Duckwall-ALCO Stores, Inc. (NASDAQ: DUCK) is a small retail chain operating in 21
states in the US Midwest, founded in 1901 in Kansas by A.L. Duckwall.
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. In May 1989, Duckwall-ALCO filed
Chapter 11 bankruptcy, emerging in 1991 after securing financing from GE Capital,
its primary creditor. 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 May 2007 there
are 190 ALCO stores and 67 Duckwall stores. The company previously experimented
with a combination discount and food store called C.O.L.A. (Cost of Living
Adjusters) in Mineral Well, Texas, which was discontinued.Recently, the Company
has experimented with 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. |
