Dayton's
Dayton's was an American department store chain founded in Minneapolis, Minnesota, in 1902 by George Draper Dayton. It operated several local high-end department stores throughout Minnesota and the Upper Midwest for almost 100 years. Although it was regionally known as a high-quality shopping destination, Dayton's is best remembered for starting the discount shopping chain Target. The company was also instrumental in the history of shopping malls, opening the first indoor shopping mall in the United States—Southdale Center in Edina, Minnesota, in 1956.
In 1969, Dayton's merged with Michigan department store chain Hudson's to form the Dayton-Hudson Corporation. The Target division of the company eventually grew so large that in 2000 the corporation was renamed Target Corporation. Dayton-Hudson had acquired Chicago-based Marshall Field's in 1990 and Target rebranded Dayton's stores as Marshall Field's stores in 2001 in an effort to focus more on discount retailing. In 2004, Marshall Field's was purchased by May Department Stores, which subsequently merged in 2005 with Macy's, turning the remaining Marshall Field's stores into Macy's department stores.
For most of its history, Dayton's was owned and operated by the Dayton family. The company's mark on Minnesota remains with three Twin Cities shopping malls created by Dayton's: Southdale, Rosedale, and Ridgedale, all still standing.
History
Goodfellow & Company
Dayton's has roots in R.S. Goodfellow & Company, a dry goods business founded as Goodfellow and Eastman in 1878. George Draper Dayton constructed a six-story building at Nicollet Avenue and Seventh Street in 1902 and convinced Goodfellow's, then the fourth-largest department store in Minneapolis, to become the tenant. Designed by Charles Sedgwick, the building made of brick, iron, plate glass, pressed brick and terra cotta, was one of the largest buildings in the city and had all of the latest displays and innovations, including passenger and freight elevators.The Goodfellow's store opened June 24, 1902, and Reuben Simon Goodfellow retired shortly before, selling his interest to Dayton, who financed and partnered with George Loudon, F.H. Carleton, and J.B. Mosher to run the business.
Dayton's Dry Goods
By 1903, George Dayton had bought out one partner and renamed the store Dayton's Dry Goods Company. At this time, the company stated it would be known as Dayton's. After the name change was completed, Dayton's operations were handled by George Dayton along with his son, Draper Dayton, and J.B. Mosher. Mosher left the company in December 1905. In 1911, the name was changed again to The Dayton Company.Dayton's
Dayton's officially became the Dayton Company in 1911, and also purchased the property at Nicollet and Eighth Street in downtown Minneapolis to expand Dayton's retail footprint. By 1929, the downtown location consisted of three buildings: the original building from 1902 and two additions from 1913 and 1929, totaling about a million square feet.Draper Dayton died unexpectedly at the age of 43 in 1923. Dayton's founder, George Draper Dayton, died in 1938; and his surviving son, George Nelson Dayton, succeeded him as president of the company.
1940s and 1950s
Expanding its downtown Minneapolis location in 1947, Dayton's added four floors to the existing eight-story building, bringing the total retail space to 12 floors, at a cost over $2 million.In 1949, on the hunt for new and different items for its clientele, Dayton's accepted several Cootie games on consignment from its inventor, Minnesota resident William "Herb" Schaper. The games sold very well, and reorders were placed. Dayton's sold 5,500 Cootie games between Thanksgiving and Christmas, and the Game of Cootie was on its way to becoming a classic.
Dayton's president George Nelson Dayton died at the age of 63 in 1950, 12 years after becoming president. One of the five sons of George Nelson Dayton, Donald C. Dayton, was named president of Dayton's at that time, thus becoming the third-generation family member with the Dayton surname to helm the department store. George Nelson Dayton's five sons each inherited 20% of the business after the death of their father; all are credited with managing and expanding Dayton's into the modern retail era, along with the creation of Target Corporation, changing the dynamics of retail in not only Minnesota but also nationwide.
In August 1952, Dayton's announced the acquisition of Knowlton Company in downtown Rochester, Minnesota. Knowlton had been in business since 1848, and became Dayton's second store; thus the beginning of Dayton's establishing itself as a department chain store company. After almost two years of expansion and renovations, the Rochester Dayton's opened in March 1954.
Dayton's pending development of its first shopping center, Southdale Center, was announced in June 1952. Southdale was planned, conceived, constructed, and owned by the Dayton Company. Southdale became the first fully enclosed, climate-controlled shopping mall in the United States, changing the retail landscape. Dayton's purchased 500 acres in Edina, Minnesota, to construct the historic $10 million complex, which opened in 1956 with around 50 shops. 40,000 visitors attended the grand opening of the mall and immediately its success exceeded all expectations. Southdale became Dayton's third store; it was the company's second location and first in a series of shopping centers in the Twin Cities.
