G. E. M. Membership Department Stores
 | |
| Company type | Discount membership store |
|---|---|
| Industry | Retail |
| Founded | 1956 |
| Defunct | 1973 |
| Fate | Closed |
| Headquarters | Detroit, Michigan |
| Products | clothing, footwear, housewares, sporting goods, hardware, toys, electronics, appliances, cameras, drugs, and auto repair |
G. E. M. Membership Department Stores was a chain of discount stores, in the US and Canada. Their first location opened in Denver in 1956. GEM offered something different: membership. The qualifications included government-, religious- and school employees, members of the armed forces, and employees of companies that did “substantial work” under government contract. GEM pioneered the way for later “membership” stores, like Sam’s Club and Costco.
Several departments were operated by outside firms on a lease basis. The prices were low, the selection vast, and the no-frills stores themselves were huge in size in their day, that included supermarkets and more within the 50-plus departments and had gasoline pumps outside.
History
[edit]Canadian pharmacist Murray Koffler was an investor in the G.E.M. chain, bringing the first G.E.M. store to Toronto in 1959. He eventually subleased the G.E.M. drug department in several Toronto area stores. Following the G.E.M. discount model, Koffler later opened one of the first "big box" store chains, Shoppers Drug Mart.[1] [failed verification]
The second GEM store was opened in Kansas City in July 1957[2] followed by the third GEM store that was opened in Honolulu a few days later.[3] The fourth store followed a year later in August 1958 in St. Louis.[4]
On November 7, 1964, GEM opened its first store in the UK. This branch in West Bridgford, Nottingham, the first out-of-town superstore in the UK,[5] was soon taken over by Asda.
By the mid-1960s, there were reportedly more than a million GEM members throughout the U.S. and Canada. GEM announced plans in December 1965 to merge with Parkview Drugs, a Kansas City-based chain, creating a new parent company called Parkview-GEM.[6][7] The merger was finalize five months later.[8]
A 1971 Democrat and Chronicle story reported that a lone gunman robbed more than $6,000 from the cashier’s office at a Rochester, New York, GEM. Asked how he got into the store and past the buzzer-entrance, a store official said he "may have used a stolen or lost card to enter.[9]
The end for GEM came soon after. Officials announced plans in early 1973 that it would close all stores. By then, GEM had opened membership to anyone for the past two years.[9]
Parkview-GEM closed two money-losing stores in Indianapolis in October 1972.[10]
After closing a number of stores, Parkview-GEM filed for Chapter 10 Bankruptcy protection in December 1973 due to inability to paying its debts when they mature, creating a negative net worth of several million dollars.[11]
References
[edit]- ^ Woodward, A. "Company History: Shoppers Drug Mart Corporation". International Directory of Company Histories. The Gale Group, Inc. Retrieved 2008-03-29.
- ^ "Private Store Basis Facility At 8485 Prospect Limits Clientele". Kansas City Star. July 21, 1957. p. 66 – via newspapers.com.
A discount house described as an "exclusive" operation for governmental employees at a variety of levels is to go into operation Friday in 50.000 square feet at 8485 Prospect avenue. Called the Government Employees Mart, the enterprise is set up on an extensive departmental basis offering goods ranging from toothbrushes to motor cars. The general public will not be admitted, spokesmen for the mart say. Eligible only will be all employees and retired employees of the city, county, state and federal governments; military personnel, including active reservists, and those on retirement, and sons employed by companies working under specific prior contracts with the United States government. G.E.M. was begun a year ago in Denver, and since has added an installation at Honolulu, Hawaii.
- ^ "Discount House Caters to Workers In Government Jobs". Honolulu Star-Advertiser. July 20, 1957. p. 22 – via newspapers.com.
G.E.M. (Government Employees Mutual), a Mainland-based discount house, has opened its new Hawaii store at 1199 Dillingham Boulevard yesterday. G.E.M. is a full-scale department store... The Hawaii store, built at a cost of $525,000, is the third in the G.E.M. chain, according to Evans. Stores are already established in Kansas City and Denver.
- ^ "85,000 Sq. Ft. GEM Bows in St. Louis; Ad Battle Starts". Women's Wear Daily. Vol. 97, no. 33. August 15, 1958. p. 24. ProQuest 1565378040.
- ^ Kelly, Jon (September 2, 2013). "How first out-of-town superstore changed the UK". BBC News.
- ^ "Parkview, GEM Plan To Combine". The Washington Post. December 22, 1965. p. B6. ProQuest 142455839.
- ^ "Parkview-GEM Link Approved". Women's Wear Daily. Vol. 112, no. 73. April 13, 1966. p. 45. ProQuest 1564988510.
- ^ "Parkview and GEM Merged". Wall Street Journal. June 3, 1966. p. 5. ProQuest 133138360.
- ^ a b Morrell, Alan (September 23, 2017). "Whatever Happened to ... GEM department stores?". Democrat and Chronicle. Retrieved 2023-09-05.
- ^ "Parkview-Gem Shutting 2 Units In Indianapolis". Women's Wear Daily. Vol. 125, no. 72. October 16, 1972. p. 49. ProQuest 1523643408.
- ^ "Bankruptcy Act Petition Is Filed by Parkview-Gem". New York Times. December 20, 1973. p. 67. ProQuest 119741895.