Ames Department Stores Inc.

Ames Department Stores, Inc.

Former type	Department store, Private
Industry	Retail
Fate	Bankruptcy and liquidation
Founded	Southbridge, Massachusetts; 1958
Defunct	September 6, 2002
Headquarters	Rocky Hill, Connecticut
Number of locations	700 in 1998
Key people	Joseph R. Ettore, Chairman and CEO
Products	Clothing, footwear, bedding, furniture, jewelry, beauty products, toys, electronics and housewares.
Website	AmesStores.com at the Wayback Machine (archived October 23, 1996)

Ames Department Stores Inc. was an American chain of discount stores based in Rocky Hill, Connecticut, United States. The company was founded in 1958 with a store in Southbridge, Massachusetts, and at its peak operated 700 stores in 20 states, including the Northeast, Upper South, Midwest, and the District of Columbia, making it the fourth largest discount retailer in the United States.

Despite some success in its later years, Ames was plagued by debt and a slow decline in sales. This resulted in two bankruptcy filings that ultimately put an end to the chain. The company, despite expanding into other markets and taking over many closed stores that had been abandoned by competitors, went out of business in 2002.

Ames began in 1958 when two Connecticut brothers, Milton and Irving Gilman, opened their first store in the Ames Worsted Textile Co. mill in Southbridge. The Gilmans simply used the old sign of the textile mill for the new business.

Ames' original business strategy brought discounting to the smaller towns and rural areas of the Northeast. The company's success in serving a largely rural customer base in smaller, less-competitive markets resulted in consistently strong financial performance and steady growth combining acquisitions and an aggressive store-building program through the late 1980s.

Many of the first stores were converted industrial sites, such as the first store in a former textile mill. Ames exploited the availability of cheap real estate in this manner in the first decades of the company, later moving to custom-built store facilities that provided standardized planning and marketing. Many Ames stores from the 1980s were the department store 'anchor store' for many discount mall developments.

Ames acquired the "Big N" chain from Neisner Brothers in November 1978. In 1984 Ames acquired the King's Department Stores chain and added most of its 193 stores to the fold. In 1985 Ames acquired G.C. Murphy of McKeesport, Pennsylvania, a chain that operated both discount stores and variety stores (the variety stores and many of the smaller G.C. Murphy discount stores would eventually be sold by Ames to McCrory Stores in 1989). Three years after the acquisition of G.C. Murphy Ames expanded further, acquiring the 392 store Zayre chain in 1988. Saddled with increased debt and hampered by the additional cost of converting those stores to Ames stores, the company suffered a significant reduction in profitability in late 1989 and early 1990. The Zayre chain also operated with stores concentrated in two distinct regions, the Northeast and Florida, which made coordination difficult.