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Lechmere[a] was an American retail store chain founded in 1913 by Abraham Cohen. The name was inspired by the Lechmere Square part of Cambridge, Massachusetts where the first store was located. It originated as a harness shop, and evolved to include tires, electronics, and general merchandise. Most stores were located in New England, although there were some locations in Alabama, Georgia, New York, and North Carolina. Lechmere was shuttered with the bankruptcy and liquidation of parent company Montgomery Ward in 1997.

Key Information

History

[edit]

The origins of the chain date to 1913, when Russian immigrant and founder Abraham Cohen purchased a harness shop in Cambridge, Massachusetts.[1][2] Cohen subsequently renamed it Lechmere Harness Shop for the district of Cambridge it was located in, Lechmere.[2] As the automobile rose in popularity over the next decade, the store began selling tires and was renamed Lechmere Vulcanizing Company.[2] When his children—sons Maurice, Philip, and Norman and daughter Nan—entered the business after World War II, it added sales of consumer appliances. In 1948, the company was renamed Lechmere Tire & Sales Company, and was incorporated.[2] Household goods, televisions, and other goods were added to the merchandising mix in the 1950s, as were luggage, sporting goods, toys, and lawn and garden accessories.

A 1962 Lechmere advertisement for a transistor radio

The first store moved to a former bus garage on 88 First Street in Cambridge in 1956, furthering the expansion of the merchandise mix. Lechmere also began advertising on television in the 1950s, and ended all of its prices in 88 to represent the store's address.[2] The First Street building was expanded in 1962 to a 100,000 square feet (9,300 m2) store, to which office equipment, jewelry, hardware, and further goods were added. A second store later opened on November 1, 1965 in Dedham.[3]

Acquisition by Dayton's

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In 1968, in order to capitalize further growth, the Cohens sold the chain to Dayton's, a department store based in Minneapolis, Minnesota.[4] The new parent company became Dayton Hudson Corporation soon after the purchase, and is now Target Corporation. Dayton maintained Lechmere as a separate subsidiary and mostly left its operations in the Cohens' hands. With Dayton Hudson's resources now behind it, Lechmere opened stores in Danvers and Springfield.[2] Their long-standing logo was introduced in fall 1970 and used until store closure.[5][6]

The Cohens retained day-to-day control of the chain until the mid-1970s. With the Cohens' retirement, Lechmere's merchandise mix changed to a discount department store line. Due to declining sales, the chain began cutting prices as well. Stores in Manchester, New Hampshire, and Framingham, Massachusetts, were added in 1977 and 1978, respectively.[2]

Lechmere introduced many retailing innovations, including discount pricing and a central pick-up counter to make shopping easier for customers. The merchandising strategy included offering items at many different price points to offer something for every customer and prices on major appliances listed in code so that customers would have to talk to a salesperson to find out the cost. Every year on Washington's Birthday, Lechmere had a sale, which featured 22-cent cherry pies to draw customers.[7]

Despite the opening of new stores, Lechmere's sales continued to decline, until when C. George Scala was named CEO in 1980.[8] He changed the merchandise mix again to housewares, appliances, sporting goods, electronics, and music.[citation needed] In 1981, the company name was simplified to Lechmere, Inc.[2] It also began expanding outside its New England base, including locations such as Charlotte, North Carolina, Birmingham, Alabama, and Atlanta, Georgia.[9][10] From 1983 to 1988, annual sales grew from $200 million to over $700 million, while operating profit grew from $19 million to $22 million, in approximate figures.[11]

Decline and liquidation

[edit]

Berkshire Partners and Boston-based mall developers Steve Karp and Steve Wiener bought the chain from Dayton Hudson in 1989.[12] As a condition of this sale, stores in the Southeastern United States were closed.[13] In 1992, the company successfully went to the Supreme Court in Lechmere, Inc. v. NLRB to block union organizers from being on their property. Berkshire Partners sold Lechmere to Montgomery Ward Holdings in 1994, in a deal worth more than $200 million (~$383 million in 2024).[14]

