Montgomery Ward
Montgomery Ward is one of the oldest mail-order retail companies in the United States. Here is a detailed overview:
History
- Founded: In 1872 by Aaron Montgomery Ward in Chicago, Illinois. Ward's initial business model was to sell general merchandise at a fixed price through a catalog, eliminating the need for haggling common in retail stores of the time.
- First Catalog: The first catalog was published in August 1872, with only one page. It was designed to appeal to rural customers who did not have access to urban stores.
- Expansion: Over the years, the catalog grew in size and variety, becoming known as "The Wish Book." By 1900, it had over 300 pages and offered a wide range of products from clothing to household items, farm equipment, and even houses.
- Retail Stores: In 1926, Montgomery Ward opened its first retail store in Plymouth, Indiana. This marked the beginning of its transition from solely mail-order to retail operations.
- Challenges: During the Great Depression, the company faced significant financial difficulties. However, it managed to recover post-World War II, only to face another challenge with the rise of competitors like Sears.
- Bankruptcy and Revival: Montgomery Ward declared bankruptcy in 2000 and ceased operations. However, in 2004, a new entity, Montgomery Ward Catalog Company, began operations, reviving the brand online.
Key Contributions
- Mail-Order Catalog: Montgomery Ward pioneered the mail-order business model, which revolutionized shopping by bringing products directly to consumers' homes, especially in rural areas.
- Environmental Advocacy: Aaron Montgomery Ward was also known for his efforts in preserving Grant Park in Chicago, leading to him being called the "Watch Dog of the Lakefront."
- Consumer Credit: The company was one of the first to offer installment payment plans for its customers.
Notable Events
- World War II: During WWII, Montgomery Ward faced a significant conflict with the government when Franklin D. Roosevelt seized its properties to enforce labor agreements. This event highlighted the tension between business interests and government intervention in wartime.
- End of an Era: The closure of all Montgomery Ward stores in 2001 marked the end of an era in American retail history.
Legacy
Montgomery Ward's legacy in the retail industry includes its pioneering role in mail-order retail, the introduction of consumer credit, and its impact on rural America by providing access to goods that were previously out of reach. Its catalog became a cultural icon, often looked forward to as a source of entertainment and shopping.
Sources: