July 2, 1962 - The First Walmart Opens

Ben Franklin could’ve had it made. I’m not referring to the “founding father”, of course – the one Americans will honor tomorrow, he of the long hair and granny glasses, kites, keys and lightning bolts, Almanacks and The Saturday Evening Post. I mean the famous variety store chain that borrowed its name from ol’ Ben, the “Ben Franklin 5 and 10 cent stores” that dotted communities nationwide for a big chunk of the 20th century.   

Samuel Moore Walton of Bentonville, Arkansas was far and away one of Ben Franklin’s most successful franchisees. Starting with a lone store in Newport, Arkansas in 1945, by 1962 he had 16 profitable stores in Arkansas, Missouri and Oklahoma.

In addition to being an unusually savvy retailer, Sam Walton was a researcher - a true “retail scientist.” An idea sponge. His laboratories, in this case, were the pioneering discount stores of the Northeast – Korvette, Ann and Hope, Mammoth Mart and others who by the late fifties were sowing the seeds of a full-scale retail revolution that would bloom within a few short years.  Walton saw the enthusiastic response to these exciting stores and saw no reason why their concept couldn’t be duplicated in the rural towns of the South, areas that were primarily served by small chain stores and mom-and-pop shops. In many places, even those were few and far between.

Having formulated his ideas and drawn up his plans, Sam did the loyal thing – he flew up to Chicago to meet with the execs of his franchisor, Butler Brothers, the parent company of Ben Franklin. There, he mapped out his discount store concept in great detail, covering all of the key aspects – the larger stores, the plethora of departments, the everyday low prices, the streamlined distribution model whereby Butler would do most of it themselves, eliminating the costly middlemen wholesalers. Then he offered it to them - lock, stock and barrel - if only Butler would be willing to carry the plans out. They told him to stuff it, so to speak.  

Rejected, he returned home to Bentonville, and on July 2, 1962, fifty years ago yesterday, he opened the store pictured above – the first Walmart store, in nearby Rogers, Arkansas. (The photo itself is circa 1970. The “Discount City” sign was added shortly after opening, a tagline they used for over three decades.) Not long after the first store opened, the Butler brass traveled to Rogers and saw firsthand the favorable customer reactions. They pulled Walton aside and told him “Don’t open any more of these Walmarts”, lest he jeopardize his relationship with their company. His exact response isn’t recorded, but through his actions Walton essentially told them to stuff it. So to speak.

Within four years, there were five Walmarts, and by 1980 there were nearly 300. Today, the company has over 9,000 stores internationally and they are the undisputed King of Retail. Best I can tell, no one is even vying for the crown.   

Here is the grand opening ad for that landmark store, boasting 22 departments! (And some way-cool specs!)

For those interested in learning more about the Walmart story, let me commend to you the fine book pictured below. “Mr. Sam: How Sam Walton Built Wal-Mart and Became America’s Richest Man”, written by former Wall Street Journal reporter and editor Karen Blumenthal  and published last fall. I was able to help Karen source some photos for the book, and she very kindly sent me a copy. Written for the “young readers” market, it’s an intelligent, entertaining, well-illustrated biography that will definitely appeal to adults with an interest in retail history and/or modern-day commercial culture.  

Walmart books (with the exception of Walton’s autobiography “Made in America”, an essential read) tend to fall into one of two categories – the “fawning over Walmart” group or the “Walmart as scourge of humankind” group.  Blumenthal takes a very balanced approach, and “young readers” notwithstanding, gives a great amount of historical detail and insight into the events and personalities that shaped the company. Importantly, the book doesn’t shy away from the controversies of recent years. It’s a very satisfying look at an important historical figure.    

Suburban Shopping in the 1970's!

…and now for something completely different! Here’s an overview of the chain retail scene from a single suburban town from the year 1976 – the town in this case being Addison, Illinois, a western suburb of Chicago. Since the majority of the chains shown in this post are (or were) national or at least multi-regional, many of you will probably get a kick out of this. If you’re from the Chicago area, these photos should be a special treat, as nearly all the companies pictured should be familiar, and if you grew up in the Addison area, I suspect the floodgates will open.

These photos are the work of Mr. Joe Archie, longtime Addison resident. Joe and his wife, Jeanette, have put together an incredible photographic record of the area’s history through the years, along with the history of their family. Be sure to check out their wonderful Flickr page to see more of their photos, including some very nice downtown Chicago views. Joe took this set of photos in 1976 as part of a project to document their hometown during America’s Bicentennial year. My utmost gratitude goes to them for allowing us to enjoy these great photos, and for continuing to document these all-too-often overlooked aspects of American life.

Some of these chains have been covered in depth here before, and others I eventually hope to get around to, so we’ll dispense with the hardcore history this time around. Instead, I’ll just toss out a few facts and throw in some memories here and there. As always, I welcome your own memories in the comments section.

Also, we’ll make an exception to the rule here, and expand the site’s normal scope just a bit to include some of the popular chain restaurants of the day. I mean, we have to eat, don’t we?

And we’ll have the radio on as we drive – with any luck there’ll be something decent playing – maybe some Steely Dan or Queen or Boston, or even some 10cc or Wings. Of course, there’s always the likely chance that Dad will pop in his 8-track of Neil Diamond’s “Hot August Night” (1972 double-live album) for the 3,700th time. Oh come on, it’s not like you don’t sing along with every word!

