Gimbels
Retailer / private label
UnclaimedDefunct American department-store chain remembered for its price-oriented retailing, Macy's rivalry, and pioneering Thanksgiving parade.
Last updated November 4, 2026
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Overview
Gimbels, formally Gimbel Brothers, was an American department-store corporation that operated from the nineteenth century until the late 1980s. Its commercial origin dates to 1842, when Bavarian Jewish immigrant Adam Gimbel opened a general store in Vincennes, Indiana. After a short period in Danville, Illinois, Gimbel moved the business to Milwaukee, Wisconsin, in 1887. Milwaukee's growing German-American population and expanding economy provided a strong base for a larger department store, and the Milwaukee operation became the foundation of the Gimbels chain. The company expanded beyond Wisconsin under the founder's sons. In 1894 it acquired the Granville Haines store in Philadelphia, establishing a major eastern presence and, for a period, the company's headquarters. Gimbels entered New York City in 1910 at Herald Square, where its store stood close to Macy's. The proximity produced one of American retail's best-known competitive narratives: Gimbels positioned itself as the practical, price-conscious alternative to Macy's more theatrical merchandising. The expression “Does Macy's tell Gimbels?” became a popular way of declining to reveal confidential information, helping turn a commercial rivalry into a durable part of popular culture. Gimbels promoted value, reliability, and efficient retailing rather than elaborate store decoration. Its stores sold a broad range of merchandise, including men's, women's, and children's clothing; furniture; appliances; jewelry; toys; art supplies; outdoor equipment; and other household goods. This breadth made the stores one-stop shopping destinations for middle-class consumers. The company's advertising emphasized selection and affordability, including the slogan “Select, don't settle,” while another recurring message suggested that customers should pay for merchandise rather than unnecessary retail ornament. The chain became a significant innovator and publicity generator. Its Philadelphia store helped popularize large-scale department-store retailing and was among the earliest major stores to use escalators to move customers between floors. The Slinky made its public debut at a Philadelphia Gimbels location. The company also operated radio stations, publicized major merchandise and art sales, and appeared in films and television programs. Its New York store became particularly prominent through the sale of objects from the William Randolph Hearst collection and through appearances or references in works such as Miracle on 34th Street, I Love Lucy, Fitzwilly, and, retrospectively, Elf. Gimbels became a publicly traded company in 1922, raising capital for expansion. In 1923 it acquired Saks & Co., operating the New York business as Saks-34th Street and developing the Saks Fifth Avenue brand. Gimbels also expanded into Pittsburgh by acquiring Kaufmann & Baer's in 1925 and obtained radio assets in several transactions. The Great Depression limited the company's ambitions for a truly nationwide Gimbels chain, although the related Saks business continued to develop upscale locations. By 1930, Gimbels had 20 stores and reported sales of $123 million; by 1965, the broader corporate organization had reached 53 stores, including Gimbels, Saks Fifth Avenue, and Saks 34th Street locations. In 1962, it acquired Milwaukee competitor Schuster's, with some stores operating under the Gimbels-Schuster's name. The company entered a period of corporate ownership and restructuring in the 1970s. Brown & Williamson acquired Gimbels in 1973 and later placed it within BATUS, a retail group that also managed other department-store interests. The chain's regional divisions continued to operate with considerable autonomy, but Gimbels struggled to deliver the profitability expected by its conglomerate owner. In 1983, the New York, Baltimore, and Philadelphia operations were combined as Gimbels East in an effort to reduce overhead. BATUS ultimately judged the Gimbels business to have limited prospects for improved profitability. It decided to dismantle the brand in 1986, and the remaining stores closed during 1986 and 1987. Attractive properties and locations were transferred or sold to other retailers, including Stern's, Pomeroy's, Kaufmann's, Boston Store, and Marshall Field's. The Milwaukee store associated with Adam Gimbel's success eventually closed in 1997 under Marshall Field's ownership. Gimbels therefore survives principally as a historical retail name, through surviving buildings, the continuing Philadelphia Thanksgiving parade, and its place in American commercial and popular culture.