In November 1954, Dayton's announced it had acquired Fantle Bros. Department Store in Sioux Falls, South Dakota. This marked the first purchase and location for a Dayton's-owned store outside of Minnesota, but it kept the Fantle name instead of converting to the Dayton's nameplate.
In 1955, Dayton's announced the acquisition of land in Brooklyn Center, Minnesota, for a shopping mall. Before the opening of Southdale Center, Dayton's was planning to construct a second shopping center called Northdale, but the name was changed to Brookdale. Brookdale was not scheduled to be constructed immediately.
In June 1958, Dayton's announced plans with the Radisson Hotels, adjacent to the downtown store, to construct a joint parking ramp for customers and guests of both companies and downtown visitors in general. The ramp was constructed to accommodate 750 cars, which did not make it the largest in town, but was designed for quick and convenient accessibility for patrons to both properties.
Also in 1958, Dayton's merged with Schuneman's Department Store in Saint Paul, Minnesota. Dayton's also announced it had acquired choice retail property in downtown St. Paul to construct a new store in the future. The Dayton's-Schuneman's store continued operations in the Schuneman's building. Schuneman's was thought to have annual sales of $12-$15 million at the time, while Dayton's was thought to be around $80 million. By early 1960, Dayton's owned all property on the block fronted by Wabasha, Cedar, and 6th and 7th Streets in St. Paul.
1960s
In February 1962, after acquiring additional property needed to expand in St. Paul, Dayton's announced the plans for a new five-story building and parking ramp for 650 cars, all located in one structure.Brookdale Center opened in Brooklyn Center in March 1962. Planned before the successful opening of Southdale Center, Brookdale was the second shopping center developed by Dayton's, and further expanded its retail footprint into the growing suburbs. Dayton's was to construct and open a 195,000 sq ft Dayton's store at Brookdale in phase two of construction, opening in July 1966.
The new St. Paul store opened in August 1963 with 380,000 sq ft of retail space in five stories, taking up an entire city block. The estimated cost of the new project was $14 million. The old Dayton's-Schuneman building across the street was razed for new development.
By 1964, Dayton's had become the second-largest privately owned department-store chain in the country, with sales estimated to be at least $130 million annually.
Dayton's announced its third shopping center development in 1966, Rosedale Center. The name continued the convention of "Dale" with the complex located in Roseville, Minnesota, a suburb of St. Paul. Rosedale Center opened in August 1969 and became the location of the sixth Dayton's store. This large Dayton's location had three stories, employed more than 600 people, and had 190,000 sq ft of retail space.
Fantle's Department Store in Sioux Falls, South Dakota, was sold by Dayton's, 13 years after purchasing it in 1967. Fantle's had never converted to the Dayton's name, and Dayton's said the reason for the sale was that the company wanted to concentrate on stores in major metropolitan areas. However, Dayton's returned to Sioux Falls with a store bearing its own nameplate 11 years later.
In the '60s, Dayton's was one of the first retailers to recognize the buying power of the teen market, and it aggressively pursued it with youth-oriented merchandise, concerts, and attractions. From 1962 to 1966, it hosted a weekly teen dance with live music in the 8th-floor auditorium, attracting up to 5,000 teens per week. In 1966, it spearheaded a "Super Youthquake" movement at area Dayton's stores featuring the latest fashions and music, with artists including Simon & Garfunkel and The Yardbirds. The Yardbirds' appearance at Dayton's was the first U.S. tour date played by Jimmy Page. Dayton's efforts paid off, and in 1965, it won Seventeen magazine's award for outstanding youth retail. Dayton's captured and enjoyed a trendsetter reputation, which contributed greatly to its success and standing apart from other area retailers.
In August 1967, Dayton's changed its name to "The Dayton Corporation", added outside members to its board, and prepared for its first public stock offering. The Dayton family still owned an estimated 85% of the corporation's stock after the initial public offering in October of that year, and still owned 43% of the stock by 1977.
The 1960s closed with the merger of The Dayton Corporation and J.L. Hudson of Detroit, Michigan. At the time of acquisition, J.L. Hudson was the nation's largest independently owned department-store company. Upon realization of the merger, Dayton Hudson Corporation became the 14th-largest nonfood retailer in the U.S., with combined sales over $800 million.