Wanamaker’s department stores were an innovative 19th century prototype of American retail enterprise best remembered today for the drive and vigour of its founder in establishing the company regionally on the Atlantic Seaboard. John Wanamaker’s humble origins in the retail trade began with the small menswear store known as “Oak Hall” (Philadelphia) he started up in partnership with his brother-in-law in the early days of the American Civil War.
From the get-go Wanamaker exhibited a flair for innovation, demonstrating an aptitude for thinking outside the box in retailing. Wanamaker introduced concepts in his business that were quite radical in retailing of the day. One of the earliest, which seems self-evident to us today, was to establish the principle of price-setting. Before Wanamaker started putting price tags on his goods, the practice in shops was that the price of an item would be determined by haggling between the customer of the salesperson. Wanamaker, as a devout Christian imbued with the Protestant work ethic, espoused the principle of price equality…as he liked to say (repeatedly), “if everyone was equal before God, then everyone should be equal before price”✱[1]. Wanamaker also allowed customers the option of returning the goods (within a specified time period) and receiving a refund, a practice that was unusual in retailing at that time.
Truth (and volume) in advertising
From the time he was a teenager Wanamaker developed an appreciation of the value of publicity. One of his early publicity stunts for the store was to release 20 foot balloons and reward those who retrieved them with a free suit from Wanamaker’s. From as early as the 1860s the Philadelphia merchant relied on advertising to propel his business forward. Wanamaker took out large size ads in newspapers, which proved expensive, but nonetheless generated a large volume of sales. During the War between the States the store was kept afloat by being able to supply Union Army officers’ uniforms to the Northern side. By 1909 the retailer was placing ads daily in the press. Wanamaker assiduously built consumer trust…when he placed retail ads offering low prices for wares, he kept his word to the public[2].
Wanamaker usually didn’t miss a business opportunity when it came along. In 1876 he purchased Pennsylvania Railroad property and turned it into what would become Wanamaker’s flagship store, named the Grand Depot. Located on the corner of 13th and Market Streets, Philadelphia, Wanamaker promoted it as a “New Kind of Store”, adding women’s clothing and dry goods to the existence outlet for menswear, arguably making it one of if not the world’s first department store. The original building (architect: Daniel Burnham) boosted an exotic Moorish-style facade, the building that he erected much later on the same site had a classic Florentine facade.
Other Wanamaker retail innovations
The Pennsylvanian merchant was ahead of the curve in many ways, pioneering marketing strategies as well as being an early proponent of advertising. Other firsts for the Wanamaker stores included:
◗ the first department store to include a restaurant inside its complex
◗ the first department store with electrical illumination
◗ the first department store to have telephone communications
◗ the first department store to use pneumatic tube transit (to internally move cash and documents around the store)
◗ the first department store to have an elevator
◗ the first department store to have a wireless station
◗ the first department store to engage buyers to travel to Europe to acquire the latest fashions[3]
Wanamaker also pioneered a series of individual benefits for his staff members – free medical care, profit-sharing, pensions (all ahead of his competitors). Wanamaker implemented measures for staff training that were in advance of their time…establishing an in-house college, the Wanamaker Commercial Institute, providing his workers with skills and tuition in bookkeeping, finance, English and maths◘. He also initiated summer camps for young men and women on the payroll – in keeping with Wanamaker’s characteristic intertwining of religion and business, this was to equip them with moral instruction and development[4].
Wanamaker’s continued to grow into a small chain of stores…by the early 20th century Wanamaker had 16 department stores operating, mainly regionally, but the network included a showcase store in New York City (1896), between East 9th and 10th streets (in the ‘NoHo’ neighbourhood of Manhattan). Later Wanamaker built a second building opposite and connected them via an overhead walkway he called the “Bridge of Progress”.
Grand Depot mega-store
Wanamaker’s most ambitious store project was a massive transformation of the Philly retail store in 1910. The store was radically re-shaped in the form of a wheel with a 90 foot circular counter and 129 smaller sales counters installed in concentric circles. Wanamaker claimed that he had created “the largest space devoted to retail selling on a single floor”[5]. And, to give his new City Center flagship store a touch of imperial grandeur, the store contained a “Grand Court”, to which he added a Grand Court organ and a large bronze eagle⊙ (both of which had featured in the 1904 St Louis World’s Fair).
Wanamaker died in 1922 and his successor (his second son) in 1928, but the business continue to thrive and expand until the 1960s and 1970s. Increasingly though Wanamaker as a regional player wasn’t able to match it with national retail chains. Even in Philadelphia it was losing its market share to Bloomingdale’s and Macy’s. In 1978 Wanamaker’s was sold to California’s Carter Hawley Hale Stores, which tried to revive its fortunes but failed. Still trading as Wanamaker’s, it was then on-sold to Alfred Taubman’s Woodward and Lothrop. Under Woodward and Lothrop it again declined, then downsized to five stores, and eventually went into bankruptcy. In 1995 they were further sold to retail giant Macy’s, bringing to a close 133 years of Wanamaker’s retail history[7]. Despite the sense of inevitability, for many Philadelphians, the end of Wanamaker’s was a heartfelt moment, the loss of “a unique public institution and a powerful symbol of Philadelphia’s commercial viability”[8].
PostScript: Wanamaker’s diversified interests
Wanamaker at one point founded a bank (First Penny Savings Bank) to encourage Americans to embrace thrift. He also established a trades school in Elwyn, Pa. Between his business activities Wanamaker found time for a (four-year) stint as a civil servant…President Benjamin Harrison appointed him Postmaster-General in 1889. Wanamaker initiated some reforms (eg, brought in parcel post, erected a pneumatic tube system to US post offices), but his term was not without controversy (mass sacking of 30,000 postal workers, accusations of having ‘purchased’ the post of PMG).
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✱ Wanamaker conceivably got the idea of fixed prices from the English Quakers, “fixed prices made everyone equal in the eyes of God”, Mary Pilon, The Monopolists, (2015). As befits someone with a bent for religious proselytising, Wanamaker had quite a penchant for pet mottos and maxims in business
◘ not as altruistic as it first sounds, there was a strong element of self-interest on Wanamaker’s part, the business ‘titan’ had an abhorrence of the labour movement and his generosity was insurance against the prospect of his workforce ever becoming unionised (Hingson)
⊙ Wanamaker’s Eagle became such an institution that Philadelphians would conveniently use it as a meet-up point when coming to the city (‘Wanamaker Organ’)
Source: Smithsonian (Postal Museum)
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[1] ‘John Wanamaker, Innovator’, (Who Made America?), www.pbs.org
[2] ‘Wanamaker, John, (1838-1922), Ad Age, 15-Sep-2003, www.adage.com
[3] ‘Wanamaker’s’, Wikipedia, http://en.m.Wikipedia.org; ‘Facts and Figures about the Wanamaker Organ’, www.wanamakerorgan.com
[4] ‘Thirteen Things You Might Not Know About John Wanamaker’, (Sandy Hingson), Philadelphia Magazine, 11-Jul-2016, www.phillymag.com
[5] ‘John Wanamaker A retailing innovator’, The Philly Inquirer, 22-June-1995, (Andrew Maykuth Online), www Maykuth.com; ‘Who Made America?’, loc.cit.
[6] ‘John Wanamaker’, Wikipedia,http://en.m.Wikipedia.org
[7] ‘Wanamaker’s’, Wikipedia, op.cit.
[8] Sarah Malino, review of Herbert Ershkowitz’s John Wanamaker: Philadelphia Merchant, (Pennsylvania Magazine of History and Biography, Vol.125, No 1/2, Jan-Apr 2001)