First up is Zayre, a suburban Chicago fixture with 27 stores in the area by that time. The store pictured is the classic early Zayre with the massive glassed storefront and the even more massive signage. I particularly like the Auto Center close-up, with very nice glazed brick and blue flashing (just like the main store) and a simple, clean appearance. As I noted at the beginning of a series of Zayre posts done last year, my family pretty much dropped Zayre like a hot brick when Kmart came around. Seeing these photos years later, with that beautiful row of blue diamonds above the entrance doors (and it also looked great after the 1978 brown-and-orange revamp), I’m sitting here with pangs of regret. Were we too hasty?

Come back Zayre, I’ll let you be my store!!

The Mighty Jewel - then as now, Chicago’s supermarket powerhouse - looking mighty well in classic 70’s aggregate and mixed brick in this location at Addison's Green Meadows Shopping Center. The bold orange signage for this store was rendered in a font that the company had been using for over 40 years by then. The following year, it would be replaced with a new logotype that would eventually grace the Addison store when it was remodeled a few years later. Interestingly, both Jewel and their top competitor Dominick’s would switch from orange to red-orange logos in the 1980’s.

Jewel, pronounced correctly, is a one syllable word – “Jool.” It’s just another one of those fun, idiosyncratic Chicago pronunciations, like “melk” instead of “milk”. (I’m not kidding.) And as noted before, “Jewels” or “The Jewel” are perfectly acceptable forms of usage. Never “The Jewels”, though, lest one risk jumping the shark.

Donimick's Finer Foods (Pronounced Dah-min-ick’s, with heavy emphasis on the first syllable. Typical usage: “Oh, we’re out of melk? Crap, I just got back from Dominick’s!”) was a fairly small chain as recently as the late 60’s, but by 1976 was growing like wildfire, with over 60 supermarkets by then, bypassing such longtime Chicago stalwarts as A&P and (the newly departed) National Food Stores on its way to becoming number two in the market, second only to Jewel, which is still the case today. This very attractive store, located on Army Trail Road in Addison, opened in 1973, and is typical of the stores they were putting up all over Chicagoland. I drove by this store this past January, and sadly it is now closed. The two stores we shopped at were older, one at the Market Place shopping center in Des Plaines on the corner of Elmhurst and Golf Roads, and the other in Rolling Meadows on Kirchoff Road, but they had the same “letterboxed” signage. Nearly all Dominick’s stores flew the orange flags in those days, a great touch.

As said in a previous post, Dominick’s strength was their excellent selection of ethnic foods, and the chain held an Italian food fair for years that always managed to attract lots of customers and press attention. Also mentioned previously were the great Heinemann’s bakeries, with their superb Butter-Ritz cakes and homemade cookies. Ironically, the Heinemann’s line is not available today at Dominick’s, but is at Jewel. I still can’t get used to that.

Guido’s was an independent chain in the Chicago area. We shopped at the Hoffman Estates store once in a while during the year or so we lived in the area. Don’t know a lot about them, other than the fact that they had four stores in the early 70’s - this Addison location, Westchester, Berkeley (honored by Progressive Grocer magazine in the mid-60’s as a “Store of the Month”) and the above-mentioned Hoffman location which was closed due to poor profitability in 1973. I’m assuming that the rest of the chain ceased operation sometime not too long after that.

It’s interesting to note that Guido’s also had the Heinemann’s bakery franchise. The once-mighty (and by 1976, gone) National Food Stores had it as well, but certainly it was associated closest with Dominick’s.

Goldblatt Bros. was a classic, full-line department store with deep Chicago roots. This store, located in the Green Meadows Shopping Center in Addison, opened in the spring of 1962. Like a couple of other Chicago department store institutions, Marshall Field & Company and Wieboldt Stores, Inc., they chose green as their corporate color. Of more substance, perhaps, is the fact that like those other two companies, Goldblatts was early to establish suburban branches, as exemplified by this store and several others, including the one we shopped at in Mt. Prospect Plaza, and other locations such as the Scottsdale Shopping Center near Burbank, Illinois and at Elmwood Plaza in Racine, Wisconsin. In the early 60’s there were 31 Goldblatt’s stores in total.

Since Randhurst Center, with its triple-threat of Wards, Carsons and Wieboldt’s was just down the street from our local Mt. Prospect Goldblatts, our family usually gave them the short shrift, I’m sorry to say. Goldblatt’s seemed to target a slightly lower income demographic than the chains I’ve just named, and for a time the strategy worked very well. In time, it was competition from the discount chains rather than other department stores that caused them the most problems. Pulling out of a bankruptcy in the mid-1980’s, Goldblatts hung on for a long time but never really hit its stride again, finally closing up for good in 2003.

Sporting a nice example of one of my all-time favorite retail logos, the Addison JCPenney Catalog Outlet already had a vintage look by 1976. Unlike Sears and Wards, whose catalogs dated back to days of old, for Penney’s it was a relatively recent venture – a business they entered through acquisition, when they bought out Milwaukee-based General Merchandise Company in 1964. That company’s catalog essentially became the “Penney’s catalog”. Several of these catalog outlet stores were actually attached to the company’s distribution centers. Later on, this store was replaced by a new store at nearby North Park Mall, which itself is now closed.

