Kresge-Newark
| Company type | Private |
|---|---|
| Industry | Retail (department store) |
| Founded | 1923 |
| Founder | Sebastian Kresge |
| Defunct | 1967 |
| Fate | Sold to David Chase and rebranded as Chase-Newark; flagship store leased to Two Guys |
| Headquarters | Newark, New Jersey , United States |
Area served | Newark and surrounding areas, New Jersey |
| Products | Department store merchandise, home furnishings, appliances, lawn supplies, hardware |
Kresge-Newark Overview
Kresge-Newark operated as a department store targeting the upper-middle market segment and was headquartered in Newark, New Jersey. The enterprise began in 1923 when its founder, Sebastian Kresge, acquired the L.S. Plaut Department Store located in downtown Newark and subsequently rebranded it as Kresge-Newark. It is important to note that this establishment had no managerial ties to the Detroit-based S.S. Kresge 5 & 10 chain, which later evolved into Kmart.
By 1926, the original Plaut store—known locally as "The Bee Hive" and constructed in 1891—was replaced with a significantly larger flagship building that spanned an entire city block bordered by Broad Street, Halsey Street, Cedar Street, and Raymond Boulevard. This new store encompassed over 600,000 square feet (56,000 m2) of retail space distributed across ten levels, including nine above ground plus a basement. The store's prominence was further highlighted in 1927 when it facilitated direct customer access via an underground streetcar platform at the basement level. This platform was uniquely accessible only through entrances inside Kresge-Newark on one side and McCrory on the opposite side.
Market Position and Customer Engagement
Positioning itself strategically between the more affordable Bamberger's and the upscale Hahne & Company, Kresge-Newark maintained its independence longer than any other Newark department store, cultivating strong customer loyalty. During the holiday season, the store featured a monorail ride encircling its toy department and hosted a popular Breakfast With Santa event that consistently sold out well in advance.
Facilities and Accessibility
In the 1940s, Kresge-Newark enhanced customer convenience by opening a multi-level parking garage just one block from its main location at the intersection of Raymond Boulevard and University Avenue. This facility was distinctive as it was the only parking structure in downtown Newark operated by a department store; competitors like Bamberger's and Hahne's only provided limited surface parking adjacent to their stores. The company adopted the slogan "easiest to reach, pleasantness to shop in," reflecting not only its parking amenities but also its underground streetcar entrance and multiple bus routes along Broad Street that served customers.
Expansion and Adaptation
Adapting to evolving retail trends, Kresge-Newark inaugurated a branch in Summit in 1946. Later, when B. Altman & Company relocated from East Orange to Short Hills in 1959, Kresge-Newark assumed control of the East Orange location. The Summit branch initially focused on home furnishings and appliances but expanded during the 1950s to offer a comprehensive range of merchandise.
Recognizing the growing dominance of discount store sectors such as lawn supplies and hardware, Kresge-Newark leased the upper two floors of its flagship building to Western Electric for office use.
Civic Involvement and Partnerships
Kresge-Newark played an active role in local urban development initiatives, notably participating in early planning efforts for the Gateway Center, which opened after the store had ceased operations. Additionally, it established a partnership with Asbury Park-based retailer Steinbach.
Transition and Closure
In 1964, with no intention from his heirs to continue managing the department store business, the Kresge Foundation divested its holdings by selling Kresge-Newark to David Chase. The stores were subsequently rebranded as Chase-Newark. By 1967, Chase-Newark announced its closure; four floors of the Newark flagship were leased to the Two Guys chain. At this time, both branch locations were shuttered, while the downtown Newark store reopened under Two Guys' management during the fall of 1967.
Additional Resources
- "The Big 3 Department Stores, Their Life & Times" available at www.oldnewark.com