Harold Alfond
Encyclopedia
Harold Alfond was an American businessman who founded the Dexter Shoe Company and established the first factory outlet store.
, on March 6, 1914, the son of Russian Jewish immigrants, Simon and Rose Alfond. Harold, his brother, David, and four sisters, Anne, Bertha, Gladys and Grace grew up in Swampscott and attended Swampscott schools. In high school, Harold was an outstanding athlete and developed his passion for sports.
, where his father worked. In a short time, he rose from odd shoe boy to factory superintendent. In 1940, Alfond and his father bought a shoe factory in Norridgewock, Maine, and founded Norrwock Shoe Company. They sold the company to Shoe Corp. of America in 1943 and Alfond stayed on as president for 25 years.
In 1956, Alfond left, purchased an old woolen mill in Dexter, Maine
and founded Dexter Shoe Company. There, he produced shoes for the private label
catalog market, supplying stores such as Sears
, JC Penney, Spiegel, and Montgomery Ward & Co.. Although Dexter was successful from the beginning, Alfond tired of being controlled by a few large customers and decided to go into the "branded" business. He developed a line of shoes under the Dexter name, hired a sales force and began selling to independent shoe stores across the country.
Alfond is often credited with the invention of the factory outlet store. Because factories make mistakes, not all shoes come out as first grade. The mistakes are called FDs (factory damaged). The practice in the industry was to sell these FDs to jobbers for about a dollar a pair, who would then resell them for five times their cost. Alfond thought that was a pretty good mark-up so in the 1960s he opened an outlet store at Dexter's Skowhegan factory and started selling his own FDs. Soon, the factories weren't making enough mistakes to supply the store so Harold decided to put in stale inventory (first grade shoes that weren't selling in the wholesale market). This worked so well that Dexter's log cabin style outlet stores started popping up on all the heavily traveled roads throughout New England. Other manufacturers caught on to the idea and as Dexter put up new stores, other manufacturers would open their outlets next door. By the 1990s the Dexter Factory Outlet chain had expanded to over 80 stores. About this time, Dexter also stopped building freestanding log cabins and began leasing stores in outlet malls.
Dexter continued to grow rapidly throughout the 1970s and 1980s, and from time to time corporate suitors came calling to see if they could entice Dexter into a marriage. Many were national retail chains that promised rapid expansion, but would emphasize foreign production and likely, a departure from Dexter’s family style of running the business. Alfond eventually decided to sell to Berkshire Hathaway
, with an agreement to not interfere with the family's continued management of the business. In 1993, Dexter and its affiliates, Pan Am Shoe and Ocsap Ltd., were sold for $433 million in stock; eight years later Warren Buffet decided to fold Dexter into another business, admitting in 2008 that it was "the worst deal that I've made."
He has donated money to various colleges to help improve their sports facilities; for example, the Alfond Arena
and Alfond Stadium
at the University of Maine
, the Harold and Ted Alfond Sports Center at Rollins College
, and the Alfond Center at Saint Joseph's College of Maine
. In December 2003, five years after his $1.65 million donation for the athletic and recreation center, Alfond contributed $1 million to St. Joseph's towards the $10 million needed to build Alfond Hall, the college's primary academic hall.
In 2007, having lived with cancer for 17 years, Alfond donated $7 million to a cancer care center at MaineGeneral Medical Center in Augusta. The center is named the Harold Alfond Center for Cancer Care.
The Alfond Scholarship Foundation introduced the "Harold Alfond College Challenge" in January 2009. Through the program, a $500 grant is given to every Maine resident who enrolls before their first birthday; the money is intended to help Maine families plan for education beyond high school
. As of July 2010, 5,500 babies have been enrolled in the program.
In 1978, a group purchasing the Boston Red Sox
was looking for a Maine sportsman to join them. Alfond was the obvious choice and ever since Dexter has been a limited partner in the franchise. When Dexter was sold to Berkshire Hathaway in 1993, the Alfond family retained its stake in the team, a stake that remains in the hands of two of his sons.
In the 1980s Alfond helped sponsor Kevin Mahaney
in the latter's effort to compete in the Olympics. Mahaney later earned a silver medal in sailing at the 1992 Summer Olympics
.
Along with other investors, Alfond helped create Belgrade Lakes Golf Club, a course close to his summer home. The club has been recognized as among the best public golf course
s in the country. In 2002, Golf Digest
recognized the course as the only five-star public golf course in the Northeast.
One of the grandsons, Justin Alfond
, was elected to the Maine Senate
in 2008.
