1997-2014 TSI: AdDept Client: Stage Stores

Posted on September 4, 2021 by Mike

People and events at SRI/Stage Stores. Continue reading →

Everyone with whom I dealt—and there were a great many people over the course of seventeen years—-called the large retailer based on the south side of Houston “Stage Stores”. Even their LinkedIn pages refer to Stage Stores. However, our contracts¹ were definitely with a company named Specialty Retailers, Inc. (SRI). The checks that we received were from SRI. This always seemed strange to me, but I managed to piece together from various sites on the Internet something of an explanation.

I spent many hours at the headquarters building on South Main. The visitors’ parking was perhaps thirty to the right of the palm tree.

SRI was incorporated in 1988. I was unable to discover who the original stockholders were or who ran the corporation. I also have no idea what, if anything, SRI did in its first four years of existence.

In 1992 the company purchased a Colorado-based retail company named Fashion Bar, Inc., which had seventy-one stores. The larger ones were branded as Palais Royal or Bealls². The rest were known as Stage Stores. In the nineties SRI purchased a large number of other stores. Most of them bore the Stage logo. SRI’s headquarters at 10201 South Main³ in Houston was known locally as Stage Stores, and that name, as you can see in the photo, was displayed prominently over the entrance. The only stores that were actually located in Houston were branded as Palais Royal. I recall actually purchasing a leather belt in one of them. Many people in Houston knew about Palais Royal, but Stage Stores and SRI were probably not on their radar.

In late 1996 or early 1997 Doug Pease, TSI’s Director of Marketing, received a call from Brenda Suire⁴, the Director of Finance for Stage’s Marketing Department. Doug and I flew on Continental Airlines to Intercontinental Airport in Houston to meet with Brenda and some other employees. We were somewhat surprised by the length of the drive from the airport to Stage’s headquarters.

The blue route on the map at left suggests driving through downtown Houston. That route would only be considered if the trip was in the middle of the night. We always took the western loop on I-610.

On the second day in Houston I demonstrated the functionality and design of the AdDept system at the local IBM office. It went over very well.

I recently found in my notes from January of 2001 some of the items that were included in the contract that resulted from that presentation and subsequent negotiations.

I was surprised to discover that in 1997 Stage paid us over $8,000 for the expense payables, sales, MM Plus, and AdSEND (!) interfaces. No wonder we made so much money in those days. We have no choice but to give them the assistance they need to get the first three working. They don’t use AdSEND any more, thank goodness, and I am pretty certain that no one remembers that they paid for this. I don’t remember coding an expense interface for Stage, but we clearly did it in 1998.

As part of that initial contract the programmers at TSI wrote a great deal of new code. Stage Stores had more stores and fewer merchandise departments than the first few AdDept customers. In most of their markets they operated only one store. They were therefore much more interested in the ratios of media dollars spent on each store to the amount of sales that the store generated than in sales and expenses by department. To provide this information we wrote code to accept sales by store from the corporate systems. We also wrote a set of reports that showed the ratio of advertising expenses to sales for each store.

No one at Stage Stores had previously examined the broadcast (i.e., radio and television) advertising too carefully. The buys and audits were done by a lady (I don’t recall her name) from Reynolds Communications. She used SmartPlus⁵ software to make the schedule and audit the spots that each station ran. Stage soon discovered that she had been spending much too much money on television buys, especially in one-store markets in Louisiana. She knew that the company had a store in those markets, but she had no access to sales data.

As often seemed to happen in AdDept installations, this unexpected revelation allowed Stage Stores to save enough money on an inefficient use of funds to justify most of the cost of the entire system.

Brenda, Floyd, and Denise Bessette at TSI’s office.

Training and installation: In 1997 Stage sent three employees to TSI’s office in Enfield for several days of intensive training: Brenda, Floyd Smith⁶, and Hugo DuBois⁷. The emphasis of the training was on how to get the most out of the AdDept software in their environment.

Floyd was Brenda’s right-hand man in the business office. For the first few years—which (for reasons unrelated to the system) were rather chaotic—Floyd was the liaison between TSI and Stage. Hugo, a native of Belgium, managed the department’s local area network. He mainly worked with the production and creative people. I am not sure why he came to Enfield. Hugo’s only role in the project was to connect the network to the AS/400 and to install and configure the software on individual PC’s and Macs so that the department’s employees could access the AdDept system.

After the AS/400 had been delivered, and the network was connected to it, I flew to Houston to install the AdDept software and configure the database. Over the next few months I returned to help them deal with problems, to show them how to use new features, and to gather ideas about further development. I soon discovered that there was a better way to get from Connecticut to Stage. On most trips I flew on Delta or American and landed at Houston’s smaller airport, Hobby. Not only was it much closer to Stage, but there was usually a better choice of flight times.

Denise, Floyd, Hugo, the top of Brenda’s head, and Steve Shaw at TSI’s office.

Within a year or so the system was running fairly smoothly. Then in 1998 Brenda left Stage Stores, and for a while Floyd ran the advertising business office. His primary assistant was Toni Young⁸. One of the primary AdDept users was Renee Mottu⁹, who managed the expense invoices.

Fortunately for TSI, for the next year our involvement with Stage was reduced to answering phone calls and resolving mundane issues. I say “fortunately” because even though Stage Stores declared Chapter 11 bankruptcy in 1999, the effect on TSI’s bottom line was minimal. The effect on daily life in Stage’s advertising department was for a considerable period much more severe. My notes after a visit to their headquarters in January of 2000 stressed that “Those poor people spend half of their time trying to persuade newspapers to run their ads.”

Karen is in the red jacket. The man who is obscuring Floyd is, I think, the Advertising Director.

