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Globe Shopping City

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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.

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)

History

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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 and Kamins, along with 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, TX on November 25, 1960.[2] 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.[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

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 to double the number of stores from three to six in the city.[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 later 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 in November that store would close in December 1999 due to stiff competition.[12]

Locations

Name Location Address City Opened Closed Previous occupant Next occupant Source
Globe 3030 Woodridge Drive Houston, Texas November 25, 1960 July 1978 FedMart #291, then Mervyn's #118 [13][14]
Globe 5300 North Shepherd Drive Houston, Texas July 27, 1961 July 1978 FedMart #296 [15][16]
Globe 6200 Bellaire Boulevard Houston, Texas November 1, 1961 July 1978 FedMart #298 [17][18]
Globe 10420 Eastex Freeway Houston, Texas October 30, 1963 July 1978 Super Flea [19][20]
Globe 5905 Florida Boulevard Baton Rouge, Louisiana March 11, 1964 July 19, 1978 Kmart #3488 [21][22]
Globe 7100 Lomas Avenue Northeast Albuquerque, New Mexico March 10, 1965 July 1978 Kmart #3494 [23][24]
Globe Tower Plaza Shopping Center 3601 East Thomas Street Phoenix, Arizona April 7, 1965 December 31, 1977 FedMart, then Target T-210 [25][26]
Globe 740 West Camelback Road Phoenix, Arizona April 28, 1965 December 31, 1977 FedMart, then Target T-209 [27][28]
Globe 6373 Montana Avenue El Paso, Texas November 10, 1965 July 1978 Kmart #3491 [29][30]
Globe 5255 East Broadway Boulevard Tucson, Arizona March 30, 1966 April 29, 1978 FedMart, then Target T-179 [31][32]
Globe 3201 Avenue Q Lubbock, Texas August 17, 1966 July 21, 1978 Kmart #7298 [33][34]
Globe 901 South 10th Street McAllen, Texas November 16, 1966 December 1999 99 Cents Plus [35][36]
Globe 1004 East Southmore Avenue Pasadena, Texas November 30, 1966 July 1978 FedMart #293, then Mervyn's #121 [37][38]
Globe 7142 San Pedro Avenue San Antonio, Texas March 1, 1967 July 1978 Kmart #3492 [39][40]
Globe 238 Southwest Military Drive San Antonio, Texas May 22, 1968 July 1978 Kmart #3493 [41][42]
Globe 975 Gessner Road Houston, Texas August 14, 1968 July 1978 FedMart #299, then Mervyn's #120 [43][44]
Globe Graywood Shopping Center 1700 Decker Drive Baytown, Texas November 19, 1969 July 1978 Super Warehouse Foods #4 [45][46]
Globe 737 Shreveport-Barksdale Highway Shreveport, Louisiana February 4, 1970 June 30, 1978 Walmart Discount Store #278 (store) and Service Tire Inc. (auto center) [47][48]
Globe 584 South Mendenhall Road Memphis, Tennessee March 18, 1970 August 28, 1972 Service Merchandise [49][50]
Globe 315 South Santa Rosa Avenue San Antonio, Texas April 15, 1970 July 1978 Barkers Kmart #7300 [51][52]
Globe 66 South Dobson Road Mesa, Arizona April 29, 1970 December 31, 1977 FedMart, then Target T-178 [53][54]
Globe 4628 Broadway Avenue J Galveston, Texas February 24, 1971 1977 Island Community Center [55]
Globe Southbrook Shopping Mall 1200 East Shelby Drive Whitehaven, Tennessee March 17, 1971 December 24, 1972 Service Merchandise [56][57]
Globe Outlet 8712 Jensen Drive Houston, Texas 1972 1976 Danburg's Acme Bargain Barn
Globe 300 Menaul Boulevard Northeast Albuquerque, New Mexico November 1, 1972 July 1978 Kmart #3490 [58][59]
Globe Mission Shopping Center 4977 Ayers Street Corpus Christi, Texas May 16, 1973 July 1978 Kmart #3489 [60][61]
Globe 503 West 70th Street Shreveport, Louisiana July 4, 1973 June 30, 1978 Ashton's Warehouse Furniture [62][63]
Globe Northbrook Shopping Center 5264 West 34th Street Houston, Texas November 20, 1974 July 1978 Kmart #9646 [64][65]
Globe 325 Mexico Street Brownsville, Texas April 30, 1975 May 13, 1978 Kmart #7297 [66][67]
Globe 555 East Grant Road Tucson, Arizona October 29, 1975 April 29, 1978 Zody's [68][69]
Globe 4343 West Commerce Street San Antonio, Texas March 7, 1977 July 1978 Shoppers World Kmart #7299 [70][71]
Globe 8505 Broadway San Antonio, Texas March 7, 1977 July 1978 Gulf-Mart Kmart #7302 [72][73]
Globe 4902 Fredericksburg Road San Antonio, Texas March 7, 1977 July 1978 Gulf-Mart Kmart #7301 [74][75]

