E. J. Korvette
 |
|
| Discount department store | |
| Industry | retail |
| Genre | retail |
| Fate | Bankruptcy |
| Founded | 1948 |
| Defunct | 1980 |
| Headquarters | New York City, United States |
|
Area served
|
Eastern United States |
E. J. Korvette, also known as Korvettes, was an American chain of discount department stores, founded in 1948 in New York City. It was one of the first department stores to challenge the suggested retail price provisions of anti-discounting statutes. Founded by World War II veteran Eugene Ferkauf and his friend, Joe Zwillenberg, E.J. Korvette did much to define the idea of a discount department store. It displaced earlier five and dime retailers and preceded later discount stores, like Walmart, and warehouse clubs such as Costco.
The company failed to properly manage its business success, which led to decline and its 1980 bankruptcy and closure.
E.J. Korvette's founder, Eugene Ferkauf, began his discounting career in a 400-square-foot (37 m2) loft in mid-Manhattan, New York City. Inventory consisted of well-known brands of luggage, household appliances, and some jewelry. Discounts were one-third off regular prices. Sales were more than $2,500 per square foot. Ferkauf retired in 1968.
The company used several retailing innovations to propel its rapid growth. It used discounting, even though most discounting was known to be outlawed at the time. Korvette's instituted a membership program, a technique from consumers' cooperatives that had never been applied to a department store before. It also expanded into suburban locations at a time when most department stores were in central business districts.
...
Wikipedia