Brenda was replaced by Karen Peltz, who had held a similar position at Foley’s¹⁰, the chain of department stores owned by the May Company that was also based in Houston. At the time Foley’s had been using AdDept to solve various problems in its advertising department for five years. I had worked with Karen at Foley’s, but only a little. Eventually Floyd moved to another position at Stage Stores, and Toni Young managed the day-to-day operations of the marketing business office thereafter.

I had only a few interactions with Joanne Swartz¹¹, the Senior VP of Marketing, and the guy who was Advertising Director. I do not remember his name. I think that Karen reported directly to Joanne.

I dealt with two people in the media area. The woman’s name was Deidre Prince¹¹. I do not remember the guy’s name, and it is not in the notes. I also remember Sandra Green, who used AdDept for buying newspaper space. She seemed to have a lot more difficulty using the system than anyone else did.

My notes: I discovered quite a few email messages that I sent back to TSI’s office from Stage. They are dated between October 1999 and January 2001. I’ll start withe the earliest one

The New Skin bottle and the shaving/ medical kit that I kept it in.

Not a great start today. I woke up at 6 AM. I got up and stumbled around the hotel room for a few minutes. I ironed some shirts and pants. At 6:55 I shaved. I looked in the mirror and saw Dracula. The blood was pouring from my lip. It took over 40 minutes for it to stop bleeding. I painted the New Skin on it. I got dressed and went to Stage. The New Skin held until almost 5 PM. Then I bled all over my shirt and pants, but this time I got it to stop in only about five minutes. Life on the road is so glamorous.
Renee Mottu is looking for suggestions as to how to remove two possums that have taken up residence beneath her mobile home. She rejected my idea of sending in a dachshund. She said that the possums would eat a dog.
I didn’t get to run tonight. Toni Young told me about a good trail. I put on my running duds, followed her directions, and drove around for about 25 minutes looking for the place. I never found it. I drove back to the hotel, got some food, and settled into my room to watch “Norm” and “The Drew Carey” show.

I am pretty sure that the woman with the big hair to the right of Floyd is Renee Mottu. I don’t remember the names of the other two ladies.

The first paragraph refers to a blue-black circle that appeared on my left lower lip in the nineties. It has never caused any pain, and it has not bled in the last decade or so. The story of Renee and her possum continued for a few visits. Before reading the above I had totally forgotten that for a while Norm McDonald had a network television show.

The following are from the subsequent two days on the same trip.

It was in the 80’s here yesterday, but it felt cooler. There was almost no humidity, which is rare for Houston. Floyd’s office was freezing. He has an electric heater in his office. We had it running most of the day even though we had six people crowded around his PC all day long. I brought sweaters, and I will wear one today.
Stage has network printers. We sent a 40-page report to Floyd’s printer about noon. It was still in SND status when I left at 6 PM. Floyd said it will sometimes not print until the next morning. Have they ever complained about this? I think the culprit may be the faxing. They were faxing all day yesterday.
I noticed at Stage that their floors must not be very level. The pieces of their desk units come together at angles. I also noticed that some units were raised off the floor as much as an inch on one side.
I don’t think that I could possibly in good conscience approve more than five months for the palm tree research project at this time.
How much do you think is the monthly fee that Reynolds Communications charges Stage to handle (including auditing and approving invoices from stations) their broadcast advertising?

I don’t remember the precise answer to the last question, but I am pretty sure that there were two digits to the left of the comma. The next set of emails came from the trip that began on January 11, 2000.

This Silver Medallion card expired many years ago.

I was dreading the flight to Atlanta. I envisioned myself standing in line with the common people now that my silver medallion card has expired. I was delighted to discover that my ticket still says “Silver Medallion.” Half of the flight got on with the medallion status group.
The phone on my seat on the flight from Hartford to Atlanta has a little LCD display. It discloses the NASDAQ closing price every few minutes along with advertisements for various ways to spend your money on the phone.
A lady on the Atlanta flight has striped hair. Not streaks, stripes. She has brown hair intermixed with ½” blonde stripes. I guess it is a look.
The flight from Atlanta to Houston sat in the gate for about 20 minutes. Then we got in the usual long line to take off. It must have been over 100 degrees in the cabin by the time we hit the skies. The guy in the seat in front of me pushed his seat all the way back. I have therefore had to turn 45 degrees and put my laptop on my lap. Even so it is uncomfortable to type. Thankfully there is no one next to me.
Listening to Kiri Te Kanawa sure beats listening to salesmen. On my last few flights the planes were full of families and college students. The passengers on both of Tuesday night’s flights have been mostly middle-aged men.
I still have a 45 minute drive ahead of me after this flight, which won’t get in until about 11:00 central time. I need some caffeine.
I used the air conditioner in the car all the way from the airport to the motel.
… Renee Mottu asked me to hire her. I told her that we needed experienced, or at least trained, programmers. She pressed me on this. She said that she was sure she could learn programming and that Floyd would give her a good reference. By the way, she said all of this in front of Floyd.

I remembered to ask Renee what happened to the possums living under her trailer. She said they were still there. I repeated my recommendation about the dog. She said she didn’t have one. I said she should borrow one. She asked me (!) if I knew anyone who had a dog she could use. Later I heard her walking around intoning “Does anyone have a dog I can borrow?”

I think that by 2001 Stage Stores must have been emerging from bankruptcy and resuming their strategy of expansion by purchasing other chains. The biggest of those was the acquisition of Peebles, a chain of 125 department stores based in South Hill, VA.

For some reason the management at Stage wanted to keep track of all expenses and co-op income of the Peebles stores separately. This was the first, but not the last, time that I installed a second AdDept database on the same AS/400. There was still only one set of programs, but each user had two AS/400 user ID’s. Their profiles determined which database would be used.

