Lord And Taylor
By Eyewitness News
NEW YORK (WABC) -- It's the end of an era for a historic Manhattan department store, as Lord and Taylor officially closed its doors for the last time Wednesday.
The 104-year-old Fifth Avenue store shuttered for good, now that the holidays are over.
The final day ended a blowout sale that left whole floors empty. By the end, clothes that once sold for as much as $100 were going for $5.99.
This season's iconic window displays were dedicated to thanking New Yorkers for decades of loyal business.
Lord and Taylor sold the 11-story building to We Work in 2017 for more than $850 million.
The company said it closed the flagship location to shift its focus toward online sales.
Forty-five other smaller Lord and Taylor stores remain open, mostly on the East Coast. In addition, Lord and Taylor-branded merchandise is being sold online through the Walmart website.
The brand is owned by Canadian corporate giant Hudson's Bay Co.
Patty Conte said the Fifth Avenue location was her favorite store and she came Wednesday 'to do a last walkthrough.' She purchased some women's shoes under a 'buy one, get one free' offer, for a total of $25 plus tax.
For her, shopping online is not an option 'because it's important to feel the fabric and to try things on.'
The demise of the Fifth Avenue store reflects a shifting economy in which brick-and-mortar retail has taken a hit from online sales.
Hudson's Bay Co., the Canadian corporate behemoth that has owned the brand since 2012, said it was closing the flagship and some of its other stores due to an 'increasing focus on its digital opportunity and commitment to improving profitability.'
Founded in 1826 on Manhattan's Lower East Side, Lord & Taylor was one of the nation's first big department stores, run by two English-born cousins, Samuel Lord and George Washington Taylor. The store occupied several locations before 1914, when it moved into the building that fills a whole Manhattan block on Fifth Avenue at 38th Street.
Alice Tawil paid a last visit - for the memories.
'I've come here many times, I've purchased many dresses, for family occasions, for weddings, for parties, bar mitzvahs, engagements, and I really did very well here,' she said. 'It's sad ... it's very barren; only the first floor was open.'
Others were effusive - over a bargain bonanza of goods they brought home. One woman visited the store 21 times since the clearance sale started in November, buying dozens of dresses, plus furs, shoes, furniture, crystal, tables and whatnot.
The store was scheduled to close at 3 p.m., when customers were turned away. But the last door wasn't locked until 3:22 p.m., giving those inside some extra minutes to exit.
(The Associated Press contributed to this report.)
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The 104-year-old Fifth Avenue store shuttered for good, now that the holidays are over.
The final day ended a blowout sale that left whole floors empty. By the end, clothes that once sold for as much as $100 were going for $5.99.
This season's iconic window displays were dedicated to thanking New Yorkers for decades of loyal business.
Lord and Taylor sold the 11-story building to We Work in 2017 for more than $850 million.
The company said it closed the flagship location to shift its focus toward online sales.
Forty-five other smaller Lord and Taylor stores remain open, mostly on the East Coast. In addition, Lord and Taylor-branded merchandise is being sold online through the Walmart website.
The brand is owned by Canadian corporate giant Hudson's Bay Co.
Patty Conte said the Fifth Avenue location was her favorite store and she came Wednesday 'to do a last walkthrough.' She purchased some women's shoes under a 'buy one, get one free' offer, for a total of $25 plus tax.
For her, shopping online is not an option 'because it's important to feel the fabric and to try things on.'
The demise of the Fifth Avenue store reflects a shifting economy in which brick-and-mortar retail has taken a hit from online sales.
Hudson's Bay Co., the Canadian corporate behemoth that has owned the brand since 2012, said it was closing the flagship and some of its other stores due to an 'increasing focus on its digital opportunity and commitment to improving profitability.'
Founded in 1826 on Manhattan's Lower East Side, Lord & Taylor was one of the nation's first big department stores, run by two English-born cousins, Samuel Lord and George Washington Taylor. The store occupied several locations before 1914, when it moved into the building that fills a whole Manhattan block on Fifth Avenue at 38th Street.
Alice Tawil paid a last visit - for the memories.
'I've come here many times, I've purchased many dresses, for family occasions, for weddings, for parties, bar mitzvahs, engagements, and I really did very well here,' she said. 'It's sad ... it's very barren; only the first floor was open.'
Others were effusive - over a bargain bonanza of goods they brought home. One woman visited the store 21 times since the clearance sale started in November, buying dozens of dresses, plus furs, shoes, furniture, crystal, tables and whatnot.
