- Associated Dry Goods
Associated Dry Goods (ADG) was a chain of
department store s that merged withMay Department Stores in 1986. It was founded in 1916 as an association of independent stores called American Dry Goods based inNew York City .History
The chain began when Henry Siegel, who had founded department store Siegel, Cooper & Co. in
Chicago , obtained financing fromGoldman Sachs for a store inNew York in the early twentieth century. Though Siegel failed, the remnants of the chain were merged with John Claflin's stores H.B. Claflin and Co., includingLord & Taylor , Stewart & Co.,Hengerer's , andJ. N. Adam & Co. (with financing fromJ. P. Morgan & Company ), to create Associated Dry Goods. Other stores were spun off toMercantile Stores Co. Through the 1950s, 1960s and 1970s ADG continued to expand through acquisitions (see below) and also in the 1970s created a new St. Petersburg, Florida-based department store, Robinson's of Florida. However, ADG was most well known for its upscale
New York City basedLord & Taylor division, with over 84 locations across the country. Lord & Taylor was ADG's largest and most profitable division.Major growth
In the early and mid-1980s ADG attempted to rationalize its department stores, focusing on high-growth areas. Several of its non-profitable department store chains were sold, including The Powers Dry Goods Company (9 locations) in
Minneapolis, Minnesota (toAllied Stores ' The Donaldson Co.) in 1985, andStix Baer & Fuller (12 locations) inSt. Louis, Missouri (to Dillard Department Stores) in 1984. ADG also closed the small The Diamond division (2 locations) ofWest Virginia , mergedHengerer's of Buffalo, New York into Rochester-basedSibley's in 1981, merged Cincinnati-basedH.& S. Pogue Co. into Indianapolis-basedL. S. Ayres in 1983, merged the Baltimore-based Stewart & Company division into itsCaldor discount division, and in 1984 and in early 1986 merged Louisville-basedStewart Dry Goods into the Indianapolis-basedL. S. Ayres & Co.Founding stores, acquisions and divestitures
Founding stores (1916)
*
Hahne & Co. ,Newark, New Jersey
*The William Hengerer Co.,Buffalo, New York , (founded 1874)
*J. N. Adam & Co. ,Buffalo, New York , (founded 1881)
*Lord & Taylor ,New York, New York , precursor founded in 1826
* Stewart & Co. [http://www.btco.net/ghosts/Buildings/deptstores/deptstores.html]Later Acquisitions
* 1956
The Diamond (Department Store) ,Charleston, West Virginia
* 1957 J. W. Robinson Co.,Los Angeles, California
* 1957 The Sibley, Lindsay & Curr Co.,Rochester, New York , andSyracuse, New York , founded in 1868
*Dey Brothers ,Syracuse, New York
* 1959 The Erie Dry Goods Co./Boston Store,Erie, Pennsylvania
* 1962 TheH.& S. Pogue Co. ,Cincinnati, Ohio
* 1963Goldwater's ,Phoenix, Arizona
* 1966Stix, Baer, & Fuller , St. Louis
* 1966 TheDenver Dry Goods Co.,Denver, Colorado
* 1972L. S. Ayres & Co,Indianapolis, Indiana
* 1972 Sycamore Specialty Stores (a division of L. S. Ayres & Co.)
