Federated Group

Former American consumer electronics retailer

Federated Group

Company type| Subsidiary
Industry| Retail
Founded| 1970; 55 years ago (1970) in Los Angeles, California, U.S.
Founder| Wilfred Schwartz
Defunct| 1989; 36 years ago (1989)
Fate| Acquired by Silo
Headquarters|

Sunnyvale, California

U.S.

Area served

| Arizona, California, Kansas, and Texas

Key people

* Wilfred Schwartz (Chairman)
* Shadoe Stevens (Spokesperson)
* Jack Tramiel (former President and CEO, Atari Corporation)

Products| Consumer electronics
Parent| Atari Corporation (1987–1989)

Federated Group was an American chain of consumer electronics retail stores with 67 stores in California, Texas, Arizona, and Kansas.[1] The company was founded by Wilfred Schwartz in 1970, and opened the first deep discount consumer electronics "superstore" in the United States.[2] In 1987, Federated Group was the fourth-largest discounter of consumer electronics in the U.S.[3] The company's headquarters were in City of Commerce, California and later in Sunnyvale, California. Federated Group was sold to Atari in 1987, and sold again to Silo in 1989.

## History

[edit]

Federated Group was started by Wilfred Schwartz in 1970 when he bought a 25,000-square-foot warehouse in Los Angeles from an electronics company and turned part of it into a retail store.[4] In 1976, Federated Group closed two stores and built a 20,000-square-foot "superstore" in Westminster, California.[5] The company expanded quickly and launched a major expansion into Texas in December 1984. The timing of the expansion into Texas hurt Federated Group since the state was experiencing an economic slowdown from the oil bust.[6] In Federated Group's home territory of Los Angeles, the competition was increasing due to the entrance of Circuit City into the market in 1985.[7]

Federated Group began to lose money in August 1987, so Schwartz decided to sell the company to Atari for US$67.3 million.[8]

## Atari

[edit]

Atari purchased Federated Group to gain retail shelf space since many retailers had shunned the company's products after being hurt by the collapse of Atari's video game business.[9] The deal made sense for Atari since Federated Group could provide their expertise to sell more computers.[10] In 1988, Atari filed a lawsuit claiming that it was defrauded of US$43 million when it bought Federated Group. The lawsuit charged that Wilfred Schwartz and other Federated Group officers conspired to misrepresent the value of the company's assets.[11]

In November 1989, Atari agreed to sell 26 Federated Group stores in Los Angeles and San Diego to Silo after announcing a loss of nearly US$85 million earlier that year.[12] The remaining stores began liquidation sales in December 1989 and were closed four to five months later.[13]

## Silo

[edit]

Silo opened stores in San Diego in 1976 and had been looking for an opportunity to expand into the Los Angeles market.[14][15] Federated Group's 21 stores in Los Angeles and Orange counties and five stores in San Diego were reopened under the Silo name in 1990.[16]

In January 1994, Silo closed nine former Federated Group stores in Los Angeles, the same year that Best Buy later entered the market.[17][18] Silo filed for bankruptcy in December 1995 and closed all of its stores.[19]

## Advertising

[edit]

Shadoe Stevens began playing the "Fred R. Rated" character for Federated Group in 1982 and eventually appeared in more than 1,000 commercials.[20] In 1986, Stevens told viewers that rabid frogs had eaten the company's warehouse and they were passing the savings on to the customers. Sales went up by 30 percent after that spot and Federated Group nominated itself for Adweek magazine's annual "Bad Advertising" issue.[21]

After losing some share of the Southern California market to Circuit City in 1987, Federated Group began to tone down much of its Fred Rated advertising and began looking for a new image.[22]

## References

[edit]

