Marshalls - History

History

Marshalls traces its history to 1956, when Alfred Marshall gathered a band of innovative entrepreneurs on the East Coast who included Bernard Goldston and Norman Barren (Frank Estey and Bernard Ribas joined the entrepreneurs in 1960 by purchasing Bernard Goldston's shares) to collectively start up the "Brand Names For Less" concept. Contemplating the dual postwar phenomena of a boom in the economy and growth in the suburbs, Marshall and associates came upon a way to meet it profitably. Together, they opened a self-service department store in Beverly, Massachusetts, offering apparel and homewares at alluringly low prices. Additional floor space was "sublet" to offer customers shoes, hardware and sporting goods from separate sellers, but the separate ownership of those departments was invisible to the shopper. The original store also had a soda fountain/grill... another sublet of floor space, the "A & M Luncheonette" (for Alice & Mickey Masters, the proprietors).

The concept proved extremely successful; ten years later, Marshalls had become the leading off-price retail chain in the nation. Given the volatility of the American economy in the 1970s, with recession affecting the spending habits of most shoppers, the off-price industry gathered speed. By buying up manufacturers’ post-season, overrun, and close-out stock, Marshalls was able to offer fashionable, high-quality “designer” items at prices 20 to 60 percent less than those of the department stores.

In 1976, Marshalls was acquired by Melville Corporation (owner of CVS), and experienced tremendous growth from 1977 into the 1980s. By 1993, Marshalls had expanded throughout 42 states including Hawaii, and had opened several downtown locations. In 1995, Marshalls was purchased by TJX, the parent company of its main rival, T.J. Maxx, for $606 million.