Gimbels, once a prominent department store chain, closed its doors in 1986 after a series of financial challenges and changes in the retail landscape.
Gimbels was founded in 1887 by Adam Gimbel and became one of the largest department store chains in the United States, with its flagship store located in New York City. It was known for its direct competition with Macy’s, with the two stores located near each other in Herald Square, leading to the phrase “Does Macy’s tell Gimbels?” to suggest corporate rivalry.
The store thrived for many years, expanding to several locations and becoming a staple for shoppers. However, by the mid-20th century, Gimbels began to face increased competition from other retailers and changing consumer habits. The rise of suburban shopping malls in the 1950s and 1960s drew customers away from traditional downtown department stores.
In an attempt to adapt, Gimbels expanded into the suburbs, but the company struggled to maintain profitability. The retail landscape was shifting, and Gimbels found it difficult to compete with newer, more modern stores. The company also faced internal challenges, including management issues and a failure to invest in updating store appearances and inventory systems.
By the 1970s, Gimbels was in decline, and in 1973, it was sold to the British-American Tobacco Company. The new owners attempted to revitalize the brand, but these efforts were largely unsuccessful. In 1986, after years of declining sales and profits, Gimbels was liquidated. The remaining stores were either closed or sold to other retailers, such as Stern’s and Marshall Field’s.
The closure of Gimbels marked the end of an era for American department stores. It was a reflection of the broader changes in the retail industry, where only those who could adapt to new consumer demands and competitive pressures would survive. Today, the Gimbels name is a reminder of the once-great retail giants that shaped shopping habits in the early 20th century.