References

  1. ↑ "Top Executive Tells How Globe Became a Reality", The Houston Chronicle, November 24, 1960, p. 4.
  2. ↑ "Globe Discount City Opens Doors Friday", The 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 News, 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", The Houston Chronicle, November 24, 1960, p. 2.
  14. ↑ Full-page advertisement, Houston Chronicle, July 20, 1978, p. 7.
  15. ↑ "Second Globe City Opening Here Thursday", The Houston Chronicle, July 26, 1961, p. 2.
  16. ↑ Full-page advertisement, Houston Chronicle, July 20, 1978, p. 7.
  17. ↑ "Globe Sharpstown Opening Wednesday", The Houston Chronicle, October 31, 1961, p. 2.
  18. ↑ Full-page advertisement, Houston Chronicle, July 20, 1978, p. 7.
  19. ↑ "New Globe Discount City Opens Tomorrow at 9:00 A.M.", The Houston Chronicle, October 29, 1963, p. 15.
  20. ↑ Full-page advertisement, Houston Chronicle, July 20, 1978, p. 7.
  21. ↑ "Globe Opens New 'Discount City' To Area Shoppers on Wednesday", State-Times, March 10, 1964, p. 2-C.
  22. ↑ Full-page advertisement, State-Times, July 19, 1978.
  23. ↑ "Globe Offers New Look In Shopping Experience", The Albuquerque Tribune, March 9, 1965, p. C-2.
  24. ↑ Full-page advertisement, Albuquerque Journal, July 16, 1978, p. A-3.
  25. ↑ "New Globe Discount City Opens To Public Tomorrow", The Phoenix Gazette, April 6, 1965, p. 54.
  26. ↑ Full-page advertisement, Arizona Republic, December 28, 1977.
  27. ↑ "New Globe Store To Open", The Phoenix Gazette, April 27, 1965, p. 35.
  28. ↑ Full-page advertisement, Arizona Republic, December 28, 1977.
  29. ↑ "Globe Discount City Opens in El Paso Tomorrow", El Paso Herald-Post, November 9, 1965, p. C-1.
  30. ↑ Full-page advertisement, El Paso Times, July 19, 1978, p. 16-D.
  31. ↑ "Huge Discount House Opens Doors Wednesday", Tucson Citizen, March 29, 1966.
  32. ↑ Full-page advertisement, Arizona Daily Star, April 26, 1978.
  33. ↑ "Globe Discount City Opens At 9 A.M. Wednesday Here", Lubbock Avalanche-Journal, August 16, 1966, p. 2-C.
  34. ↑ Full-page advertisement, Lubbock Avalanche-Journal, July, 19, 1978, p. 16-D.
  35. ↑ "Globe Discount City Opens Wednesday, 9 AM", The Monitor, November 15, 1966.
  36. ↑ Advertisement, The Monitor, December 19, 1999, p. 5D.
  37. ↑ Full-page advertisement, Houston Chronicle, November 29, 1966.
  38. ↑ Full-page advertisement, Houston Chronicle, July 20, 1978, p. 7.
  39. ↑ "Globe Discount City Opens Wednesday", San Antonio Express, March 1, 1967, p. 2-C.
  40. ↑ Full-page advertisement, The News, July 18, 1978.
  41. ↑ "New Globe Opens Wednesday", San Antonio Express, May 22, 1968, p. 2-D.
  42. ↑ Full-page advertisement, The News, July 18, 1978.
  43. ↑ "Globe Shopping City Opens Unit At Katy Freeway and Gessner", Houston Chronicle, August 13, 1968, p. 2.
