Duckwall-ALCO Retail Stores

Duckwall-ALCO Stores, Inc.

Type	Discount store
Industry	Retail
Founded	1901
Headquarters	Abilene, Kansas
Products	Clothing, footwear, bedding, furniture, jewelry, beauty products, electronics, market, housewares.
Website	http://www.ALCOstores.com/

Duckwall-ALCO Stores, Inc. (NASDAQ: DUCK) is a small retail chain operating 257 stores in 23 states in the United States Midwest, founded in 1901 in Kansas by A.L. Duckwall.

History

In its early years the company operated five and dime (or "variety") stores called Duckwall's. In 1968 it began to move into the discount retail business and opened stores that were bigger than their five and dime counterparts called ALCO. ALCO stores (somewhat smaller than a non-supercenter Wal-Mart) provide the full selection of merchandise offered by the company, while the Duckwall stores provide a limited selection.

In 1985, after three acquisitions, the company went through a management-led leveraged buy-out. The company had 127 ALCO stores, and 33 Duckwalls in 14 states at that time.^[1]

In May 1989, Duckwall-ALCO filed Chapter 11 bankruptcy, emerging in 1991 after securing financing from GE Capital, its primary creditor.^[2] At least 52 stores were closed during this period. After 1989 they switched to their current business strategy of targeting communities where no direct retail competitor existed (such as Wal-Mart, Target or Kmart). The strategy proved to be successful for Duckwall-ALCO and as of June 2008 there are 205 ALCO stores and 59 Duckwall stores.

The company previously experimented with a combination discount and food store called C.O.L.A. (Cost of Living Adjusters) in Mineral Wells, Texas, which was discontinued.^[2] The company also began a supercenter concept, ALCO Market Place, by providing limited perishable goods. (There is only one store that is a ALCO Market Place in the United States) These stores are considerably smaller than Wal-Mart's or Target's supercenter stores.

The company's headquarters, as well as their 352,000-square-foot (32,700 m²) distribution center are all located in Abilene, Kansas.

In 2010, the company reported to open 8 more new stores in the U.S.^{[citation needed]}

Duckwall-ALCO stores announced on November 29, 2010 that it will close all 44 of its Duckwall stores. Forty-three of the stores will be closed permanently, except for one in Hettinger, N.D. which will be reopened as an ALCO.

Acquisitions

Duckwall-ALCO has grown through various acquisitions over the years.

• 1983 - Sterling Stores Co. Inc was acquired. Based in Little Rock, Arkansas, it operated 48 stores under the Sterling and Magic Mart names in Mississippi and Arkansas.^[1] The majority of these stores were converted to either ALCO or Duckwall stores, though the Sterling nameplate was maintained until 2005 when the final Sterling store in Little Rock, Arkansas was closed.
• 1984 - David's in Wichita, Kansas ^[1]
• 1985 - Hornsby, a 9-store chain based in Illinois, was acquired.^[1]
• 1996 - Val chain of 14 stores in Indiana and Ohio, with headquarters in New Castle, Indiana, was acquired.^[3]
• 1997 - Acquired 18 stores from Perry Brothers, located in Texas and New Mexico, which were converted to Duckwall stores.^[1]

External links

• Duckwall-ALCO Stores Website
• Duckwall-ALCO History
• Photo of a Duckwall's store in Concordia, Kansas

References

1. ^ ^{a b c d e} www.fundinguniverse.com/company-histories/DuckwallALCO-Stores-Inc-Company-History.html
2. ^ ^{a b} ALCO gets reprieve; financing is extended - Duckwall-Alco Stores Inc | Discount Store News | Find Articles at BNET.com
3. ^ Duckwall-ALCO inks deal to acquire 14 locations. (Duckwall-ALCO Stores Inc.) | Daily News Record | Find Articles at BNET.com