1. ^ Pollack, Andrew (August 25, 1987). "Atari to Acquire Electronics Retailer". The New York Times. Retrieved October 10, 2020.
2. ^ "Wilfred Schwartz Founder, Chairman of Federated Group". It Is Innovation (i3) magazine. November–December 2015. Retrieved October 11, 2020.
3. ^ Saporito, Bill (August 3, 1987). "DISCOUNTERS IN THE DUMPS Once again the electronics retailers have overexpanded. Invading each other's turf, they touched off price wars that are pounding profits after years of astounding growth". CNN Money. Retrieved October 10, 2020.
4. ^ "Federated". Los Angeles Business Journal. July 19, 1999. Retrieved October 10, 2020.
5. ^ "Wilfred Schwartz Founder, Chairman of Federated Group". It Is Innovation (i3) magazine. November–December 2015. Retrieved October 11, 2020.
6. ^ Pollack, Andrew (August 25, 1987). "Atari to Acquire Electronics Retailer". The New York Times. Retrieved October 10, 2020.
7. ^ Rivera, Nancy (October 21, 1985). "Firm Bets on 'Superstores' in Southland: Circuit City to Push Electronics Products at 15 New Outlets". Los Angeles Times. Retrieved October 10, 2020.
8. ^ "Federated". Los Angeles Business Journal. July 19, 1999. Retrieved October 10, 2020.
9. ^ Yoshihara, Nancy (August 24, 1987). "Atari to Acquire Federated Group for $67.3 Million: Deal Would Give Video Pioneer Access to a Retail Network". Los Angeles Times. Retrieved October 10, 2020.
10. ^ Motamedi, Beatrice (August 24, 1987). "Atari to buy Federated stores for $63.7 million". United Press International. Retrieved October 10, 2020.
11. ^ "Atari Files Suit Over Federated Group Acquisition". Associated Press. August 30, 1988. Retrieved October 10, 2020.
12. ^ "COMPANY NEWS; Atari Is Selling 26 Federated Stores". The New York Times. November 11, 1989. Retrieved October 10, 2020.
13. ^ "All 16 Federated Electronics Superstores in Houston and Dallas..." United Press International. December 20, 1989. Retrieved October 10, 2020.
14. ^ Silverstein, Stuart (November 12, 1990). "In Electronics, Store Wars: Retailing: With newcomers Silo and the Good Guys taking on Circuit City, consumers may enjoy lower prices. But mom-and-pop outlets may find their survival at stake". Los Angeles Times. Retrieved October 10, 2020.
15. ^ Lazzareschi, Carla (November 10, 1989). "Silo to Buy 26 Federated Units in Southland". Los Angeles Times. Retrieved October 10, 2020.
16. ^ "COMPANY NEWS; Atari Is Selling 26 Federated Stores". The New York Times. November 11, 1989. Retrieved October 10, 2020.
17. ^ White, George (January 12, 1994). "Silo Closes 6 Stores in Southland: Retail: Intense competition among electronics stores and a weak economy have squeezed profit". Los Angeles Times. Retrieved October 10, 2020.
18. ^ Lee, Patrick (August 30, 1994). "Best Buy Will Open 7 Stores in Southland: Retailing: Consumer electronics giant plans to be in business in time for Christmas. One analyst predicts a competitive 'slugfest.'". Los Angeles Times. Retrieved October 10, 2020.
19. ^ Johnson, Paul (December 6, 1995). "Silo Holdings Seeks Chapter 11 Bankruptcy Protection: Retailing: Chain's president says he does not want to speculate on whether it will emerge from bankruptcy". Los Angeles Times. Retrieved October 10, 2020.
20. ^ Horovitz, Bruce; Marlow, Shirley (April 28, 1987). "Has Success Spoiled 'Fred Rated'?". Los Angeles Times. Retrieved October 10, 2020.
21. ^ "Federated". Los Angeles Business Journal. July 19, 1999. Retrieved October 10, 2020.
22. ^ Horovitz, Bruce; Marlow, Shirley (April 28, 1987). "Has Success Spoiled 'Fred Rated'?". Los Angeles Times. Retrieved October 10, 2020.

