Fedco
Department Store | |
Industry | Retail |
---|---|
Founded | 1948 | in Los Angeles, California
Founders | U.S. Post Office employees |
Defunct | 1999 |
Headquarters | 9300 Santa Fe Springs Rd, Santa Fe Springs, California |
Number of locations | 10 (when it closed in 1999) |
Area served | Southern California |
Products | Clothing, footwear, housewares, jewelry, garden, furniture, appliances, sporting goods, produce, hardware, toys, electronics |
Owner | Members-owned co-operative |
Federal Employees' Distributing Company, known as Fedco, was a membership department store chain that operated in Southern California from 1948 to 1999.
History
Beginning
The chain was unusual in that it was a
The organization of the company was similar to that used for credit unions, in which the stores were owned and operated by a not-for-profit organization that was owned by its members, who elected a board of directors. Like a credit union, store membership was legally restricted to a defined group. Over the years, the membership pool was widened to include anyone who had any relationship with the federal or local governments, as well as their employees, children, etc. It also included anyone who received regular payments from the government, such as social security pensions.
Membership cards were required to enter a store and to use a check as payment. However, it was very difficult to restrict non-members from purchasing from the stores in cash, since the lifetime membership cards did not include photographic ID like those used by later membership stores such as Sam's Club. Anyone could borrow or take a member's card and enter. Names on the cards were only checked when paying by check.
Fedco's lifetime membership cost $10 (~$19.00 in 2023) in 1998.[1][2]
At its peak, Fedco had ten department stores plus three appliance-only stores, and served 4 million members.
Business model
The management strove to make Fedco a one-stop shopping destination, similar to a hypermarket concept. The customer/member was presented with a wide variety of consumer products: camera equipment, office machines, major and minor appliances, garden supplies, clothing, jewelry, liquor and groceries. The stores also had a full-service deli and a separate produce department. Many stores also had a tire and battery shop. The corporate buyers often found one-of-a-kind deals on miscellaneous items, including seasonal items like toys during the Christmas holiday season.
The stores were tightly managed. To foster smooth operation, romantic interest between employees was discouraged, and married couples were not allowed to hold Fedco jobs concurrently.[citation needed]
Some of the departments around the periphery of the building were not Fedco businesses, but instead were concessions operated by others. For example, the Stereo Components department was run by Coastron, seller of the Soundcraftsmen line of stereo equipment. Coastron paid rent to Fedco to operate in the building. Other concessions included the Optical Department (later bought out by Fedco), the Shaver Shop, and the Key & Lock Shop. Fedco offered a variety of private label items, including electronics, liquor, watches and some groceries.
The membership model was successful for Fedco for decades.
![](http://upload.wikimedia.org/wikipedia/commons/thumb/3/3f/Fedco_sticker_on_CD.jpg/150px-Fedco_sticker_on_CD.jpg)
Fedco had an aggressive pricing model and employed "secret shoppers" to determine prices of other retailers. The Fedco price on many items ended in 87 cents to claim the lowest price, even if it was only pennies below the customary 99 cent prices of competitors.
For most of its lifetime, Fedco was closed on Wednesdays, though some employees would work, re-stocking or taking inventory. During the Christmas season, Fedco was open 7 days a week to accommodate the customer surge. Fedco would sometimes require employees to work up to 10 hours a day.[citation needed] Working 6 days a week was possible during the summer surge and the Christmas season.
![](http://upload.wikimedia.org/wikipedia/commons/thumb/2/2d/Moms-Fedco-Charge-Card.jpg/200px-Moms-Fedco-Charge-Card.jpg)
![](http://upload.wikimedia.org/wikipedia/commons/thumb/d/da/Moms-Fedco-Charge-Card-Back.jpg/200px-Moms-Fedco-Charge-Card-Back.jpg)
Fedco employees were members of the
In 1994, Fedco was one of the first membership stores to start accepting bank-issued credit cards. Most discount stores of this type did not accept credit cards because transaction fees charged by the credit card transaction processors were quite high in relation to their (single-digit percent range) margins, and they would have to raise prices to compensate, putting them at a competitive disadvantage to stores that did not accept credit cards.[5][6]
Fedco stores
Fedco had several locations in Southern California including:
- Van Nuys (Los Angeles), 14920 Raymer Street, store #1, replaced by Target (1956-1999)[7]
- La Cienega (Los Angeles), 3535 South La Cienega Boulevard, store #2, replaced by Target (1961-1999)[8]
- Cerritos, 11525 South Street, store #4 (1970-1999), replaced by Target[10][11]
- National City, 1100 Highland Avenue, store #5, replaced by Walmart (1984-1999)[12]
- Pasadena, 3111 East Colorado Boulevard, store #6, replaced by Target (1965-1999)[13]
- Costa Mesa, 3030 Harbor Boulevard, store #7 replaced by Target (1972-1999)[14]
- Ontario, 2534 South Archibald Avenue, store #8, replaced by Ontario Police Department facility (1982-1999)[15]
- Escondido, 1475 East Valley Parkway, store #9, replaced by Home Depot (1986-1999)[16]
- Buena Park, 8450 La Palma Avenue, store #10 (formerly May Co.), replaced by Walmart (1993-1999)[17][18][19][20][21]
Previous locations:
- Los Angeles, 3928 West Slauson Avenue, replaced by La Cienega Boulevard store in 1961[8]
- San Bernardino, 1140 West Second Street, replaced by the Mt. Vernon Avenue store in 1968[9]
- Lakewood, 5436 North Woodruff Avenue, replaced by the Cerritos store in 1970
- San Diego, 54th Street and Euclid Avenue, replaced by the National City store (1957-1984)[12]
Fedco Reporter
The Fedco Reporter was the store's catalog and magazine. Board President Robert Kee and Edward Butterworth were instrumental in establishing the Reporter. Edward Butterworth rose from company attorney to Board member to the position of CEO. The department was run by art director and art department manager Sal Heredia and editor Anita McManes. The Reporter was a bi-monthly 62-page dated catalog mailed to members. There were seasonal specials and sales with themes like "Buyers' Goof Days". In addition to showcasing products, it also contained short one-column articles. Most issues contained one article about updates in federal policy that might affect federal employees. The majority of the articles were about minor but colorful stories in California history, and were labeled with a "California Historical" logo.
