The May Department Stores Company

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The May Department Stores Company
Company type Public
Industry Retailing
Founded1877;147 years ago (1877) in Leadville, Colorado, U.S.
Founder David May
DefunctAugust 30, 2005;19 years ago (2005-08-30)
FateAcquisition/merger with Federated Department Stores (Macy's).
Successor Federated Department Stores aka Macy's, Inc.
Headquarters
St. Louis, Missouri
,
U.S.
Area served
United States
Products
  • Clothing
  • footwear
  • accessories
  • bedding
  • furniture
  • jewelry
  • beauty products
  • housewares

The May Department Stores Company was an American department store holding company, formerly headquartered in downtown St. Louis, Missouri. [1] It was founded in Leadville, Colorado, by David May in 1877, moving to St. Louis in 1905. [2] After many changes in the retail industry, the company merged with Federated Department Stores (now Macy's, Inc.) in 2005.

Contents

This company was only a holding company that bought, sold, and merged regional department stores, such as Foley's and L.S. Ayres. During most of its history, the operations of the various divisions were kept separate and had their own buyers and credit cards. The latter were not accepted at other May-owned stores. At times, two different May stores operated in the same geographical market, but they were aimed at different customers. Most decisions for each of the regional store companies were made by management at the local headquarters and not by the holding company in St. Louis.

Some of the regional stores shared names that were similar to the parent company, such as Los Angeles–based May Company California. All it had in common with the parent was that these stores were headed by a different member of the May family as the president of their respective regional store chain. They were separate legal entities.

History

Christmas advertisement for Hamburger's Department Store, Los Angeles, 1905 Christmas advert for Hamburger's Department Store, Los Angeles, 1905.png
Christmas advertisement for Hamburger's Department Store, Los Angeles, 1905
The 1939 Streamline Moderne style May Company Wilshire building in Los Angeles. It was later adapted for use as The Academy Museum of Motion Pictures Highsmithmaycompanywilshire.jpg
The 1939 Streamline Moderne style May Company Wilshire building in Los Angeles. It was later adapted for use as The Academy Museum of Motion Pictures

In 1877, the May Department Stores Company was founded in Leadville during the Colorado silver rush. In 1889, the headquarters moved to Denver.

In 1899, May acquired the E. R. Hull & Dutton Co. of Cleveland, renaming it the May Company, Cleveland, later named the May Company Ohio.

In 1905, the headquarters moved to St. Louis. [3] In 1910, the business was officially incorporated as the May Department Stores Company. [3] In 1911, The Famous Clothing Store (owned by May) and the William Barr Dry Goods Company merged to create Famous-Barr. [3]

In 1912, May acquired the M. O'Neil Co. (O'Neil's) department store of Akron, Ohio.

In 1923, May acquired A. Hamburger & Sons Co. in Los Angeles and renames it May Company California. [4]

In 1946, May acquired the Kaufmann's chain based in Pittsburgh, retaining it as a separate division. [3] In 1947, May acquires Strouss-Hirshberg Co. based in Youngstown, Ohio, retaining it as a separate division and changing the name to Strouss.

In 1956, May acquired the Daniels & Fisher Company of Denver, merging it with May stores in the area to create a new May-Daniels & Fisher division. [5]

In 1958, May acquired the Cohen Brothers Department Store in Jacksonville, Florida, turning it into the May Cohens chain. [6]

In 1959, May acquired the Hecht Company of Baltimore, adding it as a new division. [5] In 1965, May acquired G. Fox & Co. of Hartford, Connecticut.

In 1966, May acquired the Meier & Frank chain based in Portland, Oregon, adding it as a new division. [5] David's grandson Morton May became the chairman in 1951 and headed the company for 16 years. Morton May was active in St. Louis civic affairs and was a patron of the St. Louis Art Museum.

In 1968, Venture Stores was founded when Target co-founder John F. Geisse went to work for May Department Stores.[ citation needed ] Under an antitrust settlement reached with the Department of Justice, May was unable to acquire any more retail chains at the time, and the department store company needed a way to compete against the emerging discount store chains.

