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Globe Discount City

From Alfawiki
Globe Discount City
IndustryRetail
Founded1960
DefunctDecember 31, 1999
FateLiquidation
HeadquartersChicago, Illinois, U.S. and Houston, Texas, U.S.
ProductsClothing, footwear, bedding, furniture, jewelry, beauty products, electronics, housewares, groceries, auto service, pets
ParentWalgreens (owned from 1962 and discontinued in 1978)

Globe Discount City along with Globe Shopping City was a discount department store chain that began operations in 1960. Situated primarily throughout the Southwestern United States, these stores functioned as the "big-box store" retail division of Walgreens during much of their existence. Due to significant financial setbacks, the entire chain was dismantled through liquidation and transfer of store properties in 1978. Nonetheless, an independently operated Globe Discount City location persisted until its shutdown in 1999.[1]

History

The inaugural Globe Discount City store launched in Houston in November 1960 under United Mercantile Inc. Earlier that year, United Mercantile had been established to manage the existing seven-store Danburg's Department Stores chain—dating back to the 1930s—and to develop the new large-scale Globe retail outlets. The initial three Globe stores each encompassed over 100,000 square feet.[2] Nearly all Danburg locations were situated within Houston, Texas, as were the first four Globe Discount City stores. Unlike the smaller Danburg stores, the Globe concept incorporated a full-service grocery section, a Sun Cafeteria featuring the store’s sun emblem, and offered over eighty diverse departments including live animal sales, firearms, and an independent Globe Auto Center located on an adjacent parcel.[3]

By 1962, with three Globe outlets operational, Walgreens acquired United Mercantile in March of that year.[4] Walgreens had observed competitors like F.W. Woolworth launching their big-box Woolco stores in 1961; S.S. Kresge inaugurating its first Kmart in January 1962; alongside other retailers entering large-format discount markets including Walmart opening its initial store later that year and W.T. Grant developing Grant City locations. Walgreens positioned Globe as its flagship big-box brand while simultaneously introducing Walgreens Superstore formats focused on medium-sized pharmacy-centered outlets and maintaining traditional smaller Walgreens stores.[5]

The Globe big-box footprint expanded under Walgreens to a maximum of 31 stores predominantly across Texas and Arizona; additionally featuring three sites in Louisiana and two each in Tennessee and New Mexico. Some were marketed as Globe Discount City while others operated under the Globe Shopping City name.[6] The company’s slogan remained consistent: “Everything under the sun priced lower.”[7] To maintain broad customer appeal across multiple product lines, Walgreens leased specific departments such as grocery markets, fine jewelry (to Zales), auto centers, and shoe sections to third-party operators.[8] In early 1970s shareholder communications, Walgreens highlighted Globe’s above-average sales per square foot and its advanced use of computerized systems for inventory management and performance tracking.[9] However, by the 1973 report period there was caution about intensifying competition within big-box retailing and a decision not to expand beyond Southwest markets.[10]

Decline and Shutdown

In 1970, United Mercantile / Walgreens shuttered all Danburg outlets as their aging medium-sized department stores struggled to compete with shopping mall anchors and emerging big-box retailers. By 1976, Globe locations were experiencing weak performance, with approximately 40% of revenue generated from leased sections within the stores. To improve operational efficiency, Walgreens discontinued the Globe-branded check cashing card and internal credit system, switching instead to bank-issued credit cards. Early in 1977, three additional stores opened in San Antonio, doubling the city's total from three to six. However, later that year Walgreens reported decreased profits, partly attributed to Globe’s financial struggles. Facing $10 million in losses during 1977, Walgreens opted to exit the big-box retail market in 1978 by closing or transferring all Globe Discount City stores by July of that year. Fourteen locations were converted into Kmarts, while eight others became FedMart outlets. Several remaining sites held auction sales to liquidate fixtures and leftover stock. Notably, one store in McAllen continued operating independently as a Globe Discount City for another two decades before closing at the end of 1999.

  1. ↑ Cannon, Steve. “Klinck, Globe Stores Go Under,” The Monitor, 2 November 1999, p.1.
  2. ↑ “We Acquire Three ‘Globe Discount’ City Units and 7 Smaller ‘Danburg’ Units in Houston Area,” Walgreens Annual Report to Stockholders: 1962, p. 9.
  3. ↑ “Globe Discount City Opens in El Paso Today” El Paso Herald-Post, 9 November 1965, p. C-1.
  4. ↑ “Two Discount Chains Bought by Walgreen,” Chicago Tribune, 22 March 1962, p. F1.
  5. ↑ “Our Typical Walgreen Store... Even Bigger Walgreen Store... Our Biggest: Globe Department Stores,” Walgreens Annual Report to Stockholders: 1967, p. 15-15.
  6. ↑ 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. “Ideal Type for Tucson." Tucson Daily Citizen, 22 March 1966, p. 26.
  7. ↑ “Closing of Globe Stores to Bring Loss of 170 Jobs." Arizona Daily Star, 15 March 1978, p. 1B.
  8. ↑ “The Globe Division’”, Walgreens Annual Report to Stockholders: 1976, p. 23.
  9. ↑ 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.
  10. ↑ “Globe Department Stores,” Walgreens Annual Report to Stockholders: 1973, p. 8-9.
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