We’ll talk about Portillo’s, the restaurant to the left of the photo, (Dig that “hot dog” sign! It’s long gone but lives on on all Portillo’s packaging.) in a bit, but for the moment I wanted to focus on the Ace Hardware store. Before the days of the all-inclusive “home center” – currently active firms like Lowe’s, Home Depot and Menards (primarily Midwestern locations) and now-defunct companies such as Grossman’s, Courtesy, Home Quarters, Hechinger’s, Handy Dan, etc., one pretty much bought lumber at a lumber yard and hardware at a hardware store. For us, that hardware store was the Ace Hardware in the Rolling Meadows Shopping Center. My Dad was (and is) the consummate handyman, so it was the rare Saturday morning that we didn’t stop in at Ace at least briefly. The Addison Ace looks to be of 1950’s or very early 60’s vintage.

Anyone who watched much TV in the 1970’s would have to remember the commercials with sultry-voiced actress Connie Stevens singing “Ace is the place with the helpful hardware man”, after which she would put her arm around some guy in a red Ace vest who was trying his best not to smile too broadly. In the early 80’s, Connie was replaced by NFL coaching/broadcasting legend John Madden with a modified slogan suited to fit his regular guy persona – “I gotta tell ya, Ace is the place for me.”

“The old 5 and 10’s” were definitely a dying breed by the mid-70’s, though most of the venerable old names, including the once-great Ben Franklin, were still hanging on by a thread at the time. My own family had long since passed them by in favor of Kmart, The Treasury, Venture and the other much larger discount stores.

It’s interesting to see how the Addison Ben Franklin was by then trying to position itself as a “hobby and craft” niche supplier. In light of the competition, it was probably a wise move. (Notice one of the signs mentions macramé. I remember my family selling a huge macramé wall hanging at a garage sale in the early 80’s, and a lady came up asking “How much for the ‘ma-crayme’?” I thought we were gonna die!)

In truth, I know next to nothing about the Big “R”, but it sure has that wild, kooky discount store look, and probably was a fun place to shop. Close to Addison, this store was actually located in nearby Villa Park, on North Avenue near Addison Road. The earliest newspaper ad I’ve located for the Big “R” dates back to 1962, but the store might well be older than that. Notice the colonial flags (with the famous “Don’t Tread On Me” flag to the far left) – a nice touch for the Bicentennial year. Sadly, the store appears to have been in the proverbial “throes” based on the liquidation signs in the windows. If anyone can fill us in on the Big “R” experience, I’d be glad to update this section. Thanks.

Update 10/6/09 - Several people have written to inform us that the Big "R" property was the birthplace of an important piece of Chicago-area pop culture - Dick Portillo's first hot dog stand, "The Dog House", forerunner to the wildly popular Portillo's chain, was located at the edge of the store's parking lot! Opened in 1963, the hot dog stand, which as mentioned was actually a trailer, didn't even have running water, and actually used a 250' long water hose hooked up to an adjacent building. "The Dog House" is a revered part of the company's heritage, and I believe every modern Portillo's has a picture of it somewhere on their walls. The Big "R"'s place in history is secure, and I, for one, am very relieved!

A sad sight indeed is this vacant, boarded up Topps Department Store on North Avenue in Addison. The original Topps at this location opened (to great fanfare, as was their style) in 1962, but was completely destroyed by fire four years later. The replacement store was built in the updated Topps image. This store closed in 1974 along with the rest of the chain, and so had already sat empty for some time when this photo was taken. Later on, the store became a Syms clothing outlet, which it remains to this day. I shopped there a few times, and remember their commercials featuring company founder Sy Syms with the well-known tagline – “An educated consumer is our best customer”.

Almost forgot this one, because these stores weren’t around long. Robert Hall Village was intended to be a successor to the well-known Robert Hall clothing stores, the retail face of a garment manufacturer called United Merchants and Manufacturers, Inc. Mr. Archie, in his original photo caption sums it up: “Robert Hall was a city chain whose slogans alluded to "Plain pipe racks" and "Low rent". They didn't do so well in the suburbs.” My Dad shared that view (that they carried “low end” clothes), and because of that didn’t shop there much. I personally made one significant purchase at Robert Hall, though - when I was seven years old, I bought Dad an electric yellow pair of golf socks for his birthday. I couldn’t understand why he wouldn’t wear them all the time!

Robert Hall Village was UM&M’s attempt to broaden the appeal of Robert Hall by expanding it into a “total discount store” concept – clothes, sporting goods, automotive, electronics and even groceries. The Chicago Tribune’s George Lazarus explained the rationale: “If Robert Hall can attract milady with an apparel special, the firm stands a good chance of selling her some groceries while she is in the Village.” Several Robert Hall Villages were opened across the country, including five in 1973 in the Chicago area – Downers Grove, Homewood, Crystal Lake, Hoffman Estates and the pictured North Park Mall unit in Villa Park. If they were trying to emulate a Turn-Style, Topps or Korvettes, they did a pretty good job, unfortunately, since those chains were in awful shape by the mid-70’s, and were “tubesville” before decade’s end. “Milady” wasn’t impressed. Upon the chain’s closure in 1977, two of the units, Downers Grove and Villa Park, became Kmarts.

