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Foley's

Foley's was a regional chain of department stores headquartered in Houston, Texas, that served as a cornerstone of retail and community life in the southwestern United States for over a century, from its founding in 1900 until its rebranding as Macy's in 2006.^[1] Established by brothers James A. Foley and Pat C. Foley as Foley Brothers Dry Goods at 507 Main Street in downtown Houston, the business began as a modest dry goods operation and rapidly grew into the city's largest department store by 1922.^[2] Under the ownership of the Cohen family starting in 1917, Foley's continued to expand, introducing innovative community programs such as Foley's Checks in 1933, a temporary scrip system issued during the national banking holiday to exchange for customers' personal checks and facilitate transactions while banks were closed—and supporting local events like the Houston Livestock Show and Rodeo.^[3] A pivotal moment came in 1945 when Federated Department Stores acquired the chain for $3.6 million, enabling significant modernization efforts.^[4] This culminated in the 1947 opening of a revolutionary flagship store at 1100 Main Street, the first fully new department store constructed in the U.S. since 1928, which featured escalators, full air conditioning, and a connected parking garage, drawing 200,000 visitors on its debut day.^[3] The chain further proliferated with suburban branches beginning in the 1960s, including the Sharpstown location in 1961, and by the late 20th century operated dozens of stores emphasizing quality merchandise, customer service, and civic engagement, such as sponsoring Houston's Thanksgiving Day Parade starting in 1950.^[1]^[2] Ownership shifted again in 1988 when Campeau Corporation sold Foley's to the May Department Stores Company amid broader retail consolidations, leading to the closure of select locations including the downtown Dallas store.^[5] In 2005, Federated reacquired May in an $11 billion merger, and by September 2006, all Foley's stores—numbering over 70 across Texas and neighboring states—were converted to the Macy's name, marking the end of the Foley's brand while preserving its legacy through ongoing Macy's operations in many former locations.^[1]

Founding and Early Years

Establishment

Foley's was founded on February 12, 1900, by Irish-American brothers Pat and James Foley, who established the Foley Brothers Dry Goods Company in Houston, Texas.^[3] The brothers, previously clerks for their uncle William L. Foley in his dry goods business, secured a $2,000 loan from him to launch their venture, opening with modest capital in a burgeoning city of approximately 44,000 residents.^[5] Their first store was located at 507 Main Street, a prime spot near the city's commercial heart.^[1] The initial focus of the store centered on dry goods, including fabrics, linens, embroidery, and men's furnishings, targeted at the local Houston market.^[6] Inventory was sourced from wholesalers, reflecting the standard model for small dry goods operations of the era, and the store recorded 138 sales totaling $113.12 on its opening day.^[3] Housed in a compact single-story building of about 1,400 square feet, the layout was simple and functional, with basic shelving and displays to accommodate the limited stock of clothing and household items essential to everyday needs. Just seven months after opening, the Galveston hurricane of September 8, 1900, devastated the region, killing thousands and severely disrupting the economy, including Houston's trade and growth prospects.^[1] This period tested the resilience of local businesses, laying the groundwork for future adaptations in their operations.^[3]

Initial Expansion in Texas

In the years following its founding, Foley's underwent several relocations to larger facilities in downtown Houston to support its burgeoning operations. The store first moved to a bigger space on Main Street in 1905 as sales grew rapidly from its initial dry goods focus.^[5] By 1916, it had settled in the 400 block of Main Street, where it ranked as the third-largest retailer in the city by volume.^[3] In 1917, the business was purchased by the Cohen family of Galveston, which facilitated continued expansion.^[3] These expansions enabled the business to scale physically, with further moves culminating in a three-story addition by 1922 that positioned Foley's as Houston's premier department store.^[1] During the 1920s, Foley's diversified its offerings beyond dry goods, evolving into a comprehensive department store that catered to a wider range of customer needs and solidified its role in the local economy. Annual sales surpassed $1 million by 1919, reflecting strong demand and effective adaptation to Houston's postwar boom.^[5] The addition of facilities like an auditorium in 1927 further enhanced its community ties, serving as a civic center and rehearsal space for the Houston Symphony.^[2] The Great Depression posed severe challenges, prompting Foley's to implement cost-cutting measures such as reduced operating hours and streamlined inventory to weather the economic crisis. A notable adaptation occurred during the 1933 Bank Holiday, when the store issued its own scrip in place of customers' personal checks; these were widely accepted across Houston and fully redeemed once banks reopened, preserving cash flow and customer trust.^[2] This loyalty from local patrons, combined with prudent management, allowed Foley's to endure the downturn without closure, maintaining its status as a vital retail anchor in Texas.^[1]

