McCrory Stores
| Company type | Private |
|---|---|
| Industry | Retail |
| Founded | 1882 in Scottdale, Pennsylvania, United States |
| Founder | John McCrorey |
| Defunct | February 2002 |
| Fate | Liquidation |
| Headquarters | Springettsbury Township, Pennsylvania , United States |
Area served | United States |
| Products | Footwear, apparel, household goods, fabrics, penny candy, toys, cosmetics, lunch counters/snack bars |
Number of employees | 17,000 (1992) |
McCrory Stores, also known as J.G. McCrory's, was a chain of five and dime retailers based in the United States, with its main office located in York, Pennsylvania. The stores offered a variety of products including footwear, apparel, household goods, fabrics, penny candy, toys, and cosmetics, and frequently included lunch counters or snack bars.
Founding
The initial McCrory store was established in 1882 by entrepreneur John McCrorey in Scottdale, Pennsylvania. By 1885, the J. G. McCrory Company had expanded to five locations within Pennsylvania. To minimize signage expenses, McCrorey omitted the e from his last name. His business approach prioritized securing store sites at reasonable costs.
One of the early investors, Sebastian Spering Kresge—who later founded the S.S. Kresge chain that eventually became Kmart—exchanged his stake in the Memphis McCrory store for ownership of the Detroit outlet in 1899. The company was incorporated as McCrory Stores Corporation in 1915.
By 1921, McCrory had become the sole distributor of Oriole Records, broadening its product range throughout the 1920s and 1930s. By 1925, it operated 187 outlets generating nearly $30 million in gross sales; approximately two-thirds of these stores were leased while the remainder were held by McCrory Realty Corporation.
Facing financial difficulties during the Great Depression with 244 stores in operation, McCrory filed for bankruptcy protection in 1933 but subsequently reemerged under the same corporate identity. John McCrory, the founder, died in 1943.
History
At its height, McCrory's managed about 1,300 stores under its own brand and had acquired several other chains including TG&Y, McLellan (merged in 1958), H. L. Green, Silvers, G.C. Murphy, J.J. Newberry, and Otasco. Its parent company, Rapid-American, also controlled Lerner Stores and National Shirt (acquired in 1960).
In 1960, Israeli financier Meshulam Riklis took ownership of McCrory and merged it with competitor H.L. Green. By 1963, headquarters were moved to Springettsbury Township, Pennsylvania. At this point, McCrory ranked as the fourth largest retailer in the U.S. Riklis managed the company through Rapid-American with Samuel Neaman overseeing operations; their strategy involved asset transfers that eventually led to bankruptcy while preserving valuable assets. Other retail chains under McCrory included Best & Co., Lerner Shops, and S. Klein.
Throughout the 1960s and 1970s, McCrory expanded by acquiring J.J. Newberry’s 439-store chain in 1972 and maintained it as a distinct division.
On January 1, 1981, McCrory purchased the five-and-dime chain S.H. Kress & Co. from Genesco, a footwear retailer. The company continued to renovate and grow its stores during the 1980s as sales volume and profits increased.
In 1985, McCrory acquired TG&Y discount stores; however, this proved difficult due to TG&Y’s larger store layouts and different merchandise assortments. Many TG&Y locations were unprofitable and became a financial burden; some were rebranded as Bargain Time before ultimately closing by the end of the decade.
In 1987, McCrory bought the remaining 76 Kresge and Jupiter outlets from Kmart and converted them into McCrory stores. Two years later, it acquired GC Murphy Co from Ames Department Stores, which included existing GC Murphy and Bargain World stores.
Decline
By 1989, McCrory managed a network of 1,300 outlets; however, changes in the retail landscape—such as consumers moving away from urban centers and growing competition from large retailers like Target Corporation and Walmart—significantly diminished its market position. In 1991, the company shut down 229 stores and reduced its workforce by 2,000 employees. The following year, McCrory filed for Chapter 11 bankruptcy protection while still running 820 stores under the McCrory, Kresge, and J. J. Newberry brands, employing approximately 17,000 people.
By 1997, McCrory had closed 300 of its remaining 460 locations and transformed some sites into the Dollar Zone dollar store concept, which itself was discontinued by early 2002. In December 2001, the company declared it would liquidate all remaining McCrory, TG&Y, G. C. Murphy, and J.J. Newberry outlets. Operations came to a complete halt in February 2002.