For me, one memory of Robert Hall Village stands out. We visited the Hoffman Estates store during its grand opening (1973), and it’s the first time I remember seeing an electronic digital calculator. These were beautiful desk models, manufactured by the Japanese firm Miida (My-eeda), and were priced heftily at around $200 up to $350 or so. Of course, you can now get the same functionality at Dollar Tree for…well, a dollar!

You’d think that my main interest in this photo would be the great-looking, antebellum style “Type-C” Sears store, with the classic 60’s serif version of the logo. As nice as that is, having grown up in the Chicago area, the “Playback” store to the right (unfortunately much of the sign isn’t visible) is a rare, wonderful sight. For anyone who came of age there in the 70’s and 80’s, Playback, a now defunct stereo/electronics chain, was legendary. Oh, the hours spent there, drooling over $500 Pioneer car stereos and $1200 Blaupunkts, when the car I was driving at the time was worth somewhere between the two! Playback also had one of the most memorable commercial jingles of the day – I wish I could find a copy of it to link to. It was simply the company name and tagline - “Playback – the electronic playground!” sung in a cool layered-harmony, a cappella, stretched out style, sort of like the opening verse of the Kansas song “Carry On, Wayward Son”.

Fayva was a deep-discount shoe store chain, very similar in concept to Payless. As far as I know, my family may have shopped there once or twice, but I only vaguely remember it. Fayva was division of Massachusetts-based Morse Shoe, Inc., which also operated shoe departments in a number of discount chains. (As a kid, I did visit the bizarrely fascinating, long-since closed museum founded by Ira Morse in Warren, New Hampshire. The guy loved to hunt, let’s just say.) Fayva was a major TV advertiser in Chicago, and I assume elsewhere as well.

Next door is a Rexall drug store, sporting a very nice sign with the brand-new ‘70’s Rexall logo. A national institution for decades, Rexall ‘s glory days were by then largely past, and their parent company, Dart and Kraft, was royally ticking off loyal Rexall franchisees around this time by opening up the product line to other chains. Not long afterward, the franchisees were dropped altogether, their contracts cancelled. Ironically, Dart and Kraft “invited” them to continue to keep their Rexall signage installed as a means of promoting Rexall products. Most declined, understandably, although a few drugstores still fly the orange and blue to this day.

Kinney was easily the best known “family shoe store” of the 60’s and 70’s. We shopped there a bit, but most of our shoe bucks went elsewhere, mostly to local family owned shoe stores. They were another mega-TV advertiser.

From 1962 on a division of the F.W. Woolworth Company, Kinney had over 600 stores at its peak, the majority of which were the “roadside” style buildings that looked exactly like the one pictured - an extremely familiar sight for millions of Americans. Family shoe stores, like family restaurants, are largely a thing of the past, and it seems (in all but the luxury shoe market, at least) that the key to success for a shoe store chain is to follow either the sports or discount model. Woolworth themselves realized this some time ago, so by the end of the nineties the Kinney stores were history. From that point all resources were poured into Foot Locker.

You’ve heard of Walgreens, right? Pretty hard to miss ‘em, seeing as they’re popping up on prime street corners everywhere in what has to be the most aggressive real estate strategy in all of retail - one that has all the appearances of a 50-to-100 year plan. It’s interesting to watch as they battle it out with CVS in the drugstore version of “last man standing”, but if the old adage “location, location, location” holds true, it’s hard to see how they can lose.

Even thirty-some years ago Walgreens was a big player, especially in their home market of Chicago. But as you can see they weren’t nearly as picky about locations, even to the point of taking over an existing store in a shopping center that would easily been 10 to 15 years old at the time, as this photo of the “new” store in the Green Meadow Shopping Center in Addison shows. Perhaps they took over one of their old “Walgreen Agency” franchised stores, a category that was being phased out at the time.

“When you run out, run out to White Hen!”, the classic commercial went. White Hen Pantry, the franchised convenience store division of Jewel, had been around 10 years by this time, and had multitudes of locations in Chicagoland, especially in the Northwest and West Suburbs. Home of a basic selection of groceries, newspapers and magazines, a great deli and brownies extraordinaire, these were always a great place to stop.

Looking at the photo, the “Open 6 to 11” sign jumps out at me. Gosh, I wonder whose competitive nose they were trying to tweak? Unfortunately, the competitor eventually won out, and this store, like most all other White Hens in Chicago, is now a 7-Eleven. Somehow “When you run out, run out to the Sev!” just doesn’t have the same ring to it. Many of the New England area White Hens, the chain’s other major market, are still going strong.

Wow, looking at the picture of this Denny’s restaurant, the design is even nicer than I remembered! A worthy successor to the famous first-generation “Googie” Denny’s stores, this is seventies design at its finest. Inside it was all orange and brown, red and purple. The Rolling Meadows, Illinois Denny’s, where we usually went, looked just like this Addison unit.

We ate there a lot in those days, my dad, brother and I, usually for breakfast on Saturdays. Of course, later on in college and my early twenties, I learned just how late (or early) “Always Open” really meant! “Last stop of the night”, so to speak, after a concert or other late night activity. These days, with kids of my own, Denny’s is pretty much back on breakfast duty, at least every now and then. Sure wish our local one looked like this!

