Globe Discount City, sometimes called Globe Shopping City, was an early attempt at a modern discount department store based in Houston. The beginning of Globe is tied to the Danburg family. Patriarch Joe Danburg was the first to arrive in the Bayou City via his home of New York. Joe was an entrepreneur and saw Houston as a growing town with little competition. When Danburg arrived around 1930, he opened a dry goods store in the Fifth Ward, which was a hit. Working with other operators, Danburg grew his store into a franchised chain named Rite-Way. While starting out as a simple dry goods store, the newer Rite-Way locations resembled larger department stores. In 1937, Joe opened his largest store in Victoria, Texas, and quickly began working on bringing the rest of the chain up to speed. Noticing that the department store concept was popular, Danburg doubled down on the idea and began opening newer and larger stores in Houston. By the end of the 40s, Danburg had taken control of the franchised locations back, and the chain began using the name “Danburg’s Rite-Way.” As Danburgs grew, they distanced themselves from Rite-Way and sought city centers to open new stores. However, by this point, it was 1950, and city centers were losing prominence to newly planned and constructed shopping centers. The final new Danburg location opened in 1955, after which Joe Danburg “stepped down,” not leaving the company but taking a smaller role to allow his son and son-in-law, Stanley Danburg and George Kamins, to step up. The duo was business-minded but had no intent on ripping apart what Joe had built. Rather, they wanted to build on his success. Looking at how shopping was trending in Houston and nationwide, it seemed that malls and shopping centers were the way of the future. Not quite one-stop shopping, but one-location shopping for sure. Even the final Danburgs to open didn’t fit this mold; sitting in the middle of Jacinto City next to Weingarten’s, it did good business, but customers would have to visit multiple stores to buy everything they needed. If Joe was able to take his Rite-Way stores and turn them into something new, what was to stop his son and Kamins from doing the same?
One of the first new actions taken around this time was forming a parent company, United Mercantile Inc. The company aimed to take control of Danburgs and allow it to run while Stanley Danburg and Kamins experimented with new concepts. This was very forward-thinking for the time and was meant to address problems later seen by competitors like Woolworth/Woolco and Kresgge/Kmart trying to juggle competing large and small-scale formats simultaneously. However, around the time this company was created, Joe Danburg unexpectedly passed away from a heart attack, pausing all current development while Stanley and George scrambled to fill his presence. Thankfully, some long-time Danburg employees, some even dating back to Rite-Way days, and family members step up and take charge of the Junior Department Store, allowing the surviving Danburg and Kamins to get back to work on their new idea. After Joe Danburg’s death, Stanley and George Kamins (his brother-in-law) toured the country for a year, scoping out other department stores for ideas. During this tour, they learned about the concept of discount department stores. These stores had their earliest incarnations in the 1950s, offering true “one-stop shopping” names like Ann & Hope and Fed-Mart, which were familiar to shoppers in the area but offered very little in the way of a chain shopping experience. With this knowledge, Danburg and Kamins returned to Houston and began working on plans for their one-stop shop, a discount department store. Nearly at the time same time, Fed-Mart, which had recently opened in San Antonio announced they would expand into Houston. At the time, Fed-Mart was membership-based and had requirements to gain membership. Globe, on the other hand, would be open to the public, likely understanding their market a bit better. The duo only needed a building and were introduced to Russell W. Nix. Mr. Nix was a Houston construction magnate familiar with retail, thanks to his failed attempt at building the Montclair Mall. Mr. Nix believed in the concept and was willing to furnish a massive (at the time) 100,000-square-foot building for the two adjacent to the newly built Gulfgate Mall.
