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Stern's

Stern's was a prominent regional department store chain in the United States, founded in 1867 by German Jewish immigrant brothers Isaac, Louis, and Benjamin Stern as a dry goods store in Buffalo, New York, which relocated to New York City the following year and expanded into a major retailer specializing in fashionable clothing and luxury merchandise for an upscale clientele.^[1]^[2] Initially operating from a modest one-room shop at 367 Sixth Avenue in Manhattan, the Stern brothers quickly grew their business amid the Gilded Age's retail boom, moving to larger quarters at 110 West 23rd Street in 1877 and opening a flagship store at 32-36 West 23rd Street in 1878, designed in Renaissance Revival style by architect Henry Fernbach.^[1]^[3] By the early 20th century, Stern's had established itself as a key player in New York's "Ladies' Mile" shopping district, attracting affluent customers including the Vanderbilt family with its high-quality dry goods, apparel, and imported fashions, and later ranking among the city's top department stores alongside B. Altman's and Lord & Taylor.^[4]^[5] The chain further expanded uptown in 1913 to a new location near Fifth Avenue and West 42nd Street, and post-World War II, it shifted focus to suburban markets, opening stores in New Jersey towns such as Paramus (1957), Wayne (1963), and Woodbridge (1971), as well as in East Hampton, New York, to serve the emerging middle class.^[3]^[1]^[6] Throughout its history, Stern's maintained a reputation for elegance and innovation in retail, including elaborate window displays that contributed to the origins of window shopping in New York City during the late 19th century.^[2] The chain underwent significant corporate changes in the late 20th century, merging with Gertz in 1982 under Allied Stores, which was acquired by Campeau Corporation in 1986, before Federated Department Stores purchased it in 1988 and operated it as a mid-tier brand.^[3] By the early 2000s, facing declining sales and competition, Federated announced the phase-out of the Stern's name in February 2001, converting 17 of its 24 locations to Macy's by May of that year, reopening two as Bloomingdale's in 2002, and closing the rest by August, effectively ending over 130 years of independent operation.^[5] Today, remnants of Stern's legacy persist in preserved architecture, such as the 23rd Street building now housing a Home Depot, and in nostalgic accounts of its role in shaping American consumer culture.^[1]

History

Founding and early years

Stern Brothers was founded in 1867 in Buffalo, New York, by German Jewish immigrant brothers Isaac, Louis, and Benjamin Stern as a modest dry goods store.^[7]^[8] The brothers, sons of impoverished immigrants who had arrived in the United States in the 1840s, initially focused on selling clothing and textiles to build their reputation in the local market.^[1] In 1868, the Stern brothers relocated the business to New York City, opening a one-room store at 367 Sixth Avenue, which operated until 1877.^[7] This move positioned the store in the emerging commercial district of Ladies' Mile, where it served as a specialty retailer for dry goods and clothing, emphasizing fine quality merchandise at prices accessible to the growing middle class.^[9]^[8] The early operation targeted middle-class shoppers seeking imported fabrics and ready-to-wear apparel, differentiating itself through a focus on variety and customer service in a competitive urban environment.^[10] The brothers remained actively involved in daily operations and strategic decisions, managing the store as a family partnership amid initial challenges from established competitors like Macy's and Lord & Taylor.^[10] These rivals, already prominent in the dry goods trade, pressured the newcomers through aggressive expansion and pricing strategies, yet the Sterns' emphasis on quality helped sustain growth in the post-Civil War retail boom.^[10] Family control persisted until 1925, when the business was incorporated and common stock was issued to the public, marking the end of direct Stern family oversight.^[11]

