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.

A New Logo for Wal-Mart!

I don’t make a habit of reacting to current retail news on this site, but over the last week or so, it’s been hard to escape the coverage of Wal-Mart’s (er, excuse me, Walmart’s) new logo. The storefront in this 1977 photo shows the “frontier” style logo the company used until the early 1980’s. By the time most Americans became familiar with Walmart, it had been phased out for some years.

Opinions as to the relative merits and effects of Walmart are strong on all sides, and that’s a discussion I’d very much prefer to leave up to other websites. I thought it would be fun, however, to take a brief detour over the next couple of posts and have a look at the company’s early history, when they had just a few stores in a handful of states. Long before Walmart became the world’s largest company, the world’s largest retailer, or even a nationwide retailer. Before their “little town blues” melted away…before they were A-number one…King of the hill…Top of the list…A-number one…ok, I’ve gotta stop listening to Sinatra when writing these posts…

Last Spin of the Turn-Style

The mid/late-1970’s proved to be the Waterloo of a number of discount retail chains with a significant presence in Chicago. The late George Lazarus, longtime business writer for the Chicago Tribune, listed the recent casualties in a 1978 editorial – Topps (Interstate Stores), Korvettes, W.T. Grant and Robert Hall Village. In short order, Jewel-owned Turn-Style would be added to the list.

Turn-Style’s profitable run at the end of the sixties and the dawn of the seventies brought about an acceleration, however mild, of the Family Center program, where the chain grew from a couple of area stores to thirteen by 1976. The last Chicago Turn-Style stores were opened in conjunction with a new Jewel concept – the Jewel Grand Bazaar, a larger (60,000-plus square feet) supermarket format that enjoyed great success in its early years. Loosely based on the European “hypermarkets”, these stores combined the feel of an open air market with huge bulk displays of product. Jewel, widely credited with marketing the country’s first “generic” supermarket product line (in 1977), used the Grand Bazaar stores for its launch. Three Grand Bazaar locations that adjoined some of the final Turn-Style stores were located at 54th Street and Pulaski Road, 87th Street and the Dan Ryan Expressway, and at Grand and Kostner Avenues. In 1974, Turn-Style’s president, Bill Lewis, was reassigned by Jewel to head up a new group, charged with developing a "real" hypermarket for Jewel. It was to include a discount department store, pharmacy and food store under one (very large -200,000 sq. ft.) roof, in what could have been a more upscale precursor to today’s Wal-Mart Supercenters. Sadly, this never materialized.

Turn-Style, which as Lazarus put it, “(had) never been a winner for Jewel” at least held its own into the mid-70’s, but things went downhill quickly from there. In 1975, Turn-Style lost its independent division status and was placed under the Osco group, along with the very successful Osco Drug stores and Jewel’s hapless, soon to be jettisoned Republic Lumber stores.

In 1978, there were 24 Zayre stores and 38 Kmart (who had just snapped up two Korvettes and two Robert Hall Village locations) stores in operation in the greater Chicago area, huge footprints (and a correspondingly huge advertising advantage) in contrast with Turn-Style, which was standing still after all those years with only 13 area units, incomplete market coverage and far less than ideal advertising utilization.

When May Department Stores, Inc., with its growing Venture stores division came calling, Jewel was receptive. On March 7, 1978 it was announced that Jewel would sell 22 Turn-Styles to May for conversion into Venture stores, including locations in Illinois, Michigan, Iowa, Wisconsin and Nebraska. Ten of the 13 Chicago stores were included, with the other three – Harlem-Foster, Niles and Westmont retained by Jewel for eventual conversion to larger Jewel-Osco units. The handful of Boston units went to various tenants, including Zayre.

The top photo, from 1975, shows the 87th and Dan Ryan Expressway Turn-Style/Osco Drug/Jewel Grand Bazaar location. The second photo shows the Quincy, Massachusetts location, originally opened in 1966 and remodeled ten years later, in a photo taken shortly thereafter. The photo gives a nice look at Jewel’s New England family – Star Market, Brigham’s Ice Cream Shop, Osco Drug and Turn-Style. The only name missing, for obvious reasons, is a White Hen Pantry convenience store. The last photo shows one of the last Turn-Styles, the location of which I’m not sure of.

Happy (Day After) the 4th of July!

Hope that everyone had a great Independence Day! Now that the parades and fireworks are over, some of you may be tackling household projects today, like painting. And there’s no better place to buy the paint than…do I even have to say it?

Today marks the one-year anniversary of Pleasant Family Shopping. (This website, that is, not the actual practice itself.) Thanks so much to everyone for your support and continued readership!

