Spiegel (catalog) - Expansion in The Early 1900s

Expansion in The Early 1900s

The new Spiegel was an instant hit, and the first branch store was opened on Chicago's South Side in 1898. Another South Side branch went into operation three years later. The company's slogan--"We Trust the People!"—reflected its emphasis on credit merchandising. In 1903 Joseph Spiegel's third son, Arthur, entered the business with a plan to develop mail order operations for Spiegel. After a couple years of lobbying, Arthur convinced the company hierarchy to open a mail order department, and in 1905 Spiegel became the first company to offer credit through the mail. The new service was reflected by the addition of a word to the company motto, which began to read: "We Trust the People--Everywhere!" The response was phenomenal, and soon a huge, previously untapped base of customers was ordering from Spiegel's mail order catalog.

In 1906 Spiegel's mail order sales were nearly $1 million, far exceeding anyone's expectations. To handle the overwhelming success of the mail order operation, a new company—Spiegel, May, Stern and Company—was formed, allowing the Spiegel House Furnishings Company to devote its limited resources to conventional retailing, rather than assume the debts associated with building up the mail order segment. Arthur was named President of the new company. In 1909 Spiegel introduced the teddy bear to the American consumer, for the first time nationwide, by offering it in it's mail order catalog. The Ideal Toy Company partnered with Spiegel to launch this successful toy venture, and Spiegel continues to give its staff teddy bears to mark the company anniversary every year.

Spiegel boldly began to diversify its line of products after 1910, offering apparel for the first time in 1912. After a couple of unsuccessful partnerships with independent clothing manufacturers, Spiegel, May, Stern and Company began offering its own line of women's apparel. The "Martha Lane Adams" line—named after its fictional designer—was so successful that it quickly became a wholly owned subsidiary of Spiegel, May, Stern, and Company and earned its own catalog. Martha Lane Adams' sales grew to nearly $2 million by 1916. That same year, Arthur Spiegel died of pneumonia at the young age of 32.

Spiegel's next marketing breakthrough came in 1926, when company executive Ed Swikard introduced a promotional idea involving Congoleum floor covering. Swikard engineered a mailing to more than nine million residences, offering a pre-cut Congoleum package at a low cost. The response was again overwhelming, and company sales reached a record $16 million for the year, with a net profit of $4 million. In 1928 Spiegel, May, Stern and Company went public, although the Spiegel family retained a controlling interest. The following year, just as The Great Depression was setting in, the Spiegels began gradually liquidating their retail furniture business. By 1932 the last Spiegel furniture store in Chicago closed its doors.