Zayre

Zayre

Company type	Public
Industry	Retail (discount department store)
Founded	September 20, 1956 (1956-09-20) in Hyannis, Massachusetts, United States
Founder	Max Feldberg, Morris Feldberg
Defunct	1990 (1990)
Fate	Retail outlets divested to Ames Department Stores, Inc.; parent company merged with The TJX Companies
Headquarters	Framingham, Massachusetts , United States
Area served	Eastern United States
Key people	Malcolm L. Sherman (CEO)
Products	Clothing, footwear, bedding, furniture, jewelry, beauty products, kitchen spices, electronics, toys, household items

Overview

Zayre (pronounced Template:IPAc-en) was a discount store chain that operated primarily throughout the eastern United States from 1956 until 1990. The company’s main offices were located in Framingham, Massachusetts. In October 1988, Zayre Corp., the parent organization, divested its retail outlets to its competitor, Ames Department Stores, Inc.. Subsequently, in June 1989, Zayre Corp. merged with one of its subsidiaries, The TJX Companies, which is the parent company of T.J. Maxx and remains active today. Although several stores continued operating under the Zayre brand until 1990, by that year all locations had either been shuttered or rebranded as Ames stores.

Corporate History

The origins of Zayre trace back to 1919 when it was established as the New England Trading Company. Later, in 1929, it operated under the name Bell Hosiery Shops. The official launch of the Zayre discount store chain occurred on September 20, 1956, in Hyannis. The founders were Max Feldberg and Morris Feldberg. Malcolm L. Sherman served as CEO during the company’s later years.

Business Operations

Zayre functioned as a department store offering a broad range of merchandise including clothing, footwear, bedding, furniture, jewelry, beauty products, kitchen spices, electronics, toys, and household items.

Demise and Legacy

Zayre’s decline culminated in its acquisition by Ames Department Stores in 1988. Following this transaction and the subsequent merger with The TJX Companies in 1989, the Zayre brand was phased out by 1990. The transition reflected broader shifts in retail shopping habits and financial pressures resulting from mergers and acquisitions affecting several national discount chains such as Ames, Bradlees, Caldor, Service Merchandise, Venture, Woolco, and Zayre itself.

Locations

The company maintained stores throughout the eastern United States during its operational years.

File:Bell-Shops-logo.png

Bell Shops logo circa 1930s

File:Zayre, Addison, IL 1.jpg

Zayre retail location in Addison, Illinois around the 1980s

History

Template:Essay-like Established in 1919 in Boston, Massachusetts, Zayre originated as the New England Trading Company, founded by brothers Max and Morris Feldberg. These siblings, Jewish immigrants escaping conscription in the Czarist Russian army, settled in Chelsea, Massachusetts. Initially, the business operated as a wholesale supplier specializing in underwear and hosiery, catering to full-line department stores and specialty retailers. A decade later, the Feldbergs introduced their first retail venture named Bell Hosiery Shops, which was eventually shortened to "Bell Shops."

Over the subsequent years, Bell Shops broadened its offerings beyond hosiery and underwear to include women's specialty apparel, positioning itself against competitors such as Lerner Shops and Three Sisters. By the conclusion of World War II, nearly 30 Bell Shops were established throughout the New England region. In 1946, the company doubled its store count by acquiring Nugents, a women's specialty store chain based in New York City. Nugents' presence spanned New York, Pennsylvania, Maryland, Delaware, New Jersey, and Washington, D.C., effectively complementing the company's existing market without significant overlap.

The 1950s

By the early 1950s, sales plateaued, prompting the Feldbergs to recognize the necessity for significant transformation to sustain their business. The Bell Shops/Nugent stores were impacted by the decline of downtown shopping districts and the emergence of discount "mill" stores.

With Stanley H. Feldberg (Max's son) and Sumner A. Feldberg (Morris's son) stepping into leadership roles, the company began investigating potential strategies, dedicating effort to analyzing the success of mill stores. These mill stores initially operated in shuttered textile mills rented at minimal cost, primarily selling clothing, linens, and other soft goods. As these operations flourished, they transitioned into purpose-built locations—either standalone buildings or shopping center units—offering enhanced visibility and tailored facilities.

Concluding that discount retailing was the appropriate path forward, the Feldbergs opted against utilizing mill buildings. Instead, they chose to develop new stores when opportunities arose. Such an opportunity emerged in late 1955 when Stop & Shop, Inc. proposed constructing a store adjacent to a new Stop & Shop supermarket in Hyannis. On September 20, 1956, Zayre opened its Hyannis location with 5,000 sq ft (460 m²) of retail space. This store was subsequently expanded to 7,500 square feet and then to 10,000 square feet before being replaced in 1962 by a larger 45,000-square-foot facility nearby. Another Zayre outlet debuted in September 1956 in Boston’s Roslindale neighborhood with a footprint of 39,000 square feet. Within several years, average Zayre store sizes ranged between 70,000 and 90,000 square feet.