  44. ↑ Full-page advertisement, Houston Chronicle, July 20, 1978, p. 7.
  45. ↑ "New Globe To Open Wednesday", The Baytown Sun, November 18, 1969, p. 2.
  46. ↑ Full-page advertisement, The Baytown Sun, July 16, 1978, p. 6-B.
  47. ↑ "Globe Opens Wednesday", The Shreveport Journal, February 3, 1970, p. 2C.
  48. ↑ Full-page advertisement, Shreveport Journal, June 30, 1978, p. 13A.
  49. ↑ "Doors Open Tomorrow at New Globe Shopping City", Memphis Press-Scimitar, March 17, 1970, p. A-2.
  50. ↑ Potter, Wendell. "Globe Store Leased To Competitor", Memphis Press-Scimitar, August 22, 1972, p. 19X.
  51. ↑ "Globe Opens New San Antonio Store", San Antonio Express, April 15, 1970, p. 2-D.
  52. ↑ Full-page advertisement, The News, July 18, 1978.
  53. ↑ "Department store to open Wednesday", The Arizona Republic, April 27, 1970, p. 31.
  54. ↑ Full-page advertisement, Arizona Republic, December 28, 1977.
  55. ↑ "Globe Opening Wednesday", The Galveston Daily News, February 21, 1971, p. 1.
  56. ↑ "Memphis’ Second Globe Sets Opening Wednesday", The Commercial Appeal, March 14, 1971, p. 4.
  57. ↑ Klink, Cook. "Globe Shopping City Plans To Leave Memphis Market", The Commercial Appeal, December 7, 1972, p. 79.
  58. ↑ "Second Globe Discount City Opens Wednesday", Albuquerque Journal, November 1, 1972.
  59. ↑ Full-page advertisement, Albuquerque Journal, July 16, 1978, p. A-3.
  60. ↑ "Globe Discount City Opens Wednesday", Corpus Christi Caller-Times, May 16, 1973.
  61. ↑ Full-page advertisement, Corpus Christi Caller, July 16, 1978, p. 14F.
  62. ↑ "New Globe Opens 9 A.M., July 4th", The Shreveport Journal, July 3, 1973, p. 14C.
  63. ↑ Full-page advertisement, Shreveport Journal, June 30, 1978, p. 13A.
  64. ↑ "Globe Opens 10th Area Store", Houston Chronicle, November 19, 1974, p. 14.
  65. ↑ Full-page advertisement, Houston Chronicle, July 20, 1978, p. 7.
  66. ↑ "Globe Opens Second Valley Store", Valley Morning Star, April 30, 1975, p. 10C.
  67. ↑ Full-page advertisement, The Brownsville Herald, May 12, 1978, p. 9A.
  68. ↑ "Globe Discount City Opens Second Store In Tucson", Arizona Daily Star, October 29, 1975, page 10.
  69. ↑ Full-page advertisement, Arizona Daily Star, April 26, 1978.
  70. ↑ "Three new Globe stores now open", San Antonio Express News, March 9, 1977, p. 6-A.
  71. ↑ Full-page advertisement, The News, July 18, 1978.
  72. ↑ "Three new Globe stores now open", San Antonio Express News, March 9, 1977, p. 6-A.
  73. ↑ Full-page advertisement, The News, July 18, 1978.
  74. ↑ "Three new Globe stores now open", San Antonio Express News, March 9, 1977, p. 6-A.
  75. ↑ Full-page advertisement, The News, July 18, 1978.
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