Sky City (retail chain)
Encyclopedia
Sky City was a discount store chain based in Asheville
, North Carolina. In the early 1990s, Sky City took a huge plummet when Wal-Mart
started moving into the areas of North Carolina
where there had previously been no competition except for Rose's Department Store. In 1991 Interco, Inc. sold Sky City Stores, Inc. to a group of investors, headed by Harvey Yellen, Sky City Stores' chief executive officer, for an undisclosed figure. The investment group formed a new company, Sky City Holding Corp.
The new owner, The Sky City Holdings Corp., includes a Hong Kong
-based global trading firm called Asia Pacific Industries. Sky City generated sales of $140 million in 1990 - up from $120 million during the previous year - but has been up against intense competition in its Southeast trading area from Wal-Mart, Rose's and other full-line discounters.
The infusion of capital from Asia Pacific Industries and other members of the holding company allowed for five new store openings in 1991 - each conforming to the chain's new, 30000 square feet (2,787.1 m²) prototype size - plus the development of new corporate offices, a warehouse and a distribution center in its current headquarters city, Asheville, N.C.
Sky City is the first retail operation in which Asia Pacific Industries has invested, although it does have ownership in other non-retail U.S. firms.
John B. Owens, director of stores and operations with Sky City, said the 30000 square feet (2,787.1 m²) prototype
was designed to serve small communities. Stores ranged in size from 51000 square feet (4,738.1 m²) to 28000 square feet (2,601.3 m²). Also, Owens said the chain planned to increase the percentage of merchandise that is the result of opportunistic buys. Sky City opened its first test prototype in March 1991.
Twenty of the chain's 55 Southeastern stores were being shuttered as part of a restructuring of Sky City operations. Remaining stores in North Carolina
, South Carolina
, Tennessee
, Georgia
and Virginia
underwent a remodeling and a program to beef up in-store inventory
levels.
Stores that closed in 1990 included nine stores in North Carolina, five stores each in Georgia and South Carolina, and one in Tennessee.
Employees at stores that closed were relocated to remaining stores whenever possible, said Yellen, adding that it is possible that some of the closed stores could be reopened at a later date. This never happened. In early 1992 the chain closed for good.
Asheville, North Carolina
Asheville is a city in and the county seat of Buncombe County, North Carolina, United States. It is the largest city in Western North Carolina, and the 11th largest city in North Carolina. The City is home to the United States National Climatic Data Center , which is the world's largest active...
, North Carolina. In the early 1990s, Sky City took a huge plummet when Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
started moving into the areas of North Carolina
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
where there had previously been no competition except for Rose's Department Store. In 1991 Interco, Inc. sold Sky City Stores, Inc. to a group of investors, headed by Harvey Yellen, Sky City Stores' chief executive officer, for an undisclosed figure. The investment group formed a new company, Sky City Holding Corp.
The new owner, The Sky City Holdings Corp., includes a Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
-based global trading firm called Asia Pacific Industries. Sky City generated sales of $140 million in 1990 - up from $120 million during the previous year - but has been up against intense competition in its Southeast trading area from Wal-Mart, Rose's and other full-line discounters.
The infusion of capital from Asia Pacific Industries and other members of the holding company allowed for five new store openings in 1991 - each conforming to the chain's new, 30000 square feet (2,787.1 m²) prototype size - plus the development of new corporate offices, a warehouse and a distribution center in its current headquarters city, Asheville, N.C.
Sky City is the first retail operation in which Asia Pacific Industries has invested, although it does have ownership in other non-retail U.S. firms.
John B. Owens, director of stores and operations with Sky City, said the 30000 square feet (2,787.1 m²) prototype
Prototype
A prototype is an early sample or model built to test a concept or process or to act as a thing to be replicated or learned from.The word prototype derives from the Greek πρωτότυπον , "primitive form", neutral of πρωτότυπος , "original, primitive", from πρῶτος , "first" and τύπος ,...
was designed to serve small communities. Stores ranged in size from 51000 square feet (4,738.1 m²) to 28000 square feet (2,601.3 m²). Also, Owens said the chain planned to increase the percentage of merchandise that is the result of opportunistic buys. Sky City opened its first test prototype in March 1991.
Twenty of the chain's 55 Southeastern stores were being shuttered as part of a restructuring of Sky City operations. Remaining stores in North Carolina
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
, South Carolina
South Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...
, Tennessee
Tennessee
Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area...
, Georgia
Georgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
and Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
underwent a remodeling and a program to beef up in-store inventory
Inventory
Inventory means a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished. This remains the prime meaning in British English...
levels.
Stores that closed in 1990 included nine stores in North Carolina, five stores each in Georgia and South Carolina, and one in Tennessee.
Employees at stores that closed were relocated to remaining stores whenever possible, said Yellen, adding that it is possible that some of the closed stores could be reopened at a later date. This never happened. In early 1992 the chain closed for good.