* v
* t
* e

History of retail in Southern California

Department stores
with origins in|

| Central
Los Angeles|

* Barker Bros.
* Blackstone's
* Brooks Clothing
* Bon Marché
* The Broadway‎
* Bullock's‎
* Bullocks Wilshire
* Central
* City of Paris
* Coulter's
* Dearden's
* Desmond's
* B. H. Dyas
* Eastern-Columbia
* Fallas Paredes
* Famous (Cal Hirsch & Sons)
* Fifth Street Store
* The Globe (51st & S. Broadway)
* Haggarty's ("New York Store")
* The Hub
* J. M. Hale Co.
* Hamburger's ("People's Store")
* Harris & Frank
* Jacoby Bros.
* May Co. (buildings: May Co. Downtown LA - May Co. Wilshire - May Co. Mission Valley)
* Milliron's (Milliron's/Broadway Westchester)
* Mullen & Bluett
* Myer Siegel
* Phelps-Terkel
* J. W. Robinson's
* Robinsons-May
* Sears-Pico
* Silverwoods
* Swelldom
* Ville de Paris
* Walker's (L.A.)

|

L.A. neighborhoods|

* Iver's (Highland Pk)
* Nahas (N Hwd)
* Quigley's (Hwd)
* Rathbun's (N Hwd)
* Robertson Co. (Hwd)
* Sears Pico–Rimpau

Long Beach|

* Buffums
* The Emporium
* Marti's
* Robert's
* Walker's LB
* Wise Company

Pasadena|

* Boadway Bros.
* Meyer's
* Nash's

Rest of L.A. Co.|

* Boston Stores (Inglewood)
* Butler Bros. (Vernon)
* Chaney's (Hawthorne)
* I. H. Hawkins (Redondo Bch)
* Henshey's (Santa Monica)
* Hinshaw's (Arcadia/Whittier)
* Kitson (W Hwd)
* Myers (Whittier)
* Webb's (Glendale)
* Wineman's (Oxnard/Huntington Pk)

Bakersfield|

* Brock's

Inland Empire|

* Willets (Colton)
* Harris Company (San B'do)

Orange Co.|

* Rankin's (Santa Ana)
* The S.Q.R. Store (Anaheim)

San Diego–Tijuana|

* Barnett-Stine
* Dorian's
* Holzwasser's
* Marston's
* Walker Scott

Elsewhere|

* J. C. Penney
* Montgomery Ward
* Ohrbach's
* Sears

Clothing and shoes|

* Bond's
* Brooks Clothing
* C. H. Baker shoes
* C&R Clothiers
* Hartfield's
* Judy's
* Leed's shoes
* Mandel's (shoes)
* Miller's Outpost/Anchor Blue
* Victor Clothing
* Weatherby-Kayser shoes
* Zachary All

Discount and
membership stores|

* The Akron
* Curacao
* Fedco
* Fedmart
* Gemco
* Pic 'N' Save
* Unimart
* White Front
* Zody's

Drugstores|

* Disco Drug and Discount Centers
* Sav-on
* Schwab's Pharmacy
* Thrifty

Furniture and
home furnishings|

* Barker Bros.
* Dearden's
* Parmelee-Dohrmann

Grocery stores|

* Alpha Beta
* Boys Markets
* Chaffee
* Food Giant
* Giant
* Haas, Baruch & Co./Hellman, Haas & Co.
* Hughes Markets
* Market Basket
* Pantry Food Stores
* Pavilions
* Ralphs
* Shopping Bag
* Stater Bros.
* Smart & Final
* Thriftimart
* Tianguis
* Vons

Home enter-
tainment, appliances|

* Adray's
* Cal Stereo
* Federated Group
* Golden Bear Home and Sport Centers
* Ken Crane's
* Leo's Stereo
* Pacific Stereo
* Rogersound Labs
* University Stereo

Home improvement|

* Builders Emporium
* National Lumber
* Ole's Home Centers

Music|

* Licorice Pizza
* Music Plus
* Peaches Records and Tapes
* The Wherehouse
* Wallichs Music City

On-street shopping|

* Los Angeles:
* Plaza
* 1880s-90s CBD
* Broadway (CBD)
* Broadway & 87th, South L.A.*
* Seventh St.
* Flower St.
* Hollywood Blvd.
* Lankershim, North Hollywood
* Miracle Mile, Wilshire Blvd.
* Westwood Village (near UCLA)
* Other cities:
* Beverly Hills: Rodeo Drive
* Burbank: Golden Mall
* Huntington Park: Pacific Blvd.
* Long Beach: Pine St.
* Palm Springs: La Plaza/Palm Canyon Dr. \- See also History of retail in Palm Springs
* Pasadena: Lake Ave.
* Pasadena: Old Pasadena
* Santa Ana: 4th St.
* Santa Monica: Main St. \- 3rd St. Promenade

