When people think of Eddie Bauer they think of clothes that are trendy and hip. What they don't realize is the fact that Eddie Bauer is actually a company that is now eighty-eight years old. It's hard to believe but it's true. Eddie Bauer was formed in 1920 as Eddie Bauer's Sports Shop in Seattle, Washington. Eddie Bauer the company's namesake early on focused on apparel for sports and winter clothes. He actually invented the first down parka in 1936. The company even manufactured more than 50,000 B-9 flight parkas for the U.S. Army Air Corps during World War II.
For much of its early history Eddie Bauer focused on the sports and winter apparel segments of the clothing industry. Their clothes would be used to outfit everything from K-2 climbing expeditions to treks across Antarctica.
In 1968 though things could change. That was the year that Eddie Bauer would sell the company to his long time friend and partner William Niemi and his son. That was also the year that the company would open its first store outside of Seattle with San Francisco being chosen as the location.
Under William Niemi the company would also shift its focus. Going from outdoor gear to a broader offering that would feature lifestyle apparel. This would help give the company a broader appeal to consumers.
In 1971 the company was again sold, this time to General Mills. With this stronger backing the company would expand to 61 stores and $250 million in sales by 1988. In 1988 the company was again sold this time to the Spiegel catalog company. They continued the focus on aggressively expanding the company.
Over the next eight years the company would expand to over 300 stores. In addition to expanding their apparel stores the Eddie Bauer name could be found on a number of other items over the years. Everything from cars and trucks through its partnership with Ford Motors to a line of furniture in Eddie Bauer Home.
During the 1990's Eddie Bauer would also begin international expansion with stores opening in Japan, and Germany. In 1996 the company would launch its official website to help it serve customers all over the globe. By 1998 the Eddie Bauer name would be featured on over 600 different stores representing apparel and furniture.
In 2005 Spiegel the owner of Eddie Bauer filed for bankruptcy protection. After selling off all the other assets of the company only the Eddie Bauer portion of the company remained. The company renamed itself Eddie Bauer Holdings Inc. and was able to emerge from bankruptcy protection. And just like its namesake who was an avid adventurer the company fights on. Showing that even after eighty-eight years their spirit is still alive and well.
Friday, 6 February 2009
From Small Business to Big Business - Eddie Bauer Holdings Inc
From Small Business to Big Business - Sears, Roebuck and Co
Often a person is led onto the path of a becoming a successful businessman by a series of fortunate events that transpire. It could be said that Richard Warren Sears stumbled upon just such a path. But once he was on that path he did everything he could to not fall off. In the end he left not just a company but a legacy. So how exactly did it all begin? Amazingly enough it started with a failed scam.
You see apparently in 1886 there had developed a fairly common scam of wholesalers shipping items to retailers in other parts of the country. But the retailer that it was shipped to would never have actually ordered the merchandise. So of course the retailer would refuse the item. Well the wholesaler who had already hiked the price above normal would then offer the items on consignment at a reduced price. He'd justify this by telling the retailer that the cost of shipping these items back would be even worse for the wholesaler. The retailer suddenly thinking he was getting a deal would then agree to the new price and accept the merchandise.
This is how Richard Sears got lucky indeed. A Chicago jeweler was trying to pull just such a scam on a retailer by the name of Edward Stegerson. But Mr. Stegerson was aware of the scam and wasn't about to get taken. So he flatly refused to accept the order. Richard Sears though had learned of the watches and he jumped at the chance since he was able to get them on consignment. After agreeing to pay a price of $12 per watch he then turned around and began to sell them at $14 per watch. By the time he was out of watches he'd made a profit of about $5,000. And with that the R.W. Sears Watch Company was born.
By 1887 Richard Sears found it necessary to move his watch company to Chicago, Illinois. That same year he decided to hire his first employee. A watch repairman by the name of Alvah Curtis Roebuck. By 1893 it was decided that the two should become partners and Sears, Roebuck, and Co. was officially born. That was also the year that the company published its first ever catalog. Previously they had bought ad space in other catalogs of the time. Within four years of that first catalog which had only offered watches they were offering a variety of other goods. Items such as clothing, farm plows, bicycles, silverware and much more could be found inside their catalogs.
Eventually their catalog would grow to 500 pages and be offered to a number of rural customers across the United States. Long before they had department stores they had the catalog which would be eagerly awaited by many of the company's customers. By 1906 they had opened their first catalog plant inside the original Sears Tower.
Richard Warren Sears who would amass a sizable fortune during his lifetime passed away in 1914 at the relatively young age of 50. Alvah Curtis Roebuck who for health reasons left the company for a number of years but eventually returned would live to be 84. He passed away in 1948. When asked to compare his wealth to that amassed by Richard Sears after Mr. Sears had already passed he was quoted as saying. "He's dead, me I never felt better".
It's important in business that we remember our own health. You can have the wealth of a world but if you are not around to enjoy it then it means nothing.Entrepreneurs often work in stressful environments but they fail to pay attention to their health even though a look in a mirror would reveal the truth. Mr. Sears would be proud of the legacy he left but would have probably liked to have enjoyed it longer. You need to make sure you do not sacrifice your health for your business. You want to be around to enjoy your success.