Expansion in New York City

In 1877, the Stern brothers moved to larger quarters at 110 West 23rd Street.^[3] In 1878, Stern Brothers established its flagship store at 32-36 West 23rd Street in Manhattan's Ladies' Mile district, replacing the site at 110 West 23rd Street and marking a significant expansion amid the city's burgeoning retail scene. Designed by architect Henry Fernbach in the Renaissance Revival style, the structure featured a striking cast-iron facade with arched windows and ornate detailing, spanning five stories initially and later enlarged to accommodate growing operations.^[8]^[12] This multi-story layout served as a central hub for upscale dry goods and clothing for men, women, and children, including imported luxury items such as high-end suits and accessories, drawing affluent clientele like the Vanderbilt family.^[4]^[8] The store's innovations, including fixed pricing to ensure transparency and dedicated customer services like a reception room for female shoppers and multiple elevators, positioned it as a leader in the post-Civil War retail boom that transformed New York into a commercial powerhouse.^[8]^[12] By the early 1900s, Stern Brothers had further diversified its offerings beyond traditional dry goods to include accessories, household items, and a broader range of luxury merchandise, reflecting the evolving demands of urban consumers and solidifying its status among Manhattan's elite retailers.^[3] The 23rd Street store employed over 1,500 staff by 1886 and featured advanced amenities such as an employee dining room and incandescent lighting, enhancing operational efficiency and customer experience during this period of rapid urban growth.^[8] This expansion capitalized on New York's economic resurgence after the Civil War, where innovations like one-price policies and enhanced services helped department stores like Stern's attract both middle-class aspirants and high-society patrons to the fashionable shopping district.^[12]^[8] In 1913, Stern Brothers relocated its flagship to a new nine-story building at 42nd Street near Fifth Avenue, opposite Bryant Park, to accommodate larger-scale operations and a shift toward even more exclusive luxury goods.^[3]^[12] This move uptown aligned with Manhattan's retail migration and allowed for expanded floor space dedicated to diverse product lines, including refined apparel and home furnishings, while maintaining the store's reputation for quality and service. The relocation underscored Stern's adaptation to New York's dynamic commercial landscape, where post-war prosperity had fueled a proliferation of grand emporiums catering to an increasingly sophisticated clientele.^[12]

Suburban growth and regional presence

Following the post-World War II suburban boom, Stern's initiated its expansion beyond urban centers by opening its first branch store at the Bergen Mall in Paramus, New Jersey, in 1957, a 280,000-square-foot facility that became a cornerstone of the chain's suburban strategy.^[13] This location emphasized spacious layouts and integrated mall design to attract families relocating to the suburbs. The chain's third New Jersey unit opened at Preakness Shopping Center in Wayne in 1963.^[6] The chain continued its growth with the 1967 opening of a store in East Hampton, New York, as part of the East Hampton Mall, where 15 shops were housed in restored farmhouse and stable buildings to harmonize with the area's historic and affluent character.^[14] In New Jersey, further developments included a second store in Wayne at Willowbrook Mall in 1970, marking the chain's first new outlet in seven years and featuring modern amenities for regional shoppers, followed by a 1971 location in Woodbridge.^[13]^[15] These expansions adapted to the rising car culture by incorporating large parking lots—such as 700 spaces at the Paramus site—and seamless integration into automobile-friendly shopping malls, facilitating easy access for suburban drivers and boosting foot traffic from surrounding communities.^[16] In 1969, amid declining urban sales, Stern's closed its longtime Manhattan flagship on West 42nd Street due to persistent financial losses and shifted its corporate headquarters to the Paramus store, fully committing to a suburban-focused model.^[10] This pivot enabled a broader regional footprint across the New York metropolitan area, including Long Island and Pennsylvania, where stores targeted middle-class families in the tri-state region through the 1970s. By that decade, Stern's had established around a dozen locations, prioritizing accessible, family-oriented retail in growing suburban enclaves.

