Showing posts with label Jacksonville. Show all posts
Showing posts with label Jacksonville. Show all posts

Monday, June 8, 2009

The Lifestyles of Winn-Dixie

Remember the early 1980’s? Big hair? Shoulder pads? Skinny ties? Huge eyeglass frames? New Wave music? Cellphones the size of cinderblocks (for the few who were lucky enough to own ‘em yet)? The smell of “Love’s Baby Soft” wafting through the air?

Well, the 80’s brought about changes in many aspects of American life, and after a couple of years had begun to make their mark on the lowly supermarket as well. The styles of the seventies, so different from what had gone before, appeared tired, grungy and long out-of-date by 1982 or so. When the time came to open new stores or revamp existing ones, major supermarket chains were opting for a very different look. Gone were the muted earth-tones, dark stained woods, Helvetica-lettered signs, and “any color as long as it’s brown” exteriors. In their place were neon, mirrors, high-gloss tile, light-colored woods, faux-metallic surfaces and “any color as long as it’s beige” exteriors. In short, it was a much brighter, shinier look, if not necessarily more tasteful.

Superficial though they might have appeared, these changes were emblematic of a cultural shift in society. This was the Reagan Era, a sharp contrast to the back-to-nature ethic and economy-induced austerity of the previous decade. The popular TV shows of the early and mid-80’s - Dynasty, Dallas, Falcon Crest, Hotel, Miami Vice and (in particular) Lifestyles of the Rich and Famous – provided a vehicle for the average American viewer to live the life of the wealthy, if only vicariously. Prosperity was “in”, whether one was experiencing it personally or not. Retail store designers, a group which seldom fails to notice trends, began to incorporate this into their new offerings. Whether they achieved “an optimistic look” or “an affluent look” is debatable, but one thing’s for sure – they poured on the glitz!

Winn-Dixie, whose conservative management style was mirrored by its conservative store designs, took a bold step into the new era with its first “Marketplace” store, a 45,000 square foot format grocery/drug combination store, which opened in Valdosta, Georgia in 1984. A number of 35,000 square foot (well above the Winn-Dixie average) “superstores” opened at same time. These new, larger stores were rife with innovations for Winn-Dixie, including vastly expanded deli and bakery departments, floral sections, new “World of Cheese” bars, Gourmet Cookery areas and “Fisherman’s Wharf” seafood departments. And of course, beef was still star of the show in the newly dubbed “Prestige Meats” section.

The décor of these new superstores was on a completely different plane from the standard-issue Winn-Dixie, where painted walls and simple cutout-lettered signage were most commonly seen. Compare the photos above with the 1977 interiors shown in the previous post. The contrast is striking.

Winn-Dixie’s sales and market position remained relatively strong through the 1980’s and early 90’s. The landscape was slowly but surely changing, however. Challenges would come from a number of corners, some uncomfortably close to home. In 1980, Sam Walton, founder and chairman of (then still strictly regional) Wal-Mart Stores, Inc., was invited to join the Winn-Dixie board of directors. For six years, Walton lent his considerable management wisdom to Winn-Dixie, while at the same time gaining a priceless education with respect to the grocery industry. In late 1986, Walton resigned from the Winn-Dixie board. Just over a year later, in March 1988, the first Wal-Mart Supercenter opened, with a full grocery department under roof. Unfortunately for Winn-Dixie, the launch of this new format coincided with a full court press by Wal-Mart into their home turf – the Deep South and Florida.

