Globe Shopping City

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Globe Shopping City
TypeDiscount department store chain
FateLiquidation
Founded1960; 64 years ago (1960)
Houston, Texas
Defunct1978 (chain)
1999 (McAllen)
HeadquartersChicago, Illinois, U.S. and Houston, Texas, U.S.
Number of locations
31 stores (1977)
ProductsClothing, footwear, bedding, furniture, jewelry, beauty products, electronics, housewares, groceries, auto service, pets
ParentWalgreens (owned from 1962 and discontinued in 1978)

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[edit | edit source]

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Total store locations, 1960-1979

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.[1]

The first Globe Discount City opened in Houston across from Gulfgate Mall on November 25, 1960.[2] Unlike the smaller Danburg department stores, the Globe 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.[3] 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.[4] 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.[5] 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.[6] 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.[7] By 1973, the chain would not be extending past its Southwest locations due to the big-box competition getting "intense".

Downturn and Closure[edit | edit source]

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.[8] 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,[9] 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.[10] 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.[11] 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".[12]

Locations[edit | edit source]

Name Address City Square footage Opened Closed Previous occupant Next occupant Source
Globe 3030 Woodridge Drive Houston, Texas 100,000 square feet (9,300 m2) November 25, 1960 July 21, 1978 FedMart 291, then Mervyn's 118 [13][14]
Globe 5300 North Shepherd Drive Houston, Texas 100,000 square feet (9,300 m2) July 27, 1961 July 21, 1978 FedMart 296 [15][14]
Globe 6200 Bellaire Boulevard Houston, Texas 110,000 square feet (10,000 m2) November 1, 1961 July 21, 1978 FedMart 298 [16][14]
Globe 10420 Eastex Freeway Houston, Texas 62,000 square feet (5,800 m2) October 30, 1963 July 21, 1978 Super Flea [17][14]
Globe 5905 Florida Boulevard Baton Rouge, Louisiana 110,000 square feet (10,000 m2) March 11, 1964 July 19, 1978 Kmart 3488 [18][19]
Globe 7100 Lomas Avenue Northeast Albuquerque, New Mexico 110,000 square feet (10,000 m2) March 10, 1965 July 21, 1978 Kmart 3494 [20][21]
Globe Tower Plaza Shopping Center, 3601 East Thomas Street Phoenix, Arizona 110,000 square feet (10,000 m2) April 7, 1965 December 31, 1977 FedMart, then Target T-210 [22][23]
Globe 740 West Camelback Road Phoenix, Arizona 110,000 square feet (10,000 m2) April 28, 1965 December 31, 1977 FedMart, then Target T-209 [24][23]
Globe 6373 Montana Avenue El Paso, Texas 110,000 square feet (10,000 m2) November 10, 1965 July 21, 1978 Kmart 3491 [25][26]
Globe 5255 East Broadway Boulevard Tucson, Arizona 110,000 square feet (10,000 m2) March 30, 1966 April 29, 1978 FedMart, then Target T-179 [27][28]
Globe 3201 Avenue Q Lubbock, Texas 80,000 square feet (7,400 m2) August 17, 1966 July 21, 1978 Kmart 7298 [29][30]
Globe 901 South 10th Street McAllen, Texas 80,000 square feet (7,400 m2) November 16, 1966 December 22, 1999 99 Cents Plus [31][32]
Globe 1004 East Southmore Avenue Pasadena, Texas 110,000 square feet (10,000 m2) November 30, 1966 July 21, 1978 FedMart 293, then Mervyn's 121 [33][14]
Globe 7142 San Pedro Avenue San Antonio, Texas 110,000 square feet (10,000 m2) March 1, 1967 July 21, 1978 Kmart 3492 [34][35]
Globe 238 Southwest Military Drive San Antonio, Texas 110,000 square feet (10,000 m2) May 22, 1968 July 21, 1978 Kmart 3493 [36][35]
Globe 975 Gessner Road Houston, Texas 83,000 square feet (7,700 m2) August 14, 1968 July 21, 1978 FedMart 299, then Mervyn's 120 [37][38]
Globe Graywood Shopping Center, 1700 Decker Drive Baytown, Texas 80,000 square feet (7,400 m2) November 19, 1969 July 21, 1978 Super Warehouse Foods 4 and Discount Tire [39][40]
Globe 737 Shreveport-Barksdale Highway Shreveport, Louisiana 110,000 square feet (10,000 m2) February 4, 1970 June 30, 1978 Walmart Discount Store 278 [41][42]
Globe 584 South Mendenhall Road Memphis, Tennessee 90,000 square feet (8,400 m2) March 18, 1970 August 28, 1972 Service Merchandise [43][44]
Globe 315 South Santa Rosa Avenue San Antonio, Texas 80,000 square feet (7,400 m2) April 15, 1970 July 21, 1978 Barkers Kmart 7300 [45][35]
Globe 66 South Dobson Road Mesa, Arizona 110,000 square feet (10,000 m2) April 29, 1970 December 31, 1977 FedMart, then Target T-178 [46][47]
Globe 4628 Broadway Avenue J Galveston, Texas 80,000 square feet (7,400 m2) February 24, 1971 July 22, 1977 Island Community Center [48][49]
Globe Southbrook Shopping Mall, 1200 East Shelby Drive Whitehaven, Tennessee 80,000 square feet (7,400 m2) March 17, 1971 December 24, 1972 Service Merchandise [50][51]
Globe Outlet 8712 Jensen Drive Houston, Texas 1972 1976 Danburg's Acme Bargain Barn
Globe 300 Menaul Boulevard Northeast Albuquerque, New Mexico 110,000 square feet (10,000 m2) November 1, 1972 July 21, 1978 Kmart 3490 [52][21]
Globe Mission Shopping Center, 4977 Ayers Street Corpus Christi, Texas 110,000 square feet (10,000 m2) May 16, 1973 July 21, 1978 Kmart 3489 [53][54]
Globe 503 West 70th Street Shreveport, Louisiana 110,000 square feet (10,000 m2) July 4, 1973 June 30, 1978 Ashton's Warehouse Furniture [55][42]
Globe Northbrook Shopping Center, 5264 West 34th Street Houston, Texas 60,000 square feet (5,600 m2) November 20, 1974 July 21, 1978 Kmart 9646 [56][14]
Globe 325 Mexico Boulevard Brownsville, Texas 110,000 square feet (10,000 m2) April 30, 1975 May 13, 1978 Kmart 7297 [57][58]
Globe 555 East Grant Road Tucson, Arizona 85,000 square feet (7,900 m2) October 29, 1975 April 29, 1978 Zody's [59][28]
Globe 4343 West Commerce Street San Antonio, Texas March 7, 1977 July 21, 1978 Shoppers World Kmart 7299 [60][35]
Globe 8505 Broadway San Antonio, Texas March 7, 1977 July 21, 1978 Gulf-Mart Kmart 7302 [60][35]
Globe 4902 Fredericksburg Road San Antonio, Texas March 7, 1977 July 21, 1978 Gulf-Mart Kmart 7301 [60][35]

