History
The great Gostiny Dvor in Saint Petersburg, 1802.
Hudson's Bay Company in Canada was the first store to include departments; however, by modern standards, it would not be considered a department store because of the size and range of items that were stocked. The same may be said about Gostiny Dvor in Saint Petersburg, which opened in 1785 and should probably be regarded as one of the first purposely-built shopping malls in the world, as it consisted of more than 100 shops covering an area of over 53,000 m². The first true department store was founded by Aristide Boucicaut in Paris. He founded Le Bon Marché in 1838, and by 1852 it offered a wide variety of goods in "departments" inside one building. Goods were sold at fixed prices, with guarantees allowing exchanges and refunds. By the end of the 19th century, Georges Dufayel, a French credit merchant, had served up to three million customers and was affiliated with La Samaritaine, a large French department store established in 1870 by a former Bon Marché executive. The oldest independent department store in the world, is 'Austin's' in Derry, Northern Ireland, which has maintained its original position on The 'Diamond' in Derry's city centre since 1830. As Le Bon Marché evolved into a fully fledged department store in the early 1850s, Delany's New Mart opened in 1853 in Dublin, Ireland on Sackville Street (now O'Connell Street). What made Delany's different from most department stores of its time was its purpose-built nature; unlike others it had not evolved gradually from a smaller shop on site. Constructed to a lavish standard on the city's principal street, it was designed to rival the biggest and best in Europe. Acquired by the Clery family in the late 19th century, both the store and Imperial Hotel located in its upper floors were completely destroyed in the 1916 Easter Rising. However the store reopened in 1922, this time across numerous floors, as the famous Clerys department store that stands today, housed in a striking modern neoclassical building based on Selfridges of London. Another claimant to the title of "World's first department store" is Bainbridges in Newcastle upon Tyne, founded in 1838 as a drapers and fashion shop but on record as collecting its takings by department as early as 1849. The ledger from that year still survives in the archives of the John Lewis Partnership who bought the store in 1952, and retained its original name until 2002 when the store was rebranded as John Lewis Newcastle. That is sorted goods out into Departments in 1849, three years before Le Bon Marche in Paris did the same, there is a strong case for Bainbridges being the world's original department store. Lewis's (United Kingdom) may have been the first most progressive department store group. By 1956 it had the largest stores in the provinces of the UK and had brought the idea of department selling across the country. It started in Liverpool in 1856 and catered for all classes aiming to have the highest quality and lowest prices. David Lewis may have been the catalyst to making tea easily available to the working classes. (Lewis's 2/- tea). It did this by buying the tea direct from the shippers from its home in Liverpool and cutting out the middle man. Lewis's also experimented in new ways of advertising (e.g. flooding the basement of the Manchester store to create a mini Venice.) It's grotto's always were and still are well known through generations of people from Northern Britain. Since 1856 it had stores in Manchester (1877), Liverpool (1856), Birmingham , Glasgow, Liverpool (The Bon Marche), Leeds, Hanley, London (Selfridges),Bristol and Leicester . The group's first and final store, in Liverpool, went into administration in 2007 and was purchased as a going concern by Vergo Retail Limited. Enabling the store to continue trading under the Lewis's brand. [1] In New York City in 1846, Alexander Turney Stewart established the "Marble Palace" on the east-Broadway, between Chambers and Reade streets. He offered European retail merchandise at fixed prices on a variety of dry goods, and advertised a policy of providing "free entrance" to all potential customers. Though it was clad in white marble to look like a Renaissance palazzo, the building's cast iron construction permitted large plate glass windows. In 1862 Stewart built a department store on a full city block at Broadway and 9th Street, opposite Grace Church, with eight floors and nineteen departments of dress goods and furnishing materials, carpets, glass and china, toys and sports equipment, ranged around a central glass-covered court. Within a couple of decades, New York's retail center had moved uptown, forming a stretch of retail shopping from "Marble Palace" that was called the "Ladies' Mile". In 1858 Rowland Hussey Macy founded Macy's as a dry goods store. Benjamin Altman and Lord & Taylor soon competed with Stewart as New York's first department stores, later followed by "McCreary's" and, in Brooklyn, "Abraham & Straus." (The Straus family would be in the management of both Macy's and A&S.)
