E. J. Korvette - Innovations

Innovations

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 over $2,500 per square foot. Ferkauf retired in 1968.

E.J. Korvette's 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.