References[edit | edit source]

  1. ↑ "Top Executive Tells How Globe Became a Reality", Houston Chronicle, November 24, 1960, p. 4.
  2. ↑ "Globe Discount City Opens Doors Friday", Houston Chronicle, November 24, 1960, p. 2.
  3. ↑ Collins T., Albert. "Globe to Merge With Walgreen's: Discount Firm, Drug Chain In Multimillon-Dollar Deal." Houston Chronicle, March 21, 1962, p. 1 and p. 20.
  4. ↑ "Our Typical Walgreen Store... Even Bigger Walgreen Store... Our Biggest: Globe Department Stores", Walgreens Annual Report to Stockholders: 1967, p. 15-15.
  5. ↑ The launch of the Tucson Globe store was scheduled to be "Globe Discount City" and was changed to "Globe Shopping City" likely because the former name had been in use by another, unrelated store in the 1950s in Arizona. The name "Discount City" was considered to be "obsolete" for the new store. Turpin, Ted. "Sensory Systems Lab Ideal Type for Tucson." Tucson Daily Citizen, March 22, 1966, p. 26.
  6. ↑ "The Globe Division", Walgreens Annual Report to Stockholders: 1976, p. 23.
  7. ↑ It was reported in the trade publication, The Discount Merchandiser, (June 1973) that Globe stored delivered a 60% higher per square foot sales metric than the national average of mass merchandisers. "Globe Department Stores", Walgreens Annual Report to Stockholders: 1973, p. 8-9.
  8. ↑ "The Globe Division", Walgreens Annual Report to Stockholders: 1976, p. 23.
  9. ↑ "Three new Globe stores now open." San Antonio Express, March 9, 1977, p. 6-A.
  10. ↑ "Closing of Globe Stores to Bring Loss of 170 Jobs." Arizona Daily Star, March 15, 1978, p. 1B.
  11. ↑ "Klinck's Announces Purchase Of Globe Discount Center." The Monitor, August 1, 1978, p. 1 and p. 8A.
  12. ↑ Cannon, Steve. "Klinck, Globe stores going under." The Monitor, November 2, 1999, p.1.
  13. ↑ "Globe Discount City Opens Doors Friday", Houston Chronicle, November 24, 1960, p. 2.
  14. ↑ 14.0 14.1 14.2 14.3 14.4 14.5 Full-page advertisement, Houston Chronicle, July 20, 1978, p. 7.
  15. ↑ "Second Globe City Opening Here Thursday." Houston Chronicle, July 26, 1961, p. 2.
  16. ↑ "Globe Sharpstown Opening Wednesday." Houston Chronicle, October 31, 1961, p. 2.
  17. ↑ "New Globe Discount City Opens Tomorrow at 9:00 A.M." Houston Chronicle, October 29, 1963, p. 15.
  18. ↑ "Globe Opens New 'Discount City' To Area Shoppers on Wednesday." State-Times, March 10, 1964, p. 2-C.
  19. ↑ Full-page advertisement, State-Times, July 19, 1978.
  20. ↑ "Discount Store Books Opening", Albuquerque Journal, March 7, 1965, p. D-9.
  21. ↑ 21.0 21.1 Full-page advertisement, Albuquerque Journal, July 16, 1978, p. A-3.
  22. ↑ "New Globe Discount City Opens To Public Tomorrow." The Phoenix Gazette, April 6, 1965, p. 54.
  23. ↑ 23.0 23.1 Full-page advertisement, Arizona Republic, December 28, 1977.
  24. ↑ "New Globe Store To Open." The Phoenix Gazette, April 27, 1965, p. 35.
  25. ↑ "Globe Discount City Opens in El Paso Tomorrow." El Paso Herald-Post, November 9, 1965, p. C-1.
  26. ↑ Full-page advertisement, El Paso Times, July 19, 1978, p. 16-D.