Le Bon Marché department store in Paris, 1867.
Similar developments were under way in London (with Whiteleys), in Paris (with La Samaritaine) and in Chicago, where department stores sprang up along State Street, notably Marshall Field and Company, which was the second-largest department store in the world prior to converting to Macy's. In 1877, Wanamaker's opened in Philadelphia. Philadelphia's John Wanamaker performed a 19th century redevelopment to the former Pennsylvania Railroad terminal in that city and eventually opened a modern day department store in the building. On March 1, 1869 Zion's Cooperative Mercantile Institution was opened in Salt Lake City as a new community store that became the first incorporated department store in America in 1870. A new 3-story brick and iron store was built in 1876, noted for its unique architecture and striped awnings. This store was replaced by an enclosed shopping center in 1973, and the new Zion department store preserved the gilt-edged ornate facade of the old store. In 1999 the May Department Stores bought a 14-store ZCMI chain and changed its name to "Meier & Frank", a May property with eight stores in Oregon and Washington. Subsequently May Department Stores completed a merger with Federated Department Stores and the Meier & Frank brand ZCMI stores have become Macy's stores, effective late 2006. In 1881, Joseph Lowthian Hudson opened a small men's clothing store in Detroit. After 10 years he had 8 stores in the midwest and was the most profitable clothing retailer in the country. In 1893 he began construction of the immense department store at Gratiot and Farmer streets in Detroit. The 25-story tower was added in 1928, and a 12-story addition in 1946, giving the entire complex 49 acres of floor space. In 1954 the company became a suburban shopping center pioneer when it built Northland 13 miles northwest of Detroit. In 1969 it merged with the Dayton Corporation to create Dayton-Hudson headquartered in Minneapolis. George Dayton had founded his Dayton's Daylight store in Minneapolis in 1902 and the AMC cooperative in 1912, built the Southdale Shopping Center in 1956, and started the Target discount store chain in 1962. The new corporation closed the flagship Hudson department store in downtown Detroit in 1983, but expanded its other retail operations. It acquired Mervyn's in 1978, Marshall Field's in 1990, and renamed itself the Target Corporation in 2000. By 1890 a new world of retailing had been created as department stores had a clear market position as universal providers. General stores eventually became department stores as small towns became cities. The most prominent department stores emerged from small shops. The department store created several of North America's first large businesses. The department store is also largely responsible for the standard store design seen today, because of its size it required new building materials, glass technology and new heating, amongst other architectural innovations. The store layouts made shopping easier for consumers regardless of their social or economic background. The department store also offered new customer services never before seen such as restaurants, restrooms, reading rooms, home delivery, wrapping services, store hours, bridal registries, new types of merchandise displays and so forth. Some department stores leased space to individual merchants, similar to the changes in late 17th-century London, but by 1900 the smaller merchants were purchased or eventually replaced by the larger companies. In this way they were very similar to our modern malls, where the property owner has no direct interest in the actual department store itself, other than to collect rent and provide utilities. Today only the most specialized departments are leased out, such as photography, photo finishing, automotive services or financial services. However, today this is rare, as most departments--even a store's restaurant--is usually run by the store itself. Before the 1950s, the department store held an eminent place in both Canada and Australia, during both the Great Depression and World War II. Since then, they have suffered from strong competition from specialist stores. Most recently the competition has intensified with the advent of larger-scale superstores (Jones et al. 1994; Merrilees and Miller 1997). Competition was not the only reason for the department stores' weakening strength; the changing structure of cities also affected them. The compact and centralized 19th century city with its mass transit lines converging on the downtown was a perfect environment for department store growth. But as residents moved out of the downtown areas to the suburbs, the large, downtown department stores became inconvenient and lost business to the newer suburban shopping malls. Countries
During World War II patriotic sentiment in China had led to the formation of a number of department stores specializing in locally-made merchandise. These types of stores became the mainstay in China after the formation of the Communist state in 1949. Both types of department stores have long had branches in Hong Kong; however Japanese department stores began to appear in the 1960s, and within a generation's time became the dominant force in the market. The Asian financial crisis of the late 1990s had resulted in the closures of some of these stores, but on the whole Hong Kong still has one of the world's most competitive retail markets. Since the opening policy in 1979, the Chinese department stores also develops swiftly along with the fast growing economy. There are different department store groups dominate different areas of China, for example, INTIME department store has the biggest market presence in Zhejiang province, while Jinying department stores dominate Jiangsu Province. Besides, there are many other department store groups, such as Pacific,PARKSON,Wangfujing,New World,etc., many of them are expanding quickly by listing in the financial market.