* 1972Joseph Horne Co. ,Pittsburgh, Pennsylvania
* TheStewart Dry Goods Co.,Louisville, Kentucky
* 1981Caldor Later Divestitures
Several department store divisions were divested prior to the 1986 merger with
May Department Stores
* 1983 The Diamond,Charleston, West Virginia , sold toStone & Thomas
* 1984Stix Baer & Fuller ,St. Louis, Missouri sold to Dillard Department Stores
* 1985 ThePowers Dry Goods Co.,Minneapolis, Minnesota sold toAllied Stores ' The Donaldson Co.Acquisition by May Department Stores
ADG was acquired by the
May Department Stores Company in October 1986 as part of a US$2.2 billion merger. At the time, it was considered to have been the most expensive purchase/merger in retail history. After 1986, May converted or merged most of the former ADG department stores into its own divisions with the exception of the upscaleLord & Taylor , which was a long-timefashion leader and considered the “crown jewel ” of Associated. When the May Company acquired ADG in 1986, it was assumed that May bought ADG just for theupscale Lord & Taylor division.During the final year of retail operation, ADG operated over 155 department stores, in addition to
Caldor (a northeast upscale discount chain), andLoehmann's , (a specialty off price retailer).Timeline of May Company Conversions & Divestitures of former ADG Divisions
After the ADG merger, the
May Company either divested or merged each of the former ADG divisions into its own regional nameplates:
* 1986,Joseph Horne Co. sold to Pittsburgh investor group due to a possible anti-trust suit by City ofPittsburgh
* 1987,Denver Dry Goods Co. converted toMay D&F
* 1987, Robinson's of Florida sold to Maison Blanche/Goudchaux Co. of Baton Rouge, Louisiana, to be operated asMaison Blanche stores
* 1988,Loehmann's sold to an investor group led by Spanish concern, Sefinco Ltd., and the Sprout Group, a division ofDonaldson, Lufkin & Jenrette
* 1989,Goldwater's merged intoJ. W. Robinson's ,May Company California , andMay D&F
* 1989,Hahne & Co. converted intoLord & Taylor
* 1990,Caldor sold in leveraged buy out
* 1991,L. S. Ayres , (Indianapolis, Indiana ) merged intoFamous-Barr but operating under theL. S. Ayres nameplate
** 1986,H & S Pogue , (Cincinnati, Ohio ), formerly converted in 1983 by ADG toL. S. Ayres , sold toHess's &JC Penney
** 1987,Stewart Dry Goods Co., (Louisville, Kentucky ), formerly converted in 1984 by ADG toL. S. Ayres , sold toHess's
* 1992,Sibley's converted intoKaufmann's
* 1992,J. W. Robinson's merged withMay Company California to formRobinsons-May As of 2008, "
Lord & Taylor " and "Loehmann's " are the only nameplates that survive intact out of all of ADG's former divisions.Detailed History by Nameplate
The Denver Dry Goods Company Denver, Colorado . Was acquired by ADG in 1966. The division consisted of 12 stores in Colorado. After the 1986 May/ADG merger, it was largely shutdown and sold-off and the remaining units absorbed byMay D&F (May Daniels & Fischer) in 1987. (May D&F ended up absorbing 3 stores from The Denver Dry Goods Co.) In 1989, May D&F also absorbed ADG's former Goldwater's location in Albuquerque. In 1993, May D&F was merged into May'sFoley's division of Houston. After May was bought by Federated, it was announced that most Foley's stores (including the former Denver Dry Goods/May D&F locations) would either be converted to Macy's or sold.The Diamond,
Charleston, West Virginia . This was a small 2 store division located in West Virginia. ADG sold this division in 1983 due to limited growth potential.Goldwaters ,Phoenix, Arizona , founded inGila City, Arizona , in 1860 and moved to Phoenix in 1872, was acquired by Associated in 1963. It consisted of 9 locations in Arizona, New Mexico, and Nevada. Became a division of May as part of the May/ADG merger in 1986. May dissolved the division in 1989, and split the stores into three other May divisions. Eventually May D&F, May Company California and J. W. Robinson's absorbed various stores and the Tucson-area stores being sold to Dillard's Department Stores.The
H.& S. Pogue Co. ,Cincinnati, Ohio , was a division of Associated Dry Goods Corp., having been acquired in 1962. In 1984, it was merged into L. S. Ayres & Co. of Indianapolis. After the May/ADG merger, its former locations were swiftly shuttered or sold to Hess's and JCPenney in 1987 and 1988.Hahne & Co. Newark, New Jersey , was part of the 1916 conglomeration of American Dry Goods (later renamed Associated). After relocating its flagship from downtown Newark in the mid 1980s to the formerGimbels at Garden State Plaza, its 9 stores were shut down by May in 1989, with most of them (six) being absorbed by Lord & Taylor, while the large Garden State Plaza store was bought by Nordstrom.Hengerer's , (The William Hengerer Co.),Buffalo, New York , founded in 1874 as Barnes, Bancroft & Co., adopting the Hengerer name in 1895, purchased in 1905 byJ. N. Adam & Co. , and was a division of Associated Dry Goods Corp. from its inception in 1916. In 1981, ADG merged Hengerer's into Sibley, Lindsay & Curr Co. of Rochester. After the May/ADG merger, Sibley's was merged into May's Kaufmann's division in 1992. After May was bought by Federated, it was announced that mostKaufmann's stores would either be converted to Macy's or sold. All the former Hengerer's locations became Macy's in September 2006.Joseph Horne Co.,