And the pressure was building from another direction as well. Lakeland, Florida-based Publix Super Markets, Inc., had long stood in the shadow of Winn-Dixie, at least where volume is concerned. Publix had a highly enviable reputation for service, elegant store design and a very loyal customer base. Through the two companies’ early history, however, Publix’s relative handful of stores compared to the giant Winn-Dixie allowed them to fly low on the official Beef People radar screen. Publix had a chainwide policy of Sunday closures until the early 1980’s, and had no stores at all outside of Florida until 1991. Over the years, the balance ever so gradually shifted as Publix’s growing store count inched closer. In early 1962, for example, Winn-Dixie had over 200 stores in Florida, nearly 400 outside of Florida, while Publix had 74 in Florida, zero outside. In 1972, Winn-Dixie had 197 stores in Florida, 562 outside to Publix’s 174 in Florida, still zero outside, and in 1982, Winn-Dixie had 405 in Florida, 817 outside. While Publix grabbed the Florida lead that year, all of their 438 stores remained safely within the Sunshine State borders. (Today, after the voluminous dust of the last few years has settled, Winn-Dixie has 358 stores in Florida, 162 outside. Publix has a whopping 719 in Florida, 283 outside. These are the current figures on the companies’ websites.)

By the mid-90’s, Winn-Dixie was in a dreadful situation in its key markets, competing against Wal-Mart on price and Publix on service and style. As the late New York Times writer Constance Hays put it, “In both cases, (Winn-Dixie) was struggling against nimbler, more experienced foes.” Through the 80’s and 90’s, though, the company made attempts to compete on both fronts. In 1987, Winn-Dixie resurrected the “Table Supply” name for a discount warehouse format, but it proved to be short-lived, with five of the six stores launched closing down after just two years. Years later, another warehouse discount format would be launched, SaveRite, on a much wider basis. On the other hand, through the 90’s Winn-Dixie continued to open larger, more deluxe stores, but it was a slow and expensive process. By 1990, only a third of the chain’s 1,200 stores were over 35,000 square feet, and there were still a fairly small number of the 45,000 square foot upscale Marketplace stores. Far too many of the chain’s stores were too old, too small and too dated.

The first years of the 21st century could only be described as a disaster for Winn-Dixie, with sales and profits spiraling downward. Between 1998 and 2003, the company closed more than 200 stores, and in 2003 alone, Winn-Dixie stock lost nearly half its value. That year, many of the Atlanta stores, including several of the elegant Marketplace units were converted to the SaveRite warehouse format. In February 2005, faced with the toughest challenges in the company’s proud 70-year history, Winn-Dixie filed for Chapter 11 bankruptcy. The following June, the painful details of the company’s reorganization were announced. Over 300 of the company’s 913 stores would be closed, and Winn-Dixie would exit four states altogether – Tennessee, Virginia, North and South Carolina. The latter two states in particular had contained key company markets for decades. In addition, Winn-Dixie would say goodbye to Atlanta after some 45 years.

A year later, under the guidance of new CEO Peter Lynch, a former Albertsons executive, Winn-Dixie emerged from bankruptcy. Maintaining a smaller store base of some 520 units, the company progress has been well noted by Wall Street, which by and large seems to like Winn-Dixie again. One initiative the company has undertaken is to streamline its stable of private label brands to just a few, with two primary ones – a simple “Winn-Dixie” for most items, and in a nod to company history, “Winn and Lovett” as a premium brand. Peter Lynch’s stated goal is admirably straightforward – “To make Winn-Dixie a better company.” The company’s new tagline underscores this goal – “Getting better all the time”, which for me instantly conjures up the 1967 Beatles song.

Of course, an 80’s song would fit the bill pretty well also!

Pictured above are four Winn-Dixie Marketplace interior views. Meat and seafood departments from the first store, in Valdosta, Georgia, in 1984, followed by a produce department view from 1985 and a typical “Cheese Shop” from the following year. Below are two Marketplace exteriors, from 1986 and 1993 respectively. The last view shows a friendly-looking crew from a 1986 standard (non-Marketplace) store. I find myself wishing they had added a few more departments just to see what additional uniform colors they could come up with.

Sunday, May 31, 2009

Winn-Dixie - Power to the (Beef) People

A billboard flies past as cars streak down the highway at night, sometime in 1970. Instead of the exit number for the nearest Holiday Inn, or a pitch for a tourist attraction such as Weeki Wachee Springs, we see a great big steak, the stock-in-trade of Winn-Dixie and Kwik Chek supermarkets. Uncooked, no less – a practice that thankfully is rarely (no pun intended) the case in supermarket advertising today. Modern weekly grocery ads, for example, typically show attractively cooked and garnished steaks, prominently placed on the front page.