The store was scheduled to close at 3 p.m., when customers were turned away. But the last door wasn't locked until 3:22 p.m., giving those inside some extra minutes to exit.
(The Associated Press contributed to this report.)
----------
* More Manhattan news
* Send us a news tip
* Download the abc7NY app for breaking news alerts
Lord & Taylor - Login. Lord & Taylor is a luxury department store in the United States, the oldest department store in the country. Headquartered in New York City, it is a subsidiary of the oldest commercial corporation in North America, Canadian retail group Hudson's Bay Company.
New York (CNN Business)In another sign of trouble for traditional retailers, iconic department store Lord & Taylor has been sold for $75 million to Le Tote, Inc., a fashion rental subscription service.
Lord & Taylor opened its first store in New York in 1826, making it the nation's first department store. It was once a mainstay of high-end fashion.
Hudson's Bay Company(HBAYF), the owner of both Lord & Taylor and Saks Fifth Avenue, will get an equity position in Le Tote as part of the deal, in addition to the modest cash payment, according to a statement from the companies on Wednesday. It will also continue to own the real estate and leases associated with the remaining 38 Lord & Taylor stores.
But in a sign of the limited value that the chainnow has, Canada-based Hudson's Bay has agreed to pay about $58 million in annual rent on the Lord & Taylor stores that are leased for 'at least' the next three years.
During that time, Le Tote expects to keep the stores open and will continue to employ most of Lord & Taylor's staff. But starting in 2021, the two companies will have the option to 'reassess' the store network, allowing Hudson's Bay to find other uses for the properties.
Lord & Taylor had sales last year of C$1.4 billion, or about $1.1 billion in US dollars, the companies' statement said. But the company as a whole has lost money since 2016, and it disclosed in May that it was considering a sale of Lord & Taylor.
Lord Taylor Official Site
'Following an extensive review of strategic alternatives, Le Tote's leadership and innovative approach is the best path forward for Lord & Taylor, its loyal customers and dedicated associates,' said Hudson Bay CEO Helena Foulkes.
Rental clothing is becoming a major trend for consumers eager to wear new looks frequently and are not always keen on buying pricey outfits to wear just once or twice. The clothing rental market is estimated at around $1 billion today and will hit $2.5 billion by 2023, according to GlobalData Retail.
'Since founding Le Tote, it's been our mission to push the boundaries of retail,' said Le Tote CEO and founder Rakesh Tondon. 'We're excited to bring Le Tote together with Lord & Taylor, a storied brand that has stood for quality, style and service for nearly two centuries. With this acquisition, we continue our journey in creating the future of retail.'
Earlier this month The Gap's(GPS) Banana Republic chain and Macy's(M) Bloomingdale chain both unveiled their own rental offering. Urban Outfitters(URBN), Ann Taylor, American Eagle(AEO) (AEO) and Vince have recently launched rental services, while Nordstrom(JWN) said it would offer returns from Rent the Runway at stores in Los Angeles.
'This is a way to keep up with customers' ever-changing, moving lifestyle,' Banana Republic CEO Mark Breitbard. 'It will just help us over the long term maintain health for a brand that has been in business for 40 years.'
According to its website, Lord & Taylor was created by English immigrants Samuel Lord and George Washington Taylor when they opened their first store on the Lower East Side of Manhattan nearly 200 years ago. The store would grow and relocate six times over its first 80 years, moving into its flagship Fifth Avenue store near Times Square in 1914. By then the company had already been publicly traded for 10 years.
The company thrived in the years following World War II, led by Dorothy Shaver, the first woman to lead a major retailer. Under Shaver it launched its first suburban branch stores and introduced the concept of personal shoppers.
But competition from lower priced rivals continued to grow. It was acquired by May Department Stores in 1986, and in 2006 it was taken private by private equity firm NRDC Equity Partners. Many traditional retailers have struggled and closed after private equity firms and hedge funds bought them. Among them were Toys 'R' Us, RadioShack, Sports Authority, as well as other clothing chains Gymboree, Charlotte Russe and The Limited.
Hudson's Bay acquired Lord & Taylor in 2012 and Saks the following year. It also purchased German retailer Galeria Kaufhof, another family-run chain, in 2015.
It agreed in 2017 to sell Lord & Taylor's flagship 5th Avenue store to WeWork. The original plan was for it to become WeWork's headquarters after the 2018 shopping season, with Lord & Taylor continuing to operate a scaled-down store at the location. But it dropped those plans and closed the store altogether earlier this year. It also closed 10 other stores.
-- CNN Business' Paul La Monica contributed to this report.