Showing posts with label Wisconsin. Show all posts
Showing posts with label Wisconsin. Show all posts

Thursday, May 20, 2010

A Trip to the Jewel Grand Bazaar

It happened only once, so despite the passage of time it stands out in my memory. It was the night our family broke from the routine. The night we ventured out and tried something new. The night we threw our grocery-shopping inhibitions to the wind. It was The Night of the Jewel Roadtrip.

Sure, we had a Jewel Food Store right in the center of town. It was a late-fifties remodel, complete with the famous Jewel porcelain storefront and a quaint tin-tiled ceiling. We didn’t shop there often, however, because in the next town, some seven minutes away if you took your time, was a much larger, more modern Jewel-Osco food and drug combination store. With its far greater selection, most of our family’s food dollars (save for the occasional trip to Dominick’s) were spent there.

One fall evening, in 1977 to the best of my recollection, the folks told my brothers and I to load up into the car (a powder-blue Ford Torino station wagon – yes, we bought the dream), we were going grocery shopping at a new store near downtown Chicago (?!). To cut short the collective groan, they offered an explanation – this was a special store, different from what we were used to, with unique stuff and more of it. It was a “Super Jewel” or something like that. Suddenly, the prospect of getting out of studying on that school night finally registered – “Sounds really cool, Mom!”

So as night fell we drove, into the city, to the corner of 54th and Pulaski, whereupon we pulled into the fairly full parking lot of a large retail store. The familiar orange Jewel signage sported an unfamiliar name- “Jewel Grand Bazaar”. Wow! And different it was – sort of a combination of quasi-European Market Village (little mini-shops, faux Euro-decor with orange stripes everywhere) and sprawling warehouse (huge quantities of product in open-front wire cages). “Bazaar”, indeed!

Probably the most memorable aspect of that shopping experience (beside the store’s prime selection of Mad Magazine paperbacks, which was worth the long roundtrip in itself) was our first exposure to Jewel’s huge new “generic” product line, which at that time hadn’t been rolled out to the company’s entire store lineup yet. The generics were Jewel’s response to the economic travails of the late 70’s, when inflation seemed to reduce Americans’ purchasing power by the week. It was a “no-frills”, rock-bottom price product line, and it seemed to cover nearly every packaged food category imaginable. The traditional Jewel store brand names – Mary Dunbar, Bluebrook and Cherry Valley (long-standing house brands that were about to be phased out, replaced with a unified “Jewel” brand) , with their bright, colorful labels were tossed aside in favor of an austere look – plain white labels on uncoated paper stock and military style stenciled-look lettering. The only “decorative” element was a bi-colored stripe – black and olive drab. Now every suburban housewife could realize her dream – a pantry full of C-rations! Our family stocked up big time.

On September 27, 1973, the first Jewel Grand Bazaar store opened at 5320 South Pulaski Road in Chicago. At 90,000 square feet, the new store was nearly double the size of the typical Jewel-Osco store. The Grand Bazaar concept, more than two years in the making, “present(ed) new merchandising techniques to shoppers”, with “…wide use of palletized basket presentations in the customer shopping area”, as described in a Chicago Tribune article. As such, Jewel was one of the first major supermarket retailers to introduce the concept of buying in bulk. As mentioned, among the Bazaar’s most notable features were its “shops within the store”, including the Chef’s Kitchen (a name already in use by Jewel) prepared foods section, a bake shop, the “Pier 14” fresh seafood area, and the “Cheese Chalet” (later called the “Country Cheese Shop”), where quarter-ton blocks of Wisconsin Cheddar were routinely wheeled in, to be parceled off in small wedges for delighted customers.

The Grand Bazaars were loosely based on the Hypermarché (Hypermarket) concept, which gained significant popularity in Europe starting in the 1970’s. A typical European Hypermarket was a very big store, 200,000 square feet or more, offering a large selection of general merchandise and a full supermarket lineup, with many heavier-volume items sold in bulk. Influenced by this, Jewel had indeed begun development of a Hypermarket idea of its own at the time, although it never came to fruition. At 90,000 square feet and carrying a more limited selection of general merchandise, the Jewel-Osco Grand Bazaars at least qualified, according to Chicago Tribune business columnist George Lazarus, for the title “hypergrocery”. When you consider that many of the Grand Bazaars were coupled with a (Jewel-owned) Turn-Style discount store, they were at least close to the mark.