On August 1, 1997, Montgomery Ward announced that all Lechmere stores were to be closed as part of their bankruptcy reorganization. At the time of the chain's closing, 27 stores remained open, including 20 in New England, 12 of which were in Massachusetts.[15] All six "Home Image by Lechmere" stores were also closed at that time.[16] November 7, 1997, was the last day of business for all locations.[17]

Notes

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References

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Lechmere

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from Grokipedia
Lechmere was an American retail chain specializing in consumer electronics, appliances, hardware, and other consumer goods, operating primarily in New England from its founding in 1913 until its closure in 1997. Originally established by Abraham Cohen as a harness shop for horse-drawn carriages in Cambridge, Massachusetts—named after the nearby Lechmere Square—the business adapted to the rise of automobiles by shifting to tire sales in the 1920s before expanding into electrical appliances and radios during the postwar economic boom. By the 1950s and 1960s, Lechmere had pioneered a discount retail model that emphasized low prices and broad selection, growing into one of the region's leading appliance dealers with a reputation for putting traditional department stores under competitive pressure. The family-owned enterprise, initially led by the Cohen family, went public in the 1970s, enabling rapid expansion to 24 stores across and into New York by the 1990s, where it maintained a loyal customer base through aggressive pricing and eclectic product offerings. Acquired by in the mid-1990s, Lechmere's operations ceased in 1997 amid the parent company's bankruptcy filing, marking the end of a significant chapter in regional discount retailing.

Founding and Early History

Origins and Initial Operations

Lechmere originated in 1913 when Abraham Cohen, a Russian immigrant who had settled in Massachusetts, purchased the harness-making shop in Cambridge where he was employed. Cohen named the business Lechmere Harness Shop after the nearby Lechmere Square district. Initially focused on crafting and repairing horse harnesses for carriages, the operation catered to local transportation needs in an era when automobiles were still emerging. As horse-drawn vehicles declined with the rise of automobiles in the and , Lechmere adapted by pivoting to automotive accessories, particularly tire sales and services for tire repair. The company rebranded as Lechmere Vulcanizing Company during this period, reflecting its emphasis on rubber products essential for early cars. This shift capitalized on growing demand for vehicle maintenance, with the single location serving as the core of operations without significant expansion at the time. By the mid-1940s, following , Lechmere began incorporating small electrical appliances into its inventory alongside tires and batteries, marking an early diversification into consumer goods. In 1945, Abraham Cohen partnered with his sons Maurice, Norman, and Philip to manage the business, which was formally incorporated in 1948 as Lechmere Tire & Sales Company. These initial operations remained centered on a practical, service-oriented model in , prioritizing affordability and utility for working-class customers in the area.

Transition to Retail Expansion

Following , Lechmere transitioned from its core auto tire and repair focus by incorporating small appliances into its offerings, driven by the Cohen family's involvement after Maurice, Norman, and Philip Cohen joined the business in 1945. The company formalized this evolution in 1948 through incorporation as Lechmere Tire & Sales Company, reflecting a broadening scope while retaining automotive roots. In the early 1950s, Lechmere further diversified its merchandise to include household goods such as televisions, cameras, and toys, adopting a high-volume, low-margin discount model with innovations like the "pick-up counter" system for efficient . This shift capitalized on postwar consumer demand for durable goods and positioned the retailer as an early discount house amid rising competition from traditional department stores. By the end of 1952, annual sales had reached $2 million, underscoring the viability of this expanded assortment. A pivotal physical expansion occurred in 1956 when Lechmere relocated its flagship store to a former bus garage at 88 First Street, enabling a larger footprint and addition of categories like records, jewelry, and sporting goods. This move supported the eclectic merchandise mix and strategies emphasized by the Cohen family, who maintained hands-on management. The 1960s marked the onset of multi-store growth, with a modernized 100,000-square-foot facility opening at the First Street location in 1963, followed by the first branch store in , in 1965—Lechmere's initial venture beyond . By 1967, plans for three additional outlets signaled accelerating retail footprint ambitions, though capital constraints later prompted a 1969 sale to the Dayton Corporation to fuel further development. This phase established Lechmere as a regional discount retailer, blending auto origins with comprehensive and general merchandise.