News of this store first hit the press in early 1960. The name “Globe” had yet to be revealed, but what was known as the store would include 50 departments taking up a space just larger than two football fields. In addition to all the trappings of a regular discount department store of the era (clothing, linens, appliances, sporting goods, toys, electronics, jewelry, etc…), Globe would also offer groceries, a restaurant, and a gas station, genuinely making for one-stop shopping. Despite being a discounter, Globe spared no expense in the layout and design of their store to try and make things easier for the customer. Evidence of such was an elaborate conveyor belt system that allowed the customer to drop off their cart inside the store, drive their car up to a “loading dock,” and have their groceries sent via the belt to be loaded into their cars. In the evening, the direction of the belt would be reversed to restock the store from trucks in the loading dock. The building would not only be massive, but it was also the first of its kind in Houston. Larger buildings had been built, but for the most part, these were warehouses or other general-purpose facilities. The construction team for the Montclair Corp. had built an exceptionally lavish structure that included brick on all sides and a few windows/doors. The first Globe opened on November 24, 1960, to massive fanfare. It does seem that at some point between the initial start of construction and grand opening, United Mercantile decided to add a Tire Center adjacent to Globe, a common practice for other discounters. After a few months of good business, United Mercantile announced plans for a second Globe location on the Northside of town. It would be nearly identical to the first location but would take less time to build since many kinks had been worked out of construction. This news quickly brought imitators, most notably Jubilee City. This New York-based company went around to various “smaller” towns where they felt the discount market was still open and flooded them with stores. In response to their plans to open 4 locations in Houston, Globe announced a new Sharpstown store, which would be even larger than the first two. While Jubilee City would open one of its four planned locations, it would fail to expand here, just like in many other cities. Globe was riding high, and by this point, most Danburg employees and family members had realized that this type of retailing was the future.
As new stores opened, management from the Danburg side of United Mercantile was appointed to take on new positions. The size and convenience of one-stop shops weren’t the only allure to Globe. The company did a good job of keeping prices low and, in the case of shoddy merchandise, offered a money-back guarantee on all products they sold. While this is not unusual today, it was uncommon at the time for retailers to provide any support beyond what the manufacturer included with their product. Buying something at Globe, even if you were unsure of the product, was less risky than, say, Foley’s because you could always get your money back. By late 1961, the company was up to two operating locations, with the third nearly complete. However, in October 1961, the company faced a huge hurdle as they watched the original Globe location nearly burn to the ground. The fire had started from an incinerator behind the building got out of control. Employees had been burning boxes, and as the flames grew, they lost control of the fire, which by then had reached merchandise sitting on the loading dock. At this point, smoke began to fill the building, and customers and employees were evacuated using the P.A. system, thankfully saving the lives of everyone involved. However, the fire continued to burn uncontrolled. When the fire department arrived, the fire chief did not know how to battle the flames. Lacking windows or other easy access points, the fire chief first directed the crew to puncture the roof, but they could not make substantial progress to the concrete ceiling used. A bulldozer was brought in to knock down a portion of the wall and allow access inside, but with the holes in the roof, this essentially gave the fire more oxygen, allowing it to continue burning longer. Ultimately, the fire department could save other buildings, but the store itself was a complete loss. George Kamins, who was by this point an Executive VP of United Mercantile, stated that Glboe would rebuild and reopen the store as quickly as possible and that, thanks to the sturdy construction, the structure would not need much repair. Only about two weeks later, United Mercantile employees showed up for their next grand opening, this one in Sharpstown.
While the fire was not the end of Globe, it put them in a precarious position. Fed-Mart, who had slowly been reducing membership requirements, was now shoppable by most people; there were also rumors, which would turn out to be true, that K-Mart was coming to town. Globe needed to be able to expand, as other discounters were invading the area, and that took lots of cash, which was tied up in reopening the first store. In March 1962, Walgreens would be allowed to take over the drug departments of stores as existing leases expired. This merger would allow United Mercantile to become a subsidiary of Walgreens, but it would still be under the control of the Danburg family. They would also maintain the operations of the Danburg chain, which had dipped to seven locations. As part of the agreement, Walgreens would be allowed to take over the drug departments of stores as existing leases expired. They would also provide cash for expansion. Walgreens envisioned the chain expanding into other Texas cities first and then nationwide. In a quiet move just before this, United Mercantile had sold their Tire Center business to George Kamis, who said he felt they were underloved. Because of this, the tire centers were not included in the sale, although Kamins would continue to operate them under the Globe name. To help facilitate the merger, C.R. Walgreen III, the grandson of the chain’s founder, would temporarily relocate to Houston to act as a liaison between Globe and Walgreens. Walgreens had already established a healthy store base in Houston; for years, it had been their second largest, second only to their home, Chicago. With this new backing, the original Globe reopened in early 1963. Walgreens was optimistic about the future of Globe, and one of their first actions was to help United Mercantile purchase the single-location competitor, Jubilee City. Once Globe was up to four locations, Walgreens began to push for out-of-state expansion. It was pretty typical thinking at the time to limit your operations to a handful of stores in a market to prevent cannibalization of sales. The first out-of-state store would be located in Baton Rouge, LA, and open in 1964. Globe was on its way from a local chain to a regional giant.