In Winn-Dixie’s case, beef wasn’t just on the front page of their ads, but on the front of their stores, in slogan form at least. “The Beef People” is a phrase that continues to be associated with Winn-Dixie, even though it long ago ceased to be company’s tagline. (I actually prefer James Lileks’ one word slogan – “Mmmmmmeat!”)

For the most part, the 1970’s saw a continuation of Winn-Dixie’s success. The company started the decade with the formation of a new division – in Atlanta (to include the North Georgia and Chattanooga areas), where Winn-Dixie had maintained a presence for just over ten years by that time. Initially, the new region was comprised of thirty-one stores peeled off from the Montgomery division and eight from the Greenville division. Although the Atlanta division would grow impressively, not quite doubling in size over the next ten years, it would remain one of the company’s smaller operations. Competition in the Atlanta area was fierce, prompting a brief return to issuing trading stamps (Top Value this time around) in 1978.

The biggest news of the era for Winn-Dixie came in 1976, when the government imposed 10-year ban on acquisitions finally came to an end. In August of that year, the company bought out Fort Worth, Texas-based Kimbell, Inc., gaining 135 stores in three states new to Winn-Dixie – Texas, Oklahoma and New Mexico. The stores operated under the Buddies, Foodway and Hagee names. A twenty-unit drugstore chain owned by Kimbell, called “Thrifty”, was not part of the deal. Two years later, Winn-Dixie would sell off its New Mexico stores due to problems with the local unions. The 23 Foodway stores were sold to Smith Management Co., operator of the “Smith’s Food King” supermarkets, which years later would become a division of Kroger.

Most major grocery chains were unaccustomed to the new scrutiny that came along with the “consumers’ movement” of the 1970’s. Suddenly, supermarket chain profits became the stuff of headlines, and often as not, companies were portrayed in an unflattering light. Because of Winn-Dixie’s industry leading profits, they felt more heat than most. In an October 1973 full page article, Forbes magazine came to the company’s defense: “...profits, properly speaking, are created by efficient management, not by greed; Greed has never been known to create anything. Winn-Dixie makes more money than most, yet manages to keep employees, customer and even stockholders happy. What’s so sinful about that?” In any event, through the rest of the decade Winn-Dixie managed to maintain this balance, as described by the New York Times in 1979: “Winn-Dixie, (is) the nation’s fourth largest supermarket chain (behind Safeway, Kroger and A&P) and one of its most successful, with profits above industry average”.

Not much to “beef” about there!

The vintage Winn-Dixie publicity photos seen above are as follows: (1) the above-mentioned 1970 billboard, (2) from 1975, a store that appears to be an older unit retrofitted with a mansard roof, (3) a shopping center store from 1976, (4) another from 1977 – Note the white and green Chevy Vega hatchbacks in the foreground. By the time their owners were finished shopping, the rear quarter-panels on both were rusted clean through!, (5) a very nice exterior from 1979, (6) an even nicer one from 1980, one of my nominees for all-time best exterior design, post-1970 category.

Below are six interior shots, three from 1971 with a very nice earth-toned theme, followed by three more conventional 1977 views.

Thursday, May 14, 2009

The Boomin' Winn-Dixie

“Not much time for banjo strummin’
For the mills are busy hummin’
Pine tree crops – citrus, cattle –
And chemicals, too,
Cover Dixie like the dew!
Our food business, too, is zoomin’
‘Cause this NEW Southland’s
really boomin’!”

- advertising verse from 1955

Up until the mid-20th century, it would be accurate to say that the industrial production of the Southern states lagged behind other parts of the country. This was the era before the “rust belt” became rusty, and a majority of manufactured goods still came from above the Mason-Dixon Line. Take a look at most any mass produced item from that time, and if it lists a city of origin, it’s likely as not to read “Chicago”, “Rochester, N.Y.”, “Cinti, O. (Cincinnati)” or some other northern or upper Midwest location. Although many companies had established west coast branch factories to save on freight costs, the output of the South remained mostly agricultural in nature, with relatively few exceptions.

