JCPenney Celebrates a Century of History in Salem

JCPenney’s Salem store is commemorating its 100th anniversary, marking a significant milestone in its long-standing presence in the community. This occasion brings to light the rich history of the retail giant, from its early days of personalized customer service to its current adaptation in the evolving retail landscape.

A Glimpse into the Past

Bernice Gruchalla, aged 103, and Lee Rosen, 78, offer a unique connection to JCPenney’s early operations in Salem. Both began their careers in the 1950s, a time vastly different from today’s retail environment. Transactions involved pneumatic tubes for payments, purchases were wrapped in brown craft paper and tied with string, and department managers personally curated merchandise. Notably, the store observed a complete closure on Sundays.

The original Salem store was situated on Liberty Street NE, in the building now known as the Metropolitan Building. By 1965, the store had outgrown its location and relocated to its current address at the corner of Liberty and Chemeketa streets. Gruchalla, who managed the purses and jewelry department, and Rosen, who eventually entered the management trainee program, are considered unofficial ambassadors, sharing their firsthand accounts of the store’s evolution.

JCPenney’s Enduring Legacy

With the recent closures of Barrick Funeral Home and Greenbaum’s Quilted Forest, JCPenney stands as the second-oldest business in downtown Salem, preceded only by Saffron Supply Co., a hardware store established in 1910.

The company’s foundational principles trace back to founder James Cash Penney, who opened his first store in Kemmerer, Wyoming, in 1902, naming it the Golden Rule Store. Although the name was changed in 1913, the core philosophy of service and quality has remained. This ethos is still integrated into new employee training.

The year the Salem store opened, 1917, was a period of significant expansion for JCPenney. It was one of 50 new locations, bringing the total to 177 stores across 22 states with sales nearing $15 million – equivalent to over $312 million today. By 1924, the company boasted 500 stores, and by 1928, over 1,000.

The JCPenney Archives at Southern Methodist University’s DeGolyer Library in Dallas, Texas, house extensive documentation of the company’s history, including photographs, correspondence, and publications like “The Dynamo,” a monthly magazine first published in April 1917, the same month the Salem store opened. This magazine was instrumental in educating and motivating associates through company news, inspirational messages, and sales training.

A Century of Service in Salem

Salem’s JCPenney store, designated as No. 132 in the company, opened its doors on April 11, 1917. At the time, JCPenney already had a strong presence in Oregon, with 11 other stores strategically located throughout the state. This widespread placement was attributed to the early transportation methods; stores were situated within a few hours’ travel by horse and buggy to efficiently serve customers.

Locally, former JCPenney stores operated in Dallas (1913-1986), Silverton (1923-1984), and Independence (1928-1955). Harlan “Doc” Barnett, a former JCPenney manager, began his career in Salem as a stock boy while attending Willamette University. He later became Lee Rosen’s first boss.

Rosen, after a stint selling encyclopedias, found his calling at JCPenney, starting in the shoe department before moving to the main floor and eventually joining the management trainee program. He credits the company with providing his business education and spent 40 years with JCPenney, serving in management roles across seven locations before retiring in 1999. He described his experience as “exciting, never boring.”

The store’s relocation in 1965 to a new $3 million, 115,000-square-foot facility marked a significant expansion. This location, situated on the corner of Liberty and Chemeketa streets NE, was developed in partnership with the Nelson family, who had owned the property since 1909. The site, which previously housed Nelson Brothers’ sheet metal and heating business, was razed to accommodate the new JCPenney store. The new store featured 38 major departments, including appliances, hardware, sporting goods, and clothing, along with a snack bar, beauty salon, and automotive center. The grand opening on April 11, 1965, attracted an estimated 10,000 patrons by noon.

Adapting to the Future

JCPenney has weathered the decline of many department stores, including local competitors like Miller’s Mercantile, the Grant Company, Lipman’s, and Meier & Frank. While the company once operated over 2,000 stores nationwide, it now has around 1,000, with plans to close 140 locations to improve profitability amidst the rise of online shopping. Five Oregon stores are among those scheduled for closure.

Despite these changes, the Salem JCPenney store continues its legacy of service, a testament to its adaptability and deep roots within the community. Its century-long history in Salem highlights not only the evolution of retail but also the enduring value of customer relationships and dedicated employees.

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