One pioneering aspect of the Grand Bazaars was the use of electronic checkstands, utilizing “20 electronic itemizing stations” with “four separate stations for payment”. Electronic cash registers were very much a new thing for Jewel (and anyone else fortunate enough to have them yet) in 1973, and it would be a couple more years before the UPC (Universal Product Code) system was fully in place. There were also “cart-to-car” pickup systems in the Bazaar stores, which was in one sense a holdover from a more service-oriented era. And in response to the growing “consumerist” movement of the day, each Bazaar featured a “Consumer Corner” staffed with its own full-time home economist, ready and willing to provide a sympathetic ear and sound advice. (“Well you know, I’ve had issues with shish kabob since high school…”)

Within six months of opening, the Pulaski Road Grand Bazaar was drawing 30,000 customers weekly and was projected to hit $20 million a year in sales according to Donald Perkins, Jewel’s highly-respected chairman, as quoted in the Chicago Tribune. The store’s Osco Drug unit, Perkins said, was the highest grossing in the Chicago area. The press weighed in favorably as well - Trib columnist George Lazarus pronounced the Grand Bazaars “an enormous success”, and mentioned that “according to sources”, Jewel had plans in place to have 12 to 15 Grand Bazaars operating at some point. Lazarus relayed an exciting finding of Jewel management – “The beautiful part of the Grand Bazaar story is that these stores aren’t taking much, if any, business away from other Jewel and Osco stores.”

Two additional Grand Bazaars opened in the summer of 1974, on 87th Street at the Dan Ryan Expressway and at the intersection of Grand and Kostner Avenues. Within the next few years, other Grand Bazaars would follow – 115th and Halsted, Rockford, Franklin Park and even in Milwaukee, a new Jewel market at the time, where the company wisely featured local favorite Meurer Bakery in place of their standard Bake Shop.

One of the grandest Grand Bazaar openings ended up being one of the last. In February 1977, the seventh Jewel Grand Bazaar opened up as part of the first phase of The Brickyard, a rare in-city mall project that received much laudatory press for that very fact. The rise, fall and hoped-for comeback of The Brickyard is well-documented on this recent Labelscar post.

By the end of the 1970’s, the Grand Bazaar concept seemed to just fade away. After 1978, Jewel’s annual reports are silent on the subject. One can assume that they took away certain lessons from the venture and just moved on – larger food/drug combination stores were the way to go, bulk bins of product, not so much. Several of the stores continued to operate for years with Grand Bazaar signage still in place, including the Franklin Park store where I shopped a number of times in the mid-80’s, but for all intents and purposes they were standard Jewel-Osco stores by then – no bulk bins, no cheese block, no home economist. The Rockford store was converted to a “Magna” no-frills warehouse store. Today, some of the stores live on as Jewel-Oscos, the Franklin Park unit being a nicely renovated example.

When I left the Chicago area in 1987, the “Generics” line was still available, although it had greatly diminished in popularity in those more prosperous times. At some point it was phased out, although a number of deep-discount grocery stores continue to stock plain-jane staple goods today. Though the economy of the last few years could arguably be compared to that of the late 70’s, generic products have not made a comeback in this age of brand power. The major chains have wisely taken the cue, ramping up their store brands’ quality and label-appeal, and everything I’ve read says that strategy is paying off handsomely. Now if they could only bring back those home economists…

The photos above are all 1970’s Jewel publicity shots, and the stylized Grand Bazaar font and “J” logo can be seen in several of them. The first photo, from 1974, shows the brand new Grand Bazaar at 87th Street and the Dan Ryan Expressway. Photos 2 through 10 are all from the Brickyard Mall location, 1977. The camera and cosmetics department views show the typical interior design scheme of late 70’s/early 80’s Osco Drug stores. The black and white photo, from 1974, shows the Milwaukee location, with the Meurer Bakery featured prominently. Next is a 1975 aerial view of the Grand and Kostner store, with good neighbor Turn-Style to the right. The last two photos, from 1973, feature the very first Jewel Grand Bazaar at 54th and Pulaski, where some smart shoppers have selected giant boxes of Tide, "the washday miracle", a photogenic consumer product if there ever was one. This is the store that my family and I visited on that fateful evening described above.

