Stein Martis an American discount men's and women's online retailer & formerdepartment storechainbased inJacksonville, Florida.Stein Mart had locations primarily in theSoutheast,Texas,andCalifornia.Stein Mart stores sold recent trends in clothing for both men and women. Additionally,home decor,accessories, and shoes were all available at discounted prices.
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| Industry | Retail (Department stores) |
|---|---|
| Founded | 1908 Greenville, Mississippi,U.S. |
| Founder | Sam Stein |
| Defunct | 2020(retail stores only) |
| Fate | Chapter 11 bankruptcy protectionin 2020, in response to theCOVID-19 pandemicand relaunched as Stein Mart Online Inc |
| Headquarters | 1200 Riverplace Blvd. Jacksonville, Florida,U.S. |
Number of locations | 283 (March 2019) |
Key people | Jay Stein (Chairman) David Hunt Hawkins (CEO) Gregory W. Kleffner (EVP, Finance andCFO) MaryAnne Morin (President) |
| Products | Boutique,apparel,footwear,linens,andhome decor |
| Revenue |  US$1.36 billion (2016) |
 US$3.57 million (2016) | |
| US$401,000 (2016) | |
| Total assets | US$527.85 million (2016) |
| Total equity | US$70.26 million (2016) |
| Owner | Retail ECommerce Ventures |
Number of employees | 11,000 (2017) |
| Website | www.steinmart.com |
In August 2020, the company announced that it had filed forChapter 11 bankruptcydue to theCOVID-19 pandemic,and that it planned to close all of its 279 stores.[1]Stein Mart continues to operate as an online retailer, which is not related to the former company.
On March 2, 2023, Retail Ecommerce Ventures, Stein Mart's current parent, announced that it was mulling a possible bankruptcy filing.[2]
History
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Stein Mart was founded in 1908 by Sam Stein, a Russian Jewish immigrant who opened his first store inGreenville, Mississippi;he had arrived there by steamboat fromNew York Citythree years before.[3]The department store carried general merchandise until his son, Jake Stein, took over the company upon his father Sam's death in 1932. The store then redirected its focus toward discounted clothing.
The chain targeted customers who shopped department stores on a regular basis, inducing them to purchase goods by offering discounts of 25 to 60 percent off department store prices. By the late 1970s, Stein Mart had become a leading retailer of clothing for families in theMississippi Delta.
Under Jay Stein's leadership, Stein Mart grew from three stores in 1977 to 40 stores in 1990, and then to 123 stores by the end of 1996. In determining the prime locations for new Stein Mart stores, management targeted cities with populations of 125,000 or more and relied on demographic research regarding income, education, and occupation to help predict whether a community might support a discounter of designer merchandise.[4]
In 2003, Stein Mart introduced the "Real Shopper" campaign with support from Orlando-based advertising agency, Fry Hammond Barr. This multimedia advertising campaign features real Stein Mart shoppers chosen via casting calls held throughout the country.[5]Each season six to eight female shoppers are chosen to appear in the campaign and are featured in Stein Mart's Sisterhood book online.
In 2013, the company reported a profit of $25.6 million (~$33 million in 2023)[6]with operation of 260 stores[7]in 29 states.