France's major upscale department stores are Galeries Lafayette and Le Printemps, which both have flagship stores on Boulevard Haussmann in Paris and branches around the country. The oldest department store in France (and in the world) is Le Bon Marché in Paris, owned by the luxury goods conglomerate LVMH. La Samaritaine, another upscale department store also owned by LVMH, closed in 2005. Mid-range department stores chains also exist in France such as the BHV (Bazar de l'Hotel de Ville), part of the same group as Galeries Lafayette.
The most upmarket chain is undoubtedly Brown Thomas, founded as a haberdasher's in 1849 on Dublin's Grafton Street. The company (which belongs to the same group as the UK's Selfridges or Canada's Holt Renfrew) bought its long time competitor across the street, Switzers, in 1995. BT then moved to the larger site. It also acquired and re-branded the former Switzer stores in Cork (formerly Cash's), Limerick (formerly Todd's) and Galway (formerly Moon's). There are also many self-owned department stores around the country, especially in rural towns. The British department store, Debenhams, purchased the Roches Stores chain in 2006, closed two stores and rebranded the others. The opening of Dundrum Town Centre in Dublin's suburbs saw the arrival of two more British stores, House of Fraser and Harvey Nichols. Some of the largest department stores in Japan include Daimaru (J. Front Retailing), Hankyu (H2O Retailing), Hanshin (H2O Retailing), Isetan (Isetan Mitsukoshi Holdings), Marui, Matsuzakaya (J. Front Retailing), Matsuya, Mitsukoshi (Isetan Mitsukoshi Holdings), Printemps Ginza, Seibu (Millennium Retailing), Sogo (Millennium Retailing), Takashimaya, Tobu, and Tokyu (109). Many are owned and operated in conjunction with private railway companies. Recently, business integration has been successive.
One of the most famous department stores in Germany is the Kaufhaus des Westens (KaDeWe, German for department store of the west) which is located in Berlin.
Many of home grown department store chains include Parkson, Giant, Metrojaya, Cold Storage, Sunshine (SuiWah), The Store, Kamdar, Mydin, Dua Puluh Sen (DPS) etc. According to the Malaysian chart, Dua Puluh Sen has increase their quality of standard which lead them gaining market share in the retailing industry in Malaysia. This had made DPS the leading department store in Malaysia and also South East Asia.
In New Zealand, there is only a few select department stores that are popular amongst New Zealanders, most people preferring malls or botiques. The most prominent chains are The Warehouse, Farmers and Kmart, but smaller, more upmarket department stores such as Smith & Caugheys exist, but the only store is in Auckland, and caters to an upscale crowd.
Flagship branch of Dutch department store De Bijenkorf in Amsterdam.
The most well-known department stores in The Netherlands are De Bijenkorf, HEMA, Maison de Bonneterie and Vroom & Dreesmann.
Arguably the most famous Department store in Russia is the GUM in Moscow, Central Universal Store (TsUM) or the Petrovsky Passage. Other popular stores are Mega (shopping malls), Stockmann, Marks & Spencer. Media Markt, M-video, Technosila, White Wind (Beliy Veter) sell large number of electronic devices. In Saint Petersburg The Passage has been popular since the 1840s.
The three most prevalent chains are Hyundai, Lotte, and Shinsegae, which opened in 1930 as Mitsukoshi Gyeongseong store and is the oldest department store chain. Lotte is the largest, operating more than 20 stores. The Seoul Sampoong department store collapsed in 1995 during shopping hours and many people died.