Below, from 1977, is a close-up view of some of the Jewel Generics product line. You’ll notice that the ladies in the background have adopted “generic” facial expressions, in keeping with the spirit of things.

Friday, April 17, 2009

A New Day For Wards

Shown above are some Montgomery Ward stores from the late 1950’s. They are among the first stores the company opened after a 17-year moratorium on new construction. Radically different from the quaint, outdated stores that Wards shoppers (a steadily decreasing cohort through the 50’s) were familiar with, they represent a herculean effort to reintroduce and redefine Montgomery Ward in the eyes of the buying public, and to compete in a retail world that had changed in so many ways.

Sewell Avery, whose leadership had saved the company in the 1930’s, was poorly suited to lead the company during America’s phenomenal economic expansion in the postwar years. Convinced that another depression loomed around the corner, Avery “put Wards in a ‘storm cellar’”, as Ward’s 100th anniversary publication put it. No funds would be allocated to new stores or modernization, and even inventory was skimped on. The anniversary book cites $270 million that the company was forced to refund to catalog customers in 1946 due to out-of-stocks, a horrendous sum in that day (or this one, for that matter). The massive refund payout kept Wards from attaining what would have been its first billion-dollar sales year.

Avery’s pessimistic outlook, and his conviction that government policies were in the works to further penalize Wards led him to focus his efforts on building a large cash reserve for the company. To be sure, that goal was achieved ($327 million in cash by 1955, of which all but $23 million was invested in U.S. Government securities – ironic, don't you think?), but it came at the expense of the company’s retail business – its presumable reason for existence.

By 1955, as Fortune magazine later put it, “Montgomery Ward was a very sick cat”, with a “mountainous pile of cash and the company’s reputation for quality and service, but that was about all…”. Probably the most powerful indicator of Ward’s standing in the public eye came when contrasted with Sears. From the mid-1920’s through the early 40’s, as their companies gradually approached the billion dollar mark, Wards and Sears’ annual sales closely tracked each other, with Sears leading throughout the period by a fairly small gap. By the end of the 40’s, the “gap” had turned into a delta, with Sears at $2 billion and Wards at only one. Ten years later the “delta” had become the Grand Canyon, with Sears tallying over $4 billion and Wards still stuck at just over a billion dollars. Sears had taken the completely opposite approach to Wards when it came to expansion, snapping up choice suburban shopping center locations on which they would build huge, sprawling stores. While Wards languished in the past, Sears became the store of choice for postwar America, supplying all manner of goods –clothes, appliances, furniture, lawn mowers, you name it – to help usher in a new era of affordable luxury and leisure-time pursuits for the middle class. In the process, Sears came to symbolize America itself in the eyes of many.

By the mid 1950’s, pressure was building on Montgomery Ward to end Sewell Avery’s autocratic reign and archaic policies. In August 1954, Louis E. Wolfson, described in the anniversary book as a “youthful industrialist and promoter” came on the scene, announcing his intention to bid for control of Montgomery Ward. Wolfson, a forerunner to the corporate “takeover specialists” of the 1980’s, had reportedly gained control over corporate assets worth over $200 million by that time, according to author James Grant in his book “Money of the Mind”. Wolfson proclaimed that he saw a huge opportunity to restore Wards to greatness, putting the large cash reserve to use in expansion. Wolfson, while maintaining a modicum of personal respect for Avery, pointed out (as quoted in the Grant book) that “Ward’s management had blindly and obstinately hitched the company’s future to a depression”. The 81-year old Avery, for his part, batted back fiercely. In the company’s annual report to stockholders for 1954, Avery used the usually placid, non-controversial format of the annual report to outline his defense against Wolfson, a seven-point description of various investigations, alleged conflicts of interest and accusations of self-dealing on Wolfson’s part. Avery closed with: “In contrast, the character of your management has been reflected in the accomplishments of the last 24 years, during which the assets have been built up to $721,000,000 including cash of $327,000,000”.

