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Gimbels

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Gimbels
IndustryRetail
Founded1842; 182 years ago (1842)
FounderAdam Gimbel
Defunct1987; 37 years ago (1987)
FateLiquidation
SuccessorNone
HeadquartersNew York, New York, United States
Key people
Adam L. Gimbel
Bernard Gimbel
ProductsClothing, footwear, bedding, furniture, jewelry, beauty products and housewares
ParentFormerly Gimbel Brothers Inc.
SubsidiariesFormerly Saks

Gimbel Brothers (known simply as Gimbels) was an American department store corporation that operated for over a century, from 1842 until 1987. Gimbel patriarch Adam Gimbel opened his first store in Vincennes, Indiana, in 1842. In 1887, the company moved its operations to the Gimbel Brothers Department Store in Milwaukee, Wisconsin. It became a chain when it opened a second, larger store in Philadelphia, Pennsylvania, in 1894, moving its headquarters there. At the urging of future company president Bernard Gimbel, grandson of the founder, the company expanded to New York City in 1910.

The company is known for creating the oldest Thanksgiving parade, the Gimbels Thanksgiving Day Parade, originating in 1920 in Philadelphia. Gimbels was also considered the chief rival of Macy's with their feud popularized in American culture. As of 1930, Gimbels had grown to 20 stores, whose sales revenue made it the largest department store chain in the world. The company expanded to a peak of 53 stores by 1965, and closed in 1987 with 35 stores in Pennsylvania, New York, New Jersey, Wisconsin, and Connecticut.[1]

History

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Early history

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Gimbels Building in Milwaukee

The company was founded by a young Bavarian Jewish immigrant, Adam Gimbel, who opened a general store in Vincennes, Indiana.[2][3] After a brief stay in Danville, Illinois, Gimbel relocated in 1887 to Milwaukee, Wisconsin,[2] which was then a boomtown heavily populated by German immigrants. The new store quickly became the leading department store there. However, with seven sons, Adam Gimbel saw the opportunity to expand elsewhere.

In 1894, Gimbels—then led by the founder's son, Isaac Gimbel—acquired the Granville Haines store (originally built and operated by Cooper and Conard) in Philadelphia, Pennsylvania, and in 1910, opened another branch in New York City.[2] With its arrival in New York, Gimbels prospered, and soon became the primary rival to the leading Herald Square retailer, Macy's, whose flagship store was located a block north. This rivalry entered into the American popular argot as "Does Macy's tell Gimbels?", an idiom used to brush off any query about matters the speaker didn't wish to divulge. To distinguish itself from Herald Square neighbors, Gimbels' advertising promised more: "Select, don't settle."[4]

Gimbels became so successful that in 1922 the chain went public, offering shares on the New York Stock Exchange (though the family retained a controlling interest).[5] The stock sales provided capital for expansion, starting with the 1923 purchase of across-the-street rival Saks & Co.,[2] which operated under the name Saks-34th Street; with ownership of Saks, Gimbel created an uptown branch called Saks Fifth Avenue.[3] Moving into radio, Gimbels purchased WGBS in New York and WIP in Philadelphia. In 1925, Gimbels entered the Pittsburgh market with the purchase of Kaufmann & Baer's,[6] acquiring WCAE in the deal. Although expansion spurred talk of the stores becoming a nationwide chain, the Great Depression ended that prospect. Gimbel did increase the number of more upscale (and enormously profitable) Saks Fifth Avenue stores in the 1930s, opening branches in Chicago, Boston and San Francisco.

Success

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By 1930, Gimbels had seven flagship stores throughout the country and sales of $123 million ($2.2 billion today) across 20 stores; this made Gimbel Brothers Inc. the largest department store corporation in the world.[7] By 1953, sales had risen to $300 million ($3.4 billion today).[8] In 1962, Gimbels acquired Milwaukee competitor Schuster's, and in that region operated stores from both chains for a while as Gimbels Schuster's.[7][9] By 1965, Gimbel Brothers Inc. consisted of 53 stores throughout the country, which included 22 Gimbels, 27 Saks Fifth Avenue stores, and four Saks 34th St.[7]

Gimbels and the middle class

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Gimbels' principles and merchandise sought to reflect the ideals of middle class America. Their principles consisted of "courtesy, reliability, good value, and enlightened management".[8] By using middle class values Gimbels attracted shoppers to a store that also could fit their budgets. Keeping the store plain and less extravagant than some of its competitors, Gimbels used the slogan "the customer pays for fancy frills."[8] Gimbels was about the product, not the aesthetics. By offering a wide range of cutting-edge technology in its merchandise, Gimbels reflected the ideals held by the middle class of staying up to date with technologies and carrying new appliances and merchandise at an affordable price.[10]

Merchandise

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Gimbels Department Store offered a variety of merchandise and products, including home appliances, outdoor equipment, furniture, clothing, and much more. With multiple floors in its flagship stores, each floor offered a given category of merchandise. The Philadelphia Gimbels specifically offered fine jewelry, men's clothing, women's clothing, children's clothing, furniture, toys, art supplies, and appliances for the house. This store also contained The Gimbel Auditorium, Television Headquarters, a salon, and music center. With a wide variety of options Gimbels was a one stop shop that made shopping easy and accessible.