History
Gimbels began with Adam Gimbel, a Bavarian Jewish immigrant who opened a general store in Vincennes, Indiana, in 1842. After briefly operating in Danville, Illinois, he moved the enterprise to Milwaukee in 1887. The city was then expanding rapidly and had a substantial German-speaking population, giving the business a favorable environment in which to develop a large department store. Adam Gimbel's sons subsequently helped extend the company beyond Wisconsin. In 1894, the company acquired the Granville Haines store in Philadelphia. The Philadelphia operation became an important corporate center and eventually one of the chain's most prominent stores. Gimbels entered New York in 1910, opening a flagship designed by Daniel Burnham near Herald Square. Its location close to Macy's created a highly visible rivalry. Gimbels cultivated an identity based on practical value and selection, contrasting its merchandise-led approach with the more ornate presentation associated with some department-store competitors. The rivalry generated the enduring phrase “Does Macy's tell Gimbels?” and became part of American vernacular culture. The company expanded through public capital and acquisitions. It became publicly traded in 1922, although the founding family initially retained control. In 1923, Gimbels bought Saks & Co. and operated the New York business as Saks-34th Street, while the related Saks Fifth Avenue business developed into a major upscale chain. Gimbels entered Pittsburgh in 1925 by acquiring Kaufmann & Baer's and also obtained radio assets in connection with its expansion. The Great Depression curtailed plans for a fully national Gimbels chain, but the company continued to enlarge its portfolio of Saks Fifth Avenue stores during the 1930s. By 1930, Gimbels had 20 stores and was identified as the largest department-store corporation in the world by sales revenue. Its stores offered clothing, furniture, appliances, jewelry, toys, art supplies, outdoor equipment, and other household merchandise. The company deliberately appealed to middle-class consumers through broad choice, reasonable prices, straightforward service, and a belief that customers should pay for products rather than lavish retail decoration. Its large urban stores also functioned as entertainment and publicity venues. The Philadelphia flagship included specialized departments and facilities such as an auditorium, salon, music center, and television-related retail operations. The Slinky made its debut at a Philadelphia Gimbels store, and the chain was an early department-store user of escalators. Gimbels was also an aggressive promoter. In 1920, its Philadelphia operation introduced a Thanksgiving parade intended to stimulate holiday shopping. The event predates Macy's parade and ultimately survived the closure of the chain under new management and sponsors. The brand received additional nationwide exposure through the Macy's rivalry, the sale of objects from the William Randolph Hearst collection, and references in films and television. Its New York flagship's many entrances to the subway system offered exceptional customer access but also contributed to exceptionally high merchandise-loss problems by the time the store closed. The chain reached 53 stores in 1965 when the wider corporate organization included Gimbels, Saks Fifth Avenue, and Saks 34th Street locations. Gimbels acquired Milwaukee competitor Schuster's in 1962 and operated the two names together in parts of the region. Brown & Williamson acquired Gimbels in 1973 and later organized its retail holdings under BATUS. BATUS initially maintained several autonomous Gimbels divisions, including New York, Baltimore, Philadelphia, Pittsburgh, and Milwaukee. In 1983, it consolidated the New York, Baltimore, and Philadelphia businesses as Gimbels East to reduce administrative costs. The restructuring did not restore the chain's long-term prospects. BATUS regarded Gimbels as a marginal performer and decided in 1986 to close the division and dispose of its stores. The final locations in Pennsylvania, New York, New Jersey, Maryland, Delaware, Wisconsin, and Connecticut closed during 1986 and 1987. Various properties became stores for Stern's, Pomeroy's, Kaufmann's, Boston Store, or Marshall Field's. The Milwaukee building associated with Gimbels' early success eventually closed in 1997. The former New York flagship underwent several later redevelopments, while former Gimbels buildings in Philadelphia and Pittsburgh were also reused or redeveloped. Although the retail business disappeared, the parade and the Gimbels name remained part of American retail history.
- 1987
Remaining Gimbels stores close
[1]The last stores carrying the Gimbels name cease operations.
- 1986
Brand dissolution begins
[1]BATUS announces the closure and disposition of the Gimbels division.
- 1983
Gimbels East consolidation
[1]Three eastern divisions are combined to reduce overhead.
