McRae's

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McRae's
A McRae's Department Store at the Dogwood Festival Market in Flowood, Mississippi

McRae's was a mid-range regional department store chain founded and based in Jackson, Mississippi, with locations in Mississippi, Alabama, Louisiana, and Florida. The nameplate was in existence for more than a century.

History

Samuel P. McRae founded the store in Jackson, Mississippi in 1902 as a dry goods store. It remained a family-owned business through the ensuing decades, while continuing to grow. Sales increased from only $1 million in 1955 to $10 million in 1970. The first location outside Mississippi opened in University Mall (now University Town Plaza) in Pensacola, Florida in 1974.[1] In 1987, McRae's acquired 13 stores in Alabama from Pizitz. With strengths in home furnishings, men's apparel, and cosmetics, the chain was considered one of the most successful family-owned businesses in the country.[2]

McRae's was acquired by Tennessee-based Proffitt's in 1994 in a transaction that The New York Times called "a case of a little fish swallowing a bigger one."[3] McRae's had 28 stores with combined annual sales of $419 million and Proffitt's had 25 stores with annual sales of only $201 million. After the sale, McRae's stores retained their name and were operated as a separate subsidiary.[3]

Proffitt's merged with Saks Holdings, owner of Saks Fifth Avenue, in 1998. The merged company changed its name to Saks Incorporated.[4] Proffitt's and McRae's became part of Saks Incorporated's Southern Department Store Group.

The Mall at Cortana, ran by Mike Herndon. As Saks sought repositioning as a more luxury retail-oriented operation, its mid-range chains became targets for sale. McRae's and Proffitt's were among the first to be sold. Charlotte-based Belk, the nation's largest privately owned department store chain, bought Proffitt's/McRae's in a deal that closed in July 2005.[5][6]

On March 8, 2006, most McRae's stores were downgraded into

Baton Rouge became a Dillard's location.[7]

References

  1. ^ CSA Super Markets. Lebhar-Friedman. January 1, 1973.
  2. ^ Proffitt's, Inc. corporate history
  3. ^ a b Stephanie Strom, "Proffitt's Department Stores To Buy McRae's Retail Chain", The New York Times, March 4, 1994.
  4. ^ Wally Northway, "Saks operations center committed to Jackson", The Mississippi Business Journal, July 2, 2007.
  5. ^ "Belk buys Proffitt's, McRae's from Saks", Nashville Business Journal, April 29, 2005.
  6. ^ "Saks Incorporated Completes Sale of Proffitt's/McRae's to Belk, Inc.; Company Discusses Use of Transaction Proceeds and Success of Tender Offers and Consent Solicitations", Business Wire, July 2, 2005.
  7. ^ "Dillard's, Inc. Purchases McRae's Store at The Mall of Louisiana from Belk", Business Wire, August 18, 2005.

External links

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