Here are some of my notes from January of 2001:

Leaping Lanny Poppo became one late in his wrestling career

The meeting in the afternoon went well. Joanne, the advertising VP introduced me as “the resident genius.” The project has been scaled down. We need to be able to do accruals at the store level for media and production at the store level. We also need to be able to do prepaid to expense. One unusual wrinkle is that they do not want to allocate creative costs to stores. They want to be able to get ratios of advertising expense to sales from AdDept, but we must be able to reconcile this with what is in the G/L.
I was glad that I was an outsider at this meeting. The politics was just barely below the surface. Chuck, who I think is the CFO, put Joanne on the spot about something that was not even on the agenda. Their explanations were not at all impressive. The experience had the happy effect of reminding why I did not like working at a larger company.
Toni Young says that she thinks that Renee Mottu never got rid of her possums.
It turns out that what Stage really wants to do most is to start using what they have and what we have previously proposed—SmartPlus interface, sales interface, and expense payables interface. They spoke of the SmartPlus interface as if it were a done deal. I don’t recall them purchasing this module. I brought back the file layout for the expense interface. I did not come back with a lot of specs for new projects. Believe it or not, they want another week of my time. Both Karen and Joanne (the Senior VP) seriously asked me to stay over the weekend and spend next week in Houston. I didn’t tell them this, but I don’t think that I could have lasted for 24 days.
01/07/01: I was surprised to discover that in 1997 Stage paid us over $8,000 for the expense payables, sales, MM Plus, and AdSEND (!) interfaces. No wonder we made so much money in those days. We have no choice but to give them the assistance they need to get the first three working. They don’t use AdSEND any more, thank goodness, and I am pretty certain that no one remembers that they paid for this. I don’t remember coding an expense interface for Stage, but we clearly did it in 1998. I will write up a quote to change it to work the way that the new documentation states.
Toni Young said that she thinks that Renee Mottu had not solved her possum problem.
I saw a sign at Stage Stores offering a $3,000 bonus to any employee that refers someone hired as a senior analyst in IS. The candidate must have five years of COBOL or Oracle experience.

Evidently I had already scheduled most of the rest of the month of January 2001 to travel to other clients so that if I had agreed to stay in Houston over the weekend and the following week, I would have been on the road for twenty-four days in a row! In those days we were charging $1,000 per day for my time. If Stage had still been in Chapter 11, I doubt that they would have proposed spending another $7,000 for another week of my presence. The bankruptcy court would have needed to approve the expense.

AdSend was a service offered by the Associated Press for sending the images of ad layouts to the newspapers. Hugo once told me that the company had twelve T-1 lines (TSI had one), and, according to him it was not nearly enough.

The neighborhood: Stage seemed to be a nice place to work. The headquarters was a fairly nice building located on the south side of Houston. They always provided me with a comfortable place to work, and there was ample parking in spaces reserved for vendors. The building also had a cafeteria that offered good food at very reasonable prices. I always ate lunch there, usually by myself. Many employees arrived at work early and ate breakfast there.

I took this photo of Enron Field under construction. It is now called Minute Maid Park.

It was not too easy to reach by a car driven from the south. Just north of the building Main Street became a divided highway with restricted access. Since I always stayed in a hotel north of the building, I had to drive my rental car to the first exit, drive under the highway, and then take the access road back to Stage’s driveway.

Most of Houston’s explosive growth had been in other directions. There was not much south of Stage’s location. However, just north of the building were the medical centers for which Houston was famous and Enron Field, which is where the Houston Astros played after the Astrodome was abandoned in 1999. I got to see (and photograph) the construction of the new stadium.

According to Yelp Marco’s is closed, but it still has a website.

I usually stayed in a Hampton Inn a few blocks from the stadium. My favorite restaurant was a Mexican place called Marco’s. Located in a hard-to-reach strip mall near my hotel, it was where I first became acquainted with tacos al carbon, one of my favorite dishes. Marco’s had ridiculously low prices. I often told the manager that they should open restaurants in the northeast. They could have doubled their prices and still filled the place every night.

During a couple of multi-day trips to Stage I met up with Sue’s cousin, Mark Davis, for supper. He worked for Exxon Mobil. We usually at an Olive Garden. The conversation was better than the food.

I jogged on the streets near the hotel nearly every evening when I visited Stage. I worked out a route that kept me on streets that had very little traffic.

Eventually I discovered a delightful dirt track that surrounded a golf course in Memorial Park. I drove there every chance that I got. A loop around the track was a little less than three miles. I usually did two loops. There is no chance that I would ever move to Texas. However, if I did, it would be to Houston, and the primary motive would be to gain access to this track every day.

The people: I was quite surprised by the LinkedIn pages of the people with whom I worked at Stage. We had not done much work for the company after 2008 or so. Consequently, I really had no idea who was still working there after that. I discovered that many of them remained at Stage Stores quite a long time after I last saw them or talked with them.

TSI’s initial contact, Brenda, departed in 1998. I don’t know why she left Stage so soon after we did the installation. There might be a story there. I don’t recall ever hearing her name mentioned again.

I have many memories of Floyd. He was definitely a family man. He was always cheerful and business-minded. He always ate lunch at his desk. His office was not very large, but it had two doors, which he kept open. Some people used his office as a shortcut to get from one part of the marketing department to another. I was surprised when he and Toni seemed to switch jobs after Karen arrived. That was never explained to me. Floyd was employed by Stage Stores until 2011.

I was acquainted with Karen from her days at Foley’s. When she arrived at Stage, she made it clear to me that one of her top priorities was for the department to make better use of AdDept. A Republican, she assured all of us in January of 2001 that George W. Bush “will not be that bad.” After his two incredibly stupid wars and an economy that totally tanked while he and his cronies watched helplessly, most historian vehemently disagree.

