Stein Mart Inc.
IndustryRetail (Department stores)
Founded1908 (1908)
Greenville, Mississippi, U.S.
FounderSam Stein
Defunct2020 (2020) (retail stores only)
FateChapter 11 bankruptcy protection in 2020, in response to the COVID-19 pandemic and relaunched as Stein Mart Online Inc
Headquarters1200 Riverplace Blvd.
Jacksonville, Florida, U.S.
Number of locations
283 (March 2019)
Key people
Jay Stein (Chairman)
David Hunt Hawkins (CEO)
Gregory W. Kleffner (EVP, Finance and CFO)
MaryAnne Morin (President)
ProductsBoutique, apparel, footwear, linens, and home decor
RevenueIncrease US$1.36 billion (2016)
Decrease US$3.57 million (2016)
Decrease US$401,000 (2016)
Total assetsIncrease US$527.85 million (2016)
Total equityDecrease US$70.26 million (2016)
OwnerRetail ECommerce Ventures
Number of employees
11,000 (2017)
Websitewww.steinmart.com

Stein Mart is an American discount men's and women's online retailer & former department store chain based in Jacksonville, Florida. Stein Mart had locations primarily in the Southeast, Texas, and California. Stein Mart stores sold recent trends in clothing for both men and women. Additionally, home decor, accessories, and shoes were all available at discounted prices.

In August 2020, the company announced that it had filed for Chapter 11 bankruptcy due to the COVID-19 pandemic, and that it planned to close all of its 279 stores.[1] Stein Mart continues to operate as an online retailer, which is not related to the former company.

On March 2, 2023, Retail Ecommerce Ventures, Stein Mart's current parent, announced that it was mulling a possible bankruptcy filing.[2]

History

Stein Mart Store #87 at the Meadows Shopping Center, Terre Haute, Indiana

Stein Mart was founded in 1908 by Sam Stein, a Russian Jewish immigrant who opened his first store in Greenville, Mississippi; he had arrived there by steamboat from New York City three years before.[3] The department store carried general merchandise until his son, Jake Stein, took over the company upon his father Sam's death in 1932. The store then redirected its focus toward discounted clothing.

The chain targeted customers who shopped department stores on a regular basis, inducing them to purchase goods by offering discounts of 25 to 60 percent off department store prices. By the late 1970s, Stein Mart had become a leading retailer of clothing for the family in the Mississippi Delta.

Under Jay Stein's leadership, Stein Mart grew from three stores in 1977 to 40 stores in 1990, and then to 123 stores by the end of 1996. In determining the prime locations for new Stein Mart stores, management targeted cities with populations of 125,000 or more and relied on demographic research regarding income, education, and occupation to help predict whether a community might support a discounter of designer merchandise.[4]

In 2003, Stein Mart introduced the "Real Shopper" campaign with support from Orlando-based advertising agency, Fry Hammond Barr. This multimedia advertising campaign features real Stein Mart shoppers chosen via casting calls held throughout the country.[5] Each season six to eight female shoppers are chosen to appear in the campaign and are featured in Stein Mart's Sisterhood book online.

In 2013, the company reported a profit of $25.6 million (~$31.9 million in 2022)[6] with operation of 260 stores[7] in 29 states.

In October 2017, in response to the downward trend of the company's stock price, the company announced plans to improve its financials by cutting 10% of their corporate staff, trimming inventory by 15%, slashing $22 million (~$26 million in 2022) from the prior year's capital expenses, and suspending the 4th quarter stock dividend.[8]

In January 2018, Stein Mart announced that it would explore strategic alternatives for the company.[9] In February 2020, Stein Mart entered into a deal to make the company private; its common stock would no longer be listed on any public stock market. The transaction is subject to approval by Stein Mart shareholders and was "expected to close in the first half of calendar year 2020."[10]

Bankruptcy

In August 2020, Stein Mart filed for Chapter 11 bankruptcy protection due to the company being largely affected by the COVID-19 pandemic, and announced that it would permanently shutter all 279 of its remaining stores by the end of October 2020. During the bankruptcy process, it also announced that all of its assets were for sale, and it was looking for a buyer to purchase those assets.[11][12][1][13]