Publicity

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Despite its limited presence, Gimbels was well-known nationwide, in part because of the carefully cultivated rivalry with Macy's, but also thanks to an endless stream of publicity. The New York store received considerable attention as the site of the 1939–1940 sale of art and antiquities from the William Randolph Hearst collection.[11] Gimbels also gained publicity from the 1947 film Miracle on 34th Street, the 1967 film Fitzwilly, and was frequently mentioned as a shopping destination of Lucy Ricardo and Ethel Mertz on the hit 1950s TV series I Love Lucy.

The Slinky made its debut at the northeast Philadelphia Gimbels store.[12] The Philadelphia Gimbels was also the first department store in the world to move customers from floor to floor via the escalator.[13]

Gimbels Thanksgiving Day Parade

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Further information: 6abc Dunkin' Donuts Thanksgiving Day Parade

The idea of a department-store parade originated in 1920 with Gimbels Department Store in Philadelphia with the parade now known as the 6abc Dunkin' Donuts Thanksgiving Day Parade. The Gimbel family saw the parade as a way to promote holiday shopping at its various store locations. Macy's did not start a parade until 1924. When Gimbels ceased operating in 1986, television station WPVI assumed responsibility for the parade, with sponsorship by Reading, Pennsylvania–based Boscov's. Currently, Dunkin' Donuts is the chief sponsor of the parade.[8]

Acquisition and closure

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Brown & Williamson, the American subsidiary of British American Tobacco, a diversified conglomerate based in Louisville, Kentucky, acquired Gimbels in 1973.[14] Brown & Williamson also owned Marshall Field's (purchased in 1982), Frederick & Nelson, The Crescent stores, and Kohl's (purchased in 1972).[14] Brown & Williamson later created the BATUS Retail Group as a subsidiary company for its retail holdings.[7]

BATUS initially left the Gimbels chain in the four autonomous divisions that had been established under Gimbel family ownership: Gimbels New York, Gimbels Philadelphia, Gimbels Pittsburgh, and Gimbels Milwaukee. Each division operated independently of each other in advertising and buying. Each division offered their own charge card which could only be used at Gimbels stores in the same division. In 1983, Gimbels New York and Gimbels Philadelphia were combined into a single entity, Gimbels East, in an attempt to reduce corporate overhead.[15]

Deciding that Gimbels was a marginal performer with little potential for increased profitability, BATUS in 1986 decided to close its Gimbels division and sell its store properties.[16] Some of the more attractive branches were taken over by Stern's (Allied Stores), Pomeroy's (Allied Stores), Kaufmann's (May Department Stores), or Boston Store.[16] The cornerstone of the chain, the downtown Milwaukee store where Adam Gimbel had first found success (and supposedly the most profitable Gimbel store), was handed to BATUS sister division Marshall Field's, but eventually closed in 1997.

Store divisions

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Gimbels flagship stores were located in New York City, Philadelphia, Pittsburgh, Milwaukee.

New York flagship store

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The Gimbels New York City flagship store was located in the cluster of large department stores that surrounded Herald Square, in Midtown Manhattan. Designed by architect Daniel Burnham, the structure, which once offered 27 acres (110,000 m2) of sales space, has since been modernized and entirely revamped. When this building opened, on September 29, 1910, a major selling point was its many doors leading to the Herald Square New York City Subway station. Due to such easy access, by the time Gimbels closed in 1986, this store had the highest rate of "shrinkage", or shoplifting losses, in the world.[17] Doors also opened to a pedestrian passage under 32nd Street, connecting Penn Station to the 34th Street (New York City Subway) and 33rd Street (PATH) stations. This Gimbels Passageway was closed in the 1990s for security reasons during a period of high crime.

The structure was converted in 1989 to A&S Plaza, a mall named for its anchor department store, a midtown branch of Brooklyn's A&S. The store became a Stern's in 1995, and the mall was renamed Manhattan Mall. The anchor store closed in 2001 and the space was subdivided within the mall, while the upper levels were converted to offices. A new JCPenney anchor store opened in 2009, in the lower two levels. That anchor store closed in 2020 and by 2021 all stores in the mall had closed, and the building served only as office space.

