G. E. M. Membership Department Stores

G.E.M.

File:Government Employees Mart Logo.png
Company type	subsidiary
Industry	Retail
Founded	1956 (1956) in Denver, Colorado
Defunct	Template:End date and age
Fate	Shutdown following parent company’s Chapter 10 Bankruptcy
Headquarters	Kansas City
Products	apparel, footwear, household goods, sports equipment, hardware, toys, electronics, appliances, cameras, pharmaceuticals, automotive services
Parent	Parkview-GEM (1966-1977)

G. E. M. Membership Department Stores was a discount retail chain operating across the United States and Canada. The inaugural store launched in Denver in 1956. GEM distinguished itself by requiring membership for shopping access. Eligible members included employees of government agencies, religious institutions, educational organizations, military personnel, and workers from firms performing significant government contracts. This membership-based model laid the groundwork for future warehouse clubs such as Sam’s Club and Costco.

Many departments within GEM were managed by third-party operators leasing space. The stores were known for low prices, extensive product variety, and their large scale — often encompassing supermarkets alongside over 50 departments and featuring onsite fuel stations.

History

Canadian pharmacist Murray Koffler invested in the G.E.M. chain and introduced the first GEM outlet to Toronto in 1959. He subsequently subleased the drug departments in multiple Toronto-area GEM locations. Inspired by GEM’s discount retail approach, Koffler later founded one of Canada’s earliest big-box chains, Shoppers Drug Mart.Template:Failed verification

The original G.E.M. (Government Employees Mutual) store opened in June 1956 in Denver under Ronald D. Evans, who had previously served as general manager of the G.E.T. (Government Employees Together) store in San Francisco.

Following this, the second GEM store commenced operations in Kansas City in July 1957, with the third location opening shortly thereafter in Honolulu. The fourth store was launched a year later in August 1958 in St. Louis.

GEM expanded overseas with its first UK branch on November 7, 1964, located in West Bridgford, Nottingham. This was recognized as the UK’s initial out-of-town superstore, which was later acquired by Asda.

By the mid-1960s, GEM reportedly had a membership exceeding one million across North America. In December 1965, GEM announced a merger plan with Parkview Drugs from Kansas City to form Parkview-GEM as their new parent company. This merger was completed five months afterward.

In a notable incident reported by Democrat and Chronicle in 1971, a single gunman stole over $6,000 from the cashier’s office at the Rochester, New York GEM location. When questioned about gaining entry past the buzzer system, a store representative suggested that a lost or stolen membership card might have been used.

The chain’s closure followed shortly after; early in 1973 officials revealed plans to shut all stores down. By this period GEM had relaxed its membership requirements allowing anyone to join for two years prior.

Decline and Bankruptcy

In October 1972, Parkview-GEM shut down two unprofitable outlets located in Indianapolis. Just two months later, in December 1972, the company declared the closure of additional locations in Hartford, Cincinnati, Omaha North, and Saugus. By May 1973, Parkview-GEM had discontinued operations at 22 stores and divested its 12 retail drugstore units since the previous November.

Facing mounting financial difficulties, Parkview-GEM filed for Chapter 10 bankruptcy protection in December 1973 after failing to meet its debt obligations, resulting in a negative net worth amounting to several million dollars. Under the supervision of a court-appointed trustee, the company commenced a gradual liquidation of its assets. By August 1979, Parkview-GEM had been reduced to just three profitable stores situated in Hawaii. Shortly after these remaining outlets were sold, the company ceased operations entirely.

The transaction transferring ownership of the final three Hawaiian stores to Japan's Seiyu Stores was completed in December 1979. Seiyu subsequently closed all GEM of Hawaii locations in 1993.