Three mainstays of the 1976 fast food scene against a backdrop of cloudy skies. Dunkin’ Donuts (“World’s Finest Coffee- Donuts made fresh every 4 hours” – Awesome!) we’ll talk about them in just a sec. The Burger King, sporting the 70’s sign in the parking lot and the 60’s lettering on the building, needs a bit of shingle work. All that’s visible of the McDonald’s here is the famous “Golden Arches” sign. “10 Billion Served, it reads. Nowadays there are 10 Billion McDonald’s restaurants, aren’t there?

In this day and age, I think it would be really cool if McDonald’s switched to a satellite-fed digital readout for the “Billions Served” portion of the sign. Many of these haven’t been updated in years, or feature the “Billions and Billions Served” copout. The technology isn’t that expensive anymore, and it wouldn’t even have to be updated in real time - weekly or even monthly would suffice. I think it would be a fun gimmick, and the numbers would no doubt be impressive as heck.

(Special note to McDonald’s executives: Information on where to send royalty checks for the aforementioned idea can be obtained by contacting “Dave” at the email address in the Profile section of this website. Thank you.)

Long before America ran on Dunkin’, we still liked it a whole lot. Dunkin’ Donuts is a much revered institution in the Chicago area, possibly just slightly less so than in their native New England, where they’re as common as fire hydrants. This particular prototype brings back such wonderful memories for me. The ones we frequented the most – Des Plaines on Elmhurst Road and Rolling Meadows on Kirchoff – looked just like it. This was another proverbial “Saturday stop”, oftentimes between Ace Hardware and Dominick’s. (The thing I’m really digging about these photos and writing this post is reliving the old routines, and the way they’re coming back to me in such detail, which hopefully I’m not boring you with. Wow, has time flown!) When we were very young, my brother and I would peer through the window where we could watch them make the donuts and occasionally the cook, who didn’t look at all like that little guy on TV, would give us free ones hot off the press (and those suckers were hot, trust me), the chocolate honey-dipped type. Those must’ve been fast sellers, because that’s the only kind we ever saw them make!

In recent years Dunkin’ Donuts has received a good bit of acclaim for their coffee. Long overdue and well-deserved, in my opinion, but of course I’m partial to the stuff. The lack of a mermaid on the coffee cups doesn’t bother me in the least.

Never convenient were these, but we did hit the Jack in the Box once in a while, and the food was decent. They did have a lot of appeal for kids, with cool giveaways and a “kid meal” that predated McDonald’s Happy Meals, if I remember right. And they made Rodney Allen Rippy a star, for a while at least. My apologies to those who can’t get the Jack in the Box jingle out of their heads as a result of reading this.

And the store is very sharp looking, no question about it. The Grand Prix in the foreground reminds me of my second car, a ‘76 GP bought in 1983. With my Pioneer stereo, Audiovox equalizer and Jensen Triax speakers, I could deafen whole blocks. Didn’t even need the Blaupunkt! Today I pretty much just run with whatever factory stereo comes with the cars, though.

One of the coolest aspects of this Pizza Hut for me personally is that the fact it dates from around the first time I ever ate at one. Almost exactly year after this photo was taken, our family - grandparents and aunt and uncle in tow, stopped for dinner at the Mt. Prospect Pizza Hut on Algonquin Road (like this one, long gone) after my eighth grade graduation ceremony in 1977. I don’t remember ever setting foot in one prior to that. I believe that restaurant had the newer logo (as on the folding sign to the lower right). Still like ‘em, although I’ll take a good old Italian mom-and-pop made pizza over any chain’s product every time.

The big news now is that Pizza Hut is floating the idea of simply calling their restaurants “The Hut”, just like Radio Shack is testing out “The Shack” as a new banner for their stores. (Don’t worry, I’ve resisted any temptation to start calling this site “The Blog”. But you’d know what I’m talking about if I did, right?......……………..Hello?)

My prediction, if Pizza Hut’s name change is successful, is that ten years from now we’ll just see the familiar red roof with the word “The” on it.

Another one I don’t have a great deal of personal experience with, but I do remember their TV commercials. Arthur Treacher’s was a division of National Fast Foods, who licensed the famous fish and chips recipe from the British family who created it in the 1860’s, the Malins-of-Bow. They chose distinguished British actor Arthur Treacher as their corporate pitchman (and as he got older, strictly their symbol – he passed away in 1975). Treacher was a distinguished character actor who was very active in the 30’s and 40’s, often playing a sage-like, quip-ready butler. One of his last roles was as the Constable in the 1964 Disney film Mary Poppins.

In the late 1960’s, Fisher Foods, parent of Fazio’s supermarkets in Ohio and Dominick’s Finer Foods in Chicago, bought a major interest in National Fast Food, gaining as part of the deal the franchising rights for Arthur Treacher’s in the Cleveland and Chicago markets.

Ah, the Ponderosa – my family ate Sunday dinner after church here for years on end. The Ponderosa chain was originally started as a knock-off of Bonanza, another steakhouse chain in which one of the original investors was a star of the famous Bonanza TV show - Dan Blocker, who played Hoss Cartwright. For many years now, both chains have been owned by the same company.

