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Edward Filene’s fame as a creative capitalist was such that he drew a memorable smackdown from Vladimir Lenin. |
Globe Editorial
A hundred years ago, Edward Filene pioneered a strategy under which his father’s department store automatically marked down unsold merchandise. The scheme captivated shoppers, who gambled how many days to wait for a favorite item, and a local institution was born.
That institution, Filene’s Basement, is now in tatters, its iconic Downtown Crossing store gone and its brand frittered away on strip-mall discount stores barely distinguishable from their rivals. Discount mogul Marcy Syms recently acquired a marked-down Filene’s Basement in a bankruptcy auction that functioned much the way the Basement would sell a Calvin Klein tie in last year’s pattern. Now Syms has taken notice of the 100-year anniversary to launch a million-dollar ad campaign aimed at juicing sales at the remaining 23 outlets.
The Auburn-based retailer remains an important local business, and Massachusetts will benefit if Syms succeeds. But one hopes she took the opportunity to read more about Edward Filene.
His innovations extended well beyond the Basement. He helped introduce profit-sharing with employees and the creation of credit unions, turning workers into customers. His fame as a creative capitalist was such that he drew a memorable smackdown from none other than Vladimir Lenin, who questioned whether workers were really so supportive.
The aspiring revolutionary wrote in 1913, “My worthy Mr. Filene! Do you really believe the workers of the world are actually such simpletons?’’ No, the workers and many others saw Filene as a patron who thought deeply about how his business fit into his community, and he strived to make it a durable force for good. His vision lasted a century. Now it’s up to Syms to carry on.
© Copyright 2009 Globe Newspaper Company.