Pittsburgh, Pennsylvania . This was historically the carriage-trade department store of Pittsburgh. For several decades was in direct competition with cross-town rival Kaufmann's (a division of May). Was acquired by Associated Dry Goods in 1972 - and eventually acquired by May in October 1986 as part of the May/ADG merger. Due to anti-trust concerns and legal action by the City of Pittsburgh, it was promptly sold in December 1986 to an investor group. After several years of private ownership, it was announced the Dillards would be buying the chain to combine it with the Dillard/DeBartolo co-owned Higbee's stores based in Cleveland. However, the deal collapsed and was not completed. Eventually the Joseph Horne Co. was sold off in parts, with Dillard's acquiring its three Ohio stores in 1992 and Federated Department Stores'sLazarus division acquiring its remaining ten Pennsylvania stores in 1995. Federated eventually merged all of its divisions (including the former Joseph Horne/Lazarus locations) into Macy's.J. N. Adam & Co. ,Buffalo, New York , founded in 1881. PurchasedHengerer's in 1905, and that same year both were sold to H.B. Claflin & Co., that later became United Dry Goods Companies. Was a division of Associated Dry Goods Corp. from its inception in 1916. Closed in 1960.L. S. Ayres & Co,Indianapolis, Indiana , acquired by Associated Dry Goods Corp in 1972. L. S. Ayres & Co. had previously absorbed Pogue's of Cincinnati in 1984 and Stewart's of Louisville in 1985. Upon completion of these mergers, L. S. Ayres & Co. consisted of 25 stores in Indiana, Ohio, and Kentucky, After the 1986 May/ADG merger, the under-performing locations of both former chains were swiftly divested by May in 1987 and 1988. L. S. Ayres & Co. was shortened to L. S. Ayres and was operationally consolidated with Famous-Barr in 1991 (but continuing to operate under the L. S. Ayres moniker), when its downtown Indianapolis flagship and three other under-performing stores were closed. After May was bought by Federated, it was announced that most Famous-Barr - L. S. Ayres stores would either be converted to Macy's or sold.Lord & Taylor -New York, New York , precursor founded in 1826. Was a founding member of the Associated Dry Goods Corp. organization (then American Dry Goods) in 1916 and became part of May in the 1986 May/ADG merger. While a part of Associated and under the leadership of CEO Joseph E. Brooks, during 1970s aggressively expanded into Texas, Illinois, and Michigan and in the early 1980s south Florida saw 11 stores opened in quick succession. Partially withdrew from the oil-shocked Texas and southern Florida markets in 1989-1990 after the 1986 May/ADG merger. After May assumed ownership, ADG's Hahne's division (several New Jersey locations) and several former John Wanamaker (Philadelphia) locations were combined with Lord & Taylor. Since 1995 Lord & Taylor has occupied the former John Wanamaker landmark store in downtown Philadelphia. During the 1990s and early 2000s, May attempted to take the chain national. Under the leadership of CEO Marshall Hillsberg, Lord & Taylor once again entered the expansion mode in the 1990s, opening stores as far west as Denver, with plans to enter the Las Vegas, Nevada, market. At one time, Lord & Taylor had as many as 86 stores across the country.After continuing tepid results and repeated tinkering with its merchandising, May gave up its national ambitions for the division. Newly appointed President and CEO Jane Elfers announced the shuttering of 32 stores in 2003 (which represented only 18% of total sales), many of them only a few years old, retreating to what it called its "core" East Coast Corridor markets (New York City, Boston, Philadelphia, Washington DC metro) along with locations in Chicago, Detroit, and St. Louis. The new strategy is to return Lord & Taylor back to its roots - mainly a more upscale shopping experience - leaving behind its recently adopted middle of the road merchandising. However, since May was purchased by Federated in June 2005, it will be difficult to determine if this goal will be attained. Terry Lundgren, Federated's chairman, president and chief executive officer, announced on12 January 2006 that Federated Department Stores would be selling the Lord & Taylor chain by the end of the year.The