However, Kendals in Manchester can lay claim to being the oldest department store in the UK and perhaps in the world. Beginning as a small shop owned by S. and J. Watts in 1796, its sold a variety of goods. Kendal Milne and Faulkner purchased the business in 1835. Expanding the space, rather than use it as a typical warehouse simply to showcase textiles, it became a vast bazaar. Serving Manchester's upmarket clientel for over 200 years, it was recently purchased by the House of Fraser - although most Mancunians still refer to it as Kendals. In Edinburgh, Jenners saw a similar development. It starting as a drapery store in 1838, which by 1890 had grown into Scotland's largest retail store by gobbling up all the small stores in the neighbourhood. In 1895, after a devastating fire, a new ultra-modern building opened, with lavish electrical lighting, hydraulic lifts and air conditioning. Four hours after the grand opening, 25,000 people had already visited the store. In the UK the term "department store" still refers to the traditional, classic department store, which has a wide range of independent departments with their own staff and their own tills. Large discount stores with the tills located by the entrance are not regarded as department stores in the UK, although the owners may call them that. Such stores as Marks & Spencer, Britain's largest clothes retailer would therefore not be included in the British definition of a department store.
The Macy's flagship department store in New York City with its famous brownstone at 34th and Broadway.
In the United States, companies such as Macy's, Lord and Taylor, Sears, and J.C. Penney are considered department stores, while retail brands such as Target, Kmart, and Wal-Mart are discount department stores. T.J. Maxx, Marshalls, and Burlington Coat Factory are stores that sell designer goods at lower prices. Stores that carry a general line of groceries and other product lines similar to those of department stores are considered warehouse clubs or supercenters. Warehouse clubs require a nominal annual membership fee, while supercenters do not. Costco, BJ's Wholesale Club, and Sam's Club are examples of warehouse clubs. Types of department stores
Some upscale department stores that operate in the United States include national chains like Barneys New York, Bloomingdale's, Lord & Taylor, Neiman Marcus, Nordstrom, and Saks Fifth Avenue, as well as regional retailers such as Bergdorf Goodman, and Von Maur. In the United Kingdom, department stores making up the high-end include Harvey Nichols, Harrods and Fortnum and Mason. In Indonesia, the most upscale department stores includes Sogo and Seibu from Japan, Debenhams and Harvey Nichols from United Kingdom (all managed by PT. Mitra Adiperkasa Tbk.), and Parisian from Indonesia (managed by Lippo Group)
Mid-range department stores that operate in the United States include national chains JCPenney and Kohl's. Regional chains such as Gottschalks and Mervyns in the western United States, and The Bon-Ton and associated stores in the northern part of the country are also among this grouping of stores. As noted in details of upscale department stores, Macy's, Dillard's and Belk vary in price points and relative consideration as upscale or mid-range versus local competitors, depending upon location. Some larger locations in affluent areas often carry significant selections of brand name products including brand name accessories and fragrances kept in glass cases, and usually have cosmetic specialists in the beauty department. Brands at above-average price points, if offered at all, are generally limited and full product lines of such brands are not typically available. Smaller and more remote store locations — often, the legacy of acquisitions of smaller retailers — may concentrate squarely on moderately-priced merchandise. California-based Gottschalks mirrors these chains, though in a specific region with little presence in major metropolitan areas. Macy's are typically the anchors of upscale malls and are situated among other high-end department stores such as Tysons Galleria or The Domain in Austin. Nationally known JCPenney has incorporated elements of upscale stores such as salons and custom home decorating services, along with offering optical shops, portrait photography studios and designer-produced private labels. The national chain Sears is also in this category, but often is considered a lower grade mid-range department store due to marketing a higher proportion of private label and lesser-known label goods in apparel and housewares segments. Sears differs from most mid-range department store chains in its common inclusion of departments for hardware, garden and outdoor equipment, automotive service, and large appliances and electronics — product segments more typical of discount or so-called "big box" retailers.
Some discount department stores that operate in the United States include: ShopKo, Kmart and Wal-Mart. Although ShopKo and Kmart are more upscale than Wal-Mart; further, Wal-Mart could be considered a "super discount department store". Target is also in this category but may be considered a more upscale Discount Department Store because it puts a greater emphasis on current fashion and on special merchandise lines from well-known designers such as Isaac Mizrahi and Thomas O'Brien.
Off-price retail department stores include T.J. Maxx, Factory 2-U, Century 21, Gabriel Brothers, Ross Dress For Less, Marshalls, and Burlington Coat Factory. TJX, the parent company of Marshall's and TJ Maxx, has been experimenting with Home Goods superstores that carry a larger range and variety of housewares, including furniture.[2] See alsoReferences
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