Retail journalist Isadore Barmash of The New York Times recounted the naming origin of Zayre in a 1985 piece:

Following an initial cautious growth phase through the late 1950s, Zayre accelerated its expansion. By 1959, only six Zayre locations were operational—coinciding with sales volumes matching those of Bell Shops/Nugent stores. By 1962, Zayre had grown to 27 stores and maintained an annual addition rate of ten to twenty new outlets for many years thereafter. That same year marked Zayre Corp.'s transition into a publicly traded company on the New York Stock Exchange.

The 1960s

Starting in 1960, Zayre initiated a strategic expansion to establish stores throughout key markets across the eastern United States, achieving a footprint in nearly every state east of the Mississippi River by the mid-1960s. The company pursued store openings in clusters to enhance brand visibility and optimize advertising efforts. By the close of 1966, Zayre operated 92 locations, with significant concentrations in the Chicago metropolitan area, Miami, and its original base in Boston. Other moderately sized markets included Washington, D.C., Pittsburgh, Atlanta, Cleveland, Columbus, Ohio, Jacksonville, Tampa, and Warwick, a suburb near Providence.

A portion of this expansion was achieved through acquisitions. Zayre acquired several stores in Washington, D.C., Chicago, and Florida following the bankruptcies of discount retailers Towers Marts in 1963 and Consumers Mart of America in 1965. In December 1966, Zayre purchased Northern Enterprises, Inc., which owned four Shopper's City outlets located in Duluth, Minneapolis, and St. Paul, Minnesota; these were subsequently rebranded as Zayre Shopper's City stores.

Initially, Zayre’s merchandise assortment was heavily weighted toward soft goods, reflecting the Feldbergs’ background in fashion retail through their operation of Bell Shops/Nugent stores. As the decade progressed, the product range evolved to mirror that of a conventional discount retailer, incorporating toys, sporting goods, records, books, health and beauty products, among others. During its first ten years, Zayre leased out several departments—including linens, greeting cards, candy, and health and beauty products—to concessionaires. These leased departments accounted for nearly one-third of total store sales. By the mid-1960s, however, Zayre had reacquired most of these concessions, leaving only a few departments under lease agreements.

Zayre stores were known for their frequent 15-minute specials highlighted by flashing lights and live or recorded public address announcements designed to generate excitement and increase customer traffic to targeted departments—akin to the Blue Light Specials at Kmart. Throughout the 1960s, the company promoted itself with the slogan "Fabulous Department Stores," which was later updated in the early 1970s to "Compare... you can't do better than Zayre." Notably, Zayre was among the few retailers that remained open 24 hours daily during the weeks leading up to Christmas each year.

By decade’s end, Zayre Corp. had begun diversifying into specialty retail sectors. One of its earliest acquisitions was Hit or Miss, an off-price chain focused on upscale women's apparel. The first Hit or Miss store opened in Natick in 1965 and experienced rapid growth that caught the attention of larger retailers within just four years.

In 1969, Zayre Corp. acquired Hit or Miss and embarked on expanding into the off-price fashion segment. This move proved timely; during the economic downturn of the 1970s, Hit or Miss saw substantial growth that encouraged Zayre Corp. to consider further investment in off-price upscale clothing retailing.

File:Zayre store and parking lot in 1971.jpg

Zayre store and parking lot in 1971

The 1970s

Zayre Corp. initially sought to acquire the Marshalls chain, a well-known off-price apparel retailer catering to the entire family. After this acquisition attempt was unsuccessful, the company brought on Bernard 'Ben' Cammarata, who had formerly served as General Merchandise Manager at Marshalls, to develop a similar concept.

In March 1977, Cammarata launched the inaugural T.J. Maxx store in Auburn, Massachusetts, soon followed by a second location in nearby Worcester. These stores rapidly gained popularity among shoppers, including those from middle- and upper-middle-income brackets, meeting the rising consumer demand for quality fashion at affordable prices with a constantly refreshed product selection.

The 1980s

Within six years of T.J. Maxx’s debut, Zayre Corp. explored additional opportunities in the off-price fashion sector. In 1983, Chadwick's of Boston began offering selected Hit or Miss products through mail-order catalogs. This collaboration between Hit or Miss and Chadwick's allowed customers to inspect merchandise before purchasing and provided frequent shoppers with the convenience of home delivery.