Acquisitions, mergers, and later developments

In 1951, Allied Stores Corporation acquired Stern Brothers, marking the transition from family ownership to corporate control while preserving the Stern's brand for its New York and New Jersey operations.^[17] This move integrated Stern's into a larger portfolio of regional department stores, enabling shared resources and expanded merchandising capabilities under Allied's management.^[18] By 1982, Allied consolidated its Stern's and Gertz divisions, merging the five Gertz stores in Queens and Nassau County into the Stern's chain to streamline operations and enhance profitability in the New York metropolitan area.^[19] The consolidation renamed the former Gertz locations as Stern's, adding key suburban sites and bolstering the chain's presence in Long Island without disrupting customer familiarity.^[20] Allied Stores was acquired by Campeau Corporation in 1986.^[3] Later that year, following the closure of Gimbel Brothers by its parent BATUS Inc., Allied purchased 11 Gimbels stores in the New York area, converting them to Stern's to expand its footprint, particularly in Philadelphia and Westchester County.^[21] This acquisition strengthened Stern's inventory in appliances and home goods, areas where Gimbels had a strong reputation, allowing the chain to compete more effectively against national retailers.^[22] Campeau Corporation acquired Federated Department Stores in 1988, leading to heavy debt and a joint bankruptcy filing by Allied and Federated in 1990.^[3] The corporate landscape shifted again in 1992 when Allied Stores was merged into Federated Department Stores, absorbing Stern's into a major national conglomerate and providing access to advanced supply chain and marketing strategies.^[23] Under Federated's oversight, Stern's benefited from economies of scale, though it retained regional autonomy in branding and operations.^[24] In 1995, Federated restructured its Abraham & Straus (A&S) division by converting five A&S locations in Brooklyn and Staten Island to Stern's, further extending the chain's reach into densely populated urban markets previously dominated by the higher-end A&S brand.^[25] This integration allowed Stern's to capture A&S's customer base while adapting merchandise to its moderate-price positioning.^[26] Throughout the 1980s and 1990s, Stern's introduced private-label brands and loyalty programs as part of broader efforts under Allied and later Federated to foster customer retention amid rising competition from discount chains.^[27] Initiatives like exclusive apparel lines and rewards systems, aligned with Federated's corporate strategies such as Charter Club, helped differentiate Stern's offerings and build repeat business in its regional markets.^[28]

Decline and closure

In the 1990s, Stern's faced intensifying competitive pressures from the rise of discount retailers such as Walmart and Target, which offered broader selections including groceries at lower prices, eroding the traditional department store model's market share.^[29] Specialty chains further fragmented consumer spending by targeting niche preferences, contributing to a broader decline where department stores' share of U.S. retail sales fell from 14.1% in 1993 to 9.8% by 2003.^[29] For Stern's specifically, these dynamics were compounded by its outdated image, which failed to attract younger shoppers, and comparatively weak performance, with 2000 sales of $840 million far below Macy's $4.68 billion and Bloomingdale's $1.79 billion.^[30] Under Federated Department Stores, Stern's encountered financial struggles marked by declining sales amid a retailing slump and poor holiday performance in late 2000.^[30] Over-expansion in suburban markets had strained resources, leading Federated to announce the retirement of the Stern's brand on February 8, 2001, as part of a strategy to streamline operations and focus on higher-performing divisions.^[30] The decision incurred one-time costs of $130 million to $150 million but was expected to improve cash flow and return on investment by reallocating assets.^[31] The closure process unfolded rapidly, affecting Stern's 24 stores in the New York and New Jersey suburbs.^[30] Of these, 19 were converted to Macy's or Bloomingdale's, two to Bloomingdale's specifically, and five were fully shuttered, with liquidation sales beginning in May 2001 and all operations concluding by August 2001 after 134 years in business.^[30]^[32] The shutdown resulted in significant employee and community impacts, with up to 2,600 of Stern's approximately 7,400 workers facing layoffs, though Federated prioritized reassignments to other positions where possible.^[30]^[31] The closures disrupted local economies in suburban New York and New Jersey, particularly in mall-based locations that served as retail anchors.^[30] Federated's strategic rationale centered on consolidating under the more prestigious Macy's and Bloomingdale's brands to enhance efficiency, leverage shared infrastructure, and better compete in the suburban market, as articulated by CEO Terry Lundgren: "Closing Stern's will allow us to concentrate on chains that have more cachet."^[33] This move folded Stern's $840 million in annual sales and estimated $70 million in profit into larger operations, bolstering overall returns.^[34]

