Bergdorf Goodman Inc. is a luxury department store based on Fifth Avenue in Midtown Manhattan.
The company traces its origins to 1899 when Herman Bergdorf, an immigrant from Alsace, opened a tailor shop just above Union Square in downtown Manhattan.
Edwin Goodman, a 23-year-old merchant, based in Lockport, New York, moved to New York City to work as an apprentice for Bergdorf. Within two years, Goodman had raised enough money to purchase an interest in the business, which was renamed Bergdorf Goodman in 1901. In 1906, Bergdorf Goodman moved to a new location on 32nd Street, just west of Fifth Avenue and "Ladies' Mile". While Bergdorf preferred the less expensive side street location, Goodman prevailed with the new location and bought Bergdorf's interest in the company. Bergdorf would retire to Paris.
Although Goodman had developed a good business as a ladies' tailor on 32nd Street, he decided to move uptown in 1914. Goodman constructed a five-story building at 616 Fifth Avenue, on the site of what is today Rockefeller Center. In 1914, Goodman became the first couturier to introduce ready-to-wear, making Bergdorf Goodman a destination for American and French fashion.
The store moved to its present location at 5th Avenue and 58th Street in 1928, building its Beaux-Arts style store on the site of the Cornelius Vanderbilt II mansion. He was unsure of the success of the new store's location, as he was uncertain whether customers would follow the store uptown. So, Goodman designed the new store so that it could be subdivided into sections with storefronts that could be rented out if needed. Early tenants included Van Cleef & Arpels, the Grande Maison de Blanc and Dobbs the Hatter. During the Great Depression, however, Goodman thrived, buying the entire building. Throughout the 1930s, Goodman purchased the mortgages of the surrounding businesses, eventually acquiring the entire block. During this period, Bergdorf Goodman was successful enough to have merited an expansion beyond the single store. However, Goodman preferred to operate in a single location where he would be able to personally maintain the quality of the merchandise and service.
Goodman's son, Andrew, assumed the role of president in 1951 and succeeded as head of the company in 1953, following the death of his father. Andrew was responsible for enhancing Bergdorf's reputation and expanding its range of merchandise and services.
During Andrew's tenure as chairman, Bergdorf opened a fur salon, developed the successful Bergdorf Goodman Number Nine perfume ("Love Potion Number Nine"), and created Miss Bergdorf, a ready-to-wear line for younger customers.
The store began a $1 million expansion in 1959 into two adjacent buildings. The Boys and Girls gift shop expanded into a whole floor, and the beauty salon and bridal, fur and men's departments also expanded. Eight years later, a $2.5 million expansion in 1967 nearly doubled the store's area, to 120,000 square feet (11,000 m2).
In 1972, Andrew Goodman sold Bergdorf Goodman to Broadway-Hale Stores, which would become Carter Hawley Hale Stores (CHH) for $12.5 million. CHH had acquired Neiman Marcus, a three-unit operation at the time, in 1969. By the time of the sale, Bergdorf Goodman was the only large high-quality specialty store in the U.S. that remained independently owned. However, its decision not to build suburban branches left it with a relatively modest profit margin. Goodman remained the landlord of the store and kept a penthouse apartment on the building's top floor.
