Gimbels

Company name	Gimbels
Company logo
Above picture	The Original Gimbels Flagship
Fate	Liquidation
Successor	None
Foundation	1887
Defunct	1987
Location	New York, New York, United States
Industry	Retail
Key people	Adam L. Gimbel, Bernard Gimbel
Products	Clothing, footwear, bedding, furniture, jewelry, beauty products and housewares
Num employees
Parent	Formerly Gimbels Brothers Inc.
Subsid	Formerly Saks

Gimbel Brothers (Gimbels) was an iconic American department store corporation from 1887 through the late 20th century. The name is often misspelled with an apostrophe. The store is known for creating the Gimbels Thanksgiving Day Parade, the oldest parade in the country. Gimbels was also once the largest department store chain in the country. By the time of its closure in 1987, Gimbel had 36 stores throughout the United States.

History

Beginnings

The company, founded by a young Bavarian immigrant, Adam Gimbel, began as a general store in Vincennes, Indiana. After a brief stay in Danville, Illinois, Gimbel relocated in 1887 to the then boom-town of Milwaukee, Wisconsin. While the new store was an immense success, quickly becoming the leading department store in Milwaukee, Adam Gimbel, with seven sons (and another adopted), saw that one store, no matter how successful, would not accommodate his family's future.

As a joke of the time put it, he had "a surplus of capital and a surplus of Gimbels"; in 1894 he acquired the Granville Haines store in Philadelphia, and in 1910 opened another branch in New York City. With its arrival in New York, Gimbels prospered, and soon became the primary rival to the leading Herald Square retailer, Macy's. This rivalry entered into the popular argot: "Would Macy's tell Gimbels?" To distinguish itself from Herald Square neighbors, Gimbels' advertising promised more: "Select, don't settle."

Going public

This was so successful that in 1922, the chain went public, offering shares on the New York Stock Exchange (though the family retained a controlling interest). The stock sales provided capital for expansion, starting with the 1923 purchase of across-the-street rival Saks & Co., which operated under the name Saks Thirty-Fourth Street; with ownership of Saks, Gimbel created an uptown branch called Saks Fifth Avenue. In 1925 Gimbels entered the Pittsburgh market with its purchase of Kaufmann & Baer's. Also acquired in this transaction was Gimbels' third radio outlet, WCAE; the company already owned WGBS in New York and WIP in Philadelphia. 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.

Largest in the world

By 1930 Gimbels had seven flagship stores throughout the country and net sales of $123 million with 20 sites; this made Gimbel Brothers Inc. the largest department store corporation in the world. By the time of World War II, profits had risen to a net worth of $500 million, or over $1 billion in today's money. 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.

Publicity

Despite its limited presence, Gimbels was well-known nation-wide, in part because of the carefully cultivated rivalry with Macy's, but also thanks to an endless stream of publicity. The New York store got considerable attention as the site of the 1939-40 sale of art and antiquities from the William Randolph Hearst collection. Gimbels also got an abundance of publicity from the 1947 film Miracle on 34th Street, and from the 1967 film Fitzwilly. For example: Gimbels was frequently mentioned as a premiere shopping destination of Lucy Ricardo and Ethel Mertz on the hit 1950s TV series I Love Lucy. (An homage to Miracle on 34th Street was paid in the 2003 comedy film Elf which offered "Gimbels" as the fictional setting of the title character's workplace.)

The Slinky made its debut at the northeast Philadelphia Gimbels store.

Flagship store

Gimbels New York flagship was located in the cluster of large department stores that surrounded Herald Square. Designed by architect Daniel Burnham, the structure, which once offered of selling space, has since been modernized and entirely revamped. It now houses the Manhattan Mall, a variety of individual stores. When this building opened in 1910, a major selling point was its many doors leading to the Herald Square 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. Doors also opened to a pedestrian passage under 33rd Street, connecting Penn Station to the subway stations. This "Gimbels Corridor" was closed in the 1970s for reasons of liability during a period of high crime rates. After conversion to the Manhattan Mall, parts of the former store were occupied by a mid-town branch of Brooklyn's Abraham & Straus and still later by Stern's. Today, the lower two levels are occupied by JC Penney. The building that housed a Gimbels branch at 86th Street and Lexington Avenue remains, but has been converted to apartments.

Gimbels downtown Pittsburgh flagship

(formerly the Gimbel Brothers Department Store), built in 1914, located at 339 Sixth Avenue in Pittsburgh, Pennsylvania.]]

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 went out of business in the late 1980s, the building was converted to office use and renamed the Heinz 57 Center. In 1897 it was added to the list of historic landmarks by the Pittsburgh History and Landmarks Foundation.

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 IKEA Thanksgiving Day Parade. Macy's did not start a parade until 1924. When Gimbels closed down in 1986, television station WPVI took over responsibility for the parade, with sponsorship by Reading, Pennsylvania-based Boscov's. Currently, IKEA is the chief sponsor of the parade.

The Terrible Towel

Upon the sudden popularity of the Terrible Towel, Pittsburgh area department stores sold out all yellow and black hand towels. Because the hand towels were often sold as a set, with matching bath towels, stores were left with uneven sets.

Relationship to Saks

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. Andrew Gimbel, the founder of Gimbels, turned Saks into a national brand. Once BATUS Inc. acquired Gimbel Bros. in 1973 from the Gimbel family, it also owned Saks Fifth Avenue. BATUS closed Gimbels in 1986, and subsequently sold Saks to Investcorp S.A. in 1990.

Acquisition by British American Tobacco

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

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 credit 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 operating losses in both divisions.

Closure

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. Some of the more attractive branches were taken over by Stern's (Allied Stores), Pomeroy's (Allied Stores), Kaufmann's (May Department Stores, ironically now part of the corporate family of rival Macy's), or Boston Store (P.A. Bergner & Co.) The cornerstone of the chain, the downtown Milwaukee store where Adam Gimbel had first found success (and alleged to be the most profitable Gimbel store), was handed to former BATUS sister division Marshall Field's, as well as some other Milwaukee Gimbels branch stores. After a few uncomfortable years trying to be a mass-market retailer, Fields gave up in 1997, closing the Milwaukee store and selling off the remaining Gimbels branches it held, except for the Hilldale store in Madison, Wisconsin, which became Macy's in September 2006. The downtown Milwaukee building was remodelled in 1998 and now houses a Borders, the headquarters of the American Society for Quality and other offices, and a small extended stay hotel.

Gimbels trademark

The "Gimbels" trademark was eventually re-registered by siblings Mark and Beth Gimbel, who are not directly related to the originating family; Mark Gimbel is owner of the Smiling Cow and Gimbel's Country Store in Boothbay Harbor, Maine. They acquired the trademark in 1999 after Gimbels department stores went out of business and the trademark was declared abandoned.

References

Notes

Bibliography

Harris, Leon. Merchant Princes. New York: Harper & Row, 1979.

Mahoney, Tom, and Leonard Sloane. The Great Merchants: America's Foremost Retail Institutions and the People Who Made Them Great. New York: Harper & Row, 1974.

Ferry, John William. A History of the Department Store. New York: The MacMillian Company, 1960.

External links

Image of the flagship store at Christmas

Image of the original Pittsburgh store

Image of a Gimbels store from the early 1960s

Image of a Gimbels shopping bag

Category:Defunct department stores of the United States Category:Economy of Milwaukee, Wisconsin Category:Companies established in 1887 Category:Companies disestablished in 1997

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