The one we went to was in Arlington Heights off of Golf Road (near Kmart), and looked very much like the Addison unit pictured here. You stood in a cafeteria- style line, got your tray with a little plastic number, picked out your side dishes and then ambled over to your seat (with a woodburned “P” on the seatback!), waiting for your steak to arrive on a black plastic and stainless steel plate. (Charles Hathaway, “Romleys” on Flickr, recounts a similar recent experience at a Bonanza restaurant, so obviously the drill hasn’t changed much. I probably haven’t eaten there since the mid-90’s.) Ribeye was my standing order, and was usually good, or at least not beyond “A.1. redemption”, an extreme but sometimes necessary measure. The one thing about Ponderosa that sticks out in my mind above all else is the fact that they charged for extra butter pats! I believe it was either six or twelve cents each, don’t really remember. The strange flipside of this was that Ponderosa was the very first restaurant that I ever remember giving free soft drink refills. Of course it’s now a constitutional right, but up until the early 1980’s (in my frame of reference at least –the Chicago area and the New England states), if you wanted another Coke at a restaurant you had to order a second one. At other restaurants, if the folks were in a good mood and my brother and I hadn’t committed any major infractions, e.g.: blowing straw wrappers in the waitress’s face, etc. (These were less enlightened times, friends.), they would spring for the second Coke. Then there were those rare-as-hen’s-teeth occasions where they would buy us a third one. Of course, my brother and I were thrilled, but all the while would give each other nervous “Have they gone nuts?” looks.

At any rate, that was the great “Ponderosa Paradox”, if you will – you got your fill of drinks, but if you needed any more butter pats, you’d best pony up, Pardner! As Hoss Cartwright would say, “There’s a mess of irony out there, Pa!”

Ok folks, this is it! This is the one. Woo-hoo! At this point (as you may have figured out), my objectivity goes straight out the window. Portillo’s is a Chicago-based chain of restaurants whose main specialties are incredible Vienna Beef hotdogs and classic style Italian Beef sandwiches, and I simply love the place.

From a single hot dog stand (it was actually a trailer) called “The Dog House” which opened in Villa Park in 1963, Dick Portillo’s restaurants had matured to sit-down units like the one pictured by the mid-70’s. Today, with 32 restaurants in the greater Chicago area, plus one in Buena Park and one in Moreno Valley, California, the Portillo’s units are a feast for the eyes as well – they tend to follow one of several themes - a 1920’s “boardwalk” theme , 1930’s gangster theme, 50’s, 60’s,etc.. Of course, many restaurant chains today are into retro artifact decor, with “leaf blowers glued to the wall” (as so aptly put on Dumpy Strip Malls, one of my new favorite sites) and the like, but Portillo’s artifacts are rarer, often larger, more plentiful and more interesting than I’ve seen anywhere else. (And the Niles Portillo’s, with the ‘30’s Prohibition theme, has two killer porcelain A&P signs hanging up – a must see.)

Another great thing about Portillo’s is that it alone provides a great reason to travel to Chicago. Seriously, if a local asks “What brings you here”, all you have to say is “Portillo’s”, and you don’t have to bother with any further explanations, such as: “Oh, I’m here for a conference”, “to visit family”, “to go to a Cubs game”, “to see the museums”, yeah yeah, whatever. Gotta plan my next trip!

Well, I guess that wraps it up, and there are still four songs to go on the Neil Diamond tape. Guess we’ll have to save “Cracklin’ Rosie” for another day (although that one’s almost worth sitting in the car another four minutes for, ice cream notwithstanding). Hope you’ve enjoyed this as much as I have!

What Sam Walton Knew

For many years following World War II, the most famous individual in American retail was arguably James Cash Penney. Founder of the famous chain that bore his name, Mr. Penney was active in the company into his nineties, passing away at age 95 in 1971. In 1950, he published a best-selling autobiography, Fifty Years with the Golden Rule, which shed light on his life, Christian faith, and principles for running a business. Since the mid-1980’s, in a point that’s certainly beyond argument, the “most famous” distinction most assuredly belongs to Sam Moore Walton, founder of Wal-Mart. Ironically, the two men met early in Walton’s career.

Sam Walton, Born in Kingfisher, Oklahoma in 1918, decided on a career in retail early on. After graduating from the University of Missouri in 1940, he took a job as a trainee at a J.C. Penney store in Des Moines, Iowa. Robert Slater, in his book The Wal-Mart Decade (later renamed The Wal-Mart Triumph) relates a story in which Mr. Penney, on a tour of his Midwest area stores, stopped by the Des Moines store. During his visit, J.C. taught Sam how to wrap a package using the least amount of materials that would still allow the package to look attractive. Whatever else they discussed is lost to history, but I think it’s safe to say at a minimum that the young Walton walked away with some inspiration as a result of Penney's common touch, a reinforcement of his already strong sense of thrift, and most importantly an awareness of the importance of visiting the stores, something that would later become his trademark .

After a stint in the U.S. Army Intelligence Office during World War II, with borrowed money from his in-laws, Walton opened his first retail operation, buying out a poor-performing Ben Franklin store in Newport, Arkansas in September, 1945. Ben Franklin was a franchise operation based in Chicago and owned by Butler Brothers, a wholesale operation that was founded in 1877. Butler opened the first Ben Franklin variety store in 1927.

