Rivalry in Retail: The Rise of Macy's and Gimbels

It’s nearing the turn of the 19th century, and the Straus Brothers now run Macy’s emporium out of a dozen cobbled together stores in lower Manhattan. The next generation of Straus’s pressure the old guard to build a huge new Macy’s flagship on 34th street, in the still seedy red light district of Herald Square. It will take some persuading. And by the time the new venture reaps its reward, the family will be famous for a new reason; the heroism of one of the store’s founding fathers and his wife on the fateful voyage of the Titanic.

Gimbels now has mammoth enterprises in Milwaukee and Philadelphia, and one of Adam’s sons also has greater ambitions. He urges the Gimbel elders to ride the wave of Macy’s high profile and build an even bigger store right on the rival’s doorstep. And when they balk, he comes up with a dastardly plan.

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