In April 1955, one of the most famous proxy fights in the history of American business took place at Montgomery Ward’s annual meeting in Chicago. A confused and feeble appearing Sewell Avery took the microphone and attempted to lay out his case, with pitiful results. The whole proceeding was documented by Life Magazine's photographer, as can be seen here. Because of the structure of Ward’s board, only three new directors could be appointed per year, so while Wolfson failed to gain control of the company, his efforts were sufficient to oust Avery from the chairmanship. Wolfson and two associates were seated on the board. Sewell Avery resigned as chairman but would remain on the board for another four years, passing away in 1960. Wards vice president John Barr, a longtime company veteran who had been loyal to Avery but saw the need to expand and modernize, took over as chairman. Wolfson and his two associates, confident that Barr and the new team would revive the company and enhance his investment, resigned from the board early in 1956. Wolfson would later pursue a number of diverse ventures, including helping to finance Mel Brooks’ first film, “The Producers”.

Barr set two main goals – to rebuild Ward’s decimated management structure, and to expand and revamp the store base. The store program started slowly, with only $8 million spent on store remodels in 1956. More importantly, however, plans were being drawn for Wards stores with a completely new image – new styles, merchandising, color schemes, logos, and just about everything else. In late 1957, a new store opened in Portsmouth, Ohio. Shopping center stores, the company’s new main focus, were first opened in Denver, Colorado and Gary, Indiana in 1958, along with a new downtown store in Eau Claire, Wisconsin. By 1959, $150 million had been spent on new store development, with plans announced for another $500 million to be spent over the next five years.

Montgomery Ward, retail’s “Rip van Winkle”, had finally awoken.

Pictured above, from top to bottom: The opening (to-day) festivities of the new Wards store in Gary, Indiana, complete with a rostrum full of dignitaries, the Eau Claire, Wisconsin store (with dignitaries but no rostrum), The new store at Kansas City’s Blue Ridge Shopping Center, with cool looking trellises above the entrances, a wide shot of the Gary store, and a busy scene at the new Wheaton (MD) Plaza location from 1959. For those who prefer black-and-white, below are the 1957 Portsmouth, Ohio, store, another shot of the Kansas City Blue Ridge store, and finally the new Wonderland Shopping Center store, opened in Livonia, Michigan in 1959.

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.

Sunday, June 29, 2008

Someone Was There at the Turn-Style...

…the girl with kaleidoscope eyes. Yes, it’s time to pay tribute to the only discount store chain to ever be mentioned* in a Beatles song. I’m referring of course to Turn-Style, a presence if never really the major discount player in the Chicago and Boston areas throughout the sixties and seventies.

Turnstyle Operating Corporation (in the early years the name “Turnstyle” was not hyphenated) was founded with their first store in Lynn, Massachusetts in 1957. By the end of 1961, the company had four self-service department stores in the greater Boston area, ranging in size from 45,000 feet to their largest store, a 70,000 square foot unit in Lawrence, Mass.

On February 28, 1962, Chicago’s Jewel Tea Co. completed a year-long acquisition of the Turnstyle organization through an exchange of stock. Having gotten their feet wet in the area of non-food sales with their merger with Osco Drug the previous year, Jewel was keen to expand to the larger general merchandise format that Turnstyle afforded. In combination with their supermarkets (and occasionally an Osco as well) the “Family Center” concept would offer customers the proverbial “one-stop shop” for many of their everyday needs. The Turnstyle acquisition served another purpose for Jewel as well as it became the company’s first expansion territory outside the Midwest, not counting its European investments. The familiarity with the Boston area that Jewel management gained would pave the way for their merger with Star Market the following year.

The Turnstyle stores, as the name implied, had an emphasis on apparel, but carried extensive lines of housewares, small appliances, sporting goods, hardware items and phonograph records among other items. They also featured a pharmacy and a “delightful snack bar in the middle of the store”.

Jewel wasted little time in opening the first Turnstyle units in their primary Midwest market, with the first store, a 110,000 square foot “Turnstyle Family Center” opening in Racine, Wisconsin in March 1962. Exactly a year later, two more virtually identical family centers were opened, one at 9449 Skokie Boulevard in Skokie, IL, and the other at 7342 Foster Avenue in Chicago’s Harlem-Foster Shopping Center.

The photo above features one of the above-mentioned early Turnstyle units. A broader view of the Skokie store can be seen on the Digital Past website (note the Eagle Food Center sign to the left of the photo. This was taken several years before their acquisition by California’s Lucky Stores chain). Below is a March 3, 1963 grand opening ad for the two stores which appeared in the Chicago Tribune.

*unintentionally