Karen was, to my amazement, an avid biker—not mountain bikes, Harleys. She and her husband rode up to the big gathering in Sturgis, SD, at least once. I have always told people that if you saw me on a motorcycle, you can be certain that I will also be smoking a cigarette and showing off my piercings and tattoos.

Karen worked at Stage until 2013, twice as long as her stint at Foley’s. Her LinkedIn page lists no jobs after she left Stage Stores.

I remember that Hugo drove a Saturn—as did I during that period. His, however, was a coupe. If I had known that Saturn sold two-door cars, I would have bought one. Hugo stayed until 2017.

I did not really have much personal contact with Joanne, aside from that one meeting that they asked me to attend in 2001. I do remember that on one occasion I overheard Renee accosting her in the hallway. Renee said, quite loudly, “Joanne, I need a raise!” If Joanne replied, I did not hear the answer. Joanne left Stage Stores in 2012.

Toni apparently never left Stage Stores. The more that I worked with her the more that I respected her.

When I met Deidre I asked her if she was related to Diana Prince. She did not know whom I was talking about. I guess not everyone was a fan of Wonder Woman on TV and in the comic books.

I think that Deidre was our main contact when I showed the A^xN¹² system to the department in 2003 or 2004. They enthusiastically endorsed it and used it until they outsourced the buying of newspaper space to an outside company. Deidre left Stage in 2011.

Epilogue: I think that our last major dealings with Stage were the implementation of A^xN and the Peebles project. Nevertheless, they were still using AdDept when TSI went out of business in 2014.

Unlike most retailers Stage Stores continued to expand in the twenty-teens by acquiring other chains. In 2017 Stage acquired the assets of the Gordman’s chain of department stores and quickly converted all of them to sell off-priced items. This worked so well that they began to convert most of their other stores to the same format. In the November 2019-February 2020 quarter sales were up 19 percent¹⁴.

Then the pandemic struck and Stage Stores was stuck with a lot of debt and 738 stores that could not be expected to generate any revenue in the immediate future. The price of the company’s stock plummeted. In May of 2020 Stage entered Chapter 11 again, and in August it announced that it was liquidating all of its holdings.

1. For some reason SRI insisted on a new contract every year. We had contracts with all of our AdDept clients, but all of the others were open-ended.

2. There is also an unrelated chain of department stores with the Bealls moniker that is based in Florida. My unsuccessful pitch to that company is detailed here.

3. Years after TSI was closed SRI moved to an office building at 2425 West Loop South. I tried to use Google Maps to find the Main Street building with which I was so familiar, but I failed. I think that it must have been demolished.

4. Brenda’s LinkedIn page is here. I had trouble remember her last name. I sent an email to Floyd Smith asking if he knew it. He replied, “Sure. She is also on Facebook..” Confused, I asked again. Floyd wrote, “Suire is her last name. Sorry about that spell check changed it last time.”

5. The Media Management Plus product was renamed SmartPlus. I think that this may have happened when the company was purchased by Arbitron, the rating service. On the Internet I found a very detailed description of what SmartPlus did. It is posted here.

6. Floyd’s LinkedIn page is here.

7. Hugo’s LinkedIn page can be viewed here.

8. In 1997 I was only 49. I was shocked that year to learn that Toni Young, who was younger than I was, had a grandchild who was by no means an infant. Her LinkedIn page is here.

9. I found no LinkedIn page for Renee Mottu. Her Facebook page is here. I was surprised to discover that it contained even less than mine does.

10. A great deal more has been written about the AdDept installation at Foley’s. The account is posted here.

11. Joanne Swartz’s LinkedIn page can be viewed here.

12. Deidre Prince’s LinkedIn page is here.

13. A^xN was the name that I gave to TSI’s Internet program for management of insertion orders that AdDept users sent to newspapers. Its system design is explicated here. The marketing history is described here. Stage’s use of the system was one of the main reason that the number of subscribing newspapers grew so large—at one point over four hundred!

14. The Philadelphia Inquirer picked up this story from the Washington Post and posted it here.

1991-2012 TSI: AdDept: The Whiffs

Posted on August 8, 2021 by Mike

A few notable failures. Continue reading →

We had a very good record of closing AdDept sales. Most of the whiffs fell into one of two categories:

Divisions of Federated Department Stores. Our relationships with various Federated divisions are described in detail here. They are not included in this entry.
Companies that did not advertise enough to justify a high-quality multi-user centralized database. We actually sold the AdDept system to a couple of these anyway.

TSI’s first efforts to market AdDept were concentrated around New York and New England. I figured that there were not very many retailers who could afford the system to keep track of advertising, but, then again, I did not really expect to justify the cost of the system at Macy’s in the very first module that we activated—ad measurement.

The strip mall in which the Enfield store was located was named after Caldor.

Our first attempt was a quintessential whiff. Kate Behart (much more about her here) had been in contact with someone in the advertising department at Caldor, a discount department store based in Norwalk, CT. Kate arranged for me to give a presentation to them at the IBM office in Norwalk. Of course, we had to make sure that the office had the BASIC program, and I had to install both the AdDept programs and some data that I had dummied up from Macy’s real data.

My presentation was flawless. The only problem that I encountered that day was the lack of an audience. No one from Caldor showed up. We never did find out why not. Kate called them repeatedly, but no one returned her calls. It may have had something to do with the fact that in 1989, the year that we installed the first AdDept system at Macy’s, the May Company sold Caldor to a group of investment houses.

Caldor went out of business in 1999.

I also paid a visit to another local retailer, Davidson and Leventhal, commonly known as D&L. Theirs were not exactly department stores, but they had fairly large stores that sold both men’s and women’s clothing. So, they had quite a few departments. The stores had a good reputation locally. The headquarters was in New Britain, CT.

This D&L ad was on the back cover of the issue of Northeast that featured my story (described here).

