RETAILING: Closing the Doors

When Philadelphia Merchant John Wanamaker branched out to New York in 1896, he soon made his new store as famed an institution as his Philadelphia emporium. A born pressagent, he attracted customers to his store at Broadway and Ninth Street with such gimmicks as concerts and the then-new arc lights. Canny old John Wanamaker also brought along his newfangled merchandising ideas, e.g., the one-price system, the customer-is-always-right policy, honest advertising.

Astors and Vanderbilts traded at Wanamaker’s, and the carriage trade adopted the store. It became the center of New York’s fashionable shopping area. But as years passed, the New York shopping area gradually moved farther uptown, and most department stores moved with it. Fusty old Wanamaker’s stayed on though there were sometimes more clerks than customers in the store.

Last week Wanamaker’s 1,800 clerks were abruptly called into small meetings and given the bad news. The famed old landmark will close early next year, the third major New York department store to go out of business in less than three years.* Wanamaker’s said it plans to concentrate on metropolitan suburban areas, where it now has four stores.

When the news was announced, the store’s independent union of clerks rallied round, started collecting a fund to buy the store and keep it going, suggested a price of $12,500,000 for building, site and fixtures. Union President Paul Milling said that members pledged about $2,000,000, and “two of the biggest Wall Street bankers were very receptive” to helping with the balance. At week’s end Wanamaker’s was still dickering with the union about selling out, but chances looked dim that the store would continue.

* The others: Brooklyn’s Loeser & Co. (1952); James McCreery & Co. (1953).