Gottschalks' Going-Out-of-Business Sale

Posted by: Monica Gagnier on June 04

A couple of days ago, I opened my prescription sunglasses to discover that they had broken at the bridge. This was not good news, since I forgot to sign up for the flexible spending plan this year and can’t use pretax dollars to buy glasses.

A colleague at the Well in the Desert, where I’ve been volunteering in Palm Springs, Calif., suggested I try the optical store at the Palm Springs Mall to see if I could find a low-cost solution to my problem.

I’ve only been to the mall, which is has been gradually losing tenants for some time, once before, to visit the dynamite True Value Hardware store there. The help and selection at True Value are wonderful.

Even though it’s part of a chain, the hardware store exudes the gay campy vibe of Palm Springs. You can find everything from little umbrellas to put in your cocktails to a power drill to retro porch furniture that conjures up The Jetsons.

Odd as it may seem, True Value is one of the anchors at the Palm Springs Mall at this point in its history. (Traditionally, malls have been anchored by department stores, not hardware stores.) The other anchor is Gottschalks, which the Wiki defines as a “middle-tier American department store chain currently liquidating.”

Ain’t that the truth. Everything in the store is 50% to 80% off the original price. Even the fixtures are for sale. As I was admiring a beautiful 9-by-12 Oriental rug that was once priced at $20,000 and now is going for $2,400, I looked over at the manager of the furniture department. He appeared to be taking a lunchtime siesta on his desk.

I don't blame him. There were no customers in the furniture department, and he knows he's going to be out of a job very soon.

There weren't a lot of people at Gottschalks, but bathing suits marked down to a few bucks were selling briskly in another part of the store. Conscious that my real reason for visiting the mall was to get my sunglasses fixed, I didn't linger too long.

However, I did take the time to check out Issac Mizrahi's much-heralded new collection for Liz Claiborne. I was sorely disappointed. I loved Mizrahi's classic-yet-whimsical line that he designed for Target.

I'm far from a fashionista, but I used to cover retailing as a cub reporter for Fairchild News Service, and I've been following Mizrahi since the early days of his career. (He also once sat next to me during a voir dire when I was called for jury duty.)

Too bad his spring collection for Liz Claiborne isn't more female-friendly. The silhouettes are boxy and oversized, although the candy-colored palette is fun. Not surprisingly, the entire collection appeared to be untouched at Gottschalks, with all sizes from 2 to 16 in consecutive order and the hangers tightly together.

Liz Claiborne has staked its turnaround on Mizrahi's design mojo. I hope he makes his next collection more curve-hugging. Middle-aged gals like myself (the market for Liz Claiborne) like belts and fitted waists to help us project the illusion of an hourglass figure.

As I was made my way to Desert Vision, I started thinking that Gottschalks, Liz Claiborne, and General Motors, which filed for bankruptcy on June 1, have a lot in common: All three were aimed solidly at the American middle class.

As a variety of economic cross-currents has buffeted the middle class, the retail market for clothes, home furnishings, and autos has bifurcated: At the high end, you'll find shoppers seeking status and luxury, while at the low end you'll find consumers determined to find value. Of course, since the financial crisis began in September 2008, even well-heeled consumers have been shopping at Wal-Mart.

I believe the explosion of easy-to-obtain credit was also a reason for the demise of middle-tier department stores like Gottschalks. Back in the old days, department stores were often willing to give plastic to young consumers who didn't have much credit history. (This was before American Express started passing out green cards on college campuses.)

So maybe you didn't necessarily want to buy your first sofa from Gottschalks, but it was the only store in town that would extend you credit, so you did. And you remembered the store that helped you feather your first nest. I think that's why consumers get sentimental when a retailer like Fortunoff goes out of business.

Despite the depressing scene at Gottschalks, which was covered from ceiling to floor with gaudy "Going Out of Business" banners, my trip to the Palm Springs Mall had a happy ending. Although at least 75% of the storefronts are shuttered, I managed to find Desert Vision.

The helpful folks there called their wholesaler, who had my sunglass frames in stock. I'll be able to buy them and have my existing prescription lenses transferred to the new frames for a grand total of $98. Not bad.