Walgreens realized early on that one of the most significant hurdles Globe faced was on the logistics side. The original stores were largely leased, with United Mercantile supplying things you might find at Danburgs, such as clothing, appliances, and jewelry, but leasing all other departments, such as pharmacy, auto parts, books, etc. To maintain the desired expansion, Globe needed to move away from the leased model, which it did, except for grocery, which would remain leased for Globe’s life. To support the new model, Globe was to be given space in a new Walgreens warehouse built in the Spring Branch area. With this new setup Globe’s expansion would pick up significantly. The company would again focus on out-of-state expansion; of the four stores opened in 1965, only one was in Texas, specifically El Paso. Three were in Phoenix, and the final was in Albuquerque. This expansion may have rubbed some of the Danburg family the wrong way, as Stanley Danburg and a few other long-time family employees all left United Mercantile around this time. Danburg would reunite with his brother-in-law and Globe associate George Kamins in owning and operating the local Yellow Cab syndicate. Danburg would spend the rest of his life operating different Yellow Cab operations, leaving Houston after a failed murder-suicide attempt by his wife in 1971. Back at Globe, things would continue much the same, again building four stores in a year, this time with three in Texas and one outside. This would include stores in McAllen, San Antonio, Lubbock, and Tuscon, AZ. In 1967, United Mercantile, which was now being referred to as the “Globe Division” of Walgreens, appointed a new director of operations, Maurice B. Rudnick. He had been with Walgreens for 35 years and would take a completely different approach to expansion than his predecessors. In his first year of leadership, only one new store would open in San Antonio. Once expansion picked back up, Rudnick focused much more on Texas and other parts of the South than the Southwestern expansion that had pitted Globe against stronger competitors.
One exception was a failed expansion into Tennesee. This idea wasn’t too misguided, as there was a need for discounters in the area, but in the end, with only one location in TN, like Weingarten’s, the company was not able to build recognition and exited only a few years after entering Memphis. Another challenge for the new direction of Globe was what to do with Danburgs. The stores were profitable but had been essentially untouched since 1955. By 1971, they were down to five Danburg stores, and Walgreens silently decided to shut down the Danburg chain altogether. One location on Jensen Road would be kept by Walgreens, reopening under the banner “Globe Outlet.” Pruning Danburgs helped the chain to grow again, and by 1972, it was up to 25 locations across from the South. However, things would again grind to a halt in 1976 after slowing down in the two years prior. While Globe and Walgreens were mum on their reasoning, there’s a good chance the oil crisis during this time shook their confidence. In a last-ditch effort to try and expand their chain, Walgreens paid to pick three former Shoppers World locations in San Antonio. A competing chain that had picked up another competitor (Gulf-Mart) had gone bankrupt that year and, in a way, set the course for what was coming next. Other than the Memphis location and Outlet store, Globe had never closed a location in its 18-year operation. It shocked many Houstonians when Walgreens announced they were closing Globe. The chain had been doing well as a whole, and Walgreens seemed fine. Keeping tightlipped compared to the Danburg days didn’t help the news either. Throughout the first half of 1978, the stores held massive going-out-of-business sales. One exception would be the McAllen location, where managers worked out a deal with Walgreens to lease the building and franchise the name, keeping Globe open there until 1999 and the adjacent grocery store until 2011! The rest of the stores would be auctioned off, and neighboring tenants were allowed to remain if they dropped the Globe name. In 1979, the remaining fixtures were auctioned off from the Memorial City store, and shortly after, work would begin on leasing the empty buildings. Competitors Fed-Mart and Kmart would lease a majority of the locations. Walgreens never provided much reason for closing beyond wanting to focus on their core drugstores instead.