The advertising department only employed three or four employees. They wanted to know if they could use the computer for both D&L ads and ads for Weathervane, another store that they owned, as well. That seemed vaguely feasible to me, and so I said they could. In fact, we later did this for Stage Stores and for the Tandy Corporation, but both of those companies were much larger, and I had a much better understanding by then of what it entailed.

I didn’t even write up a proposal for D&L. The person with whom I spoke made it clear that what we were offering was way out of their price range.

D&L went out of business in 1994, only a few years after our meeting. Weathervane lasted until 2005.

I have only a vague recollection of doing a demonstration at IBM’s big facility in Waltham, MA, for a chain of auto parts retailers from Phoenix. The name of the chain at the time was Northern Automotive. My recollection is that I spoke with a man and a woman. If they told me how they heard about AdDept, I don’t remember it. After a very short time it was clear that AdDept was much more than the company needed. Although Northern Automotive had a lot of stores with four different logos, it only ran one ad per week. So there was really not much to keep track of. I had the distinct impression that the demo was just an excuse for the couple to take a vacation in New England on the company’s dime.

I don’t remember either of their names, but the experience list on LinkedIn for a guy named Paul Thompson (posted here) makes him a strong candidate. Northern Automotive changed its name to CSK Auto, Inc. not long after our meeting. In 2008 CSK was purchased by O’Reilly Auto Parts.

Won’t Paul be surprised to be busted thirty years later in an obscure blog?

Tom Moran (more details here) set up an appointment with employees of Genovese Drugs at its headquarters in Melville, NY. The two of us drove to Long Island to meet with them.

I probably should have talked to someone there over the phone before we left. The only impression that I remember getting from the meeting was that they were not at all serious about getting a system. We had a great deal of trouble getting them to describe what the advertising department did at the time and what they wanted to do. I was frustrated because I had considered this a relatively cheap opportunity to learn how chains of pharmacies handled their advertising. It was actually a waste of time and energy.

Tom tried to follow up, but he got nowhere. We did not submit a proposal.

J.C. Penney bought the company in 1998 and rebranded all the stores as Eckerd pharmacies.

Woodies’ flagship store in downtown Washington.

While I was working on the software installation at Hecht’s in 1991, Tom Moran coordinated our attempt to land the other big department store in the Washington, DC, area, Woodward & Lothrop, locally known as Woodies. I found a folder that contains references to correspondence with them. Tom worked with an IBM rep named Allison Volpert¹. Our contacts at Woodies were Joel Nichols, the Divisional VP, and Ella Kaszubski, the Production Manager.

As I browsed through the file, I detected a few warning signs. The advertising department was reportedly in the process of asking for capital for digital photography, which was in its (very expensive) infancy in 1991. Tom was told that they hoped to “slip in” AdDept as part of the photography project. Furthermore, the fact that we were not dealing with anyone in the financial area did not bode well.

Finally, we had no choice other than to let IBM propose the hardware. Their method of doing this always led to vastly higher hardware and system software costs than we considered necessary. I found a copy of IBM’s configuration. The bottom line was over $147,000 and another $48,600 for IBM software. This dwarfed what Hecht’s had spent. If the cost of AdDept was added in, they probably were facing a purchase price of over a quarter of a million dollars! That is an awful lot to “slip in”.

I don’t recall the details, but I remember having an elegant lunch during this period with someone from Woodies in the restaurant of the main store. It may have been Joel Nichols. It seemed like a very positive experience to me. He seemed eager to automate the department.

We lost contact with Woodies after early 1992. I seriously doubt that the advertising department even purchased the photography equipment that they had coveted. The early nineties were very bad for retailers. By 1994 the owner of Woodies and the John Wanamaker chain based in Philadelphia declared bankruptcy and then sold the stores to JC Penney and the May Company. Many of the stores were rebranded as Hecht’s or Lord and Taylor.

In some ways Fred Meyer, a chain of department stores based in Portland, OR, seemed like a perfect match for TSI. At the time they were almost unique, and we usually excelled at programming unusual ideas. Their approach to retail included what are now called “hypermarket” (department store plus groceries) stores, although they definitely had some much smaller stores as well. The one in downtown Portland was very small. I really thought that we had a good shot at getting this account, largely due to the fact that the IT department already had one or two AS/400’s. So, the hardware cost would probably be minimal.

She would be lucky to make it in nine hours; there were no direct flights.

I was asked to work with a consultant who, believe it or not, commuted from Buffalo, NY, to Portland, OR. I can’t remember her name. She knew computer systems but virtually nothing about what the advertising department did. She wanted me to tell her what AdDept could do, and she would determine whether the system would work for them. I have always hated it when a “gatekeeper” was placed between me and the users. I understand that they do not trust the users to make a good decision, but advertising is very complicated, and almost no IT consultants know much about it. I would not have minded if the consultant sat in on interviews that I conducted with people in advertising.

If I was allowed to meet with anyone from the scheduling or financial areas of the department, I do not remember it at all. I do remember spending an afternoon with the head of the company’s photography studio. AdDept had a module (that no one used) for managing shoots and another (used by Macy’s East) for managing the merchandise that is loaned to the studio for a shoot.

I remember the photo studio guy mentioning that they also did billable work for outside clients. He mentioned Eddie Bauer by name. He could not believe that I had never heard of it/him.

I probably botched this opportunity. Before agreeing to come out the second time, I should have insisted on meeting with whoever placed their newspaper ads and the person in charge of advertising finance. I did not want to step on the toes of the lady from Buffalo, but I probably should have been more aggressive.

Kate accompanied me on one of these trips. We probably flew on Saturday to save on air fare. On Sunday we drove out to Mt. Hood, where we saw the lodge and the glacier, and visited Multnomah Falls on the way back.

