Hills Department Stores
Encyclopedia
Hills Department Store was a Canton, Massachusetts
, based discount department store
chain. It was founded in 1957 in Youngstown, Ohio
, and existed until 1999 when it was acquired by Ames. Most stores were located in Ohio, Indiana, New York, Pennsylvania and West Virginia, though the company had made a push into other economies in the 1980s. It pushed further south and had several stores in Tennessee and Alabama and west into Michigan.
Herbert H. Goldberger, the founder of Hills, sold the chain to SCOA Industries, (Shoe Company of America), of Columbus, Ohio
, in 1964. He remained as president of Hills until 1981, when his son succeeded him. Goldberger was the vice president and director of SCOA when, in 1985, he led a management buyout
of Hills.
Hills went public
in 1987, becoming the nation's eighth-largest discount retailer. In November 1990, Goldberger's son resigned, according to a Hills statement, and was replaced by Jack Brouillard. Goldberger's resignation from his family business surprised some observers. He had been the chain's president and CEO since 1981, and assumed the role of board chairman when his father died in 1987. Stephen Goldberger also introduced several other changes, including acceptance of credit card
s and rollout of UPC
scanning.
In 1989, Hills bought 35 of the Worthington
, Ohio
,-based Gold Circle
locations. In the New York
& Ohio
area, many of these locations had previously been Twin Fair, Inc.
, stores prior to 1982.
Hills had its own private label under which various goods were marketed. It was called "American Spirit".
in February 1991, and the number of stores declined, from 214 to 151. Hills' financial woes date back to its 1985 leveraged buyout from the Shoe Corporation of America which saddled it with debt. The LBO was valued at $640 million. Debt mounted again in 1987 when Hills went public. The situation was further aggravated in 1989 when Hills acquired 33 former Gold Circle stores. A difficult economy followed by a recession in 1990-1991 dealt the chain a crushing blow.
Michael Bozic was brought in as President and CEO of Hills to revive the company. He had spent 27 years with Sears and had been the head of the Sears Merchandising Group. Stores were remodeled, scheduled opening of distribution centers beginning in 1991, and the introduction of a new store prototype in 1991. Hills had a large toy section that accounted for more than 10% of sales throughout the year. Hills achieved a notable recovery from bankruptcy in 1993 as Hills Stores Company.
Dickstein resigned his post Feb. 8, 1996, replaced as chairman by Chaim Edelstein, a former chairman of A&S Department Stores. Dickstein's resignation as chairman was joined by that of Jack Smailes, president and CEO, who was replaced by Gregory Raven, who formerly served as chief financial officer of Revco Drug Stores. The 164-unit discounter then announced it would seek to acquire other regional discounters in the quest to become a larger, stronger operator.
It was a difficult two years for Greg Raven and Hills. Completely new systems were instituted. "We're taking every system we have and throwing them away" Raven said. The new focus would be on merchandising systems, new financial systems, human resources, payroll, payables and eventually a new warehouse management system. A reset of the hardlines section was completed, which included lopping off 4 ft. from the end of the gondola runs to create a power aisle with pallet presentations of "good values."
In December 1998, Ames acquired Hills. At that time Hills was operating 155 stores, covering 12 states, and employing in excess of 20,000 employees. Headquarters were in Canton, Massachusetts
. With the Hills acquisition, Ames expanded from 301 to 456 stores and became the nation's fourth-largest discount chain behind Wal-Mart
, Kmart
, and Target
. Almost all Hills stores were renamed Ames by the end of 1999, even in markets where Ames and Hills overlapped. Most of the overlap was in the Pittsburgh region, where Ames had acquired the G. C. Murphy
chain based in the Pittsburgh suburb of McKeesport
in 1985 and was an adjacent market to Hills' original market of Youngstown.
"Hills is the place for kids."
"When you really need a low price, Hills has it every day."
"Hills is GREAT for gifts."
"Christmas wishes come true at Hills."
"Hills is where the toys are."
"The anti-inflation department store."
"We're a different kind of department store- you oughta be shopping Hills! (Check us out!)"