In August 1978, May sold the 70-store Consumers chain of catalogue merchants to the Canadian Consumers Distributing. [7] [8] It closed its stores in 1996. [9]

In 1986, May acquired the Associated Dry Goods holding company and its chains (including J. W. Robinson's and its Florida division, Loehmann's, Lord & Taylor, Caldor, Joseph Horne Company, The Denver Dry Goods Company, Goldwater's, Hahne and Company, L. S. Ayres, H. & S. Pogue Company, Stewart Dry Goods, and Sibley's), the largest-ever retail acquisition in history at that time. [10]

In 1987, May renamed the five-unit May-Cohens as May Florida and sold the ten stores from Robinson’s of Florida to Maison Blanche so as to give them a foothold in the Floridan market. Stores at Tyrone Square, Orlando Fashion Square, WestShore Plaza, Altamonte Mall, University Square Mall, Countryside Mall, Southgate Plaza, Edison Mall, Coastland Center, and The Florida Mall were included in the deal along with a proposed 11th store at Lakeland Square Mall. May acquired Foley's in Houston and Filene's in Boston from Federated Department Stores whereas May Florida was also acquired by Maison Blanche. As a result, May withdrew from Florida by closing the Gateway location and converting those at Roosevelt Square, Regency Square, Volusia Mall, and Orange Park Mall under the Maison Blanche nameplate. [11]

In 1993, May Company California and J.W. Robinson's merged to form Robinsons-May. In that same year, Filene's absorbed the G. Fox division, Kaufmann's absorbed the May Company Ohio division, and Foley's absorbed the May D&F division.

In 1995, May acquired the John Wanamaker chain based in Philadelphia. In 1996, May acquires the Strawbridge's chain based in Philadelphia. [12]

In 1998, May acquired The Jones Store chain based in Kansas City, Missouri. [12]

In 1999, May acquired Zions Cooperative Mercantile Institution based in Salt Lake City, folding it into the Meier & Frank subsidiary. [12]

In 2000, May Department Stores purchases David's Bridal. [13]

In 2001, Meier & Frank absorbed the ZCMI name, entering the Utah marketplace. In that same year, Hecht's acquired five Proffitt's stores in Nashville TN, entering the Nashville marketplace.

In 2002, Meier & Frank operations consolidated with the Robinsons-May division while Kaufmann's operations consolidated with the Filene's division, yet both retaining the Meier & Frank and Kaufmann's names.

In 2004, May Department Stores took over the Marshall Field's chain from Target Corporation. [14]

In 2005, May was acquired by Federated Department Stores for $11 billion (~$16.5 billion in 2023) in stock, with all former May divisions being folded into Federated's various Macy's branches. [14] [15]

In 2006, over 400 former May stores, with their wide variety of long-standing brand names, were consolidated and renamed as Macy's. In addition, Federated sells off three former May chains (David's Bridal, Lord & Taylor and Priscilla of Boston). [14]

Merger of Federated and May

On February 28, 2005, Federated Department Stores, Inc., announced that they would acquire the May company for $11 billion. [16] To help finance the May Company deal, Federated agreed to sell its combined proprietary credit card business to Citigroup. [17] The merger was completed on August 30, 2005 [18] after an assurance agreement was reached with the State Attorneys General of New York, California, Massachusetts, Maryland and Pennsylvania. [19]

By September 2006, all of the May regional nameplates, except for the Lord & Taylor chain, ceased to exist as Federated consolidated its operations under the Macy's mastheads including the stores most famous names Marshall Field's, Filene's, and Kaufmann's, as well as the last nameplate to still have the May name (Robinsons-May). All locations that were not sold off were rebranded as Macy's, except for one Hecht's location in Friendship Heights. That was rebuilt and rebranded as Bloomingdale's. In advance of the retail consolidation, May's credit call center in Lorain, Ohio, ceased operations on July 1, 2006. Lord & Taylor, the lone department store division not to be largely converted to the Macy's nameplate, was sold to a group of investors at NRDC Equity Partners, LLC for $1.2 billion (~$1.75 billion in 2023) in October 2006. [20] David's Bridal and After Hours Formalwear were sold in November 2006. [21]

May Centers

Around the beginning of the twentieth century, the May Department Stores Company created a real estate division that handled the purchase of land and the construction of the buildings that would house their new stand-alone department stores. Starting in 1947, when they wanted to open a new store for their May Company California division, May entered the new open-air shopping center development business with the construction of what would later become the Baldwin Hills Crenshaw Plaza in Los Angeles. [22] After that time, May became a major shopping center, and later mall developer when they began to develop new malls to house their newly proposed department stores.

