Filene's Basement

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Filene's Basement
Slogan	A great value never goes out of style.
Type	Department store
Founded	1908
Headquarters	Burlington, Massachusetts
Key people	Mark Shulman, President; James Rudd, Executive Vice President
Industry	Retail
Products	Apparel, jewelry, shoes, accessories and home goods.
Net income	$389.3 million [1]
Website	www.filenesbasement.com

Filene's Basement, also called The Basement, is a Massachusetts-based chain of American department stores owned by Retail Ventures, Inc.. The oldest off-price retailer in the United States, it focuses on high-end goods and is known for its automatic markdown system. As of late 2006, the company operates 31 stores in metropolitan areas of eight U.S. states and Washington, D.C. and a 470,000 square foot distribution center in Auburn, Massachusetts.

Contents 1 History 1.1 The automatic markdown system 1.2 Filene's Basement Bridal Gown Sale 2 List of Filene's Basement locations as of May 31, 2006 2.1 Georgia 2.2 Illinois 2.3 Maryland 2.4 Massachusetts 2.5 New Jersey 2.6 New York 2.7 Ohio 2.8 Pennsylvania 2.9 Washington, DC 3 List of former Filene's Basement locations 3.1 Connecticut 3.2 Florida 3.3 Illinois 3.4 Maine 3.5 Massachusetts 3.6 Minnesota 3.7 New Hampshire 3.8 New Jersey 3.9 New York 3.10 Pennsylvania 3.11 Rhode Island 3.12 Virginia 3.13 Former Aisle 3 locations 4 References 5 Additional references 6 External links

[edit] History

In 1908, Edward A. Filene came up with the idea of selling surplus, overstock and closeout merchandise in the basement of his father's department store. Filene's "Automatic Bargain Basement" opened in 1909 and the Downtown Crossing store remains their flagship location.

The stores were disassociated in April 1988 after Filene's was purchased by May Department Stores. Because of this, Filene's Basement was not affected by the merger between the May and Federated Department Store companies, which changed all Filene's stores to the Macy's nameplate.

In August 1998, Filene's Basement filed for Chapter 11 bankruptcy protection and closed more than 30 stores. The company has recovered since, although understandably, recent expansion efforts have been much more conservative than in past years. [2]

In March 1999, the company debuted a new weekend warehouse store concept, Aisle 3. The stores, averaging 60,000 square feet, operated only Friday through Sunday and were located near major metropolitan areas. [3] Plans were to open at least 10 stores by the end of 1999 and 40 to 50 stores in the following years, but ultimately only eight opened.

Value City Department Stores Inc. (later Retail Ventures, Inc.) purchased Filene's Basement in March 2000 and closed the Basement's eight Aisle 3 outlet stores. It reopened three locations in the Washington, D.C., area and began opening new stores shortly afterward. [4]

[edit] The automatic markdown system

A description of The Basement's markdown system from a 1982 New York Times article:

". . . every article is marked with a tag showing the price and the date the article was first put on sale. Twelve days later, if it has not been sold, it is reduced by 25 percent. Six selling days later, it is cut by 50 percent and after an additional six days, it is offered at 75 percent off the original price. After six more days - or a total of 30 -if it is not sold, it is given to charity." [5]

[edit] Filene's Basement Bridal Gown Sale

Since 1947, the Boston flagship store has held an annual one-day bridal gown sale. In 1997, the sale was the subject of a study by two marketing professors at Bentley College and subsequent article published in Developments in Marketing Science.

See also: Running of the Brides

[edit] List of Filene's Basement locations as of May 31, 2006

[edit] Georgia

Atlanta - Lenox Marketplace (opened spring 2003)

[edit] Illinois

Chicago - One North State Steet (opened August 1998)

Chicago - 830 North Michigan Avenue (opened March 1995)

Chicago MSA - Woodfield Village Green, Schaumburg (opened April 2004)

[edit] Maryland

Baltimore MSA - Hunt Valley Town Centre, Cockeysville (opening fall 2006)

Baltimore MSA - Mid-Pike Plaza, Rockville (opened March 1998)

Baltimore MSA - Towson Place, Towson (opened 2004)

[edit] Massachusetts

Boston - Downtown Crossing flagship store (opened 1908)