Operations

Merchandise and services

Stern's department stores offered a wide range of merchandise centered on apparel for men, women, and children, encompassing both luxury and mid-range brands such as Paris fashions alongside more affordable options.^[3] By the 20th century, the chain had expanded its inventory to include household appliances like televisions, stereos, and vacuums; toys; and home furnishings such as furniture, bedding, curtains, rugs, lamps, and glassware.^[35]^[3] Accessories, books, and musical instruments rounded out the selections, providing variety for family shopping needs.^[3] Unique to Stern's were its private-label lines, which allowed the chain to offer exclusive, value-driven products, particularly in apparel during the 1990s.^[36] Seasonal promotions, including holiday sales and back-to-school events, highlighted key merchandise categories like children's clothing and toys, drawing crowds with special pricing and displays.^[35] Customer services emphasized convenience and personalization, with in-store restaurants and tearooms—such as the Stern's Luncheonette and the Skyline Restaurant at the Paramus flagship—providing full-service dining options for shoppers.^[35] Delivery services, garment alterations, and credit accounts via Stern's charge plates were introduced in the early 1900s, enhancing accessibility for urban customers.^[3]^[37] Stern's targeted upscale and middle-class urban and suburban shoppers, building a reputation for quality apparel and diverse home goods that appealed to working families and theater district patrons in New York.^[3]^[38] Among its innovations, Stern's 1913 flagship store on Fifth Avenue near 42nd Street featured early escalators, facilitating multi-floor navigation across its nine levels of merchandise.^[39] The chain also experimented with mail-order catalogs in the 1920s to extend reach beyond physical locations.^[3]

Store locations and architecture

Stern's flagship store at 32-36 West 23rd Street in Manhattan, opened in 1878, exemplified the ornate urban architecture of the era with its cast-iron facade and Renaissance Revival elements, designed by architect Henry Fernbach as a five-story structure that was later enlarged to six stories in 1892 by William Schickel.^[8]^[40] The building featured arched windows, connecting cornices, and a separate elite entrance on adjacent 22nd Street, reflecting the grandeur of the Ladies' Mile Shopping District where it became one of New York City's largest department stores at the time.^[8]^[3] In 1913, Stern's relocated its flagship to a nine-story modern building at the corner of West 42nd Street and Sixth Avenue, near Fifth Avenue, incorporating innovative features such as escalators to facilitate customer movement across its expansive retail floors.^[3] This design marked a departure from the cast-iron aesthetic of earlier stores, emphasizing verticality and efficiency in a growing urban retail landscape. Other key Manhattan sites included an early location at 367 Sixth Avenue from 1868 to 1877 and a branch on 42nd Street that operated until 1969.^[3]^[41] As Stern's expanded beyond Manhattan, its physical presence shifted toward suburban integration, with the 1957 opening of a major store at Bergen Mall in Paramus, New Jersey, serving as the chain's headquarters site until 2001 and anchoring the outdoor shopping center for over four decades.^[42]^[43] Additional suburban outposts included a full-line store in Woodbridge Center Mall, New Jersey, opened in the early 1970s.^[13] At its peak in the mid-1980s, Stern's operated 26 stores, primarily concentrated in New York—spanning Manhattan and Long Island locations such as East Hampton—New Jersey sites like Paramus and Woodbridge, and the Philadelphia area in Pennsylvania following the 1986 acquisition of former Gimbels stores.^[36]^[3]^[44] This regional distribution reflected a strategic focus on the Northeast corridor, with architecture evolving from the elaborate, multi-story urban buildings of the late 19th and early 20th centuries to functional, single- or two-level anchors integrated into malls during the 1950s and 1970s to accommodate suburban shopping patterns.^[3]^[45] Today, remnants of the 23rd Street flagship's cast-iron facade, including the original "SB" initials, remain visible as the building has been repurposed for commercial use by Home Depot since the early 2000s, preserving elements of its historical design amid modern retail adaptations.^[40]^[8]