Butler exercised a great amount of control over its Ben Franklin franchisees, dictating merchandise to be stocked, merchandise sources and prices to be charged from on high. Walton, who within a few short years transformed the Newport store into the top performer in the state, chafed under Butler’s restrictive approach. Possessed of an unusual level of street smarts and a great deal of curiosity, traits that led him to examine competitors’ operations very closely, Walton soon began to develop his own retail approach - one that over time grew increasingly at odds with the Ben Franklin hierarchy.

Forced to part with the Newport store when his lease expired, Walton and his family settled in the tiny Northwest Arkansas town of Bentonville, where he opened a Ben Franklin franchise under his own name, Walton’s 5 and 10-cent store, in early 1951. Joined by his younger brother, James L. (Bud) Walton, the pair would open 16 more Ben Franklin stores over the next eleven years. The Walton 5 and 10 cent stores gave way to self-service “Walton Family Centers”, larger stores that carried a wider selection of merchandise. The stores were located primarily in Arkansas and Missouri, with a couple of units in Kansas. Walton proved to be a natural at merchandising, and by this point he was eager to introduce a new concept to his basically rural market.

Sam Walton knew that a huge opportunity existed in underserved small town markets such as the one in which his company was located, an opportunity to do business on a much larger scale than the antiquated variety store format would allow. He had read about the discounting trend that was taking root in other parts of the country, especially in the Northeast – Zayre, Two Guys , Arlan’s, Ann and Hope and Mammoth Mart, among others. In California, Sol Price had started up Fed-Mart. And of course, there was action in the Midwest, as plans for S.S. Kresge’s Kmart program began to leak out.

Walton approached Butler Brothers with his plans to build a discount store in hopes that they would be willing to partner with him on the new venture. Since his firm had a long standing relationship with Butler, he was their largest Ben Franklin franchisee, and he really didn’t want to have to set up his own merchandising and supply chain infrastructure, Walton made a pitch to Butler brass in Chicago, in an attempt to convince them a partnership would be in both of their companies’ best interests. They turned him down flat. Even two years later, after the first Wal-Marts had been launched, Sam offered his concept to Butler to franchise to their other small-market operators, and again he was spurned. Looking back, it’s staggering to fathom what those two decisions cost the Butler/Ben Franklin organization over the course of the following decades. No more offers from Sam Walton would be forthcoming.

On July 2, 1962, in the the same year that S.S. Kresge launched Kmart, who would rule the retail roost for a very long time to come, F.W. Woolworth launched the (now long gone) Woolco in an effort to stay relevant and The Dayton Company launched Target, a tiny seed of a discount operation that wouldn’t reach full flower until much, much later, Sam and Bud Walton opened the first Wal-Mart Discount City in Rogers, Arkansas.

Both Slater’s book and Sam Walton’s autobiography, Made in America (required reading, to my mind, along with Lee Iacocca’s autobiography for late 20th century business buffs) recount an interesting story that took place on the new store’s opening day. A contingent of Ben Franklin executives from Chicago showed up, asking to see Mr. Walton. They proceeded to the office at the back of the store, saying nothing along the way. Meeting in Walton’s office, they issued an ultimatum: “Don’t build any more of these Wal-Mart stores”, then left, without another word, in a huff. Wisely, he completely blew off their ultimatum.

Over the next four years, four more Wal-Mart Discount Cities were opened – in Siloam Springs, Springdale, Harrison (1 hour south of future tourist magnet Branson, Missouri) and Conway, Arkansas. Wal-Mart was on its way.

The photos above, with the exception of the sign photo, which is a bit newer, are circa 1971 and show views of various store departments. From the seventh photo, one can assume that stripes were definitely in that year. The last photo shows “Mr. Sam”, as he was affectionately called, doing what he loved to do – grabbing a store’s P.A. microphone and thanking customers for shopping at Wal-Mart.

Kmart - Big Changes for the Bluelight

Having enjoyed a golden decade from the mid-sixties through the mid-seventies, from that point on things would become complicated for Kmart. Part of this was due to external factors such as competition and general economic ups and downs, but a series of management decisions made along the way certainly played a major factor as well.

While Kmart was an early pioneer in automated distribution, they were slow to adopt computer technology for inventory control and ordering, ostensibly to maintain a high level of independence for store managers, but it proved very costly in terms of efficiency. A much larger factor, from the public’s point of view, was the appearance of the stores. While looking at these photos tends to make me (and many of you, as I’ve learned) very nostalgic for those days, one would have to admit that by the time the 1980’s rolled around, the look had become extremely dated. Over time, the public perception of the company unfortunately (and in many respects undeservedly) shifted from a source of “value-priced” goods to one of cheap goods.

As the eighties rolled on, the company found itself fighting a two-front war, on one side against Wal-Mart, which by that time had grown well beyond the Mid-South region, becoming a true national competitor. Wal-Mart, with highly sophisticated information systems and very aggressive supplier policies became extremely formidable in price competition. On the other flank, Dayton-Hudson’s Target stores had expanded far outside of their original Midwestern footprint, in part through the acquisition of such regional chains as Richway, its sister nameplate Gold Circle and a large number of Gemco units from Lucky Stores. Pursuing a strategy that emphasized affordable style, Target signed up designer Michael Graves, among others, to develop chic housewares for those on a budget. Kmart was now in the unenviable position of having to compete with Target on style and Wal-Mart on price.