Growth and Operations

Postwar Development and Store Format

Following World War II, Lechmere shifted its focus from harnesses and tires to retailing electrical appliances amid rising postwar consumer demand for household goods. In 1946, after the Cohen brothers returned from military service, the company remodeled its Cambridge facility into a 6,000-square-foot showroom specializing in items like refrigerators, washing machines, and toasters. By 1952, annual sales had grown to $2 million, reflecting rapid expansion through increased display space and a broader selection of products in the early . In 1958, Lechmere relocated its store to a 30,000-square-foot former garage at 88 First Street in East Cambridge, solidifying its position as one of Boston's three largest appliance dealers alongside and . Sales reached $9 million in 1957, bolstered by a 23 percent increase the following year despite economic , aided by the decline of pricing laws that had previously restricted discounts. Lechmere pioneered the format in the area during the 1950s, emphasizing low profit margins, high , and aggressive pricing below manufacturer list prices. The stores featured large, open showroom layouts with extensive rows of displayed appliances and electronics, supported by heavy promotion through radio, television, billboards, and direct mail campaigns. This model targeted value-conscious shoppers, evolving from a single location to multiple outlets by the mid-1960s, with the second store opening in Dedham in 1965.

Merchandise Focus and Business Model

Lechmere's merchandise focus centered on , major appliances, housewares, and sporting goods, with categories including televisions, , video products, personal computers, items, and seasonal equipment. Postwar expansion in the introduced small appliances, cameras, toys, and luggage alongside core electronics and appliances, shifting from earlier and harness sales to a broader discount assortment. The emphasized high-volume, low-margin discount retailing, targeting value-oriented customers through efficient operations and innovations like the central pick-up counter, which allowed browsing followed by consolidated checkout to minimize staffing costs. Signature pricing strategies, such as endings in $X.88, signaled affordability and were adopted in the to attract shoppers. By the late 1970s, Lechmere implemented dramatic price cuts to stimulate sales amid competition, while the 1980s saw streamlining to communication, entertainment, recreation, and information products, including supplies. In January 1982, the company closed non-core departments including jewelry, food, automotive, books, and accessories to refocus on original strengths in and appliances. Store formats evolved to large, multi-floor showrooms—reaching 100,000 square feet by 1963—and later standardized at around 60,000 square feet in 1987 prototypes, supporting warehouse-style layouts for volume-driven sales. This approach positioned Lechmere as a regional pioneer in big-box discount electronics retailing, prioritizing lifestyle enhancement through accessible technology and home goods over premium service.

Geographic Expansion and Peak Presence

Lechmere's geographic expansion accelerated following its acquisition by Dayton Hudson Corporation in 1968, transitioning from a single flagship store in , to a regional chain. The first store outside Cambridge opened in , in 1965, with additional Massachusetts locations in Danvers and Springfield following in 1971, Framingham in 1978, and Woburn and Seekonk in 1984. Entry into neighboring states began in 1977 with a store in , and continued with a location in , in 1992. In the mid-1980s, Lechmere pursued aggressive growth beyond , opening stores in Atlanta, Georgia, by 1986; , Clearwater, and , in 1987; and , in 1989. This southern push marked the chain's broadest geographic footprint, spanning nine states at its height. However, operational difficulties in the Southeast prompted a strategic retreat, with the closure of eight out of ten regional stores announced in October 1989, including the , location. Further northeastern expansion occurred in 1991 with stores in Syracuse and . The chain reached its peak presence in 1988, operating 27 stores across multiple states, primarily concentrated in but with outposts in , , New York, and remnants of southern operations before the retrenchment. This expansion reflected ambitions to compete nationally in and appliances, though subsequent challenges limited sustained growth outside the Northeast.