Dave

Turn-Stylin'

After moving to quickly establish the first new Turnstyle West (technically it was the midwest) region stores upon buying out the company in 1962, Jewel proceeded much more slowly through the rest of the sixties. Having opened the Racine, Skokie and Harlem-Foster stores, two more Turnstyles would open in 1963, both of them in the Quad Cities – Moline, Illinois in May and Davenport, Iowa, in August. They would be the last new midwest Turnstyles for four years, when a “mini-Turnstyle” (35,000 sq. feet) was opened in Bettendorf, Iowa in 1967.

In 1964 the original Lynn, Massachusetts store, an outdated unit of only 45,000 square feet, was closed. The following February a brand-new 100,000 square foot Turnstyle opened in Quincy, Massachusetts, a Boston suburb. This was part of a Jewel-owned “Family Center” and also included a Star Market and a Brigham’s. Brigham’s was a well-known Boston area chain of ice cream/sandwich/bakery shops that Jewel acquired as part of the Star Market transaction a year earlier. Brigham’s owned a baking division called Dorothy Muriel’s that eventually supplied baked goods to the Star Markets (I can still taste those great corn muffins from my childhood trips up there!). Things remained fairly quiet on the Turnstyle East front as well, with the only real action being the conversion of two Star Home Centers to Turnstyle stores, in Waltham, Mass. in 1966 and Franklin, Mass. the following year.

From a business standpoint, the early years of Jewel’s Turnstyle ownership were very difficult, with fairly substantial operating losses. In retrospect, it’s hard to say whether or not Jewel held off opening more Turnstyle stores in their key market, the Chicago area (where Turnstyle had barely scratched the surface) in order to refine the concept. It had to have taken longer than they planned.

In any event, their act was together by 1968 when a new Turn-Style (the name was hyphenated by this time) / Jewel Family Center opened in the North Point Shopping Center on Rand Road in Arlington Heights, Illinois, a bustling northwest suburban town. The following year, a new store opened in west suburban Glendale Heights. That year, 1969, marked a major turnaround for Turn-Style with all of the chain’s 13 stores operating at a profit.

In November 1971, two Turn-Style / Jewel Family Centers opened on the same day. One was in Schaumburg, Illinois, at the intersection of Golf and Meacham Roads, near the colossal new Woodfield Mall. This store is the one I remember shopping at the most. The other store was in the new “Jewel Village” Shopping Center in west suburban Westmont, Illinois, at the corner of Ogden and Cass Avenues. The Westmont store was located in a Jewel-owned shopping center that was unique in that it was used for a “proving ground” for some new Jewel retail concepts – “Case n’ Bottle” liquor stores, Village Fashions and a fabric/craft shop called “Stitch n’ Knit”. These didn’t end up flying as standalone concepts, although the liquor store idea was later folded into some Jewel stores.

In 1972, Jewel began to roll Turn-Style stores out to other areas, notably the Eisner territory, which was located in Central Illinois and Western Indiana, and had recently been extended to Indianapolis. They even opened some Family Centers in conjunction with non-Jewel supermarkets, pairing up two Omaha Turn-Styles, one with a Bakers supermarket, the other with a Hinky-Dinky.

The next year, Jewel tried its hand at the catalog showroom business. “Intrigued by (that) $2 billion business”, as they officially put it, the decision was made to open a catalog showroom area within five existing Chicago area Turn-Styles, which would be redubbed “Turn-Style Plus” stores. Deerfield, Niles, Arlington Heights, Schaumburg and Chicago (Grand and Kostner Avenues) were the “Plus” stores, each store setting aside an 8,000 selling floor and 15,000 of warehouse space to accommodate the venture. A 350-plus page Turn-Style Plus catalog was published for customers to use to make their buying decisions at home, call in an order (or write one up onsite) then flee to the store to pick it up. The catalog showroom concept was gaining popularity across the US at the time, with companies such as Service Merchandise and Best Products enjoying tremendous growth. The major catalog players in the Chicago area at the time were Bennett Brothers (still in business) and McDade and Company (now gone). The venture was not a success, and only a year later Jewel referred to it as an “experiment”.

The photos above are from the early 1970’s, that golden era of white wine, ferns, and brown mansard-roofed discount (and grocery) stores. The first shows the Jewel Village location in Westmont, Illinois, the second a Turn-Style / Eisner Family Center in Indianapolis, with a mile-long Olds Custom Cruiser in the foreground. The third photo is an unidentified Family Center and the last is of one of the five Turn-Style Plus stores.

And for more Turn-Stylin’, check out John Gallo’s new site, Stores Forever. John has been a longtime contributor to number of the old retail fansites, and has now started one of his own. John had the foresight to photograph many stores in his native Racine, Wisconsin/North Suburban Chicago areas in the 70’s and 80’s. His current post features a great shot of the Racine Turn-Style store as remodeled in the early 70’s, when the former Jewel had been converted to a “Big E” warehouse food store, a short-lived Jewel no-frills concept that fell under the Eisner wing. John has some great ShopKo stuff on there as well.