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Melville Corporation

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Melville Corporation
Company typePublic
NYSE: MES
IndustryRetail holding company
PredecessorMelville Shoe Corporation
Founded1922; 102 years ago (1922)
FounderWard Melville
Defunct1996; 28 years ago (1996)
FateBusiness reorganization
SuccessorCVS Health
Headquarters
Rye, New York
,
United States
Number of locations
7,282 (at its peak)
SubsidiariesSee Divisions

Melville Corporation was a large retail holding company incorporated by Ward Melville in 1922 from Melville Shoe Company. Formerly based in Rye, New York, it became CVS Corporation in 1996 under a massive reorganization plan. The company traded on the New York Stock Exchange (NYSE) under the ticker MES, before changing its ticker to CVS.

During the period from 1925 to 1928, the number of Melville stores increased by 184% and net income expanded 360%. In the first three months of 1929 the chain store realized a 34% increase in sales over 1928.[1] In February 1930 the Melville Shoe Corporation controlled 460 Thom McAn, Rival, and John Ward stores in thirty-nine of the United States.[2] At its peak, Melville operated over 7,282 retail stores in approximately 3,500 unique locations, providing a wide range of products.

In April 1976, the Melville Corporation acquired Marshalls, a chain of thirty-two specialty stores, based in New England. The purchase price was $40 million.[3]

Melville was one of the first companies in the world to develop a shared-services satellite communications network, consolidating the infrastructure of all of its discrete divisions, resulting in significant cost savings for the corporation.[citation needed]

Beginning in the early 1990s, Melville was under pressure to reorganize and shed its diverse portfolio. Many of the chains the company operated were underperforming.[4]

The chain shed all of its retail chains, except for CVS, which accounted for 40% of Melville's revenue. Its Peoples, Revco, Standard Drug, and Austin Drug pharmacies were converted to the CVS identity. Most of the company's units that were unrelated to its pharmacy business were shed in 1996.[citation needed]

Many of the retail divisions that Melville once owned still operate either as independent companies or as subsidiaries of other companies.

Divisions

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During the height of Melville's success, the company operated the following retailing divisions.

Pharmacies

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Apparel

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Melville executives in 1971

Footwear

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Toys

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Domestics

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  • Linens 'n Things (liquidated in 2008; revived as online retail in 2009)
  • Prints Plus

Furniture

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References

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  1. ^ Broad Street Gossip, Wall Street Journal, April 29, 1929, pg. 2.
  2. ^ Melville Shoe Corp., Wall Street Journal, February 7, 1930, pg. 9.
  3. ^ Melville Closes Acquisition, Wall Street Journal, April 15, 1976, pg. 16.
  4. ^ Steinhauer, Jennifer (October 25, 1995). "Melville Plans To Split Into 3 Companies". The New York Times. Retrieved February 1, 2018.
  5. ^ "Melville to Sell Foxmoor Chain". The New York Times. February 13, 1985. Retrieved September 16, 2016.
  6. ^ David Altaner (March 7, 1990). "Foxmoor To Convert Some Stores". Sun-Sentinel (Orlando, Fla.). Archived from the original on February 16, 2016. Retrieved September 16, 2016.
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