Around the mid-1940’s, this began to change rapidly. The lower operating costs of the largely non-union South formed a powerful enticement for companies to expand or relocate there. Civic leaders of towns large and small bent over backwards to offer low tax rates and cheap, plentiful, rail-accessible land on which sprawling single–story manufacturing plants (with acres of parking space) could be built. As a result, many major companies forsook their old, inefficient, multi-story urban factories in cold climes and built gleaming new facilities among the green-meadowed landscapes of places where winter coats wore out far less frequently.

Of course, all of this new development required a workforce, which came from a number of sources. First, many local area workers left the family farm to work in the new factories. Secondly, a large number of northern workers, of both blue and white collar persuasions, relocated to the South, where opportunity beckoned. By the mid-50’s, hundreds of companies had planted their flags there. The textile industry (clothing, carpet, towels, linens, etc.), which already had a significant presence there, moved south in near entirety during those years. Chemicals, aerospace and other forms of high technology would be welcomed into the mix as well. By the mid-50’s, the phrase “New South” had come into widespread use (which continued well into the 1970’s) to describe the new boomland.

Winn-Dixie, an enthusiastic corporate cheerleader for the New South, was eager to capitalize on this growth, continuing to expand aggressively both through acquisition and new store construction through the rest of the 1950’s. In June 1956, the company purchased Ketner-Milner Stores, a 24-unit chain of supermarkets in the Salisbury and Raleigh, North Carolina areas. Ketner-Milner had only been formed the previous year, with the merger of the 10-store Ketner’s Supermarkets and Milner’s Piggly Wiggly.

Interestingly, the Ketner-Milner transaction became the impetus behind what would eventually emerge as a formidable competitor to Winn-Dixie. While Glenn Ketner accepted a vice presidency at Winn-Dixie, his brother Ralph soon resigned, eager to control his own destiny in the food business. In 1957, Ralph Ketner, along with another brother, Brown, and Wilson Smith opened the first Food Town supermarket in Salisbury. Growing slowly at first, Food Town (later renamed Food Lion) would become a dominant player over time.

And Winn-Dixie was expanding in the other direction as well – just after the Ketner-Milner buyout, the company acquired H.G. Hill Stores, a 42-store chain that brought the company into New Orleans, Baton Rouge and other key Louisiana markets, as well as Hattiesburg, Gulfport and Biloxi, Mississippi.

All the while, the company continued to build new stores, averaging some 60 a year by the end of the decade. A 1959 Consumers Research magazine article featured a humorous quote from Winn-Dixie president A.D. Davis on the company’s “scientific” approach to determining ideal new store locations: “We have a radar detector device that picks up diapers on the line in the back yard, and when a great amount of diapers appear on the radar screen as we are driving through a certain area, we know this is the place where we ought to have a store”.

Obviously, whatever they were doing was paying off. In mid-1960, Winn-Dixie had over 500 stores, organized into the following divisions – Montgomery, Alabama – 55 stores, New Orleans – 43 stores, Greenville, S.C. – 110 stores, Raleigh, N.C. – 54 stores and Louisville – 33 stores. Then of course were the Florida divisions: Jacksonville – 83 stores, Miami – 76 stores and Tampa – 60 stores. If the benefits of the “New South” industrial boom may have been felt to a lesser extent in Florida, they were more than offset by the burgeoning tourist economy. In this regard, the best was yet to come.

In many areas, it must have seemed that new Winn-Dixies (and Kwik Cheks) were popping up all over. Those diapers flapping in the breeze were a sure sign one was on the way.