The building that housed a Gimbels branch at 86th Street and Lexington Avenue remains, but has been converted to apartments.[18]

Philadelphia flagship

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The Philadelphia flagship opened in 1893 when the Gimbel brothers bought the bankrupt Haines and Company dry goods store at Ninth and Market Streets. The store gradually expanded eastward to Eighth Street.[19] In 1927 an extension south to Chestnut Street was completed and the store now comprised an entire city block,[20] making it for a time the largest department store in the world.[19] In 1977 Gimbels moved to The Gallery mall across Market Street. The original buildings were demolished in 1979-1980 except for the 1927 addition which was converted to professional office spaces.[21][22] The Gallery location closed in 1986.[19]

Pittsburgh flagship

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In Pittsburgh, Starrett & van Vleck designed the downtown flagship of the Gimbels Department Store, which was built in 1914 at 339 Sixth Avenue. After Gimbels ceased operations in the late 1980s, the building sat vacant for several years and was redeveloped in the 1990s for retail, home to, among other shops, the first Barnes & Noble to open in Pittsburgh.[23] In 2002, another redevelopment changed the building to offices, and is now home to the Heinz 57 Center.[24] In 1997, it was added to the list of historic landmarks by the Pittsburgh History and Landmarks Foundation.[25]

Relationship to Saks

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Saks was founded by Horace Saks in New York City. In 1923, Gimbels purchased Saks, which became a subsidiary of Gimbel Brothers, Incorporated, a publicly traded company. Adam Long Gimbel, grandson of the founder of Gimbels, Adam Gimbel, turned Saks into a national brand. In 1973, Brown & Williamson, who later formed BATUS Inc., acquired Gimbel Bros. and the Saks Fifth Avenue brand.[7] BATUS closed Gimbels in 1986,[7] and subsequently sold Saks to Investcorp S.A. in 1990.[26]

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  • Gimbels
  • Adam, Frederic, and Bernard Gimbel
    Adam, Frederic, and Bernard Gimbel
  • Philadelphia store, c.1910
    Philadelphia store, c.1910
  • Interior of the New York Gimbels flagship store, 1950, following remodeling by designer Raymond Loewy
    Interior of the New York Gimbels flagship store, 1950, following remodeling by designer Raymond Loewy
  • The New York flagship location, now Manhattan Mall, is on the right
    The New York flagship location, now Manhattan Mall, is on the right
  • The New York flagship location, now Manhattan Mall, seen from the Empire State Building
    The New York flagship location, now Manhattan Mall, seen from the Empire State Building
  • The New York flagship location in 2008
    The New York flagship location in 2008
  • The Manhattan Mall now occupies the former Gimbels location in Midtown Manhattan
    The Manhattan Mall now occupies the former Gimbels location in Midtown Manhattan
  • Historic Art Deco triple-deck skybridge over 32nd St that once connected the New York Gimbels flagship store with Saks-34th Street, also owned by the chain
    Historic Art Deco triple-deck skybridge over 32nd St that once connected the New York Gimbels flagship store with Saks-34th Street, also owned by the chain
  • The Heinz 57 Center, formerly the Gimbel Brothers Department Store, built in 1914, located at 339 Sixth Avenue in Pittsburgh, Pennsylvania
    The Heinz 57 Center, formerly the Gimbel Brothers Department Store, built in 1914, located at 339 Sixth Avenue in Pittsburgh, Pennsylvania
  • The iconic clock outside the Gimbels flagship in Pittsburgh
    The iconic clock outside the Gimbels flagship in Pittsburgh
  • The former Milwaukee flagship, the large white building on the left
    The former Milwaukee flagship, the large white building on the left
  • Riverboat passing the former Milwaukee flagship location
    Riverboat passing the former Milwaukee flagship location