During the fall of 2020, an agreement had been reached with the private equity firm Retail Ecommerce Ventures to acquire the Stein Mart operations.[14] In March 2023, Retail Ecommerce Ventures announced that it would be exploring options in effort to save themselves, including a potential Chapter 11 bankruptcy filing, which would mark Stein Mart's second bankruptcy in 3 years. They have also hired restructuring lawyers in effort to stave off bankruptcy.[15]

Brick-and-mortar operations

Stein Mart sold clothes for women and men as well as home décor, accessories, and shoes. Each store had about 30 employees.[1]

Stein Mart expanded their home department in 2010, adding houseware and décor for the house.[16] The "Boutique" portion of the store offered women special occasion clothing. The "Attitudes" section of the store carried clothing for women.[17]

For decades Stein Mart leased its shoe department to other retailers, such as DSW Shoe Warehouse. In 2010, Stein Mart started working with Perfumania in 2010 to stock an assortment of fragrances.

In October 2010, due to popular demand by Stein Mart shoppers, the retailer began offering limited online shopping with Ship from Store for shorter delivery times.[9]

References

  1. 1 2 3 Valinsky, Jordan (August 12, 2020). "Stein Mart files for bankruptcy and will close most of its 300 stores". CNN. Retrieved 2020-08-12.
  2. ↑ "Owner of RadioShack, Pier 1 in danger of bankruptcy". New York Post. March 2, 2023. Retrieved March 2, 2023.
  3. ↑ "Stein Mart: From $43 to $1.3 billion in three generations | Fortune". 20 March 2014.
  4. ↑ "The Stein Mart Saga". St. Petersburg Times. 2004-10-16.
  5. ↑ "Stein Mart Re-Enlists Fry Hammond Barr to Return Focus to Real Shoppers". American Association of Advertising Agencies. Archived from the original on March 29, 2009. Retrieved August 12, 2020.
  6. ↑ "Stein Mart Reports 4Q and Fiscal Year 2009 Financial Results". Archived from the original on 2010-04-16. Retrieved 2010-10-26.
  7. ↑ "Stein Mart Sales climb in August". BusinessWeek. Associated Press. 2010-09-02. Archived from the original on October 25, 2012. Retrieved August 12, 2020.
  8. ↑ Ghabour, Dahlia (October 26, 2017). "Stein Mart to eliminate 10 percent of corporate workers". BizJournals.com. Retrieved 2017-10-26.
  9. 1 2 Howland, Daphne (January 31, 2018). "Stein Mart exploring 'strategic alternatives'". Retail Dive. Retrieved January 31, 2018.
  10. ↑ Jones, Nick (2020-02-01). "Stein Mart announces agreement to become private company". WJXT. Retrieved 2020-03-23.
  11. ↑ Thomas, Lauren (12 August 2020). "Stein Mart files for bankruptcy and plans to close most, if not all, of its stores". CNBC. Retrieved 12 August 2020.
  12. ↑ "Stein Mart® - Official Site - Name Brands For Less | Stein Mart". Stein Mart. 2020-08-29. Archived from the original on August 29, 2020. Retrieved 2020-09-02.
  13. ↑ "Bankrupt Stein Mart to Close, Sell All 279 U.S. Stores". wsj. 13 August 2020. Retrieved 30 October 2020.
  14. ↑ "Modell's Will Become Digital-Only With $3.6 Million Purchase By Retail Ecommerce Ventures". Retail TouchPoints. August 20, 2020. Retrieved October 1, 2020.
  15. ↑ "Retail Ecommerce Ventures, Buyer of Moribund Brands, Hires Advisers for Its Own Struggles". The Wall Street Journal. March 2, 2023. Retrieved October 1, 2023.
  16. ↑ "Stein Mart focused on Home Reinvent plan to grow home - again". Home Textiles Today. 2010-06-08. Archived from the original on July 12, 2011. Retrieved August 12, 2020.
  17. ↑ "Stein Mart aims at younger demographic". Jacksonville Business Journal. 2009-03-19.

30°19′05″N 81°39′30″W / 30.31813°N 81.65839°W / 30.31813; -81.65839

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