Mid-20th Century Growth

Federated Ownership Period

In 1945, Federated Department Stores acquired Foley Brothers, a prominent Houston-based retailer, for $3.6 million after several years of negotiations, marking a significant expansion for Federated into the Southwest market.^[4] This purchase integrated Foley's into Federated's growing portfolio of regional department stores while preserving its local identity and branding, allowing it to operate semi-autonomously under the established name.^[3] At the time of acquisition, Foley's reported gross sales of $8 million, reflecting its strong position in the Texas retail landscape amid the postwar economic recovery.^[3] A key initiative under Federated's ownership was the construction of a new flagship store at 1100 Main Street in downtown Houston, which broke ground in March 1946 and opened on October 20, 1947, at a cost of approximately $13 million.^[2] Designed by architect Kenneth Franzheim as the "store of tomorrow," this 10-story structure was the first complete department store built in the United States since 1928 and featured innovative elements such as escalators wide enough for three people, a fully air-conditioned interior with electronic air filtration, and an extensive conveyor system for efficient operations.^[2] The windowless upper floors centralized selling areas to optimize space and reduce cooling costs, while a connected five-story parking garage and underground tunnel enhanced customer convenience; the opening day drew 200,000 visitors and generated sales 2.5 times higher than Foley's previous record.^[4] To foster community engagement, Foley's launched its first Thanksgiving Day Parade in 1949, a modest event featuring Santa Claus arriving by train at Union Station before parading downtown to the store on a simple sleigh float.^[7] This small-scale tradition, sponsored by the store, quickly became a beloved Houston holiday staple, evolving over the years but establishing Foley's role in local festivities during the early postwar era.^[8] The postwar economic boom propelled Foley's growth under Federated, with the new flagship store and expanded merchandise lines driving substantial increases in revenue, particularly in women's and children's apparel as consumer spending on family-oriented goods surged.^[5] By capitalizing on these trends, Foley's sales effectively doubled within the first few years of Federated ownership, solidifying its position as a leading regional retailer through the 1950s.^[4]

Branch Store Development

Foley's initiated its branch store expansion in the post-World War II era, transitioning from a single downtown flagship to a regional network anchored in suburban shopping centers. The company's first major branch opened at Sharpstown Mall in Houston on September 14, 1961, as one of the pioneering department stores in an enclosed regional mall format, which helped define modern retail development in the United States.^[5] This location, spanning over 200,000 square feet, featured innovative elements like escalators and air-conditioned comfort, attracting suburban shoppers and setting a model for future branches in malls such as Almeda Mall and Northwest Mall during the 1960s.^[5] Under Federated Department Stores' ownership since 1947, Foley's accelerated growth in the 1970s and 1980s, focusing primarily on Texas while adapting to economic challenges like the 1970s oil crisis through strategic pricing and localized merchandising in energy-impacted areas. By the late 1970s, the chain operated approximately 20 stores, mostly in the Houston and Dallas-Fort Worth regions, emphasizing value-oriented assortments to maintain customer traffic amid regional downturns. Expansion beyond Texas began in earnest in 1987 through the merger with Sanger Harris, adding stores in Oklahoma, Arizona, and New Mexico, bringing the total to around 35 locations.^[9]