In 1987, Kmart took a final step in cutting ties to its origins by selling all but 11 of the remaining Kresge and Jupiter stores to Rapid-American Corporation’s McCrory Stores division. By the 1980’s Rapid-American was a key caretaker of America’s 5-and-10 store heritage, owning McCrory, H.L. Green, J.J. Newberry, T G & Y, and McLellan’s. Their only competitors in that fading segment were Woolworth’s and Ben Franklin. Ironically, S.S. Kresge had gotten his start in the business in 1897 as joint owner of a dime store in Memphis, Tennessee with J.G. McCrory. The pair would later open a Detroit store (where Kresge would establish his namesake company) and a handful of others before going their separate ways, starting variety store dynasties under their own names.

In a mid-eighties bid to shore up their fortunes, Kmart embarked on a spree of diversified retail acquisitions that would last into the next decade. The list was extensive. During this period, Kmart bought out, among others, Waldenbooks (and later on Borders Books), the predecessor of what would become Builders Square, The Sports Authority, Pay Less Northwest (a Wilsonville, Oregon-based operator of 164 drug stores in the western states), and OfficeMax, a big-box office supply firm that Kmart acquired a stake in when it sold them a handful of “Office Square” stores (a short lived office supply concept that traded on the Builders Square nameplate). Within a few years, Kmart would buy a controlling interest in OfficeMax. There was also a chain of membership stores called Pace Membership Warehouse. Eventually, Kmart would combine many of these into an entity called the Specialty Store Division. Over the long haul, these acquisitions proved to be little help to the company, and in the mid-90’s Kmart began to sell off or spin off these divisions in a succession nearly as rapid as when it bought them in the first place. A large number of the Pace stores were sold to arch-competitor Wal-Mart for conversion to Sam’s Clubs. In 1998, Kmart would sell off its flagging 112-store Canadian division to Toronto-based Hudson’s Bay Company, who would combine it with its 298-store Zellers division, the leading discount chain in Canada.

In 1990, Kmart took the first step towards changing its image, adopting a new logo for the first time. That year, the company replaced its familiar “Kmart” logo with a red block letter “K” with the word “mart” written in script in the upper leg of the K. In my opinion, the single letter looked a bit lonely up there on the expansive horizontal facades of most Kmart stores. The company must have taken pride in their new logo, as I learned when my wife and I stopped into a Kmart shorted after it was introduced. She had worked at this Kmart one Christmas season before we were married to supplement her teaching income, and we decided to pop in to say hi to the manager, her old boss. He asked our opinion of the new logo, and my wife commented on how it reminded her of the old “Big K” signs. Big K was a chain of mid-south discount stores that Wal-Mart bought out in the early eighties.

He didn’t appreciate the comparison. (Hey, at least we didn’t try to claim credit when years later they added the word “Big” to many of their signs starting in 1996!) Recently, Kmart has adopted a new logo, restoring “mart” to its rightful place.

A more positive effect came about when in 1997 Kmart persuaded domestic diva Martha Stewart to create a comprehensive line of household goods to be exclusively sold at Kmart. Called “Martha Stewart Everyday” this very broad product line included everything from dishes to cookware to linens, towels and bath décor, and has in many ways been a lifeline for Kmart. There has been rampant speculation as to whether Ms. Stewart will renew her agreement with Kmart when it expires in 2009.

Despite Martha’s best efforts, Kmart skidded inexorably toward bankruptcy as the nineties drew to a close. Incurring a staggering $2.46 billion dollar loss for 2001, Kmart filed for bankruptcy protection on January 22, 2002. Operating 2,114 stores at the time of the filing, massive closings would follow, and a great many people who grew up shopping at Kmart would suddenly find that there was no longer one in or near their communities. The first wave of closings shuttered 284 stores, and sadly more waves were to follow.

A year later, the future of Kmart would be revealed when it was announced that a group of investors, led by 38–year old billionaire Edward S. Lampert, had submitted a plan to usher Kmart out of bankruptcy. Many changes, a degree of stability and a runup in Kmart’s value would follow, and Kmart has lived to fight to this day, although the road remains challenging, to put it mildly. In November 2004, Kmart announced its intentions to buy Sears, Roebuck and Co., a most ironic twist of fate considering the companies’ arch rivalry for America’s retail crown in the 70’s and 80’s. The combined entity was named Sears Holdings Company, and eventually many Kmart executives would relocate from Kmart’s massive 70’s modern headquarters in Troy, Michigan (which is now finally being torn down -many thanks to the reader who sent this link discussing the complex's fate) to Sears (also massive and much newer) HQ in the Chicago suburb of Hoffman Estates. From a consumer’s standpoint, a significant change has been the availability of core Sears brands in Kmart stores, including Die Hard, Kenmore and Craftsman.

The photos above are circa 1976, and show the sign and an interior from the Ionia, Michigan store, a “Group 9” store which was previously operated under another name. The third photo shows the checkouts from a new store in Oxford, Ohio. The fourth is a snack bar shot, location unknown, and the last store pictured is another Group 9 unit from Dyersburg, Tennessee. Thanks to John Flack, who has a great page on the opening of the Marlton, NJ Two Guys store, for photos 2 through 5.