Ownership Changes and Challenges

Management Buyout and Restructuring Attempts

In 1989, Lechmere Inc. was acquired in a by , a Boston-based investment firm, in with senior company executives, valuing the transaction at approximately $180 million. This management-led deal followed a period of aggressive expansion into markets beyond , including the mid-Atlantic region, where underperforming stores had strained profitability amid intensifying competition from national chains like and . The allowed executives greater operational to implement cost-cutting measures without public market pressures. Post-buyout restructuring focused on retrenchment to core competencies, including the closure of several out-of-region outlets opened in the mid-1980s, such as locations in and , to redirect resources toward New England strongholds where Lechmere held . Management emphasized inventory optimization, emphasizing and appliances—categories that comprised over 60% of —and vendor negotiations to improve margins, which had dipped below 4% in peripheral markets. These efforts temporarily stabilized finances, with same-store growth resuming in the early , though persistent challenges from discounting rivals limited long-term viability. By 1994, despite these initiatives, mounting debt from the leveraged structure and subdued growth prompted to divest Lechmere to for $185 million, marking the end of independent operations under the buyout group. The restructuring phase highlighted vulnerabilities in Lechmere's hybrid discount-department store model, unable to fully counter scale advantages of larger competitors, though it preserved the chain's regional footprint until broader retail consolidation.

Acquisition by Montgomery Ward

In February 1994, & Co., a Chicago-based chain, agreed to acquire Lechmere Inc., a New England electronics and appliance retailer owned by , an investment firm. The deal was valued at approximately $113 million in cash, with also assuming about $91 million in Lechmere's outstanding debt. Lechmere, which operated 22 stores primarily in , , and , reported record sales of $800 million in fiscal 1993, reflecting its established position in the regional market for , appliances, and home goods. The acquisition aimed to bolster 's expansion into the Northeast, where it lacked a significant footprint, by leveraging Lechmere's established store network and customer base. , under CEO Bernard Brennan, viewed the purchase as a strategic move to diversify its portfolio amid competitive pressures from discounters like and Target, integrating Lechmere's specialty retail model with Ward's broader merchandise offerings. The transaction closed later that year, marking Lechmere's transition from independent operation—following a 1989 from grocery conglomerate —to status under a national retailer. Post-acquisition, Lechmere continued operating under its own brand initially, with implementing shared and marketing synergies to improve .

Factors Contributing to Decline

Lechmere faced intensifying competition from national electronics retailers such as and during the late 1980s and early 1990s, which eroded its regional in appliances and . This pressure was compounded by a strategic shift in the toward lower-quality discount merchandise following the departure of founder Abraham Cohen, diluting the chain's reputation for unique, higher-end goods and contributing to stagnant sales growth. Expansion efforts also faltered, notably a failed push into Southern markets that resulted in the closure of eight out of ten stores in December 1989, eliminating 1,200 jobs and straining finances. Despite achieving sales of $636.3 million in 1987 and $627 million by the end of 1990, profitability remained flat amid low margins, recessionary conditions, and competitive discounting. These challenges culminated in Lechmere's acquisition by in February 1994 for $100 million plus assumption of $106 million in debt, as the chain sought stability under a larger parent. Post-acquisition, Montgomery Ward's mismanagement accelerated Lechmere's downturn. A flawed computer system conversion to Ward's infrastructure led to frequent pricing scanner errors, with overcharges occurring in more than one-third of transactions, rapidly alienating loyal customers. The subsequent relocation of Lechmere's headquarters to in January 1996, accompanied by 150 layoffs, further disrupted operations and eroded local responsiveness. Ward's broader issues, including executive turnover and strategic missteps that produced a $237 million loss in 1996, transmitted financial distress to Lechmere, culminating in the parent's Chapter 11 bankruptcy filing in July 1997 and the closure of all 27 Lechmere stores shortly thereafter.