  27. ↑ "Huge Discount House Opens Doors Wednesday." Tucson Citizen, March 29, 1966.
  28. ↑ 28.0 28.1 Full-page advertisement, Arizona Daily Star, April 26, 1978.
  29. ↑ "Globe Discount City Opens At 9 A.M. Wednesday Here." Lubbock Avalanche-Journal, August 16, 1966, p. 2-C.
  30. ↑ Full-page advertisement, Lubbock Avalanche-Journal, July, 19, 1978, p. 16-D.
  31. ↑ "Globe Discount City Opens Wednesday, 9 AM." The Monitor, November 15, 1966.
  32. ↑ Advertisement, The Monitor, December 19, 1999, p. 5D.
  33. ↑ Full-page advertisement, Houston Chronicle, November 29, 1966.
  34. ↑ "Globe Discount City Opens Wednesday." San Antonio Express, March 1, 1967, p. 2-C.
  35. ↑ 35.0 35.1 35.2 35.3 35.4 35.5 Full-page advertisement, San Antonio Express, July 18, 1978, p. 8-D.
  36. ↑ "New Globe Opens Wednesday." San Antonio Express, May 22, 1968, p. 2-D.
  37. ↑ "Globe Shopping City Opens Unit At Katy Freeway and Gessner." Houston Chronicle, August 13, 1968, p. 2.
  38. ↑ Full-page advertisement, Houston Chronicle, July 20, 1978, p. 7.
  39. ↑ "New Globe To Open Wednesday." The Baytown Sun, November 18, 1969, p. 2.
  40. ↑ Full-page advertisement, The Baytown Sun, July 16, 1978, p. 6-B.
  41. ↑ "Globe Opens Wednesday", The Shreveport Journal, February 3, 1970, p. 2C.
  42. ↑ 42.0 42.1 Full-page advertisement, Shreveport Journal, June 30, 1978, p. 13A.
  43. ↑ "Doors Open Tomorrow at New Globe Shopping City." Memphis Press-Scimitar, March 17, 1970, p. A-2.
  44. ↑ Potter, Wendell. "Globe Store Leased To Competitor." Memphis Press-Scimitar, August 22, 1972, p. 19X.
  45. ↑ "Globe Opens New San Antonio Store." San Antonio Express, April 15, 1970, p. 2-D.
  46. ↑ "Department store to open Wednesday." The Arizona Republic, April 27, 1970, p. 31.
  47. ↑ Full-page advertisement, Arizona Republic, December 28, 1977.
  48. ↑ "Globe Opening Wednesday." The Galveston Daily News, February 21, 1971, p. 1.
  49. ↑ Advertisement, The Galveston Daily News, July 21, 1977, p. 5-A.
  50. ↑ "Memphis’ Second Globe Sets Opening Wednesday." The Commercial Appeal, March 14, 1971, p. 4.
  51. ↑ Klink, Cook. "Globe Shopping City Plans To Leave Memphis Market." The Commercial Appeal, December 7, 1972, p. 79.
  52. ↑ "Second Globe Discount City Opens Wednesday." Albuquerque Journal, November 1, 1972.
  53. ↑ "Globe Discount City Opens Wednesday." Corpus Christi Caller, May 16, 1973.
  54. ↑ Full-page advertisement, Corpus Christi Caller, July 16, 1978, p. 14F.
  55. ↑ "New Globe Opens 9 A.M., July 4th." The Shreveport Journal, July 3, 1973, p. 14C.
  56. ↑ "Globe Opens 10th Area Store", Houston Chronicle, November 19, 1974, p. 14.
  57. ↑ "Globe Opens Second Valley Store." Valley Morning Star, April 30, 1975, p. 10C.
  58. ↑ Full-page advertisement, The Brownsville Herald, May 12, 1978, p. 9A.
  59. ↑ "Globe Discount City Opens Second Store In Tucson." Arizona Daily Star, October 29, 1975, p. 10.
  60. ↑ 60.0 60.1 60.2 "Three new Globe stores now open." San Antonio Express, March 9, 1977, p. 6-A.
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