By the mid-1980s, off-price specialty retail had become a significant contributor to Zayre Corp.’s revenue. While Hit or Miss and T.J. Maxx accounted for only 14 percent of operating income in 1980, their combined share had surged to nearly 45 percent by mid-1983. Concurrently, Zayre was updating its discount department stores and broadening its product offerings.

In 1984, Zayre Corp. introduced BJ's Wholesale Club, a new warehouse retail format in the Northeast featuring self-service, cash-and-carry shopping with membership benefits. This warehouse club offered general merchandise and groceries at wholesale prices. The following year, the company acquired Home Club, Inc., a chain specializing in home improvement retailing. Although these ventures did not turn immediate profits, Hit or Miss and T.J. Maxx maintained strong performance.

In 1985, Zayre Corp. acquired the former Gaylord's chain. Despite efforts such as celebrity appearances by Sherman Hemsley and Robert Guillaume during "Grand Re-openings" at key locations, many new Zayre stores opened throughout the 1980s struggled with disorganized aisles and untidy presentations, which hindered market share growth.

By 1986, Hit or Miss operated 420 stores across the United States with sales reaching $300 million (~$Template:Format price in Template:Inflation/year). Approximately 70 percent of its stock consisted of nationally recognized brands, while the remaining 30 percent was comprised of private-label apparel produced under the Hit or Miss name. This merchandise composition enabled Hit or Miss to offer current fashion trends at prices 20 to 50 percent lower than most specialty retailers.

In 1986, while profits for Zayre’s core chain targeting low- to middle-income consumers declined, T.J. Maxx, Hit or Miss, and Chadwick's of Boston—focused on mid- to upper-income markets—continued expanding. That year alone saw the opening of 35 additional T.J. Maxx stores and 31 new Hit or Miss locations. The success of these off-price retail brands prompted Zayre to consolidate them under a single entity with operational independence from the struggling parent company by 1987.

In June 1987, a decade after launching its first store, The TJX Companies, Inc. was formed as a subsidiary of Zayre Corp., with Cammarata appointed president and CEO. The subsidiary issued an initial public offering of 9.35 million shares of common stock; Zayre retained an 83 percent ownership stake.

Corporate restructuring

During this period, Zayre encountered multiple obstacles. In the first half of 1988, Zayre stores reported operating losses amounting to $69 million despite generating $1.4 billion in sales. Analysts attributed these difficulties to outdated technology, inadequate upkeep, misguided pricing strategies, and excessive inventory accumulation, positioning Zayre as a potential takeover target. Nevertheless, the subsidiary under The TJX Companies continued to deliver profits amid these challenges.

In October 1988, Zayre Corp. made the strategic decision to concentrate on TJX by divesting its entire portfolio of nearly 400 Zayre stores to Ames Department Stores, Inc.. In return, the company received $431.4 million in cash, a receivable note, and Ames cumulative senior convertible preferred stock valued at $140 million at that time.

The firm further sharpened its focus on the profitable core business by shedding unrelated divisions. In June 1989, it spun off Waban, Inc., the warehouse club segment owning B.J.'s Wholesale Club and Home Club. That same month, Zayre Corp. acquired all remaining minority shares of TJX. Upon completing this acquisition, the company merged with TJX and rebranded itself as The TJX Companies, Inc., with Cammarata at the helm. The newly formed entity began trading on the New York Stock Exchange.

The transition into an off-price apparel retailer proceeded relatively seamlessly; however, complications arose with the Ames preferred stock obtained through the Zayre deal. Although entitled to annual dividends, Ames had the option to pay the initial four semiannual dividends in additional preferred stock rather than cash—a right it exercised for every dividend paid. The value of this preferred stock became questionable as Ames faced store closures and mounting losses.

In April 1990, TJX recorded a $185 million reserve against its Ames preferred stock holdings and contingent lease obligations related to former Zayre locations following Ames’ announcement of ongoing financial difficulties. That same month, Ames sought bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code.

By 1990, all former Zayre outlets had either been shuttered or converted into Ames stores, marking the end of what was once the fifth-largest discount retailer in the United States.

Banners

Prior to Ames’ acquisition of Zayre stores, these were some of the banners operated by Zayre Corp.:

• BJ's Wholesale Club
• Beaconway Fabrics
• Hit or Miss
• Home Club
• Spree! Toy Stores
• T.J. Maxx
• Zayre
• Zayre Shoppers' City
• Warwick Shoppers World (later converted to Zayre)

See also

• List of defunct department stores of the United States

External links

• Archive of television advertisements Archived 2013-06-13 at the Wayback Machine hosted by The Museum of Classic Chicago Television
• Commercial from 1981 for Zayre