Copies of the Fedco Reporter and other Fedco paraphernalia are now being maintained as part of the Fedco Superstores Inc. Collections Archived 2014-10-18 at the
![](http://upload.wikimedia.org/wikipedia/commons/thumb/1/18/Fedco_Medicated_Chest_Rub.jpg/220px-Fedco_Medicated_Chest_Rub.jpg)
Bankruptcy
Fedco predated the giant chains
The management tried many new ideas to keep up with competitors, such as accepting bank cards when other stores were only accepting private store credit cards, refurbishing stores,[22][23] and by allowing fast food chains to open restaurants, such as Panda Express,[24] inside select stores.
The company lost $14 million caused by damages done to the La Cienega store during the
Fedco filed for
See also
- Big-box store
- Hypermarket
- Gemco
- Zody's
References
- EBSCO.
- ^ Young, Karen Newell (February 19, 1988). "Discount Stores in County Proliferate: a Profile of Fedco". Los Angeles Times.
- ^ Campbell, Don G. (May 23, 1985). "Explaining Fedco's 'Nonprofit' Ways". Los Angeles Times.
- ^ Sender, Isabelle (August 1998). "Preparing Fedco for the next 50 years". Chain Store Age. Vol. 74, no. 8. p. 5. Archived from the original on 2013-07-14. .
- ^ Meece, Mickey (October 11, 1994). "Fedco Taking Visa, Mastercard at Its Southern Calif. Stores". American Banker. p. 22. Archived from the original on February 12, 2015. Alternate Link(subscription required) via LexisNexis.
- The Free Library.
- ^ Corrigan, John (August 28, 1999). "Lamenting the Death of a Discount Store". Los Angeles Times.
- ^ ProQuest 167988471. Archived from the originalon September 14, 2017. Retrieved July 6, 2017.
- ^ ProQuest 155961409. Archived from the originalon March 5, 2016. Retrieved July 6, 2017.
- ProQuest 156378941. Archived from the originalon September 14, 2017. Retrieved July 6, 2017.
- ProQuest 156456159. Archived from the originalon September 14, 2017. Retrieved July 6, 2017.
- ^ San Diego Union. p. A-12.
- ProQuest 155290636. Archived from the originalon October 18, 2016. Retrieved July 6, 2017.
- ProQuest 156966875. Archived from the originalon March 4, 2016. Retrieved July 6, 2017.
- ProQuest 153141123. Archived from the originalon March 4, 2016. Retrieved July 6, 2017.
- ^ "Sears Property Sold in Escondido". Los Angeles Times. August 17, 1986.
- ^ Cano, Debra (January 4, 1993). "Buena Park to Weigh Backing Fedco Move". Los Angeles Times.
- .
- ^ Cano, Debra (October 5, 1993). "Buena Park: 4,000 Line Up for 600 Jobs at Fedco". Los Angeles Times.
- ^ Cano, Debra (November 4, 1993). "Buena Park: Shoppers Jam New Fedco Store in Mall". Los Angeles Times.
- EBSCO.
- The Free Library.
- ^ Stevenish, Robert J. (July 12, 1998). "Fedco Article Overlooked Customers, Growth". Los Angeles Times.
- ^ "Chinese Restaurant Opens in Fedco". Los Angeles Times. October 9, 1992.
- ^ "Riot Aftermath". Los Angeles Times. May 7, 1992.
- ^ "Torched, Looted Fedco Store Reopens". Los Angeles Times. May 22, 1992.
- EBSCO.
- ^ White, George (July 4, 1998). "Fedco Is Getting a Make-Over, but Analysts Say It's Not Enough". Los Angeles Times.
- ^ Sanchez, Jesus & Goldman, Abigail (July 10, 1999). "Fedco to Seek Chapter 11 Protection, Close Doors". Los Angeles Times.
- ^ "Fedco To Sell Its Real Estate Assets To Target Stores". The New York Times. July 10, 1999.
- PRNewswire(Press release). July 15, 1999.
- ^ Garcia, Irene (July 22, 1999). "End of the Line in Sight". Los Angeles Times.
- Minneapolis/St. Paul Business Journal. September 28, 1999.
- ^ Gee, Elise (September 9, 1999). "Target plans to develop old Fedco site". Daily Pilot.
- ^ Earnest, Leslie (September 27, 2000). "Costa Mesa's a 'Greatland' for Target". Los Angeles Times.
- ^ "Fedco to offer coupons to settle membership". Discount Store News. 38 (20): 4. October 25, 1999. Archived from the original on July 11, 2012. Retrieved September 18, 2006 – via FindArticles.
- ^ "FEDCO Teacher Grants". California Community Foundation. Archived from the original on 2013-05-10. Retrieved 2013-04-11.
- Cal Poly Pomona. Archived from the originalon 2014-11-19.
Sources
- Karen Newell Young, "Discount Stores in County Proliferate: A Profile of Fedco," Archived 2012-11-07 at the Wayback Machine, Los Angeles Times (Orange County ed.) February 19, 1988, Orange County Life p. 8.