Globe Shopping City

Globe Shopping City and Globe Discount City, was a regional chain of discount department stores based in Houston, Texas. Stanley Danburg, president of United Mercantile Inc., along with executive vice president George Kamins, founded the chain in 1960. Globe stores were located in the Southwest United States and were operated as a "big-box store" retail arm of Walgreens for much of the chain's operational lifecycle. Massive financial losses led to the dispersal of the entire chain through a combination of liquidation sales and transferal of individual store locations in 1978 with the exception of the McAllen location, which was sold to Klinck Drug Inc., and continued to operate under the Globe name and logo until its closure in 1999.

History
The chain was founded in 1960 by United Mercantile president Stanley Danburg and executive vice president George Kamins. United had formed earlier in 1960 to operate the existing seven-store chain of Danburg's Department Stores which had existed since the 1930s but felt there was need for a much larger discount store chain. Danburg, Kamins, and four other executives toured the country for more than a year, studying every major discount store to get ideas for the new chain.

The first Globe Discount City opened in Houston on November 25, 1960. Unlike the smaller Danburg department stores, the Globe City concept featured a full grocery store, a Sun Cafeteria utilizing the store's sun logo, and an expanded variety of more than 80 departments including live pets, firearms, and a Globe Auto Center housed in an outparcel building.

With three Globe stores open in 1962, Walgreens acquired the United Mercantile portfolio on March 21, 1962. Walgreens had seen F.W. Woolworth announce its new big-box retail concept of Woolco in 1961, S.S. Kresge opening its first Kmart in January 1962, and many others getting into large scale discount stores including the first Walmart store later in 1962 and W.T. Grant would create big-box Grant City stores. Walgreens would use Globe as its big-box brand while later creating a Walgreens Superstore line for its mid-sized pharmacy-centric stores while continuing its existing, smaller Walgreens stores.

Walgreens would extend the Globe big-box locations to its peak of 31 stores primarily in Texas and Arizona with three locations in Louisiana and two locations each in Tennessee and New Mexico. Some locations were branded as Globe Discount City with others labeled as Globe Shopping City. The stores' slogan at the time was, "Everything under the sun priced lower". To retain Globe's "multi-line customer appeal", Walgreens leased back certain departments of the store including the food market, fine jewelry (to Zales), the auto center, and the shoe department to third party vendors. Annual Walgreens shareholders reports touted Globe's "per square foot" sales in the early 1970s that were over-trending and the chain's usage of computers to track inventory, sales, and other key performance indicators. By 1973, the chain would not be extending past its Southwest locations due to the big-box competition getting "intense".

Downturn and Closure
United Mercantile / Walgreens closed all of the Danburg locations in 1970 as its aging mid-sized department stores were under competition from shopping mall anchors and newer big-box stores. By 1976, Globe stores were underperforming and around 40% of sales were going to the leased areas of the stores. Walgreens ended the Globe-branded check cashing card and internal credit system in favor of bank credit cards to help efficiency. The final three stores were opened in San Antonio on March 9, 1977 to double the number of stores from three to six in the city. But later that same year, Walgreens reported lower earnings partly due to the financial downturn of its Globe store unit. Losses were at $10 million in 1977 when Walgreens decided to exit the big-box space in 1978 closing or transferring all of its Globe Discount City locations by July 1978. Transactions were made to convert 14 locations to Kmarts and 8 locations became FedMart stores. FedMart would end up selling some of the buildings to Target and Mervyn's shortly thereafter. A number of locations which weren't transferred hosted auction sales to dispense with fixtures and any remaining inventory. The location in McAllen was sold to Klinck Drug Inc., who would continue to operate it under the Globe name and logo. In October 1999, Klinck was acquired by H-E-B and announced that store would close at the end of the year due to "stiff competition".