Boston/Back Bay - 501 Boylston Street (opened September 13, 2006)

Boston MSA:

• Braintree - South Shore Plaza (opened November 1984)
• Framingham - 341 Cochituate Road (Route 30 Mall) (opened November 2004)
• Newton - 215-227 Needham Street (opened October 1990)
• Peabody - North Shore Mall (opened November 1992)
• Saugus - Square One Mall (opened May 1978)
• Watertown - Arsenal Mall (opened March 1993)

Hyannis - Cape Town Plaza (K-Mart plaza, Cape Cod) (opened October 1990)

[edit] New Jersey

Elizabeth - Jersey Gardens (opened summer 2001)

[edit] New York

Fresh Meadows - 187-04 Horace Harding Expressway (opened May 1983)

Levittown (opening fall 2006)

Manhasset - 1400 Northern Boulevard (opened August 1982)

Manhattan - 2222 Broadway at 79th (opened November 1993)

Manhattan - 620 Avenue of the Americas at 18th (opened April 1995)

Manhattan - 4 Union Square South (opened October 2004)

White Plains - City Center at White Plains (opened spring 2004)

[edit] Ohio

Cleveland MSA - Harvard Park Shopping Center, Warrensville Heights (opening fall 2006)

Columbus MSA - 3704 West Dublin-Granville Road at Sawmill Road, Dublin (opened fall 2000)

[edit] Pennsylvania

Philadelphia MSA - Marple Crossroads Shopping Center, Springfield (opening fall 2006)

Pittsburgh MSA - 280 East Waterfront Drive, Homestead (opened spring 2003)

[edit] Washington, DC

1133 Connecticut Avenue NW (reopened April 2000)

Mazza Gallerie (opened October 1993, reopened April 2000)

The Shops at National Place, National Press Building (reopened April 2000)

[edit] List of former Filene's Basement locations

[edit] Connecticut

Manchester - 1510 Pleasant Valley Road (opened March 1994, closed 1999)

Orange - 550-560 Boston Post Road (opened April 1990)

Stamford - 27-29 High Ridge Road (opened August 1998, closed 1999)

West Hartford - Corbin's Corner Shopping Center (opened October 1983)

[edit] Florida

Sunrise - Sawgrass Mills (opened October 1998, closed 1999)

[edit] Illinois

Chicago - 2838 North Broadway

Chicago MSA:

• Lake View (closed 1999)
• Mount Prospect - Randhurst Mall (closed 1999)
• Oak Brook - Shops at Oak Brook Place (opened March 1997, closed 1999)
• Skokie - Orchard Place (opened April 1997, closed 1999)

[edit] Maine

South Portland - Maine Mall (opened August 1989, closed 2006)

[edit] Massachusetts

Burlington - Route 3A at Winn Street (opened October 1981)

Dedham - 688 Providence Highway (opened October 1983, now a BJ's Wholesale Club)

Framingham - Framingham Mall (opened October 1978, closed 1999, now a HomeGoods)

Holyoke - Holyoke Mall (opened November 1986, closed 2006)

North Attleborough - Fashion Crossing (opened October 1990, closed 1999)

Kingston - Independence Mall (opened November 1989, closed 1999)

Taunton - 2 West Stevens Street (opened March 1992, closed 1999)

Worcester - 200 Front Street (opened October 1994)

[edit] Minnesota

Bloomington - Mall of America (closed 1999)

[edit] New Hampshire

Manchester - South Willow Street (opened October 1981)

Nashua - 262 Daniel Webster Highway (opened March 1991)

Salem - Mall at Rockingham Park (opened August 1991, closed 1999)

[edit] New Jersey

Jersey City - Newport Centre Mall (opened April 1993)

Moorestown - Moorestown Mall (opened September 1994, closed 1999)

Paramus - Mall at IV (opened November 1986, closed 1999)

[edit] New York

Carle Place - 99 Old Country Road (opened April 1990, closed 1999)

Huntington - 350 Route 110, adjacent to Walt Whitman Mall (opened August 1982, closed 1999)

Middletown - Galleria at Crystal Run

Levittown - Nassau Mall

Scarsdale - Midway Shopping Center (opened November 1985)