Operations and Retail Model

Merchandise Offerings

Foley's department stores primarily offered a range of merchandise centered on apparel, home goods, cosmetics, and jewelry, reflecting the standard department store model of the era. Apparel formed a significant portion of the inventory, including women's fashion such as wedding dresses, career attire, and uniforms like those for Girl Scouts, while home goods encompassed appliances and furnishings. Cosmetics were supported by in-house beauty salons, and jewelry was featured in bridal selections, contributing to the store's appeal as a one-stop shopping destination for middle-class consumers.^[2]^[1] Pricing strategies emphasized accessibility, with basement sales offering discounted merchandise to attract budget-conscious shoppers during economic challenges, such as the Great Depression era. This approach positioned Foley's as a practical retailer for everyday needs rather than high-end luxury.^[2] Customer services were integral to the shopping experience, including in-store gift wrapping for purchases and comprehensive bridal support encompassing trousseau selection, invitation printing, and etiquette consultations. During the 1933 Bank Holiday, Foley's issued its own checks as a form of credit to facilitate continued shopping amid financial uncertainty. Alterations services were available to customize apparel, further personalizing the retail model. In the 1960s, these bridal offerings evolved into more formalized registries, aiding engaged couples in planning weddings.^[2] Over time, Foley's merchandise evolved to incorporate designer brands in the 1980s, featuring high-profile names like Paris fashions and Edith Head's Hollywood designs, which drew celebrity appearances and broadened appeal to fashion-forward customers. This shift marked a transition from basic dry goods to more upscale, branded selections while maintaining core categories.^[2]^[5]

Store Design and Services

Foley's stores underwent significant architectural evolution, beginning with traditional early 20th-century structures and shifting toward modernist designs in the postwar era. The flagship downtown Houston store, opened in 1947 at 1100 Main Street, represented a pivotal advancement, designed by architect Kenneth Franzheim with interiors by Raymond Loewy Associates. This $13 million facility was the first complete department store constructed in the United States since 1928, featuring a windowless design with large ground-level display windows and a streamlined canopy that emphasized functional modernism over ornamental styles.^[3]^[10] The building incorporated a two-story base with a central lobby housing the South's first escalators, facilitating efficient vertical movement across its initial six stories, later expanded to ten in 1957.^[11] As Foley's expanded into suburban malls during the 1960s, store designs adapted to enclosed retail environments, prioritizing integration with expansive mall layouts. The 1966 Almeda Mall location, for instance, spanned 209,000 square feet and showcased a modern facade with 24 tall archways hung with enormous turquoise awnings.^[12] Interiors continued Loewy's influence, emphasizing open, efficient layouts with automated merchandise handling systems—including chutes, lifts, and conveyor belts—to streamline operations and enhance the shopping flow. These features created immersive customer experiences, such as multi-level browsing supported by central escalators and air-conditioned comfort, which was novel for Southern retail at the time.^[13]^[3] Customer amenities in Foley's stores focused on convenience and community engagement, setting them apart in the mid-20th century retail landscape. The 1947 downtown store included a five-story parking garage connected via an underground tunnel, easing access for motorists, while elaborate holiday window displays with automated scenes drew crowds during festive seasons.^[3] Services extended to personalized touches, such as on-site pharmacies filling prescriptions for downtown workers and residents, alongside events like Santa visits and Thanksgiving parades that fostered family-oriented shopping.^[14] Later mall branches built on this by incorporating broader amenities aligned with suburban needs, though specific technological adoptions like early electronic systems were part of industry-wide shifts rather than unique to Foley's. Accessibility evolved with features like escalators from the outset, and by the 1990s, stores complied with the Americans with Disabilities Act through additions such as ramps and elevators, though detailed implementations varied by location.^[15]

Late Ownership and Expansion

May Department Stores Acquisition

In 1988, as part of the antitrust requirements for Campeau Corporation's acquisition of Federated Department Stores, Foley's was divested and sold to The May Department Stores Company along with the Filene's chain for $1.5 billion, enabling Foley's to maintain its operations as a semi-autonomous division focused on the Texas and southwestern markets.^[16]^[17] This transaction followed Foley's long tenure under Federated ownership since 1947, during which it had expanded significantly as a regional retailer.^[5] Under May's ownership from 1988 to 2005, Foley's experienced operational enhancements aimed at boosting efficiency and competitiveness. In 1993, Foley's assumed management of the May D&F division in the Rocky Mountain region, consolidating operations across 49 stores in five states and achieving annual sales of $1.6 billion through integrated merchandising and administrative functions.^[18] Throughout the 1990s, Foley's participated in May's centralized purchasing system, which merged buying offices from multiple divisions to secure better terms from suppliers and reduce costs, contributing to sustained revenue growth for the chain.^[19] These changes supported Foley's financial performance during the May era, with sales expanding amid cost-saving measures and customer retention initiatives, including proprietary credit card programs that offered rewards to encourage repeat business. By the early 2000s, Foley's operated approximately 69 stores, reflecting steady growth from its post-acquisition base of around 40 locations.^[20]