Early life
Alfond was born in Swampscott, MassachusettsSwampscott, Massachusetts
Swampscott is a town in Essex County, Massachusetts, United States located 15 miles up the coast from Boston in an area known as the North Shore. The population is 13,787...
, on March 6, 1914, the son of Russian Jewish immigrants, Simon and Rose Alfond. Harold, his brother, David, and four sisters, Anne, Bertha, Gladys and Grace grew up in Swampscott and attended Swampscott schools. In high school, Harold was an outstanding athlete and developed his passion for sports.
Founding Dexter Shoes
After graduating from high school in 1934, Alfond got a job at Kesslen Shoe Company in Kennebunk, MaineKennebunk, Maine
Kennebunk is a town in York County, Maine, United States. The population was 1,075 people at the 2000 census. Including Kennebunkport , the population totals 14,196 people...
, where his father worked. In a short time, he rose from odd shoe boy to factory superintendent. In 1940, Alfond and his father bought a shoe factory in Norridgewock, Maine, and founded Norrwock Shoe Company. They sold the company to Shoe Corp. of America in 1943 and Alfond stayed on as president for 25 years.
In 1956, Alfond left, purchased an old woolen mill in Dexter, Maine
Dexter, Maine
Dexter is a town in Penobscot County, Maine, United States. The population was 3,890 at the 2000 census. It is part of the Bangor, Maine metropolitan statistical area...
and founded Dexter Shoe Company. There, he produced shoes for the private label
Private label
Private label products or services are typically those manufactured or provided by one company for offer under another company's brand. Private label goods and services are available in a wide range of industries from food to cosmetics to web hosting...
catalog market, supplying stores such as Sears
Sears, Roebuck and Company
Sears, officially named Sears, Roebuck and Co., is an American chain of department stores which was founded by Richard Warren Sears and Alvah Curtis Roebuck in the late 19th century...
, JC Penney, Spiegel, and Montgomery Ward & Co.. Although Dexter was successful from the beginning, Alfond tired of being controlled by a few large customers and decided to go into the "branded" business. He developed a line of shoes under the Dexter name, hired a sales force and began selling to independent shoe stores across the country.
Alfond is often credited with the invention of the factory outlet store. Because factories make mistakes, not all shoes come out as first grade. The mistakes are called FDs (factory damaged). The practice in the industry was to sell these FDs to jobbers for about a dollar a pair, who would then resell them for five times their cost. Alfond thought that was a pretty good mark-up so in the 1960s he opened an outlet store at Dexter's Skowhegan factory and started selling his own FDs. Soon, the factories weren't making enough mistakes to supply the store so Harold decided to put in stale inventory (first grade shoes that weren't selling in the wholesale market). This worked so well that Dexter's log cabin style outlet stores started popping up on all the heavily traveled roads throughout New England. Other manufacturers caught on to the idea and as Dexter put up new stores, other manufacturers would open their outlets next door. By the 1990s the Dexter Factory Outlet chain had expanded to over 80 stores. About this time, Dexter also stopped building freestanding log cabins and began leasing stores in outlet malls.
Dexter continued to grow rapidly throughout the 1970s and 1980s, and from time to time corporate suitors came calling to see if they could entice Dexter into a marriage. Many were national retail chains that promised rapid expansion, but would emphasize foreign production and likely, a departure from Dexter’s family style of running the business. Alfond eventually decided to sell to Berkshire Hathaway
Berkshire Hathaway
Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States, that oversees and manages a number of subsidiary companies. The company averaged an annual growth in book value of 20.3% to its shareholders for the last 44 years,...
, with an agreement to not interfere with the family's continued management of the business. In 1993, Dexter and its affiliates, Pan Am Shoe and Ocsap Ltd., were sold for $433 million in stock; eight years later Warren Buffet decided to fold Dexter into another business, admitting in 2008 that it was "the worst deal that I've made."
Philanthropy
In order to coordinate his charitable giving, the 36-year-old Alfond organized the first private foundation in the state of Maine, the Harold Alfond Foundation. Between 1950 and 2003, the foundation has contributed more than $100 million to charitable causes, and as of 2008 has over $106 million in assets.He has donated money to various colleges to help improve their sports facilities; for example, the Alfond Arena
Alfond Arena
Alfond Arena is a 5,712-seat multi-purpose arena in Orono, Maine, USA. The arena opened in 1977. It is home to the University of Maine Black Bears ice hockey and basketball teams. It is recognizable for its distinctive multi-angular roof design, which was also used in the Pavilion at Villanova...
and Alfond Stadium
Alfond Stadium (University of Maine)
Morse Field at Harold Alfond Sports Stadium is a 10,000-seat multi-purpose stadium in Orono, Maine. It opened in 1998. It is home to the University of Maine Black Bears football team. It replaced Alumni Stadium which was demolished in 1997 for safety reasons. The stadium is named for Harold...
at the University of Maine
University of Maine
The University of Maine is a public research university located in Orono, Maine, United States. The university was established in 1865 as a land grant college and is referred to as the flagship university of the University of Maine System...