Freddie’s was acquired by Kroger in 1998, but the logos on the stores were maintained. There still is a headquarters in Portland, but I don’t know if ads are still created and/or placed there.

Aside from our dealings with Federated divisions² TSI had very few whiffs during the period that Doug Pease (described here) worked for us. After one of our mailings Doug received a call from Debra Edwards³, the advertising director at May Ohio, a May Company division that had its headquarters in Cleveland. Doug and I flew Continental non-stop to Cleveland and took the train into downtown. My recollection was that we were able to enter the store from the underground train terminal.

The presentation and the demo went very well. I am quite certain that we would have gotten this account were it not for the fact that in early 1993 the May Company merged the Ohio division with Kaufmann’s in Pittsburgh. Management of the stores was transferred to Pittsburgh. Debra was hired as advertising director at Elder-Beerman Stores.

We stayed overnight in Cleveland and had time to visit the Rock & Roll Hall of Fame, which was right down the street from the huge May Co. building. I cannot say that I was greatly impressed with the exhibits.

A few years later Doug and I undertook a second trip to Cleveland to visit the headquarters of Sherwin Williams. Doug had talked extensively with the lady who was the advertising director there. He was very enthusiastic about the prospect of making this sale. By that time Doug had already closed a few big deals for us, and so I trusted his judgment. However, I could not understand how a company that really only sold one product could possibly need AdDept. Yes, they have thousands of stores, but how many ads do they run?

I don’t honestly remember anything about our discussion with them. Needless to say, Doug did not close this one, although he never stopped trying to revive it.

I don’t really count it as a whiff, but Doug was unable to close the deal with Liberty House in Honolulu after our epic trip to Hawaii in December of 1995. The details are recounted here.

I drove past two of the stores in Texas, but I never went inside.

Just as Marvin Elbaum had backed out of his contract with TSI for a GrandAd system in 1986 (as described here), so also one company signed an agreement for TSI’s AdDept system and, before we had installed the system, changed its mind. There was one big difference in the two situations. The second company was the Tandy Corporation, which had actually ordered installations of AdDept for all three of its retail divisions. At the last minute the company decided to close down Incredible Universe, one of the three divisions. The other two companies became TSI clients in 1997, as is described here.

It was not a big loss for TSI. IU was one of a kind. Its stores were gigantic multi-story combinations of electronics and theater. There were only seventeen stores, and only six were ever profitable. Those six were sold to Fry’s Electronics. The other eleven were sold to real estate developers at pennies on the dollar.

I did a demo for Mervyn’s California, a department store based in Hayward, CA. I think that I must have done the demo after finishing a training/consulting trip at Macy’s West in San Francisco. I cannot imagine that I would have flown out to the west coast to do a demo without spending a day or two gathering specs.

The IBM office nearest to Hayward was in Oakland. I took BART in the late afternoon from San Francisco to Oakland. There was quite a bit of excitement at the Holiday Inn at which I was staying. Someone had been murdered on the street in front of the hotel the previous night. There was one other very peculiar thing about this stay. I checked into a Holiday Inn with no difficulty, but I checked out of a different hotel (maybe a Ramada?). The hotel had been sold, and its ownership had changed while I was asleep.

The demo went fine. The guy who had contacted me—his name was Thiery or something like that—liked what he saw. However, the sale never advanced any further. This was almost always what happened whenever I got talked into doing a demo without taking at least a day to interview the potential users. At the time that I did the demo Mervyn’s was, unbeknownst to me, owned by Target. This might have explained the lack of progress. Target may have been restricting or rejecting any capital purchases at the time.

Mervyn’s was sold to some vulture capitalists in 2004. A much smaller version of the chain went out of business in 2009.

For some reason Doug and I once had a very short meeting with the president of Gottschalks, a chain of department stores based in Fresno, CA. He told Doug and me that he would get all of the other members of the Frederick Atkins Group to install AdDept. This organization (absolutely never abbreviated by its initials) somehow enabled its members to shop for foreign and domestic merchandise as a group. Nearly every department store that was not owned by the May Company or Federated belonged to it.

A few years after he made this promise he (or someone else at Gottschalks) arranged for me to speak before the members at one of their conventions in Naples, FL. I flew to Fort Meyers and rented a car from there. Naples was beautiful and reeked of new money. I gave my little spiel, but I did not have an opportunity to interact with any of the members of the audience. So, I did not get any direct feedback.

We eventually did sign up a few members of the group—notably the Bon-Ton (described here) and Elder-Beerman (described here). I don’t know whether my speech had any effect.

I think that the Frederick Atkins Group is defunct in 2021. The references to it that I could find on the Internet were all from decades past.

In (I think) 1999 Doug Pease and I made an unproductive trip to Columbus, OH, to talk with the IT director of of Value City about the possibility of installing the AdDept system for use by the advertising department. That adventure is described here.

TSI got a phone call from a chain of furniture stores in coastal Virginia, Norfolk⁴, as I recall. As part of my crazy automotive support trip, I stopped by to talk with the advertising director at this company on my journey from Home Quarters Warehouse in Virginia Beach to Hecht’s in Arlington. I spent a couple of hours with him. When I discovered that the company had only three stores, I knew that this was a mistake. I told him that our software could address his problems, but the cost and effort would not be worth it for either of us. I advised him to hire someone who was a wiz with spreadsheets.

I think that I got a free cup of coffee out of it.

I can’t tell you what happened to the company thereafter because I don’t even remember its name.

We had two reasonably hot leads in 2000. I had to handle both of them myself. The first was at Bealls department store, which has its headquarters in Bradenton, FL. This was another situation is which I had to deal with the IT department rather than the advertising department. I am pretty sure that the company already had at least one AS/400. I have a few notes from this trip, but it is not clear whether I intended to do the demo on their system or on one at a nearby IBM office.