The photos above, from the Florida Photographic Collection, show an interesting variety of Winn-Dixie stores from the late 1950’s. The locations are as follows: (1) a brand new Tallahassee store, 1959, (2) Cedar Hills Shopping Center store, Jacksonville, also 1959, (3) Lakewood Shopping Center, pictured here previously, Jacksonville, 1959 again, (4) a downtown location in Deland, FL, 1956, and lastly, (5) from 1959, a close up of an older Tallahassee location, quaint with its oil-stained curbside parking spaces, “guess your weight” machine and wooden doorframes. The names of two well-known Winn-Dixie brands, Dixie Darling and Astor, are painted on the transom glass. More indicators (as if more are needed) that this scene is from a long-gone era can be found in the price of the Dixie Darling bread – the "...and a half-cent" price, along with the very fact that any price would be painted on glass. Definitely from a pre-inflationary era.

Sunday, May 3, 2009

Winn-Dixie's Family Tree

The roots of Winn-Dixie’s “family tree” can be traced back to two small grocery stores in 1920’s Florida. The first of these was a wholesale grocery unit in northeast Florida, purchased by E.L. Winn and W.R. Lovett in 1920. From that humble start, Winn and Lovett built a chain of “small neighborhood-type” stores, reaching a total of 65 units by the end of 1928. On Christmas Eve of that year, the company was officially incorporated as Winn & Lovett Grocery Company. The company prospered through the depression that followed, and in the early 30’s embarked on a program to consolidate its small stores into fewer but larger units that would feature self-service, an emerging trend in the grocery industry. By the end of 1934, there were 55 stores located in central and northeast Florida and in south Georgia, under the Lovett’s and Piggly Wiggly names. By this time, W.R. Lovett had bought out Mr. Winn’s interest in the company.

The second of these two “founding stores” was opened in 1925 in Lemon City, a suburb of Miami by William M. Davis. Davis had operated a general store in Idaho in the years prior to World War I, and had recently relocated his family to Florida. Known initially as “Rockmoor Grocery, Inc.”, the company that eventually resulted was called Economy Wholesale Grocery Company. From 1927 on, the stores themselves went by the name of Table Supply. By 1934, there were 34 Table Supply stores in south and central Florida. The company had moved into the Tampa area three years prior with its purchase of the Lively Stores chain. That same year, the elder Davis passed away, and control of the company passed to his four sons – Artemus Darius (A.D.), James Elsworth (J.E.), M. Austin and Tine W. - “The Davis Brothers” would become a fairly well-known group in Wall Street circles in decades to come.

In November 1939, W.R. Lovett sold his interest in Winn & Lovett (a chain that had by now grown to 73 stores) to the Davis Brothers. Lovett stayed on in an advisory role as chairman, and A.D. Davis took over as president. For a five-year period, and despite the same ownership, the Winn & Lovett and Economy/Table Supply firms were run as separate companies. Davis’ three brothers, J.E, Austin and Tine continued to run the family’s original business during this time. On November 25, 1944, the two companies were combined into one entity under the Winn & Lovett corporate name. There were 118 total stores, half of which the company described as “supermarkets”. The retail stores themselves continued to operate under their existing names – Table Supply, Lovett’s and Piggly Wiggly. There were also a handful of Economy Wholesale Grocery stores.

(It’s interesting to note some of the major grocery chains that once operated Piggly Wiggly-bannered stores in addition to their traditional nameplates. Besides the Winn & Lovett-owned “Pigglys”, Kroger operated a number of them in Atlanta, and H.E. Butt (H.E.B.) had many in Texas in those years.)

Over the following decade, Winn & Lovett grew rapidly through acquisition, adding a number of new chains and territories. In July 1945, the company took a major step outside of its traditional Florida/south Georgia market area with the purchase of Louisville-based Steiden Stores, Inc., a 31-store chain. In late 1949, the Margaret Ann grocery chain, with 46 stores conveniently located within the company’s core Tampa and Miami areas, was acquired.


In 1952, Winn & Lovett achieved the special distinction of being the first Florida-based company to be listed on the New York Stock Exchange. Of lesser note but still important was the company’s growing stable of private labels, with the purchase of the former B. Fischer manufacturing plant in New York, makers of Astor coffee, tea and spices, a longtime Winn & Lovett supplier. The company already had bread bakeries in Jacksonville and Miami and a salad dressing/mayonnaise/peanut butter plant in southern Alabama. In April 1955, Winn & Lovett purchased the Carr-Consolidated Biscuit Company, makers of Crackin’ Good cookies and crackers. Unfortunately, Carr’s Chicago plant burned down a mere four months later. A replacement Crackin’ Good plant was opened much closer to home in Valdosta, Georgia in 1958.

