McRae's
| File:McRae's Department Store Logo.png | |
| Company type | Department store |
|---|---|
| Industry | Retail |
| Founded | 1902 (Jackson, Mississippi) |
| Defunct | March 8, 2006 |
| Fate | Purchased by Proffitt's |
| Headquarters | Jackson, Mississippi |
| Products | Apparel, footwear, bedding, furniture, jewelry, cosmetics, housewares |
| Parent | Saks Incorporated (1998–2005) Belk (2006) |
McRae's was a regional department store chain positioned in the mid-market segment, originating and headquartered in Jackson, Mississippi. Its stores operated across Mississippi, Alabama, Louisiana, and Florida. The brand endured for over 100 years.
History
The company was established by Samuel P. McRae in 1902 in Jackson, Mississippi as a dry goods retailer. Remaining under family control for many decades, it experienced steady expansion. Revenue grew from $1 million in 1955 to $10 million by 1970. The chain's first expansion beyond Mississippi occurred in 1974 with a store opening at University Mall (currently known as University Town Plaza) in Pensacola, Florida. In 1987, McRae's expanded its footprint by acquiring 13 Alabama stores from the Pizitz chain. Known for its strong offerings in home furnishings, men's clothing, and cosmetics, McRae's earned a reputation as one of the most prosperous family-operated retail businesses nationwide.
In 1994, Tennessee-based Proffitt's purchased McRae's in what The New York Times described as "a case of a smaller company acquiring a larger one." At that time, McRae's operated 28 stores with combined sales totaling $419 million annually, while Proffitt's managed 25 stores generating $201 million in yearly revenue. Post-acquisition, the McRae's nameplate was preserved and the stores continued to function as a distinct subsidiary.
Proffitt's merged with Saks Holdings—the parent company of Saks Fifth Avenue—in 1998, resulting in the formation of Saks Incorporated. Both Proffitt's and McRae's became part of Saks Incorporated’s Southern Department Store Group.
One McRae's location at The Mall at Cortana in Louisiana was acquired by Foley's, under management of Mike Herndon. As Saks shifted its focus toward upscale retailing, it began divesting its mid-tier chains. Consequently, McRae's and Proffitt's were among the initial brands sold. In July 2005, Belk—a Charlotte-based company recognized as the largest privately held department store chain in the U.S.—completed its acquisition of Proffitt’s and McRae’s.
Effective March 8, 2006, the majority of McRae's outlets were rebranded as Belk stores with three exceptions. Stores located in Tuscaloosa, Alabama and Gadsden, Alabama remained under Saks ownership temporarily to be converted into Parisian locations; however, these too were eventually sold to Belk. Additionally, the McRae’s store at Mall of Louisiana in Baton Rouge transitioned into a Dillard’s outlet.
References
External links
- Information on McRae's acquisition by Belk from the Clarion-Ledger, Jackson, Mississippi, April 30, 2005
- McRae's historical timeline featured in the Clarion-Ledger, Jackson, Mississippi, April 30, 2005