In October 2017, in response to the downward trend of the company's stock price, the company announced plans to improve its financials by cutting 10% of their corporate staff, trimming inventory by 15%, slashing $22 million (~$26.9 million in 2023) from the prior year's capital expenses, and suspending the 4th quarter stock dividend.[8]
In January 2018, Stein Mart announced that it would explore strategic alternatives for the company.[9]In February 2020, Stein Mart entered into a deal to make the company private; its common stock would no longer be listed on any public stock market. The transaction is subject to approval by Stein Mart shareholders and was "expected to close in the first half of calendar year 2020."[10]
Bankruptcy
editIn August 2020, Stein Mart filed forChapter 11 bankruptcyprotection due to the company being largely affected by the COVID-19 pandemic, and announced that it would permanently shutter all 279 of its remaining stores by the end of October 2020. During the bankruptcy process, it also announced that all of its assets were for sale, and it was looking for a buyer to purchase those assets.[11][12][1][13]
During the fall of 2020, an agreement had been reached with the private equity firm Retail Ecommerce Ventures to acquire the Stein Mart operations.[14]In March 2023, Retail Ecommerce Ventures announced that it would be exploring options in effort to save themselves, including a potentialChapter 11 bankruptcyfiling, which would mark Stein Mart's second bankruptcy in 3 years. They have also hired restructuring lawyers in effort to stave off bankruptcy.[15]
Brick-and-mortar operations
editStein Mart sold clothes for women and men as well as home décor, accessories, and shoes. Each store had about 30 employees.[1]
Stein Mart expanded their home department in 2010, adding houseware and décor for the house.[16]The "Boutique" portion of the store offered women special occasion clothing. The "Attitudes" section of the store carried clothing for women.[17]
For decades Stein Mart leased its shoe department to other retailers, such asDSW Shoe Warehouse.In 2010, Stein Mart started working with Perfumania in 2010 to stock an assortment of fragrances.
In October 2010, due to popular demand by Stein Mart shoppers, the retailer began offering limited online shopping withShip from Storefor shorter delivery times.[9]
References
edit- ^abcValinsky, Jordan (August 12, 2020)."Stein Mart files for bankruptcy and will close most of its 300 stores".CNN.Retrieved2020-08-12.
- ^"Owner of RadioShack, Pier 1 in danger of bankruptcy".New York Post.March 2, 2023.RetrievedMarch 2,2023.
- ^"Stein Mart: From $43 to $1.3 billion in three generations | Fortune".20 March 2014.
- ^"The Stein Mart Saga".St. Petersburg Times.2004-10-16.
- ^"Stein Mart Re-Enlists Fry Hammond Barr to Return Focus to Real Shoppers".American Association of Advertising Agencies.Archived fromthe originalon March 29, 2009.RetrievedAugust 12,2020.
- ^"Stein Mart Reports 4Q and Fiscal Year 2009 Financial Results".Archived fromthe originalon 2010-04-16.Retrieved2010-10-26.
- ^"Stein Mart Sales climb in August".BusinessWeek.Associated Press. 2010-09-02. Archived fromthe originalon October 25, 2012.RetrievedAugust 12,2020.
- ^Ghabour, Dahlia (October 26, 2017)."Stein Mart to eliminate 10 percent of corporate workers".BizJournals.com.Retrieved2017-10-26.
- ^abHowland, Daphne (January 31, 2018)."Stein Mart exploring 'strategic alternatives'".Retail Dive.RetrievedJanuary 31,2018.
- ^Jones, Nick (2020-02-01)."Stein Mart announces agreement to become private company".WJXT.Retrieved2020-03-23.
- ^Thomas, Lauren (12 August 2020)."Stein Mart files for bankruptcy and plans to close most, if not all, of its stores".CNBC.Retrieved12 August2020.
- ^"Stein Mart® - Official Site - Name Brands For Less | Stein Mart".Stein Mart.2020-08-29.Archivedfrom the original on August 29, 2020.Retrieved2020-09-02.
- ^"Bankrupt Stein Mart to Close, Sell All 279 U.S. Stores".wsj.13 August 2020.Retrieved30 October2020.
- ^"Modell's Will Become Digital-Only With $3.6 Million Purchase By Retail Ecommerce Ventures".Retail TouchPoints.August 20, 2020.RetrievedOctober 1,2020.
- ^"Retail Ecommerce Ventures, Buyer of Moribund Brands, Hires Advisers for Its Own Struggles".The Wall Street Journal.March 2, 2023.RetrievedOctober 1,2023.
- ^"Stein Mart focused on Home Reinvent plan to grow home - again".Home Textiles Today.2010-06-08. Archived fromthe originalon July 12, 2011.RetrievedAugust 12,2020.
- ^"Stein Mart aims at younger demographic".Jacksonville Business Journal.2009-03-19.
External links
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- Stein Mart- Encyclopedia of Mississippi -University of Mississippi