The company rapidly moved into adjoining markets, including Albany, Valdosta and Savannah, Georgia and Dothan, Alabama in 1953. The following year, Montgomery, Selma and Anniston, Alabama and Columbus, Georgia were added as well.

And of course there were more store chain acquisitions, including the Kwik Chek Supermarkets of the Tampa and Miami areas. I have to admit that this one puzzles me, as a number of web sources mention Kwik Chek as a company acquired sometime in the early/mid 50’s. The first mention of it in a Winn & Lovett annual report came in 1953, when the name Kwik Chek appears alongside the other familiar banners – Lovett’s, Margaret Ann, Table Supply, etc., but no merger or acquisition is mentioned in that or any subsequent editions. A search in the New York Times and Wall Street Journal historical archives, usually excellent sources for “fact-cheking” (sorry) the dates of even small corporate acquisitions, yielded nothing.

Kwik Chek is significant in that it provided the company an enduring brand icon, the famous “Chek mark”. In the late fifties, the company would phase out all but the “Winn-Dixie” and “Kwik Chek” banners, with the Chek mark prominently featured (encircled) in the center of both names. When they further narrowed it down to simply “Winn-Dixie” in the 1970’s, the Chek mark still reigned as the company’s logo, as it does to this day.

In mid-1955, Winn & Lovett bought out Columbia, South Carolina based Edens Food Stores, Inc., with 33 stores in the central and western portions of the state. The “Dixie” portion of Winn-Dixie came later that year when the company purchased Dixie-Home Stores, a 117-store chain based in Greenville, South Carolina, giving the company nearly 400 stores at the close of 1955. Still more acquisitions were just around the corner. On November 15, the company’s name was officially changed to Winn-Dixie Stores, Inc.

The next ten years would be "crackin’ good" for Winn-Dixie, by all measures.

The photos above are shown in a reverse chronology (more or less) of the store nameplates that would come to make up Winn-Dixie. The Dixie-Home photo (with its Food Fair-esque pylon) is from Chain Store Age, the Kwik Chek photos are shown courtesy of the Tampa-Hillsborough County Library System and the rest are vintage Winn & Lovett publicity photos. Below, from the Florida Photographic Collection, is an interior scene from the Davis family’s first Miami grocery store, circa 1925.

Sunday, December 7, 2008

Kroger - Flossed in the Fifties

Around 1955, Kroger kicked its expansion program into high gear, going far beyond simply replacing existing small grocery stores with larger supermarkets. For the first time in a decade, the company moved back into an acquisition mode, buying three supermarket chains in three successive months. On May 13, Kroger announced its purchase of Henke & Pillot, an 83-year old Houston based chain of 26 stores – 18 in greater Houston, three in Beaumont, and one each in Galveston, Port Arthur, Baytown, Velasco and Orange, Texas. In June, the company (who already had a sizable group of stores operating in its Madison, Wisconsin division)acquired Krambo Food Stores, Inc., an Appleton, Wisconsin based chain with seven Milwaukee stores, four in Appleton, three in Green Bay, two each in Oshkosh and Wausau, and one each in Fond-du-Lac, Merrill, Neenah, Manitowoc , Antigo and Sheboygan (yup, there ya go!). Additionally, six more Krambos were under construction at the time. And in late July, Kroger further beefed up its Texas presence (and picked up some new stores in Arkansas and Louisiana) when it bought out Childs Food Stores, Inc., of Jacksonville, Texas. The Childs stores operated under the Childs Piggly Wiggly name. The following year, Kroger added a big chain, at least in name. In January 1956, the company bought out Big Chain Stores, Inc. a chain of seven stores based in Shreveport, Louisiana, later combining it with the Childs group. All of these newly acquired stores continued to operate under their original names for a time, fitting in with Kroger chairman Joseph B. Hall’s much-touted decentralization approach. In 1957, in describing Kroger to a Business Week interviewer, he said “we are running 27 supermarket chains”.

