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Business Wars

Macy’s vs Gimbels - Last Store Standing | 6

Business Wars

Wondery

History, Business, David Brown, Management

4.613.2K Ratings

🗓️ 18 December 2019

⏱️ 25 minutes

🧾️ Download transcript

Summary

It’s the 1960s and as Americans flee cities for the suburbs, Macy’s and Gimbels face tough choices. How do they compete with the rise of discount retailers and the exciting new shopping palaces known as malls? Weakened by industry disruption, both stores become vulnerable to the new wave of financial tactics — takeovers and leveraged buyouts. One store’s fateful decision during this transition period will end with it closing its doors forever.

 

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Transcript

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0:00.0

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0:04.8

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0:15.3

It's a Wednesday in July 1966 in the bargain basement of Gimbles flagship store in Manhattan.

0:20.8

A pregnant young woman in a paisley maxi skirt exits the women's restroom and walks down

0:26.5

the middle aisle of the store.

0:28.6

As she nears the doors to the subway, she casually looks back as if to see if anyone

0:33.6

has noticed her.

0:35.2

At that moment, another shopper opens the door in front of her and the two women collide.

0:41.9

Concerned onlookers rush to the pregnant woman's aid and one of them gasps, pointing at the

0:46.3

woman's now lopsided baby bump.

0:49.4

She's heard.

0:50.7

The pregnant woman scrambles to her feet with remarkable agility.

0:54.3

No, I'm fine, really, I'm fine.

0:57.5

But then she spots a tall woman with a walkie talkie clipped to her skirt, striding purposefully

1:02.1

towards her.

1:03.8

Security!

1:05.6

With both hands, the shoplifter yanks the bundle of loot from beneath her maxi and sprints

1:10.0

for the doors, disappearing into the underground passage leading to the herald square subway.

1:16.5

A few days later, Chairman Bruce Gimbal gets a first-hand look at the problem that's eating

1:21.4

away at his flagship store's profits.

1:24.6

The store's chief detective points to the doors leading to the subway and others leading

1:29.7

to a pedestrian tunnel linked to Penn station.

...

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