Legacy

Cultural and economic impact

Stern's, as one of New York City's major department stores during the late 19th and early 20th centuries, played a pivotal role in shaping the city's retail culture by introducing European luxury goods and personalized shopping experiences that appealed to both affluent and aspiring middle-class consumers. Founded in 1867 by the sons of German Jewish immigrants,^[3] the store initially catered to class-conscious German immigrants.^[5] By relocating to the Ladies' Mile district in 1878 with a five-story flagship on West 23rd Street—the largest department store in New York at the time, a position it held until Macy's relocation to Herald Square in 1902—Stern's led the retail migration northward, transforming the area into a vibrant hub of commerce that drew shoppers from across the region with offerings like dry goods, apparel, and imported fashions.^[40]^[5] The store's emphasis on fashion innovation further cemented its cultural influence, popularizing French-inspired designs in American retail, such as coquettish ruffled parasols around 1870 that reflected Parisian trends and helped elevate New York's status as a fashion capital.^[46] This evolution from a dry goods emporium to a one-stop destination for apparel, home goods, and accessories mirrored and advanced the broader department store model, pressuring competitors like Macy's to expand their assortments and services during the Gilded Age. Stern's opulent displays and amenities, including pageboys and horse-drawn deliveries, symbolized the era's consumerism, though co-founder Louis Stern critiqued bargain basements in 1901 as "undemocratic and un-American," highlighting tensions between exclusivity and mass appeal.^[5] Economically, Stern's stimulated local commerce in the Ladies' Mile vicinity by anchoring a corridor of high-end retail that attracted foot traffic and supported ancillary businesses, contributing to the district's prosperity amid rapid urbanization.^[5] The chain employed thousands in retail roles across its operations, providing stable jobs that bolstered middle-class livelihoods in New York and New Jersey, with around 1,600 workers at its Manhattan stores alone by the late 1960s.^[47] Post-World War II, under Allied Stores ownership from 1951, Stern's shifted to moderate pricing, becoming a profitable mainstay for immigrant and working-class families seeking inclusive shopping without the elitism of Fifth Avenue rivals, thereby democratizing access to quality goods and reinforcing New York's retail dominance.^[48]^[5] Stern's broader social impact lay in fostering community ties for diverse groups, from Gilded Age elites and celebrities who frequented its elegant spaces to post-war middle-class and immigrant shoppers who viewed it as an accessible symbol of American aspiration. Featured prominently in period advertisements and photographs as an emblem of urban sophistication, the store influenced literature and visual culture by embodying the era's blend of immigrant ambition and consumer excess, leaving a lasting imprint on New York's identity as a global shopping mecca.^[5]

Post-closure conversions and remnants

Following the closure of Stern's in 2001, Federated Department Stores converted 17 of its 24 locations to Macy's East stores, maintaining continuous operations during the transition to preserve sales continuity.^[49] The Paramus store at Bergen Mall in New Jersey was among those rebranded as Macy's, integrating into the larger chain's regional network.^[49] Two additional stores were repurposed as Bloomingdale's outlets, while the remaining five were liquidated or shuttered entirely, marking the end of Stern's independent operations.^[5] The original Stern's flagship at 32-36 West 23rd Street, a cast-iron Renaissance Revival structure from 1878 expanded in 1892, was designated a key element of the Ladies' Mile Historic District and repurposed over the decades for commercial use, with Home Depot occupying the space since the early 2000s while retaining visible "SB" monograms on the facade.^[50]^[8] In contrast, the 1913 flagship near Fifth Avenue and 42nd Street, closed in 1969 due to financial losses, was demolished shortly thereafter to make way for the 50-story W.R. Grace Building, erasing its physical presence.^[10] Stern's brand was fully absorbed into Macy's corporate heritage following the acquisition, with Macy's now featuring Stern's in its official brand timeline as a 19th-century retailer founded in New York City in 1867.^[51] Occasional nostalgic references to Stern's appear in local New York histories, highlighting its role in suburban retail evolution before the 2001 shutdown.^[3] The closure resulted in the loss of several community landmarks, prompting preservation efforts focused on surviving structures like the 23rd Street building, which benefits from its inclusion in the protected Ladies' Mile Historic District to maintain architectural integrity amid commercial adaptations.^[52] Today, traces of Stern's persist through Macy's heritage acknowledgments on its website, which detail the chain's foundational contributions, alongside digitized vintage advertisements and catalogs preserved in institutional archives such as the New York Public Library's digital collections. As of November 2025, no significant changes to these remnants have been reported.^[4]

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[51]
40 West 23rd Street - RKTB Architects
A showpiece of the Ladies' Mile Historic District, the former Stern Brothers department store was built in two parts in 1878 and 1892, and has what may be the ...Missing: repurposed | Show results with:repurposed