In any case I think that there was a technical problem that prevented a successful installation of the software needed for the demo. So, I had to improvise, and I did not get to spend much time with the people who would have benefited from the system. The whole thing made me very depressed.

I had some free time, and so I went to the beach. I stopped at a Jacobson’s store to buy a tee shirt to wear at the beach. The cheapest tee shirts in the store cost $100!

The beach was lovely, and it was unbelievably empty. The weather was pretty nice. A beach in Connecticut would have been packed in this type of weather.

We did not get the account, but the tale has an interesting coda. Bealls is still in business today. For years Bealls could not expand outside of the state of Florida because a different store with exactly the same name was already using it in other states. These Bealls stores were run by Stage Stores, a long-time AdDept client that was based in Houston. Stage Stores was still using AdDept when TSI went out of business in 2014.

In 2019 Stage announced that it was changing all of its stores into Gordmans, its off-price logo (which did not exist while I was working with them). When the company declared bankruptcy Bealls purchased, among other things, the right to use the Bealls name nationwide.

I remember going to Barneys New York in late 2000 to talk with someone in advertising. I also have discovered three emails that I sent to Christine Carter, who was, I think, either in charge of the advertising department or in charge of the financial side. Barneys only had twenty-two stores, and that included some off-price outlets. I don’t know how much they actually advertised.

We never heard from them after my last email, which emphasized how easily AdDept could be adapted to differing needs even for companies the size of Barneys. By this time the very affordable AS/400 model 150 had been introduced. It would have been perfect for them.

I think that Barneys is dead or nearly so in 2021. All of the stores in the U.S have been closed, and even the “Barneys New York” brand was sold to Saks Fifth Avenue. However, the company also had a Japan division, which is evidently still operational.

I received a very unexpected phone some time in 2001 or 2002. It came from a man who had formerly worked at Saks Fifth Avenue and had taken a job as a Vice President at Sears. He knew that the advertising department at Saks had been doing things with its AdDept system that Sears’ advertising department seemed utterly incapable of. He invited me to the Sears headquarters in Hoffman Estates, IL, to investigate the possibility of installing AdDept at Sears.

At about the same time I had been in contact with the agency in a nearby town that Sears used for buying newspaper space and negotiating newspaper contracts. They wanted to talk with me about the possibility of working together. The agency’s name was three initials. I think that one was an N, but I am not sure.⁵

I arranged to spend consecutive days at the two places. It was cold on the day that I visited the agency. I learned that it recruited new clients by claiming that they could negotiate better rates for them because they also represented Sears. I suspected that this was baloney. Sears was a bid dog nationwide, but the amount of newspaper ads that they bought in any individual market was not that impressive. They were just in a lot of markets.

After the people explained the services that they offered to clients, I remarked that about 10 percent of what they did overlapped with about 10 percent of what we did. Privately I could not imagine that any of our clients who would benefit from their services.

I told them about A^xN, our Internet product. They informed me that the papers did not want to sign on to their website for insertion orders. Of course, they wouldn’t, and they had nothing to hold over the papers.

We ended the meeting with the usual agreement to stay in touch and look for synergies, but privately I considered them the enemy.

I did not see a parking structure. Maybe I entered on the wrong side of the pond.

The next day was bitterly cold, and there was a strong wind. I located the sprawling Sears complex and parked my rented car in a lot that was already nearly full. I had to walk a long way to the main building, and I have never felt as cold as I did on that walk.

I could hardly believe it when I walked into the building. The ground floor was billed with retail establishments—a drug store, a coffee shop, a barber shop, and many more. I had to take the escalator up to get to Sears. I was met there by the woman with whom I had been in contact. She was from the IT department.

OK, now I get it. Our problem was that we did not have enough architects.

She took me up to meet the “advertising team”. Six or eight people were assembled in the room, and they all had assigned roles. I remember that one was the “system architect”, and one was the “database manager”. I almost could not suppress my amusement. What did all these people do? There was no system, and there certainly was no database. At TSI I handled essentially all the roles that everyone at the table described.

They asked me some questions about the AdDept system. When I told them that it ran on the AS/400, the system architect asked me if that system was not considered obsolete. I scoffed at this notion and explained that IBM had introduced in the AS/400 64-bit RISC processors that were state-of-the-art. I also said that, as far as I knew, the AS/400 was the only system that was build on top of a relational database. That made it perfect for what AdDept did.

I wonder how many “OS/2 shops” there were in the world.

They informed me that Sears was an OS/2⁶ shop. I did not know that there was such a thing. In the real world Windows had already left OS/2 in its dust by that time. In all my time dealing with retailers I never heard anyone else even mention OS/2. It might have been a great idea, but IBM never did a good job of positioning it against Windows.

Besides, just because the corporation endorsed OS/2 should not eliminate consideration of multi-user relational databases where appropriate. The devices with OS/2 could serve as clients.

They explained to me that Sears’ advertising department had hundreds of employees, most of whom served as liaisons with the merchandise managers. Most of the ads were placed by agencies. I presume that the newspaper ads were produced in-house. No one whom I talked with seemed to know. The people on the committee did not seem to know anything about how the department did budgeting or planning.

Someone talked about Sears’ competitors. The example cited was Home Depot. I don’t know why this surprised me. I must have been taken in by the “softer side of Sears” campaign a few years earlier.

After the meeting my escort took me to a remarkable room that was dedicated to the advertising project. It was a small theater that had ten or so posters on the wall with big Roman numerals at the top: I, II, III, IV, etc. There were no statues, but otherwise I was immediately struck by the resemblance to the Stations of the Cross that can be found in almost any Catholic church in the world. I asked what the posters represented. The answer was that they were the “phases of the project”. I was stunned by the assumption that the project required “a team” and that it was or indefinite duration. No one ever allowed us more than a month or two to have at least portions of the system up and running.