White Plains - Galleria at White Plains (opened 1992, closed 1995)

[edit] Pennsylvania

Devon-Berwyn - Best Shopping Plaza (opened April 1998, closed 1999)

Philadelphia - 1608-1610 Chestnut Street (opened November 1993)

Philadelphia - Franklin Mills (opened August 1989, closed 1999)

Radnor Township - St. Davids Square (opened September 1992, location now a MicroCenter)

Willow Grove - Moreland Road (opened August 1986, closed 1999)

Pittsburgh, waterfront, opened 2002

[edit] Rhode Island

Warwick - Warwick Commons (opened November 1985)

[edit] Virginia

Falls Church - Bailey's Crossroads Center (opened October 1994)

[edit] Former Aisle 3 locations

Totowa, New Jersey - 670 Union Boulevard (opened March 1999, closed 2000; location now occupied by Value Furniture & Mattress)

Union, New Jersey - 2463 US Highway 22 West (opened March 1999, closed 2000)

Spring Valley, New York - Spring Valley Marketplace (opened March 1999, closed 2000)

Towson, Maryland - Towson Place (opened April 1999, closed 2000)

Chicago MSA:

• Buffalo Grove - 1020 East Lake Cook Road (opened October 1999, closed 2000; location now occupied by a CDW store)
• Morton Grove - 6813 Dempster Street (opened October 1999, closed 2000)
• Schaumburg - 1325 North Meacham Road (opened October 1999, closed 2000)
• Wheaton - Main Street Plaza Shopping Center (opened October 1999, closed 2000)

[edit] References

1. "Summary of Annual Report (SEC Form 10-K) for RETAIL VENTURES INC", filed April 13, 2006.
2. "Pioneering Discounter Seeks Court Protection" by Leslie Kaufman, 'The New York Times, August 24, 1998.
3. "BUSINESS: DIARY; Living for the Weekend" by Robert D. Hershey Jr., The New York Times, March 14, 1999.
4. "Shopper's World; Boston's Favorite Bargain Store" by Deborah Blumenthal, The New York Times, April 18, 1982.

• "ITEM 2. PROPERTIES of Annual Report (SEC Form 10-K) for Filene's Basement Corp", filed May 1, 1998 (source for most pre-1998 store opening dates).
• "ITEM 2. PROPERTIES of Annual Report (SEC Form 10-K405) for Filene's Basement Corp", filed January 30, 1999 (source for 1998 and early 1999 store opening dates and many store locations).

[edit] Additional references

• "The Filene's Basement Bridal Sale: A Content Analysis of Store-Authored and Media-Authored Communications About a Retail Special Event", by Ellen Foxman and Susan Dobscha, Developments In Marketing Science 20,: 321-326.
• "Aisle 3 joins the weekend pioneers" by Mike Duff, Discount Store News, April 5, 1999.
• "Filene's Basement Announces First Steps in Reorganization Strategy and Closure of 17 Underperforming Stores", press release, September, 28, 1999.
• "Aisle 3 Doubles in Size With Grand Opening of Four Chicago Stores", press release, October 6, 1999.
• "Company News; Filene's Basement To Close Almost Half Its Stores", The New York Times, November 13, 1999.
• "Filene's Basement vows to appeal to Nasdaq delisting" Boston Business Journal, November 26, 1999.
• "Company News; Value City Subsidiary Is Acquiring Filene's Basement", The New York Times, February 4, 2000.
• "Gerson on the Basement: `Lots of hard work' ahead" by Donna L. Goodison, Boston Business Journal, May 8, 2000.
• "Value City nixes $275M sale of Filene's Basement" by Donna L. Goodison, Boston Business Journal, February 11, 2002.
• "Basement Revival: Schlesinger leads discounter back to profitability" by Donna L. Goodison, Boston Business Journal, June 17, 2002.
• "Filene's Basement already seeks more locations" by Lisa R. Schoolcraft, Atlanta Business Chronicle, May 22, 2003.
• "Filene's Basement relocates suburban HQ", Boston Business Journal, February 3, 2005.
• "Filene's Basement coming to Hunt Valley", Baltimore Business Journal, May 24, 2006.

[edit] External links

• Filene's Basement official website
• Retail Ventures, Inc. official website