, the discounting arena had reached a certain level of maturity, with an array of strong regional competitors growing and marginal operators having been shaken out. King of the Hill was S.S. Kresge’s Kmart division, with national coverage and a base of 1,200 stores by 1976. Middle and lower middle income customers, the bedrock of Sears’ success for years, left Sears in droves for Kmart, and by the mid-70’s there was serious buzz that Kmart Corporation (S.S. Kresge changed its corporate name to that in 1976) had a shot at overtaking Sears for the number-one retailer slot.

Sears also found itself the target of increased criticism from the media than in the past. Weil's book provides an insightful quote from a 1974 Forbes article that aptly describes Sears' new strategy – “Imagine McDonald’s introducing a sirloin steak, raising the price of its Big Mac and withdrawing its plain hamburger. That was Sears’ growth strategy, namely, to ‘trade up America’, as some insiders put it.”

Sears struggled to regain an identity with the consumer, who had long since begun to look elsewhere. In a sense, even today, thirty years later and owing in part to today’s brutal retailing climate, the company remains in a similar position today. To be sure, the competitive landscape has changed – Kmart is now a sister company of Sears, and the company’s main adversaries are now Wal-Mart, Target and Kohl’s, among others.

In the 1990’s, Sears began to shed subsidiaries that were not directly related to their retail business. In 1993, the company spun off its Sears Financial Network, which included Dean Witter Investments, Coldwell Banker Realty, and the Discover Card (Sears’ attempt to create competitor to MasterCard and Visa which ultimately became a major success). Its longtime insurance division Allstate was spun off to shareholders as well in 1995. That same year, Sears’ mall-development and ownership division Homart was sold to General Growth Properties.

Sears, Roebuck and Co. as it was historically known ceased to exist on November 17, 2004, when it was announced that the company would be sold to billionaire investor Edward Lampert’s Kmart Holdings Corporation to be combined into a new entity that would be called, appropriately enough, Sears Holdings Corporation. A number of strategies have been implemented since, including some new nameplates - “Sears Essentials” and “Sears Grand”, and offering Sears’ products for sale in Kmart stores. Even now many possibilities are being considered, including making Sears’ powerful brand names (including Craftsman and Kenmore) available for sale through other retailers. Time will tell whether these efforts are successful.

Will Sears make it? I certainly hope so.

7-Eleven - How Conveeenient

Today, pulling up to a gas station that does not have a convenience store attached is a very rare thing indeed. At virtually any gas station, be it a mom-and-pop operation, a small regional or citywide chain or a major chain that may or may not be oil company owned, the convenience store is an expected part of the deal. The “service stations” with their auto service bays and tow trucks parked out front are just about consigned to history, their operators long ago having realized that selling soft drinks and food were much more profitable than towing and servicing cars.

More than any other company, the Dallas-based Southland Corporation, better known by the name of its stores, 7-Eleven, pioneered the convenience store concept. Originally, Southland’s drawing card was not gasoline but ice, which was a sought-after commodity in the early part of the 20th century when many homes did not own electric refrigerators. Gasoline would come later. The Southland Ice Company was formed in 1927 through the combination of four local Dallas-area ice companies by entrepreneur Claude S. Dawley. Through the 20’s into the 1930’s, Southland gradually added milk, ice cream and other food items for the convenience of its customers. The company really took off under the leadership of Joe C. “Jodie” Thompson, who joined one of Southland’s predecessor ice companies in 1922 and would become Southland president in 1931, a position he held for thirty years until his death. In the late 20’s, Southland adopted the name Tote’m for its stores, with a genuine Alaskan totem pole as a store logo (they were later painted on the buildings). In the 30’s and 40’s, Southland bought out a number of other small chains in north Texas, maintaining their original names.

In 1945 the company decided it was time for a common identity and a new image for all of their stores, which by that time had evolved into mini-supermarkets, minus the meat and produce sections. With an ad agency’s help, they decided on “7-Eleven”, a catchy name that played off the stores’ operating hours. The first of a succession of green and red logos was adopted, and all existing stores were converted to the new image in 1946. Interestingly, 7-Eleven offered curb service for decades. The stores utilized an “open front” design with roll-up garage-style doors across nearly the full face of the store, which were kept open when weather permitted (which in Texas, of course, is most of the time). The open front design was maintained well into the 1960’s, although by then the door design was changed to a glass sliding type.

By 1950, with 80 stores under its belt, Southland opened its first stores outside of the north Texas area with a move into Austin that year and Houston in 1952. The first stores outside of Texas were opened in the Jacksonville and Miami, FL areas in 1954. From here, Southland moved into other markets at a breathless clip, adding Washington DC, Baltimore, Philadelphia, Kansas City, Salt Lake City, and several others by 1963 for a total of more than 1000 stores. Mr. Thompson passed away in June 1961, and the company leadership passed to his eldest son John. Southland didn’t miss a beat, and through the rest of the sixties and well into the seventies the company would experience phenomenal growth.

The sign and the two exterior photos (showing the sliding-door storefront) date from 1964. Note the promotional banners above the doors, a tradition that continues with 7-Eleven stores today. The photo of the impeccable counter man and his well-dressed customer (whose car appears to be still running outside – those were the days) is from 1966. “Oak Farms” was located in Dallas and was one of several regional dairy (and I guess, bakery) firms that were owned by Southland.