At some point I was allowed to give my presentation. The man who had worked at Saks attended along with a fairly large number of people. Maybe some were from advertising. I was never allowed to speak with them individually.

I never got to read the advertising department’s Wish Book.

My talk explained that AdDept was a relational database that was specifically designed for retail advertising departments. I described a few of the things for which it had been used by other retailers. I could not do much more than that. I had not been able to talk with any of the people in the department, and the IT people were clearly clueless.

When I returned to Connecticut I wrote to both my escort and the man from Saks. I told both of them that I did not know what the next step might be. I had not been given enough access to the advertising department to make a proposal. The whole experience was surreal. If someone had asked me to return, I would only have done it if I were granted unfettered access to potential users.

No one ever contacted us. I told Doug not to bother following up.

One puzzling whiff occurred during the very short period in which Jim Lowe worked for us. The strange case of Wherehouse Music is explored here.

Perhaps the strangest telephone call from a genuine prospect that I ever received was from Albertsons, a very large retailer with is its headquarters in Boise Idaho. The person who called was (or at least claimed to be) the advertising director there.

I had heard of Albertsons, but I did not know very much about the company. All I knew was that they were a chain of grocery stores in the west. Since advertising for grocery stores is basically limited to one insert/polybag⁷ per week, they had never seemed to be great prospects for AdDept. However, I never hung up on someone who expressed interest in the system.

The problem was that this lady insisted that I fly out to Boise to meet with her and her crew the next day. I tried to get her to explain what the situation was, but she said that she had no time to talk. She needed to know if I would make the trip. It was a little tempting for a peculiar reason. Idaho was one of the few states⁸ that I had never visited. Still, this sounded awfully fishy. I passed.

The incredibly bumpy road that Albertsons has traveled is documented on its Wikipedia page, which is available here. I don’t remember when the call from the advertising director came. I therefore have no way of knowing whether she was in charge of advertising for a region, a division, all of the grocery stores, or none of those. I might well have passed up an opportunity that might have extended the life of the company. Who knows? It looked like a goose, and it honked like a goose, but maybe going to Boise would not have been a wild goose chase.

Jeff Netzer, with whom I had worked in the nineties at Neiman Marcus (recounted here), called me one day in 2010. He asked me if I remembered him. I said that I did; he was the Aggie who worked at Neiman’s.

He informed me that he was now working at Sewell Automotive, the largest Cadillac dealership in the Dallas area. He said that they were looking for help in automating their marketing. I was not sure how well AdDept would work in that environment, but I agreed to visit them. His boss promised to buy me a steak dinner.

I flew Southwest to Dallas, and for the first time my plane landed at Love Field. It was much closer to Sewell than DFW would have been.

I found a great deal out about their operation. I doubted that we could do much for the agency for a reasonable amount of money. On my computer I recently found a three-page document dated September 23, 2010, in which I had listed all of the issues that I learned about at Sewell. A woman named Tucker Pressly entered all of their expense invoices into a SQL Server database. It was inefficient, and there were no programs to help them compare with budgets.

The main objective of the marketing department was to make sure that they were taking advantage of all available co-op dollars from Cadillac and other vendors. We could not help with this unless we wrote a new module. I described my reactions to their issues in a letter to Jeff.

I never heard back from Jeff, who left Sewell in 2012. Nobody ever bought me a steak dinner.

Sewell Automotive is still thriving in 2021.

In 2011 or 2012 I received a phone call from a lady from the advertising department at Shopko, a chain of department stores based in Green Bay, WI. I don’t recall her name. She said that she worked for Jack Mullen, whom I knew very well from both Elder-Beerman and Kaufmann’s. Before Doug Pease came to TSI, he had worked for Jack at G. Fox in Hartford.

I flew out to Packer Land to meet with her. They had a very small advertising department. They basically ran circulars in local newspapers on a weekly basis. As I remember, she and one other person ran the business office.

I worked up a proposal for the most minimal AdDept system that I could come up with and sent it to her. When I had not heard from her after a few weeks I called her. She said that the company was downsizing and, in fact, her position was being eliminated.

Jack also left the company in July of 2012. His LinkedIn page is here. Shopko went out of business in 2019.

1. Allison Volpert apparently still works for IBM in 2021. Her LinkedIn page is here.

2. As I write this I can easily visualize Doug stabbing a box with a pencil after a frustrating telephone conversation with someone from a Federated division.

3. I worked fairly closely with Debra Edwards when I installed the AdDept system at Elder-Beerman stores in Dayton, OH. That installation is described here. She was the Advertising Director there. Her LinkedIn page is here.

4. The “l” in Norfolk is silent, and the “ol” sounds much more like a short u.

5. I later learned that there were actually two affiliated agencies across the street from one another. I encountered the other one, SPM, in my dealings with Proffitt’s Inc./Saks Inc., which are detailed here. The agency was still around in 2023. Its webpage is here.

6. In fact IBM stopped updating OS/2 in 2001 and stopped supporting the operating system in 2006. I cannot imagine how Sears dealt with this. I pity their employees with nothing OS/2 experience at Sears on their résumés.

7. Polybags are the plastic bags that hold a group of flyers from diverse retailers. they are ordinarily distributed to people willy-nilly.

8. The others are Wyoming, Montana, North Dakota, and Alaska. I am not certain of Arkansas. I might have gone there with my grandparents when I was a youngster. The only place that I have been in Utah is the Salt Lake City airport.

Wavablog

Memoirs, bridge, popes, travel, and other stuff

Tag Archives: Gordmans

1997-2014 TSI: AdDept Client: Stage Stores

1991-2012 TSI: AdDept: The Whiffs