Regional Mergers and Growth

Following its acquisition by the May Department Stores Company in 1988, Foley's positioned itself for expanded regional dominance through targeted mergers that integrated complementary chains and strengthened its presence in key markets.^[5] A pivotal step occurred in 1987, prior to the May acquisition, when Federated Department Stores merged its Foley's and Sanger-Harris divisions, both Texas-based operations. This consolidation integrated Sanger-Harris's Dallas-centric network, which included stores in the Dallas-Fort Worth metroplex as well as Oklahoma City and Tulsa, with 12 Dallas-Fort Worth locations fully converted to Foley's branding by 1988, enhancing market share in North Texas and adjacent areas.^[9]^[5] In 1993, under May ownership, Foley's absorbed the May D&F division, a Denver-based chain with operations in Colorado and New Mexico, rebranding its approximately 10 stores and extending Foley's reach into those markets. This merger expanded the overall chain to operations in five states and resulted in a combined 49-store portfolio generating $1.6 billion in annual sales, solidifying Foley's as a major Southwest retailer.^[18] During the late 1990s, Foley's further grew its footprint in the Southeast, including entry into Louisiana with the addition of several Maison Blanche stores acquired from Mercantile Stores as part of the 1998 Dillard's-Mercantile merger, and expansion into Arizona.^[21] Economic pressures from the 2001 recession led to partial closures in select markets. By 2005, at its peak under May, Foley's operated 69 locations across the Southwest and Southeast, with representative stores averaging around 390,000 square feet to accommodate diverse merchandise and customer traffic.^[20]^[22]

Acquisition, Closure, and Legacy

Federated Merger and Macy's Conversion

In February 2005, Federated Department Stores announced its acquisition of the May Department Stores Company, Foley's parent, for approximately $11 billion in cash and stock, creating one of the largest department store operators in the United States.^[23] The merger, completed on August 30, 2005, integrated Foley's 69 stores as a division within Federated's portfolio, initially retaining the Foley's branding to maintain regional familiarity.^[24] Following the merger, Federated decided in July 2005 to phase out the Foley's name entirely, opting instead to convert all locations to Macy's by September 2006 as part of a broader strategy to unify its brands under the national Macy's banner.^[25] This rebranding encompassed stores across Texas, Oklahoma, Colorado, New Mexico, Arizona, and Louisiana, with physical updates including new signage, merchandise layouts, and point-of-sale systems rolled out progressively through the summer of 2006.^[26] The transition absorbed Foley's employees into Macy's operations, with structured training programs initiated in early 2006 to familiarize staff with Federated's inventory management, customer service protocols, and operational systems.^[27] These efforts aimed to minimize disruptions while aligning former Foley's workers with Macy's corporate culture, building on the chain's growth under May Department Stores since the late 1980s. Foley's final operations concluded with the last sales under its banner in March 2006 for select inventory clearances, leading to full closure of the brand on September 9, 2006, at a total conversion cost of around $100 million, primarily for rebranding and integration expenses.^[24]^[28]