Photo Gallery
Location List
Store No | Address | Notes |
---|---|---|
1 | 3030 Woodridge Dr, Houston, TX 77087 | 1960-1978, Across from Gulfgate Mall, Sold to FedMart, Later Charles Smith AMC Jeep Renault, Then Mervyn's, Demolished |
2 | 5300 N Shepherd Dr, Houston, TX 77091 | 1961-1978 Became AutoFair Auction, Demolished about 2000 for Houston Emergency Response Center |
3 | 6200 Bellaire Blvd, Houston, TX 77081 | 1961-1978 Sold to FedMart, Then purchased by Fiesta, Still open as of 2024 |
4 | 10400 Eastex Fwy, Houston, TX 77093 | 1963-1978 Originally Jubilee City, Langley at 59, Flea Market, Demolished during freeway expansion |
5 | 5905 Florida Blvd, Baton Rouge, LA 70806 | 1964-1978 First out of state location, Sold to Kmart, Subdivided |
6 | 7100 Lomas Blvd NE, Albuquerque, NM 87110 | 1965-1977 Sold to Kmart, Still standing, APS Food & Nutrition as of 2024 |
7 | 3601 E Thomas Rd, Phoenix, AZ 85018 | 1965-1977 Sold to FedMart, Later Target, Demolished for Home Depot around 2000 |
8 | 740 W Camelback Rd, Phoenix, AZ 85013 | 1965-1977 Sold to FedMart, Later Target, Demolished 2012 |
9 | 6373 Montana Ave, El Paso, TX 79925 | 1965-1978 Sold to Kmart, Still standing Subdivided |
10 | 5255 E Broadway Blvd, Tucson, AZ 85711 | 1966-1978 Sold to FedMart, Later Target, AtHome as of 2024 |
11 | 3201 Avenue Q, Lubbock, TX 79411 | 1966-1978 Sold to Kmart, |
12 | 901 S 10th St, McAllen, TX 78501 | 1966-1999 Sold to Franchisee, Globe Discount Foods operated until ~2011 |
13 | 1004 Southmore Ave, Pasadena, TX 77502 | 1966-1978 Sold to Fedmart, Later Mervyn's, Now Subdivided |
14 | 7142 San Pedro Ave, San Antonio, TX 78216 | 1967-1978 Sold to Kmart, Subdivided |
15 | 238 SW Military Dr, San Antonio, TX 78221 | 1968-1978 Sold to Kmart, Subdivided |
16 | 975 Gessner Rd, Houston, TX 77024 | 1968-1978 Across from Memorial City Mall, Sold to FedMart, Demolished |
17 | 1700 Decker Dr, Baytown, TX 77520 | 1969-1978 Sometimes 1200 Garth, Subdivided, Mostly Food Town as of 2024 |
18 | 745 Shreveport Barksdale Hwy, Shreveport, LA 71105 | 1970-1978 Originally 737 Shreveport Highway, Sold to Walmart, Subdivided |
19 | 584 S Mendenhall Rd, Memphis, TN 38117 | 1970-1972 Closed due to underperformance, Then leased to Service Mechandise, Demolished around 2000 |
20 | 315 S Santa Rosa Ave, San Antonio, TX 78207 | 1970-1978 Previously Barkers, Sold to Kmart, Demolished around 2010 |
21 | 66 S Dobson Rd, Mesa, AZ 85202 | 1970-1977 Sold to FedMart, Later Target, Mekong Plaza/Supermarket as of 2024 |
22 | 4628 Broadway Avenue J, Galveston, TX 77551 | 1971-1977 Still standing, Including Auto Center, Community Center as of 2024 |
23 | 1200 E Shelby Dr, Memphis, TN 38116 | 1970-1972 Closed due to underperformance, Leased to Service Merchandise, Demolished for Kroger |
24 | 8712 Jensen Dr, Houston, TX 77093 | 1972-1976 Globe Outlet Store, Former Danburgs location, Demolished |
25 | 300 Menaul Blvd NW, Albuquerque, NM 87107 | 1972-1978 Sold to Kmart, Subdivided |
26 | 4977 Ayers St, Corpus Christi, TX 78415 | 1973-1978 Sold to Kmart, Subdivided |
27 | 503 W 70th St, Shreveport, LA 71106 | 1973-1978 Still standing Furniture Facility |
28 | 5264 W 34th St, Houston, TX 77092 | 1974-1978 Sold to Kmart, Still standing, El Rancho mostly as of 2024 |
29 | 325 Mexico Blvd, Brownsville, TX 78520 | 1975-1978 Sold to Kmart, Still standing |
30 | 555 E Grant Rd, Tucson, AZ 85705 | 1975-1978 Final new build store, Fry's Supermarket as of 2024 |
31 | 4343 W Commerce St, San Antonio, TX 78237 | 1977-1978 Former Shoppers World, Sold to Kmart, KIPP Academy as of 2024 |
32 | 8505 Broadway, San Antonio, TX 78217 | 1977-1978 Former Gulf-Mart/Shoppers World, Demolished |
33 | 4902 Fredericksburg Rd, San Antonio, TX 78229 | 1977-1978 Former Gulf-Mart/Shoppers World, VIA Operations Center |