- 1973
Brown & Williamson takeover
[1]Gimbels becomes part of Brown & Williamson's expanding retail interests.
- 1962
Schuster's acquisition
[1]Gimbels buys Milwaukee rival Schuster's.
- 1923
Saks acquisition
[1]Gimbels purchases Saks & Co. and expands its portfolio of department-store brands.
- 1922
Public offering
[1]Gimbel Brothers becomes publicly traded on the New York Stock Exchange.
- 1920
First Gimbels Thanksgiving parade
[1]The Philadelphia store launches a holiday parade to attract shoppers.
- 1910
New York flagship opens
[1]A large store opens near Herald Square, intensifying the company's rivalry with Macy's.
- 1894
Philadelphia expansion
[1]Gimbels acquires the Granville Haines store in Philadelphia.
Products and positioning
A broad-assortment, middle-market department store emphasizing value, selection, practical service, and promotional retailing. Its public identity was strengthened by its rivalry with Macy's and by high-profile urban flagship stores.
Fashion retail
Apparel departments
Gimbels sold men's, women's, and children's clothing across its large urban stores. Apparel was part of the chain's broad middle-market assortment and was typically presented alongside accessories and other everyday consumer goods.
Home retail
Home furnishings and appliances
Furniture, household appliances, and related domestic merchandise were central components of Gimbels' one-stop department-store model. The chain used practical, value-oriented merchandising to make modern household equipment accessible to middle-class shoppers.
General merchandise
Jewelry, toys, and specialty departments
Flagship locations included fine jewelry, toys, art supplies, music-related merchandise, outdoor equipment, and other specialty departments. The assortment allowed Gimbels to combine everyday shopping with seasonal and higher-value purchases.
Luxury department stores · 1923
Saks Fifth Avenue
Following Gimbels' acquisition of Saks & Co. in 1923, the related Saks Fifth Avenue business became the group's upscale retail arm. It developed beyond the Gimbels brand and was later sold separately after Gimbels was closed.
Marketing campaigns
- 1920Gimbels Thanksgiving Day Parade
Philadelphia
Gimbels introduced a Thanksgiving parade as a seasonal shopping promotion. The event helped establish the department-store parade as a retail publicity format and continued after the chain's closure under successor organizers and sponsors.
Outcome. The parade survived the Gimbels brand and continues in successor form.
- Macy's rivalry advertising
United States
Gimbels used its proximity to Macy's and its value-oriented identity to build a highly recognizable competitive narrative. Advertising slogans such as “Select, don't settle” reinforced the company's emphasis on choice and practical value.
Outcome. The rivalry became a lasting element of American retail language and popular culture.
Brand decisions
1986
Dissolve the Gimbels divisionStrategyBackground
BATUS assessed Gimbels as a marginal performer with limited opportunity for improved profitability.
Action taken
The owner closed the remaining Gimbels operation and sold or transferred selected stores and properties to other retailers.
Aftermath
The final Gimbels stores closed during 1986 and 1987, ending the brand's retail operations.
1983
Create Gimbels EastStrategyBackground
The regional structure left separate divisions with their own buying and advertising operations, creating duplicated overhead.
Action taken
BATUS combined the New York, Baltimore, and Philadelphia divisions into Gimbels East.
Aftermath
The consolidation did not reverse the chain's declining prospects, and BATUS decided to dissolve the brand several years later.
1973
Sell Gimbels to Brown & WilliamsonM&ABackground
Gimbels entered a period of conglomerate ownership as Brown & Williamson expanded its retail holdings.
Action taken
Brown & Williamson acquired the company and later managed it through the BATUS retail group.
Aftermath
BATUS reorganized the regional divisions but ultimately concluded that Gimbels lacked sufficient profitability potential.
1923
Acquire Saks & Co.M&ABackground
Gimbels used the capital and scale associated with its public-company structure to broaden its retail portfolio.
Action taken
It purchased Saks & Co., operating the New York business as Saks-34th Street and supporting the development of Saks Fifth Avenue.
Aftermath
Saks became the group's upscale growth vehicle and was eventually separated from Gimbels after the department-store chain was dismantled.
Sources1 sources
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