Sky City (store)

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Sky City

File:Sky City - 1976.svg
Industry	Discount stores
Predecessor	Bowers department stores (established 1919, Knoxville, Tennessee)
Founded	August 15, 1962 (1962-08-15) in Asheville, North Carolina, United States
Founder	M.C. Peterson
Defunct	January 1991 (1991-01)
Fate	Closed
Headquarters	Asheville, North Carolina , United States
Area served	United States
Key people	John B. Owens (director of stores and operations)
Owner	Consortium including Harvey Yellen
Number of employees	1000 (1991)

Sky City operated as a regional discount store chain headquartered in Asheville, North Carolina. The brand name referenced Asheville’s well-known moniker, the "Land of the Sky," which gained popularity during the 20th century.

The company was launched in 1962 by retail leader M.C. Peterson, evolving from the earlier Bowers department stores—originally established in 1919 in Knoxville, Tennessee. Peterson assumed the presidency of Bowers in 1948 and relocated its main office to Asheville that same year. His vision for Sky City centered on creating a suburban alternative to traditional urban department stores by offering discounted branded products within a self-service, multi-department format complemented by ample free parking. This approach resonated strongly with Asheville shoppers, prompting an expansion that doubled the flagship store's size by 1963. Following this success, a second outlet opened in Hickory, North Carolina in 1964, with a third location launching in High Point, North Carolina in 1965.

In 1977, Sky City merged with Interco, Inc., based in St. Louis, Missouri, yet maintained operational independence with its headquarters remaining in Asheville. By 1982, the chain had expanded to over seventy stores across five Southeastern states. Despite this growth, challenges emerged during the late 1980s. Interco had accumulated significant debt following a hostile takeover defense in 1988. Although Sky City’s sales increased from $120 million to $140 million between 1989 and 1990, the retailer faced intensified competition from discount giants such as Walmart, which entered North Carolina—the company’s core market—in the late 1980s, along with rivals like Rose's Department Store and Kmart.

As part of a strategic restructuring in 1990, Sky City closed twenty out of its fifty-five Southeastern outlets. The remaining stores across North Carolina, South Carolina, Tennessee, Georgia, and Virginia underwent renovations and inventory enhancements. The closures included nine locations in North Carolina, five each in Georgia and South Carolina, and one in Tennessee. Efforts were made to transfer employees from shuttered stores to operational sites when feasible. At that time, CEO Harvey Yellen indicated that some closed stores might reopen in the future.

In early 1991, Interco sold Sky City Stores, Inc. to an investor group led by Yellen for an undisclosed amount. The buyers established Sky City Holding Corp., which incorporated Asia Pacific Industries—a global trading firm headquartered in Hong Kong—as part of the ownership consortium. This capital injection facilitated the opening of five new outlets during 1991 built according to a new 30,000-square-foot (2,800 m²) prototype design and supported development of updated corporate offices, a warehouse facility, and a distribution center located in Asheville.

John B. Owens, who served as director of stores and operations at Sky City, explained that the 30,000-square-foot (2,800 m²) prototype targeted smaller communities. Existing store sizes varied between approximately 28,000 square feet (2,600 m²) and 51,000 square feet (4,700 m²). Owens also noted plans to increase inventory sourced from opportunistic purchases to better compete with retailers like Wal-Mart. The first test store using this prototype was scheduled to open in March 1991.

Nevertheless, in January 1991, Yellen unexpectedly announced the closure of all remaining Sky City locations. Approximately one thousand employees were impacted; some were subsequently rehired by liquidation companies tasked with inventory cataloging and removal.