European Stars And Stripes (Newspaper) - July 21, 1986, Darmstadt, Hesse                                Death Knell for old line department stores eleven of 20 a Tabela store in now boric Andahl Ladelphia Hove already bom told other Are on the Modi. By is adore Barm Ash now York times aught Between aggressive discounters and such thriving higher priced chains As Macy Sand Bloomingdale sold line department stores catering to the Broad lower income Market Are facing an increasingly Bleak Mure especially in new York. The death Knell has sounded i-., most of the 20 Gimbels department stores in the East and six Ohrbach s stores also in the East. In addition six remaining Orbach s outlets on he West coast were put on Hoblock. Manhattan was particularly hard hit it was announced thai a Hibachi s flagship store near Herald Square would dose Early next year and that the two Gimbels stores would soon hold liquidation sales. Thai followed the disclosure earlier this year thai Alexander s would shut its Large store Al 59h Street and Lexington Avenue. The announcements analysts say reflect a Long term shift in Urban marketing trends that has left this Type of department store vulnerable 1o challenges from both ends of the retail spectrum. Tha worst place to be today is in the Middle people either want a bargain or Quality goods with service or which Lay will pay said Richard i. Hersh president of the National mass retailing Institute the discounters Trade association. Gimbels or Ohrbach s was unable to develop either  meanwhile such big discounters As Caldor Marshall and Zaire Are flourishing in the new York suburbs As Are smaller off Price apparel stores in the City itself the analysis note. The combination of the general merchandise discounters and Tho Oil Price apparel merchants has clobbered the Urban department stores and they have largely failed to offset thai Competition said Bernard Al. Zients former president of Mimbela new York. Gimbels and Ohrbach s tried to match the discounters but unlike them carried along the Burden of typically High department store expenses said Walter k. Levy a marketing consultant. That doomed  in particular i afle cled department stores which have concentrated on families with annual incomes ranging from $10,000 to $25,000 were saddled with a larger and Beller paid sales staff than the average discounter. In addition they have been More dependent on advertising on television and newspapers to generals sales than the discounters which often use far less expensive direct mail and neighbourhood fliers moreover real estate values also have affected the Competition. Discounters in general do not occupy prime locations nor Are hey in the major malls As the department stores Are said Jay Scher vice president of the financial executives division of the National retail merchants association a Trade group of department stores. This allows the discounter to pay lower rents than the department stores and helps their  in 1984, department store costs excluding thai of merchandise came to 35 3 percent of sales while discounters operated Al a 27.6 percent ratio making it possible for he discounters to sell at lower prices. The difference helps to explain How discounters were Able to Register sates that year of $157 a Square loot compared with $130 at the department stores. Today s discounters Are belter focused in the eyes of the consumer than the department store Hersh said. The Challenge of retaining Low and Middle income customers has been further complicated by the heavy use of sales campaigns Al Macy s and1 Bloo Magdale s in new York and such other higher priced stores As Marshall Field and Carson Pirie Scott in Chicago. A barrage of sales aimed at building store traffic for regular priced goods has severely Hurt the secondary stores including Wieboldt s in Chicago. In general the higher priced department stores have been posting healthy earnings. By contrast. The 20 stores operated by Gimbels in the new York and Philadelphia areas 11 of which were sold with the rest up for Sale Are said to have lost $10 million in 193s on relatively Static sales of $450 million. Nine of the stores that were  to be converted by the purchaser the Allied stores corp into Stern s stores which Allied says Are designed to Appeal to higher income customers. The two other stores that were sold will also remain As retail operations under other names. Still unsold by Bat industries the British company lha bought Gimbels in 1974. Are the two Manhattan Gimbels stores. The Ohrbach s flagship store an West 34lh Street will close next february and be converted to an office building with Small stares according to Ohrbach s owner the Macena corp. Macena the american Arm of the Brenninkmeye retail interests of the Netherlands said thai five other Ohrbach s stores would be converted into units of Howland Stein Bach a department store Chain that Macena recently acquired. The Chain caters to a moderately higher Market. For its part Alexander s has said that it will redevelop the site of its 59th Street store As a commercial building. The failure of the retailers to turn their lagging stores around will be offset by the conversion of some of their stores to real estate projects. Many older buildings Are Worth More As real estate than As retail businesses analysis note citing the iwo Gimbels stores in Manhattan As examples. Management s role in the failure of some of the department stores is cited by some analysts along with the other factors. It s definitely been a management problem because management is supposed to Cope with Competition and demographic changes said James Posner a retailing consultant. Erma Bombeck it hangs heavy for the bored eludes the Busy flies by for the Young and runs out for the  talk about it like it s a manufactured commodity thai some can afford others can to some can reproduce others waste. We crave it. We curse it. We kill it. We abuse it. Is it a Mirlend or an enemy i suspect we know very Little about it. To know it at All and its potential perhaps we should View it through a child s eyes. When i was Young daddy was going to throw me up in the air and catch me and i would Giggle until t could t Giggle anymore but he had to change the Furnace filler and there was t  when i was Young daddy was going to come to school and watch me in a play. I was the fourth Wise Man in Case one of the three got sic but he had an appointment to have his car tuned up and it took longer than he though and there was no Lime when i was Young grandma and Granddad were going to come for Christmas to see the expression on my face when i go my first Bike but grandma did t know who she could get to feed the dogs and Granddad did t like the cold weather and besides. They did t have the  when i was Young mama was going to listen to me read my essay on what i want to be when i grow up but she was in the Middle of the monday might movie and Gregory Peck was always one of her la orites and there was t  Whan i was older dad and i were going fishing one weekend just the two of us and we were going to monday july 21, 1966 Pilch a tent and Fry fish with the Heads on them like they do in the flashlight ads but at the last minute he had to fertilize the grass and there was t  when i was older the whole family was always going to pose together for our Christmas card but my brother had Ball practice my sister had her hair up dad was watching the Colts and mom had to Wax the bathroom. There was t  when i grew up and left Home to be married i was going to sit Down with mom and dad and Tell them i loved them and i would miss them. But Hank he s my beat Man and a real Clown was honking the Horn in front o the House so there was t time.". Erma Bombeck is on vacation. She left behind some of her favorite columns a 1sbs. U. An Gilt Tinni syn to. The stars and stripes Page 17