Canton, Massachusetts
Canton is a town in Norfolk County, Massachusetts, United States. The population was 21,561 at the 2010 census. Canton is part of Greater Boston, about 15 miles southwest of downtown Boston.- History :...
, based discount department store
Department store
A department store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories...
chain. It was founded in 1957 in Youngstown, Ohio
Youngstown, Ohio
Youngstown is a city in the U.S. state of Ohio and the county seat of Mahoning County; it also extends into Trumbull County. The municipality is situated on the Mahoning River, approximately southeast of Cleveland and northwest of Pittsburgh, Pennsylvania...
, and existed until 1999 when it was acquired by Ames. Most stores were located in Ohio, Indiana, New York, Pennsylvania and West Virginia, though the company had made a push into other economies in the 1980s. It pushed further south and had several stores in Tennessee and Alabama and west into Michigan.
Beginning
In the late 1950s, Hills stores were full-fledged department stores (as opposed to the discount department stores the chain later became known for).Herbert H. Goldberger, the founder of Hills, sold the chain to SCOA Industries, (Shoe Company of America), of Columbus, Ohio
Columbus, Ohio
Columbus is the capital of and the largest city in the U.S. state of Ohio. The broader metropolitan area encompasses several counties and is the third largest in Ohio behind those of Cleveland and Cincinnati. Columbus is the third largest city in the American Midwest, and the fifteenth largest city...
, in 1964. He remained as president of Hills until 1981, when his son succeeded him. Goldberger was the vice president and director of SCOA when, in 1985, he led a management buyout
Management buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.- Overview :Management buyouts are similar in all major legal aspects to any other acquisition of a company...
of Hills.
Hills went public
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
in 1987, becoming the nation's eighth-largest discount retailer. In November 1990, Goldberger's son resigned, according to a Hills statement, and was replaced by Jack Brouillard. Goldberger's resignation from his family business surprised some observers. He had been the chain's president and CEO since 1981, and assumed the role of board chairman when his father died in 1987. Stephen Goldberger also introduced several other changes, including acceptance of credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
s and rollout of UPC
Universal Product Code
The Universal Product Code is a barcode symbology , that is widely used in North America, and in countries including the UK, Australia, and New Zealand for tracking trade items in stores. Its most common form, the UPC-A, consists of 12 numerical digits, which are uniquely assigned to each trade item...
scanning.
In 1989, Hills bought 35 of the Worthington
Worthington
-Places:In England:*Worthington, Greater Manchester*Worthington, LeicestershireIn the United States:*Worthington, Indiana*Worthington, Iowa*Worthington, Kentucky, a city in Greenup County*Worthington, Louisville, Kentucky, a neighborhood...
, Ohio
Ohio
Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...
,-based Gold Circle
Gold Circle
Gold Circle was a discount department store chain based in Ohio. Founded in 1967, it was a division of Federated Department Stores with 76 stores when the chain was sold and dismantled in 1988...
locations. In the New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
& Ohio
Ohio
Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...
area, many of these locations had previously been Twin Fair, Inc.
Twin Fair, Inc.
The Twin Fair, Inc. was a discount department store chain based in Buffalo, New York. It was incorporated on March 22, 1956, and the first store opened on Walden Avenue. By 1959, four stores were in operation and sales stood at $2.5 million. In 1962, the founders sold the company to Unexcelled...
, stores prior to 1982.
Hills had its own private label under which various goods were marketed. It was called "American Spirit".
Bankruptcy & Recovery
Hills filed for Chapter 11 bankruptcy protectionBankruptcy in the United States
Bankruptcy in the United States is governed under the United States Constitution which authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States." Congress has exercised this authority several times since 1801, most recently by adopting the Bankruptcy...
in February 1991, and the number of stores declined, from 214 to 151. Hills' financial woes date back to its 1985 leveraged buyout from the Shoe Corporation of America which saddled it with debt. The LBO was valued at $640 million. Debt mounted again in 1987 when Hills went public. The situation was further aggravated in 1989 when Hills acquired 33 former Gold Circle stores. A difficult economy followed by a recession in 1990-1991 dealt the chain a crushing blow.