, the Harold and Ted Alfond Sports Center at Rollins College
Rollins College
Rollins College is a private, coeducational liberal arts college located in Winter Park, Florida , along the shores of Lake Virginia....
, and the Alfond Center at Saint Joseph's College of Maine
Saint Joseph's College of Maine
Saint Joseph’s College of Maine is a Catholic liberal arts college in Standish, Maine that grants bachelor's degrees in a traditional on-campus setting, as well as bachelor’s and master’s degrees via online education. The college’s campus in southern Maine is located on the shores of Sebago Lake,...
. In December 2003, five years after his $1.65 million donation for the athletic and recreation center, Alfond contributed $1 million to St. Joseph's towards the $10 million needed to build Alfond Hall, the college's primary academic hall.
In 2007, having lived with cancer for 17 years, Alfond donated $7 million to a cancer care center at MaineGeneral Medical Center in Augusta. The center is named the Harold Alfond Center for Cancer Care.
The Alfond Scholarship Foundation introduced the "Harold Alfond College Challenge" in January 2009. Through the program, a $500 grant is given to every Maine resident who enrolls before their first birthday; the money is intended to help Maine families plan for education beyond high school
High school
High school is a term used in parts of the English speaking world to describe institutions which provide all or part of secondary education. The term is often incorporated into the name of such institutions....
. As of July 2010, 5,500 babies have been enrolled in the program.
Investments in sports
In addition to his donations to colleges for improvements to their sports facilities, Alfond demonstrated his support of sports in other ways.In 1978, a group purchasing the Boston Red Sox
Boston Red Sox
The Boston Red Sox are a professional baseball team based in Boston, Massachusetts, and a member of Major League Baseball’s American League Eastern Division. Founded in as one of the American League's eight charter franchises, the Red Sox's home ballpark has been Fenway Park since . The "Red Sox"...
was looking for a Maine sportsman to join them. Alfond was the obvious choice and ever since Dexter has been a limited partner in the franchise. When Dexter was sold to Berkshire Hathaway in 1993, the Alfond family retained its stake in the team, a stake that remains in the hands of two of his sons.
In the 1980s Alfond helped sponsor Kevin Mahaney
Kevin Mahaney
Kevin P. Mahaney is a former American competitive sailor who won a silver medal at the 1992 Olympic Games in Barcelona.-Career:...
in the latter's effort to compete in the Olympics. Mahaney later earned a silver medal in sailing at the 1992 Summer Olympics
Sailing at the 1992 Summer Olympics
Sailing/Yachting is a Olympic sport starting from the Games of the 1st Olympiad . With the exception of 1904 and possible 1916 sailing was always a part of the Olympic program....
.
Along with other investors, Alfond helped create Belgrade Lakes Golf Club, a course close to his summer home. The club has been recognized as among the best public golf course
Golf course
A golf course comprises a series of holes, each consisting of a teeing ground, fairway, rough and other hazards, and a green with a flagstick and cup, all designed for the game of golf. A standard round of golf consists of playing 18 holes, thus most golf courses have this number of holes...
s in the country. In 2002, Golf Digest
Golf Digest
Golf Digest is a monthly golf magazine published by Condé Nast Publications in the United States. It is a generalist golf publication covering recreational golf and men's and women's competitive golf. Condé Nast Publications also publishes the more specialized , and Golf World Business. The...
recognized the course as the only five-star public golf course in the Northeast.
Family life
Alfond married Dorothy Levine in 1943; they raised four children: Ted, Susan, Bill, and Peter who grew to provide them with thirteen grandchildren. Dorothy Alfond died in December 2005.One of the grandsons, Justin Alfond
Justin Alfond
Justin Loring Alfond is a Democratic State Senator from Maine's 8th District. He was first elected to the Maine State Senate in 2008. He attended schools in Waterville and Dexter prior to moving to Boston, Massachusetts to complete high school. He then attended Tulane University in New Orleans,...
, was elected to the Maine Senate
Maine Senate
The Maine Senate is the upper house of the Maine Legislature, the state legislature of the U.S. state of Maine. The Senate currently consists of 35 members representing an equal number of districts across the state, though the Maine Constitution allows for "an odd number of Senators, not less than...
in 2008.