During the mid-1980s, the company noticed that their stock was vastly undervalued and therefore was at risk of becoming a hostile takeover target. [23] [24] May Department Stores needed to re-purchase some of its company's stock to increase the share price. To accomplish this, they needed to obtain cash quickly, which they did by making a deal with Prudential Insurance in which the insurance company gave May $550 million in exchange for 50% ownership of May Centers. [25] [26] In 1992, Prudential purchased the rest of May Centers and renamed the company CenterMark. [26] [27]

Related Research Articles

<span class="mw-page-title-main">Macy's, Inc.</span> American department store holding company

Macy's, Inc. is an American holding company of department stores. Upon its establishment in 1929, Federated held ownership of the regional department store chains Abraham & Straus, Lazarus, Filene's, and Shillito's. Bloomingdale's joined Federated Department Stores the next year. Throughout its early history, frequent acquisitions and divestitures saw the company operate a number of nameplates. In 1994, Federated took over Macy's, the old department store chain originally founded in 1858 by American entrepreneur Rowland Hussey Macy. Despite Federated's long history of preserving regional nameplates, its acquisition of the May Department Stores Company in 2005 marked the end of those nameplates. By the following year, both the Macy's and Bloomingdale's brands had replaced them nationwide. Ultimately, Federated itself was renamed Macy's, Inc. in 2007, an acknowledgment of the old store's venerable name.

<span class="mw-page-title-main">Macy's</span> American department store chain

Macy's is an American department store chain founded in 1858 by Rowland Hussey Macy. It has been a sister brand to the Bloomingdale's department store chain since being acquired by holding company Federated Department Stores in 1994, which renamed itself Macy's, Inc. in 2007. It is the largest department store company by retail sales in the United States as of 2023.

<span class="mw-page-title-main">ZCMI</span> American department store chain

Zion's Co-operative Mercantile Institution (ZCMI) was an American department store chain. It was founded in Salt Lake City, Utah, on October 9, 1868, by Brigham Young. For many years it used the slogan, "America's First Department Store."

<span class="mw-page-title-main">Century III Mall</span> Defunct shopping mall in West Mifflin, Pennsylvania

Century III Mall was an abandoned enclosed shopping mall located along Route 51 in West Mifflin, Pennsylvania, about 10 miles southeast of downtown Pittsburgh, Pennsylvania, United States. It operated from 1979 to 2019 — a period of almost 40 years.

Jordan Marsh was an American department store chain that was headquartered in Boston, Massachusetts, and operated throughout New England. It was founded by Eben Dyer Jordan and Benjamin L. Marsh in 1841. The ownership of Jordan Marsh was transferred between several holding companies during its operation, including Hahn Department Stores in 1928, Allied Stores in 1935, and Federated Department Stores in 1988. The brand was retired and most stores were converted into the New York City-based Macy's in 1996.

<span class="mw-page-title-main">Kaufmann's</span> Department store that originated in Pittsburgh, Pennsylvania

Kaufmann's was a department store that originated in Pittsburgh, Pennsylvania.

Foley's was a regional chain of department stores owned by Federated Department Stores, later owned by May Department Stores (1988–2005) and headquartered in Downtown Houston, Texas. On August 30, 2005, the division was dissolved and operation of the stores was assumed by Federated's Macy's West and Macy's South divisions. Foley's operated stores in Arizona, New Mexico, Colorado, Oklahoma, Texas and Louisiana. On September 9, 2006 Foley's and all the regional May Co. stores names were phased out and rebranded as Macy's.

<span class="mw-page-title-main">Filene's</span> Department store chain in the northeastern US

Filene's was an American department store chain; it was founded by William Filene in 1881. The success of the original full-line store in Boston, Massachusetts, was supplemented by the foundation of its off-price sister store Filene's Basement in 1908. Filene's, in partnership with Abraham & Straus, Lazarus, and Shillito's, was an original member of the holding company Federated Department Stores upon its establishment in 1929.

<span class="mw-page-title-main">Meier & Frank</span> Former department store chain

Meier & Frank was a prominent chain of department stores founded in Portland, Oregon, United States, and later bought by The May Department Stores Company. Meier & Frank operated in the Pacific Northwest from 1857 to 2006.