Demolition and Cultural Impact

The downtown Houston flagship store of Foley's, located at 1110 Main Street and operational since 1947, was demolished on September 22, 2013, to clear the site for a mid-rise mixed-use development. As of 2025, the site remains a surface parking lot as part of ongoing downtown redevelopment efforts, including the Main Street Promenade project expected to complete in 2026.^[29]^[2]^[30] The ten-story structure, which had been rebranded as Macy's following the 2006 merger, represented the last major department store presence in downtown Houston and its implosion elicited widespread nostalgia among locals for its role as a retail and social landmark.^[3]^[31] Although the physical building was lost, key artifacts and records from Foley's history were preserved through the Houston History Archives at the University of Houston Libraries, including bound ledgers, real estate documents, and other materials documenting the store's operations and community ties from 1900 to 2005.^[1] These archives, acquired between 2006 and 2007 and made publicly accessible in 2011, supported a commemorative exhibit titled "Foley's Department Store: Houston’s Community Partner, 1900-2005," highlighting the chain's enduring influence on regional life.^[2] Foley's left a lasting cultural imprint through traditions like the Thanksgiving Day Parade, which it sponsored annually from 1950 to 1994, drawing thousands with floats, bands, and holiday themes that became a staple of Houston's festive calendar.^[32]^[2] The event's legacy persisted after Foley's sponsorship ended, evolving under subsequent organizers and sponsors like H-E-B, while the chain's support for other civic activities, such as the Houston Livestock Show and Rodeo, reinforced its community-oriented identity.^[3] Economically, Foley's played a pivotal role in Houston's retail landscape, evolving from a single dry goods store in 1900 to the city's largest department chain by the mid-20th century and employing thousands across its operations, which stimulated local commerce and infrastructure growth.^[5] Its expansion into suburban locations, beginning with the 1961 opening at Sharpstown Mall, helped pioneer Texas's mall culture by anchoring developments that shifted retail from downtown cores to outlying areas and influenced urban planning patterns.^[2] Post-closure nostalgia has manifested in employee reunions, including a 10-year gathering in 2016 that reflected on the chain's impact, alongside ongoing access to digitized elements of the archives that allow public engagement with Foley's catalogs and historical materials online.^[5]^[1] These efforts underscore Foley's transformation from a commercial entity to a symbol of Houston's retail heritage and social evolution.^[3]