Liquidation and Aftermath

Bankruptcy Proceedings

On July 7, 1997, Lechmere, Inc., as an affiliated entity of Holding Corp., filed a voluntary for reorganization under Chapter 11 of the U.S. Code in the U.S. Bankruptcy Court for the District of , alongside and other subsidiaries. This filing stemmed from 's broader financial distress, with the company citing over $1.3 billion in assets and $1.6 billion in liabilities at the time. In August 1997, the bankruptcy court approved Montgomery Ward's motion to divest non-core specialty retail operations, designating —along with Home Image by Lechmere and Jefferson Ward—as units to be exited through closure and liquidation rather than reorganization. This decision facilitated the shutdown of all 44 Lechmere stores, announced publicly on August 1, 1997, as part of efforts to streamline operations and focus on core catalog and retail segments. The approval allowed for going-out-of-business sales, with inventory liquidated to generate cash for creditors while rejecting certain leases and contracts associated with Lechmere locations. The liquidation process under the Chapter 11 framework prioritized secured creditors, including Capital Corp., which had extended secured against Lechmere assets. By November 1997, all Lechmere operations ceased, with proceeds from asset sales—primarily merchandise, fixtures, and real estate interests—distributed pursuant to bankruptcy priorities, though specific recovery details for unsecured creditors remained limited due to the chain's subordinate status within the estate. No standalone Chapter 7 liquidation was pursued for Lechmere; instead, its wind-down integrated into Montgomery Ward's restructuring, which ultimately failed, leading to Ward's own Chapter 11 refiling in 2000.

Store Closures and Asset Sales

In August 1997, Holding Corp., operating under Chapter 11 bankruptcy protection filed on July 7, 1997, announced plans to shutter its 27 stores as part of divesting non-core specialty retail operations, alongside six Home Image by outlets and 11 stores. The move aimed to streamline operations amid $1.4 billion in debt, with 's underperformance cited as a factor in the broader restructuring. On August 14, 1997, the U.S. Bankruptcy Court approved Montgomery Ward's motion to exit these businesses, including the sale of inventory, fixtures, and related assets from 33 Lechmere-affiliated stores to an Ohio-based liquidator for $160.7 million. This transaction facilitated organized going-out-of-business sales rather than abrupt shutdowns, with the liquidator managing the disposition of merchandise to recover value for creditors. Liquidation sales commenced on August 17, , drawing large crowds seeking discounts on , appliances, and other goods typical of Lechmere's discount format. The process lasted approximately three months, with all 27 Lechmere stores completing closures by November 8, , ending 84 years of operations and resulting in the of remaining inventory through these markdown events. No significant assets were sold in this phase, as most Lechmere locations operated under leases, though equipment and leasehold improvements were included in the liquidator's acquisition.

Lechmere v.

In 1988, nonemployee organizers from Local 919 of the Union entered the of Lechmere's retail store in a shopping plaza in , to distribute handbills soliciting support for among the store's approximately 200 employees. The organizers placed leaflets on vehicle windshields and targeted arriving and departing workers, prompting Lechmere security to summon police, after which the organizers departed but were subsequently barred from returning to the . Lechmere maintained that the parking lot, co-owned with the plaza and separated from public roads by a 46-foot grassy strip, constituted private premises where such access was unauthorized. The union filed an charge with the (NLRB), alleging that Lechmere's exclusion of the organizers violated section 8(a)(1) of the National Labor Relations Act (NLRA) by interfering with employees' section 7 rights to . An ruled in the union's favor, a decision affirmed by the NLRB, which applied a balancing test from its prior Jean Country decision to weigh the organizers' need for access against Lechmere's property interests, concluding that no reasonable alternative means existed to communicate with the employees. The U.S. Court of Appeals for the First Circuit enforced the NLRB's order, upholding the access requirement. The granted and reversed in a 5-4 decision on January 27, 1992, holding that Lechmere did not commit an by barring the nonemployee organizers. , writing for the majority, reasoned that the NLRA confers rights on employees rather than unions or nonemployees, and thus does not generally compel employers to allow nonemployee access to , reaffirming the narrow exception from NLRB v. Babcock & Wilcox Co. (1956) that applies only where employees are otherwise inaccessible and no reasonable alternative channels—like , , , or home visits—exist. The Court found no such inaccessibility here, as the union had already reached about 20% (41) of through direct contacts and public-area , rejecting the NLRB's broader balancing test as inconsistent with statutory text and . The ruling curtailed the NLRB's authority to mandate property access for nonemployee organizing, prioritizing employer property rights unless exceptional barriers prevent alternative outreach, a stance that has shaped subsequent labor law by limiting union solicitation on private premises without employee inaccessibility. For Lechmere, the decision vindicated its trespass policy amid broader labor controversies, though the company faced ongoing union pressures in its retail operations during the late 1980s and early 1990s.