<span class="mw-page-title-main">Robinsons-May</span> Retail company

Robinsons-May was a chain of department stores operating in Southern California, Arizona, and Nevada, from 1993 until 2006. It was created when May Department Stores combined two of its chains, May Company California and J. W. Robinson's chains. Its headquarters was at the former May Company California headquarters at its Laurel Plaza store in North Hollywood, Los Angeles. When Federated took over May Department Stores Company on August 30, 2005, Robinsons-May was dissolved, with some stores becoming branches of Macy's, while others were closed, sold, or transformed into branches of Bloomingdale's. Robinsons-May had 45 stores.

The Famous-Barr Co. was a division of Macy's, Inc.. Headquartered in St. Louis, Missouri, in the Railway Exchange Building, it was the flagship store of The May Department Stores Company, which was acquired by Federated on August 30, 2005. On February 1, 2006, it was subsumed into the newly created Macy's Midwest division.

The Beaver Valley Mall is a regional shopping mall located in Center Township, Pennsylvania, serving Beaver County within the Pittsburgh metropolitan area. It is owned by the Namdar Realty Group. The mall features Boscov's, Dick's Sporting Goods, JCPenney, Rural King, and a U-Haul storage center. It is vastly considered by locals to be a dead mall, with many residents opting for the Ross Park Mall in Ross Township or The Mall at Robinson in Robinson Township, Pennsylvania.

F&R Lazarus & Company was a regional department store with its retail chain operating primarily in the U.S. Midwest, and based in Columbus, Ohio. For over 150 years, Lazarus was influential in the American retail industry, particularly during the early 20th century as a founding partner in Federated Department Stores, and continued until the nameplate was retired on March 6, 2005, in favor of Macy's.

<span class="mw-page-title-main">Abraham & Straus</span> New York City department store

Abraham & Straus, commonly shortened to A&S, was a major New York City department store, based in Brooklyn. Founded in 1865, it became part of Federated Department Stores in 1929. Shortly after Federated's 1994 acquisition of R.H. Macy & Company, it eliminated the A&S brand. Most A&S stores took the Macy's name, although a few became part of Stern's, another Federated division, but one that offered lower-end goods than Macy's or A&S did.

<span class="mw-page-title-main">Associated Dry Goods</span> American department store chain

Associated Dry Goods Corporation (ADG) was a chain of department stores that merged with May Department Stores in 1986. It was founded in 1916 as an association of independent stores called American Dry Goods, based in New York City.

<span class="mw-page-title-main">Goldwater's</span> Former business in Phoenix, Arizona

Goldwater's Department Store was a department store chain based in Phoenix, Arizona.

Macy's Midwest, St. Louis, Missouri, is a former division of Macy's, Inc. It had operations in New York, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Pennsylvania and West Virginia. It was created February 1, 2006 from a reorganization of the Famous-Barr division acquired August 30, 2005 with The May Department Stores Company. It also incorporated the Macy's stores operating in western Pennsylvania (Pittsburgh) and the majority of the Kaufmann's stores operated by Filene's. An additional realignment of store operations with Macy's South and Macy's North occurred July 30, 2006, with a further transfer of stores with Macy's South to occur by early 2007. On September 9, 2006, the Famous-Barr, L.S. Ayres, The Jones Store and Kaufmann's nameplates were phased out in favor of the nationally known Macy's. In 2008, Macy's Midwest merged with Macy's South to form Macy's Central. Macy's Central later merged with Macy's East and West and further consolidated with the holding company.

Allied Stores was a department store chain in the United States. It was founded in the 1930s as part of a general consolidation in the retail sector by B. E. Puckett. See also Associated Dry Goods. It was the successor to Hahn's Department Stores, a holding company founded in 1928. In 1935 Hahn's was reorganized into Allied Stores.

<span class="mw-page-title-main">Bullock's</span> American department store chain

Bullock's was a chain of full-line department stores from 1907 through 1995, headquartered in Los Angeles, growing to operate across California, Arizona and Nevada. Bullock's also operated as many as seven more upscale Bullocks Wilshire specialty department stores across Southern California. Many former Bullock's locations continue to operate today as Macy's.