Once again, Kroger threw in a divestiture amidst all of these acquisitions. In September 1957, Kroger sold off its Wichita, Kansas store division, then consisting of 16 stores, to J. S. Dillon and Sons Stores Company, then headed by Ray S. Dillon, son of the company founder. The former Kroger stores gave the Dillon firm a total of 51 units in 1957, located throughout central and western Kansas and in Denver, where the Dillon stores went under the name of King Soopers. As fate would have it, the Dillon family would play a key role in Kroger’s future. In 1982, Kroger would buy out the entire Dillon organization, which had of course grown impressively in the intervening years. In 2004, David Dillon, Ray S. Dillon’s grandson, was named chairman and CEO of Kroger, a position he presently holds.

Some new markets were started from scratch as well, with the introduction of Kroger’s first stores in Birmingham, Alabama. There was growth in the existing markets as well, with Chicago, for example, being the focus of a major push. In October 1956, Kroger announced a whopping 34-store expansion in the Chicago area, trumpeted by a special section in the Chicago Tribune. New Kroger stores were already open or soon would be in several of the new major new shopping centers in the area, including Old Orchard in Skokie, Hillside Shopping Center, located in west suburban Hillside off of the brand-spanking new Congress (now called Eisenhower) Expressway, and at Harlem-Irving Plaza (Harlem Avenue and Irving Park Rd, Chicago). Other stores were announced for Park Forest, Zion, and Franklin Park to name just a few locations.

This period also saw Kroger’s entry into the world of trading stamps. In nearly all cases, trading stamps were adopted as a defensive measure by chains needed to gain a competitive edge against other chains offering …well, trading stamps. Having successfully resisted the likes of Sperry and Hutchinson and others who tried to sell the idea to them over the years, Kroger decided to create their own program when it became necessary to jump in. In 1955, Kroger joined forces with a number of non-competing food chains to form Top Value Enterprises. Eventually, Kroger would buy out its partners, gaining full control of the company. Top Value redemption centers popped up all over Krogerland, oftentimes right next to the Kroger stores themselves. Several times a year, Top Value issued thick catalogs (several of which in the 60’s and 70’s featured Norman Rockwell-painted covers) offering all manner of treasures for those who weren’t offended by the taste of the multitudes of stamps it took to fill those good old “saver books”.

Shown above are three Kroger store photos from the fifties. The first store is an unknown Illinois location. The photo’s focus is a bit soft, but the great looking store can still be appreciated. I particularly like the dual appearance of the Kroger name on the front of the store, both above and on the store windows. The second photo shows the Kroger at the new Boardman Plaza, the first DeBartolo shopping center, which opened in their hometown of Boardman, Ohio (a Youngstown suburb) in 1951. This shopping center also featured an A&P and an independent called Century Foods.

The third photo features a very proud Kroger president Joseph B. Hall in front of the chain’s brand new flagship, a 44,000 square foot (gigantic for the time – most of Kroger’s new supermarkets were less than half that size) store that opened in May, 1957 at Swayne Field Shopping Center, Kroger’s first foray into shopping center development, in Toledo, Ohio. The huge store, Kroger’s “flossy new supermarket”, was featured in a profile piece (the Hall picture is from the cover of that issue) on Hall and Kroger in an August 1957 Business Week article. An earlier New York Times article listed the Toledo store’s attributes – “Gourmet and delicatessen departments stocked with such items as pickled rooster combs and chocolate covered ants - A barbecue corner that will custom-cook ribs, chickens, hams and other meats - a smokers’ center, staffed by a tobacconist, with lighters and pipes on sale - A lunch counter for quick snacks (Which, as the BW article helpfully noted, “keeps the men out of the way while the housewives do their shopping”), and the chain’s largest frozen food department”.

Flossy. Real flossy.

The artists’ renderings below show Kroger’s three acquisition prizes from 1955.

Thursday, November 29, 2007

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.