Other Employment Disputes

In Paschal v. Lechmere Company (Massachusetts Department of Industrial Accidents, case no. 021065-97), an employee contested the extent of benefits awarded following a , appealing an administrative judge's ruling granting ongoing partial incapacity compensation. The dispute centered on the degree of functional impairment and earning capacity loss attributable to the industrial accident, highlighting tensions over post- assessments in retail operations. No broader patterns of litigation against Lechmere were documented in available records.

Legacy and Cultural Impact

Influence on New England Retail

Lechmere pioneered several retail innovations that transformed discount shopping in New England, particularly in electronics, appliances, and general merchandise. In the early 1950s, the chain introduced a central "pick-up counter" system, enabling customers to order items from catalogs or displays and retrieve them efficiently at a single location, which minimized in-store clutter and operational costs while enhancing convenience. This approach, alongside the adoption of signature pricing strategies—such as ending prices in 88 cents—established low-margin, high-volume sales as a viable model, influencing broader discount retail practices and compelling traditional stores to reassess their pricing and efficiency. The chain's focus on diverse, affordable product lines reshaped consumer habits in the area and beyond, fostering expectations for value-driven purchases of big-ticket items like televisions and home appliances. By 1963, Lechmere operated expansive stores, including a 100,000-square-foot facility in , supported by aggressive television that reached millions of regional households and promoted its "where you pocket the difference" . This , coupled with expansions to 24 stores across by the early 1990s—yielding $800 million in annual sales—intensified competition, pressuring legacy department stores to diversify or lower prices to retain . Lechmere's aggressive and tactics contributed to the of old-line retailers in the region, as it offered broader selections at reduced costs, effectively displacing several competitors during its peak in the 1960s through 1980s. Regarded as one of the first major discount chains in , its model set precedents for subsequent big-box operations by emphasizing customer-centric innovations and regional dominance, though its later corporate acquisitions diluted these strengths.

Nostalgia and Modern Recollections

Lechmere elicits enduring nostalgia among New England residents, especially Baby Boomers who frequented its stores from the 1960s onward for affordable appliances, electronics, and household goods. Shoppers often describe visits as major events, with the chain's large layouts, competitive pricing, and unique features like conveyor belt item retrieval at the Cambridge flagship evoking fond memories of family outings. Modern recollections, shared via online forums, videos, and as recently as 2024, highlight Lechmere's role in milestone purchases such as first VCRs, stereos, Walkmans, and even credit cards obtained for record buying or film development. Former employees recall the workplace fondly, citing pride in orange blazers, stockroom duties, and the store's emphasis on top brands at discounts that challenged traditional department stores. These sentiments underscore Lechmere's cultural footprint as a regional pioneer in discount retailing, with catchphrases like "Where you pocket the difference" and vintage ads for items such as radios persisting in public memory. Despite its 1997 closure, the chain's innovative pickup systems and broad merchandise mix continue to symbolize a pre-national-chain era of local shopping loyalty.

References

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