References

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  1. ^ Lentz, Philip (July 24, 1986). "Gimbels Throws In The Discount Towel At Herald Square". Chicago Tribune. Retrieved February 27, 2018.
  2. ^ a b c d Bender, Marylin (July 23, 1972). "Are Gimbels' Troubles All Wrapped Up?". The New York Times. ISSN 0362-4331. Retrieved October 14, 2020.
  3. ^ a b "Adam Gimbel Dies Here at 75; Headed Saks Fifth Ave. Stores; Adam Gimbel, Ex-Head of Saks, Dead". The New York Times. September 10, 1969. Retrieved October 14, 2020.
  4. ^ Bernheimer, Kathryn (August 28, 2011). "NY Trivia: Would Gimbels Tell Macy's?". Boulder Jewish News.
  5. ^ "New Gimbel Stock on Market Today; Public Offering of $12,000,000 of Preferred and 50,000 Shares of Common". The New York Times. August 7, 1922. ISSN 0362-4331. Retrieved October 14, 2020.
  6. ^ "Store Planned for Pittsburgh". The Vindicator. Youngstown. United Press International. March 13, 1990. Retrieved February 27, 2018.
  7. ^ a b c d e f Beutner, Jeff (March 8, 2016). "Yesterday's Milwaukee: Gimbels Department Store, 1925". Urban Milwaukee. Retrieved May 15, 2019.
  8. ^ a b c d Smith, Scott S. (November 23, 2013). "Bernard Gimbel, A Force Behind Thanksgiving Parade". Investor's Business Daily. Retrieved November 18, 2016.
  9. ^ Daykin, Tom (November 19, 2019). "Plan to put $15 million in city financing toward redevelopment of former King Drive Schuster's advances". Milwaukee Journal Sentinel. Retrieved October 14, 2020.
  10. ^ Hepp IV, John (July 14, 2003). The Middle Class City: Transforming Space and Time in Philadelphia 1876-1926. University of Pennsylvania. pp. 148–149. ISBN 978-0812237238. Retrieved February 27, 2018.
  11. ^ Whitaker, Jan (April 1, 2007). Service and Style: How the American Department Store Fashioned the Middle Class. St. Martin's Press. pp. 192, 308. ISBN 978-1429909914.
  12. ^ Townsend, Allie (February 16, 2011). "All-Time 100 Greatest Toys". Time. ISSN 0040-781X. Retrieved May 2, 2017.
  13. ^ Couch, Ernie; Couch, Jill (June 29, 1995). Pennsylvania Trivia. Nashville: Rutledge Hill Press. p. 190. ISBN 978-1558533561.
  14. ^ a b Barmash, Isadore (January 14, 1986). "British Owner is Planning to Sell Gimbel Chain and Others in U.S." The New York Times. ISSN 0362-4331. Retrieved October 14, 2020.
  15. ^ "Company News; 2 Divisions Of Gimbels To Merge". The New York Times. March 22, 1983. ISSN 0362-4331. Retrieved October 14, 2020.
  16. ^ a b Groves, Martha (September 11, 1986). "Batus to Sell Last of Famed Gimbels Stores". Los Angeles Times. Retrieved October 14, 2020.
  17. ^ Shulkin M.D., Mark Weiss (May 19, 2011). 100 Years In America: A History of a Jewish Family a Century After Immigration. Bloomington, Indiana: iUniverse. p. 30. ISBN 978-1462010431. Retrieved February 27, 2018.
  18. ^ Scardino, Albert (June 7, 1986). "Gimbels at 86th: A Born Loser". The New York Times. ISSN 0362-4331. Retrieved May 2, 2017.
  19. ^ a b c Phillippi, Nicholas (November 24, 2014). "The Gilded Mall Of Market Street: Gimbels Had It". Hidden City. Retrieved July 15, 2021.
  20. ^ Jennings, James (May 7, 2015). "Former Gimbels Site at 9th and Chestnut Sold for Big Bucks". Philadelphia. Retrieved July 14, 2021.
  21. ^ Arrigale, Lawrence M.; Keels, Thomas H. (2012). Philadelphia's Golden Age of Retail. Arcadia Publishing. p. 122.
  22. ^ Greenberg, Kyrie (November 24, 2014). "We Haven't Forgotten: Gimbels Thanksgiving Parade Was The First". Hidden City. Retrieved July 14, 2021.
  23. ^ Bates, Daniel. "A Class-A Gimbels". Smart Business Magazine. Retrieved March 10, 2021.
  24. ^ "Oxford Development Company". www.oxforddevelopment.com. Retrieved May 3, 2017.
  25. ^ "Protest Against Gimbels Department Store, 1935". Clio. Retrieved May 3, 2017.
  26. ^ "Investcorp Buying Saks for $1.5 Billion : Retail: Luxury stores' British owners accept bid by international investment group". Los Angeles Times. April 25, 1990. ISSN 0458-3035. Retrieved May 15, 2019.

Bibliography

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  • Ferry, John William. A History of the Department Store. New York: The Macmillan Company, 1960.[ISBN missing]
  • Harris, Leon. Merchant Princes. New York: Harper & Row, 1979.[ISBN missing]
  • Lisicky, Michael. Gimbels Has It!. Charleston: The History Press, 2011.[ISBN missing]
  • Mahoney, Tom, and Sloane, Leonard. The Great Merchants: America's Foremost Retail Institutions and the People Who Made Them Great. New York: Harper & Row, 1974.[ISBN missing]
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