References

  1. ↑ "Federated and May Announce Merger; $17 billion transaction to create value for customers, shareholders. Archived July 16, 2012, at archive.today " Business Wire, 28 February 2005. Retrieved on August 19, 2009.
  2. ↑ The Drive to Differentiate - Macy's, Inc Archived April 8, 2008, at the Wayback Machine
  3. 1 2 3 4 The Drive to Differentiate - Macy's, Inc. Archived March 13, 2008, at the Wayback Machine
  4. ↑ "Asher Hamburger & Family". Jewish Museum of the American West. Retrieved April 10, 2018.
  5. 1 2 3 The Drive to Differentiate - Macy's, Inc. Archived March 13, 2008, at the Wayback Machine
  6. ↑ "50 years ago this week". Financial News & Daily Record . November 24, 2008.
  7. ↑ Sweetman, Keri; Harrington, Denise (18 November 1981). "600 to lose jobs as Bay closes Shop-Rite stores". Ottawa Citizen . p. 3.
  8. ↑ RECKERT, CLARE M. (March 22, 1979). "EARNINGS" . The New York Times .
  9. ↑ "Consumers Distributing closes the book on catalogue shopping". CBC News . August 9, 1996. Retrieved August 10, 2017.
  10. ↑ The Drive to Differentiate - Macy's, Inc Archived March 13, 2008, at the Wayback Machine
  11. ↑ Foley's INTERVIEW Newsletter, Vol. 19, No. 6 January/February 2006
  12. 1 2 3 The Drive to Differentiate - Macy's, Inc Archived March 13, 2008, at the Wayback Machine
  13. ↑ |title=32 The May Department Stores Company to Acquire David's Bridal, Inc. |website= PR Newswire |date= July 3, 2000 Archived October 26, 2016, at the Wayback Machine
  14. 1 2 3 The Drive to Differentiate - Macy's, Inc. Archived January 12, 2008, at the Wayback Machine
  15. ↑ Sorkin, Andrew Ross; Rozhon, Tracie (February 28, 2005). "2 Big Retailers Agree To Merge For $11 Billion". New York Times .
  16. ↑ Byron, Ellen (28 February 2005). "Federated Agrees To Acquire May In $11 Billion Deal". WSJ. Retrieved 22 August 2018.
  17. ↑ "Department store credit business sold to Citigroup". tribunedigital-chicagotribune. Retrieved 2018-08-22.
  18. ↑ "FTC Issues Statement on Closure of Federated/May Investigation". Federal Trade Commission. 2005-08-30. Retrieved 2018-08-22.
  19. ↑ Sorkin, Andrew Ross; Rozhon, Tracie (2005-02-28). "2 Big Retailers Agree to Merge for About $11 Billion". The New York Times. ISSN   0362-4331 . Retrieved 2018-12-07.
  20. ↑ "Exclusive: Hudson's Bay seeks to revive Lord & Taylor's fortunes". Reuters. 2018-05-08. Retrieved 2019-04-19.
  21. ↑ "David's Bridal ties knot in a $750-million deal". Los Angeles Times. 2006-11-18. ISSN   0458-3035 . Retrieved 2019-04-19.
  22. ↑ Folkart, Burt A. (April 23, 1992). "David May II; Scion Helped Family Store Chain Grow". Los Angeles Times .
  23. ↑ Barmash, Isadore (July 20, 1984). "May Stores As A Target". New York Times .
  24. ↑ "May Stores Stock Purchased The May Department Stores Company, which has been a rumored takeover target, said the Crown Books Corporation and certain affiliates had purchased fewer than 1% of May's common shares. James Abrams, vice president for corporate communications, said We don't know of any interest by Crown to purchase more of May's shares.". New York Times . February 2, 1985.
  25. ↑ Keppel, Bruce (August 18, 1988). "$550-Million Deal to Help May Stores Fend Off Takeovers". Los Angeles Times .
  26. 1 2 Apodaca, Patrice (August 4, 1992). "Making Over Topanga Plaza : Retail: The successful Woodland Hills center undergoes a $45-million renovation now rather than suffer a possible dip in sales". Los Angeles Times .
  27. ↑ "May Centers now called CenterMark". Southeast Missourian . May 3, 1992. p. 1D.
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