Powers Dry Goods Co,Minneapolis, Minnesota , consisted of 7 locations. In 1985, it was acquired by The Donaldson Company (of Minneapolis, a unit of Allied Stores Corp.), which gaveDonaldson's some breathing room against dominant rivalDayton's . In 1987, after Campeau Corp.'s buy-out of Allied Stores Corp., Donaldson's was purchased byCarson Pirie Scott & Co. of Chicago which renamed its stores with its own imprimatur. Carson's in its turn was acquired by P.A. Bergner & Co. of Milwaukee (and formerly of Peoria, Illinois) in 1989, which in turn filed for bankruptcy in 1991. In 1995 Carson's sold the rump of the former Minneapolis locations (formerly Powers/Donaldsons) to Dayton's parent Dayton Hudson Corp., which re-opened many of them under its moderateMervyn's chain, mostly in a move to prevent serious competition in its Twin Cities stronghold. In 2004 when Dayton's successor Marshall Field's was acquired by May, it also agreed to buy the former Donaldson/Powers locations, which Mervyn's promptly shuttered, and May responsible for disposing of the real-estate.J. W. Robinson's -Los Angeles, California , was a division of Associated Dry Goods since 1957, and consisted of 21 locations in California. J. W. Robinson's was acquired by May in the October 1986 May/ADG merger. It was historically a carriage-trade department store and operated in tandem with May's own middle-tier May Company California division for several years. In 1989 it took over operation of the Goldwaters stores in Phoenix, Arizona. In 1992, as part of divisional consolidations by the May Company, the J.W. Robinson Co. division was merged with the May Company California division to form a single Los Angeles based division to be called Robinsons-May. After May was bought by Federated, it was announced that most Robinsons-May stores would either be converted to Macy's or sold. See alsoRobinsons-May Robinsons of Florida -St. Petersburg, Florida , was a division of Associated Dry Goods when acquired by May in 1986. It had been founded in the 1970s as an attempt by ADG to emulate the success of its upscaleJ.W. Robinson's stores (of Los Angeles) on the fast-growing Florida Gulf Coast. Rather than invest in the then stagnant Florida market, May sold the division in 1987 (seven stores) to Maison Blanche/Gouchaux Co. of Baton Rouge, Louisiana, to be operated asMaison Blanche stores. The bulk of the former Robinsons of Florida locations were subsequently sold by Maison Blanche to Dillard Department Stores in 1991.The
Sibley, Lindsay & Curr Co. -Rochester, New York , andSyracuse, New York , founded in 1868, was since 1961 a division of Associated Dry Goods Corporation and was acquired by May in the 1986 May/ADG merger. It consisted of 14 locations in NY. It had previously absorbed the William Hengerer Co. in Buffalo in 1981. In 1992, Sibley's, as it was then known, was merged into Kaufmann's. After May was bought by Federated, it was announced that most Kaufmann's stores (including the former Sibley's locations) would either be converted to Macy's or sold.The
Stewart Dry Goods Co. -Louisville, Kentucky , consisted of seven stores in Kentucky and Indiana. In 1985, it was merged into L. S. Ayres & Co. of Indianapolis and after the May/ADG merger in 1986, its former locations were shuttered or sold to Hess's in 1987.Stewart & Company -Baltimore, Maryland . ADG closed this Baltimore based division in 1982. All stores were converted into Caldor stores over an 18 month period.Stix Baer & Fuller - St. Louis andKansas City, Missouri . In 1984, this division was sold after several years of continued losses. Dillard Department Stores acquired ADG's Stix, Baer & Fuller's 12 stores for approximately $93 million.According to answers.com"With new capital available, Dillard acquired 12 St. Louis-area Stix, Baer & Fuller stores from Associated Dry Goods. The purchase came about through a chance meeting. While waiting for a flight at New York's LaGuardia Airport, William and Bill Dillard spotted mall developer Ed DeBartolo's corporate jet. They stopped for a visit and by chance met Bill Arnold, Associated's chairman. Arnold mentioned the possibility of selling Stix, Baer & Fuller, and months later, when new mall space became difficult to find, Dillard bought the stores."
The downtown St. Louis flagship building was operated as aDillard's for several years, then converted into a Dillard's clearance center, and finally shuttered.Discount and off-price chains owned by ADG
Loehmann's - theBronx, New York . Loehmann's was acquired by ADG in 1983, and consisted of 81 locations in 28 states. This acquisition gave ADG a major entry in the rapidly growing off-price retailing market. After the 1986 May/ADG merger, May promptly sold the division.Caldor -Norwalk, Connecticut . Caldor, an upscale discounter, consisted of 109 stores in New England and Mid Atlantic States. After the 1986 May/ADG merger, May promptly sold the division. Eventually entered bankruptcy and was liquidated.Additional information about ADG and May Department Stores
See also the
May Department Stores listing for very comprehensive information about May and all of May's current and former divisions. See alsoFederated Department Stores ,Lord & Taylor , andDillard's Department StoresSee also
*
Associated Merchandising Corporation - buyers group of independent department stores includingL. S. Ayres References
*Rizzo, Michael F., "Nine Nine Eight: The Glory Days of Buffalo Shopping", 2007, (Lulu Enterprises, Inc.: Morrisville, N.C.)
External links
* [http://www.enquirer.com/editions/1998/05/19/merchistory.html MERCANTILE'S HISTORY Buying up small chains was key. Tuesday, May 19, 1998 BY LISA BIANK FASIG The
Cincinnati Enquirer ]
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