Michael Bozic was brought in as President and CEO of Hills to revive the company. He had spent 27 years with Sears and had been the head of the Sears Merchandising Group. Stores were remodeled, scheduled opening of distribution centers beginning in 1991, and the introduction of a new store prototype in 1991. Hills had a large toy section that accounted for more than 10% of sales throughout the year. Hills achieved a notable recovery from bankruptcy in 1993 as Hills Stores Company.
Takeover & The Ames Acquisition
CEO Michael Bozic resigned, along with most of the senior executives, July 5, 1995, ending a tumultuous two-year siege for control of the regional discounter by Dickstein Partners, Hill's largest stockholder. Bozic was replaced by Jack Smailes, formerly the company's executive VP, GMM.Dickstein resigned his post Feb. 8, 1996, replaced as chairman by Chaim Edelstein, a former chairman of A&S Department Stores. Dickstein's resignation as chairman was joined by that of Jack Smailes, president and CEO, who was replaced by Gregory Raven, who formerly served as chief financial officer of Revco Drug Stores. The 164-unit discounter then announced it would seek to acquire other regional discounters in the quest to become a larger, stronger operator.
It was a difficult two years for Greg Raven and Hills. Completely new systems were instituted. "We're taking every system we have and throwing them away" Raven said. The new focus would be on merchandising systems, new financial systems, human resources, payroll, payables and eventually a new warehouse management system. A reset of the hardlines section was completed, which included lopping off 4 ft. from the end of the gondola runs to create a power aisle with pallet presentations of "good values."
In December 1998, Ames acquired Hills. At that time Hills was operating 155 stores, covering 12 states, and employing in excess of 20,000 employees. Headquarters were in Canton, Massachusetts
Canton, Massachusetts
Canton is a town in Norfolk County, Massachusetts, United States. The population was 21,561 at the 2010 census. Canton is part of Greater Boston, about 15 miles southwest of downtown Boston.- History :...
. With the Hills acquisition, Ames expanded from 301 to 456 stores and became the nation's fourth-largest discount chain behind Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
, Kmart
Kmart
Kmart, sometimes styled as "K-Mart," is a chain of discount department stores. The chain acquired Sears in 2005, forming a new corporation under the name Sears Holdings Corporation. The company was founded in 1962 and is the third largest discount store chain in the world, behind Wal-Mart and...
, and Target
Target Corporation
Target Corporation, doing business as Target, is an American retailing company headquartered in Minneapolis, Minnesota. It is the second-largest discount retailer in the United States, behind Walmart. The company is ranked at number 33 on the Fortune 500 and is a component of the Standard & Poor's...
. Almost all Hills stores were renamed Ames by the end of 1999, even in markets where Ames and Hills overlapped. Most of the overlap was in the Pittsburgh region, where Ames had acquired the G. C. Murphy
G. C. Murphy
G.C. Murphy is a defunct chain of five and dime or variety stores in the United States.- Origins of chain :The chain was founded in 1906 in the Pittsburgh suburb of McKeesport, Pennsylvania, by George Clinton Murphy. Murphy had gotten his start in retail as a manager of a McCrory's store in 1896...
chain based in the Pittsburgh suburb of McKeesport
McKeesport, Pennsylvania
McKeesport is a city in Allegheny County, Pennsylvania, in the United States; it is located at the confluence of the Monongahela and Youghiogheny rivers and is part of the Pittsburgh Metro Area. The population was 19,731 at the 2010 census...
in 1985 and was an adjacent market to Hills' original market of Youngstown.
Slogans
"According to legend, little folk know, Hills is where the toys are!""Hills is the place for kids."
"When you really need a low price, Hills has it every day."
"Hills is GREAT for gifts."
"Christmas wishes come true at Hills."
"Hills is where the toys are."
"The anti-inflation department store."
"We're a different kind of department store- you oughta be shopping Hills! (Check us out!)"