August 27, 1999
Zion's Co-operative Mercantile Institution--better known as ZCMI.
An old photograph by Charles Carter shows just how old the department store is.
Ute Indians visited the store on Salt Lake's Main Street in 1869, just one year after the store opened its doors.
But could America's first department store be selling out?
It's been the buzz in the retail world before, but there are more signs than ever that ZCMI is in trouble-- and that has other retailers calling.
News Specialist Scott Light asks the question, "Is ZCMI for sale?"
ZCMI's roots date back to the pioneer days, and it's certainly enjoyed a long history of success as one of America's first department stores.
But the modern day retail world is part of the business world where the big get bigger or get swallowed up.
The news swirling around ZCMI is it could be the one to get swallowed-- bought-- by another company.
"Scary."
That's how stockbroker Dick Taggart describes the company's financial health, and sources say that's what's fueling the speculation.
In 1996, ZCMI had a net income of just $683,000-- a statistical zero when you consider the company has assets of more than $130-million.
In 1997, it fell to $209,000.
In 1998.. the big drop. A net income loss of $8.4-million.
Dick Taggart/Stock Broker: "VERY MODEST PROFITS FOR SEVERAL YEARS, AND SUDDENLY GOES INTO A MAJOR DEFICIT SITUATION IN JUST ONE YEAR. THAT'S SCARY."
Scott Light, Eyewitness News: "EVEN ON MAIN STREET YOU CAN SEE A DIFFERENCE IN MODERN RETAIL.
THE ZCMI CENTER -- CLOSED ON SUNDAYS. JUST ACROSS THE STREET IS THE MALL WITH ALL THE BIG NATIONAL CHAINS-- OPEN SEVEN DAYS A WEEK"
ZCMI admits it's 'closed on Sunday' policy makes it hard to recruit big stores to it's flagship mall.
Some ZCMI stores themselves are losing money, and sources say the company is offering early retirement deals and cutting back expenses.
But one retail expert told us the most telling sign to date is the answer to the question 'Is ZCMI for sale?'
A company spokesperson told Eyewitness News, "We're looking at all strategies for the future."
If if does happen, the LDS church must approve it first. The church still owns 51 percent of the company.