References

[1]
Foley's Department Store Records | University of Houston Libraries
Foley's Department Store Records comprise 42 record cartons, 16 oversized boxes, 32 bound ledgers and real estate records that are open to the public.
[2]
[PDF] Remembering Foley's | Houston History Magazine
Foley's. Department Store: Houston's Community Partner, 1900-. 2005 opened on the first floor of the M. D. Anderson. Library in four large windows devoted to ...
[3]
Foley's — The Heritage Society
Macy's was the final tenant at 1100 Main Street, but for many generations of Houstonians, that building will always be remembered as Foley's.
[4]
The Data-Driven Visionary - The American Business History Center
Nov 27, 2019 · Foley's new downtown Houston store opened in 1947 to a crowd of 200,000. First day sales were 2.5 times the best Foley's had ever done. This ...<|control11|><|separator|>
[5]
Foley brothers built an empire from one small Houston store - Chron
Jun 8, 2016 · Foley brothers built an empire from one small Houston store. Nation's eyes were transfixed on flagship store visited by Santa and superstars.
[6]
This beloved department store opened in Houston this month 119 ...
Feb 4, 2019 · In 1945, Foley Brothers joined a national retail group when it was purchased by Federated Department Stores. In 1947, in what was called a ...
[7]
Thankful for the Annual Thanksgiving Parade | The Buzz Magazines
Nov 22, 2023 · ... Foley's Department Store started it as a simple event in 1949. Santa rode the Missouri Pacific train to Union Station (where Minute Maid ...
[8]
Foley's Thanksgiving Day Parade (1968) - KPRC-TV Collection
Houston first held a Thanksgiving Day parade in 1949, when Santa arrived at Union Station and rode his sleigh to the Foley's department store. The Foley's ...
[9]
Federated Department Stores Inc. of Cincinnati Friday announced it...
Jan 16, 1987 · The merger and related costs will cause an estimated $17 million fourth-quarter after-tax change. That amount is subject to final audit, a ...Missing: 1945 $3.5
[10]
Foley's to take over management of May D&F stores - UPI Archives
Jan 29, 1993 · The owner of Foley's has announced the Houston department store chain will take over management of the Denver-based May D&F department stores.Missing: expansion Louisiana 1967 Baton Rouge Oklahoma 1970s 1980 absorption
[11]
Macy's (Foley's) | SAH ARCHIPEDIA
Foley's is adjacent to Main Street Square, installed in the 1000 block of Main Street in 2004 in conjunction with construction of the Metrorail Red Line.
[12]
1940s | Foley's - Houston Deco
1110 Main St. demolished. Historic name: Foley's Current name: Macy's Completed: 1947, expanded 1957. Architect: Kenneth Franzheim
[13]
Foley's Almeda-Genoa Grand Opening (1966)
This KHOU-TV news segment captures the grand opening of a Foley's department store in Houston on October 2, 1966.
[14]
Foley's New Look - Time Magazine
To make this come true in Houston, he hired Manhattan Designer Raymond Loewy and associates to lay out a $12,000,000 store that would make selling more ...Missing: interior | Show results with:interior
[15]
A fond farewell to Foley's (um... Macy's) - CultureMap Austin
Jan 5, 2013 · Foley's catered to all its urban-dwelling customers and the thousands who worked downtown by filling prescriptions! Now that's customer service ...Missing: amenities history<|separator|>
[16]
The Effects of the ADA - U.S. Commission on Civil Rights
One of the areas of improvements were access to buildings, greater inclusion of people with disabilities in the community, increased public sensitivity and ...
[17]
Campeau, May in Deal on Federated - The New York Times
Mar 5, 1988 · The Campeau Corporation, the Canadian developer, said it had agreed to sell two Federated store divisions to the May Department Stores Company for $1.5 billion ...Missing: $1.15 | Show results with:$1.15
[18]
CAMPEAU TO SELL FILENE'S, FOLEY'S TO MAY CO. IF ...
Mar 4, 1988 · CAMPEAU TO SELL FILENE'S, FOLEY'S TO MAY CO. IF FEDERATED BID SUCCEEDS. March 4, 1988More than 37 years ago.Missing: $1.15 | Show results with:$1.15
[19]
The May Department Stores Company | Encyclopedia.com
May's expansion efforts continued through the 1890s. First came the 1892 purchase of the Famous Department Store in St. Louis, Missouri, for which he and two ...Missing: timeline Oklahoma<|control11|><|separator|>
[20]
RIP, Foley's department stores - Off the Kuff
Jul 29, 2005 · This switch, prompted by the merger of Federated and May Department Stores Co., which owns Foley's, will occur in 2006. It will be the second ...Missing: chain ownership
[21]
[PDF] SHRINKING - Houston
The designers anticipated the success of the new store by making structural provision for additional stories, and in. 1955 Foley's stacked four new city-block.Missing: 1920s diversification
[22]
Federated-May merger bets on dept. stores - NBC News
Feb 27, 2005 · Federated Department Stores Inc. is buying rival May Department Stores Co. for $11 billion in cash and stock in a deal that would create a ...
[23]
Federated Department Stores 10-K - SEC.gov
In 2005, the Company launched a new nationwide Macy's customer loyalty program, called Star Rewards, in coordination with the launch of the Macy's nameplate in ...
[24]
Foley's gets new name Federated Department Stores will change ...
Jul 30, 2005 · Oklahoma Foley's stores will now be part of Federated's Macy's West division, which posted $4.4 billion in sales for 2004. Oklahoma City ...Missing: history | Show results with:history
[25]
The Macy's makeover - The Denver Post
Jun 2, 2006 · Colorado's 12 Foley's stores will become Macy's on Sept. 9 – the result of an $11 billion takeover of Foley's parent May Department Stores Co.
[26]
Loss Of Shoppers Drives Federated/May Merger - Forbes
Jan 20, 2005 · Federated Department Stores ' urge to merge with May Department Stores and create a $28 billion (sales) giant is driven by the disappearance ...
[27]
Macy's to shed Foley's name on Saturday - Chron
Sep 3, 2006 · 'AMERICA'S DEPARTMENT STORE'Transformation unveiled as Macy's sheds Foley's nameA retail makeover ... Macy's also will offer rewards to its ...
[28]
Downtown Houston's Macy's imploded
The ten-story, 791,000-sf building at 1110 Main originally opened in 1947 as a Foley's department store. The building's owner previously stated they planned ...
[29]
Foley's Falls: The Last of the Last Department Store in Downtown ...
Sep 23, 2013 · So much for total environmental control, huh? The Foley's, then Macy's, at 1110 Main St. is no more, succumbing to a helluva lot of dynamite ...
[30]
Remembering Foley's (and now Macy's) - Chron
Aug 16, 2013 · Foley's brought back animated windows for the Christmas season in this Nov. 19, 1984 file photo. Pedestrians pass by the "Land of Snow" ...