L.A.
shopping center
"firsts"|

* Oldest origins of a major L.A. chain: Harris & Frank (1876) - 1st dept. store on Broadway: A. Fusenot Co./Ville de Paris \- 1st dept. store on 7th off Broadway: J. W. Robinson's (1915) - 1st planned shopping district: Westwood Village (1929) - 1st suburban dept. store branch: B. H. Dyas/Broadway Hollywood (1927) - 1st center with multiple supermarkets: Broadway & 87th Street shopping center (1936) - 1st center with department store anchor: Broadway-Crenshaw Center (1947) - 1st enclosed mall: Lakewood Center (1951) - 1st mall in Orange County: Anaheim Plaza (1955) - 1st center with 4 dept. stores: Panorama City Shopping Center (1964)

Shopping centers|

| Los Angeles|

| L.A. Central Area|

* ARCO Plaza*
* Baldwin Hills Crenshaw Plaza
* Beverly Center
* Beverly Connection
* The Bloc Los Angeles
* Broadway & 87th Street*
* Crossroads of the World
* Eagle Rock Plaza
* El Mercado de Los Angeles
* Farmers Market
* FIGat7th
* Grove at Farmers Market
* Japanese Village Plaza
* Los Angeles Mall
* Midtown Crossing & Sears-Pico
* Ovation Hollywood
* Town & Country Market*
* Weller Court
* West Hollywood Gateway

|

Westside|

* Airport Marina Hotel*
* Brentwood Country Mart
* Edgemar
* Malibu Country Mart
* Palisades Village
* Platform, Culver City
* Promenade at Howard Hughes Center
* Santa Monica Place
* Third Street Promenade
* Westfield Century City
* Westfield Culver City

San Fernando Valley|

* Americana at Brand
* Burbank Town Center
* Commons at Calabasas
* Fallbrook Center
* Glendale Fashion Center
* Glendale Galleria
* NoHo West
* Northridge Fashion Center
* Panorama Mall
* Promenade (Woodland Hills)*
* Sherman Oaks Galleria*
* Universal CityWalk
* Valley Plaza*
* Westfield Fashion Square
* Westfield Topanga

San Gabriel Valley|

* Eastland Center
* El Monte Shopping Center*
* El Rancho Santa Anita
* Indian Hill Mall*
* Paseo Colorado
* Plaza West Covina
* Pomona Mall*
* Puente Hills Mall
* Shops at Santa Anita

South Bay|

* Del Amo Fashion Center
* Fisherman's Village
* Hawthorne Plaza Shopping Center
* Old Towne Mall*
* Peninsula Center
* Promenade on the Peninsula
* South Bay Galleria
* SouthBay Pavilion

Southeast L.A. Co.|

* Los Cerritos Center
* Cerritos Towne Center
* Citadel Outlets
* Lakewood Center
* La Mirada Mall*
* Plaza México
* Promenade at Downey
* Quad at Whittier
* Santa Fe Springs Mall*
* Santa Fe Springs Shopping Center*
* Shops at Montebello
* Stonewood Center
* Uptown Whittier
* Whittier Downs*
* Whittwood Town Center*

Long Beach|

* Long Beach Plaza
* Long Beach Towne Center
* Los Altos Center
* Marina Pacifica Mall

Northern L.A. Co.|

* Antelope Valley Mall
* Valencia Town Center

Orange|

* Anaheim GardenWalk
* Anaheim Plaza
* Anaheim Town Square
* Anaheim Towne Center
* Asian Garden Mall
* Bella Terra
* Brea Mall
* Buena Park Downtown
* Downtown Disney
* Fashion Island
* Honer Plaza*
* Irvine Spectrum
* La Habra Fashion Square*
* Laguna Hills Mall
* MainPlace Mall
* The Market Place
* Orange County Plaza*
* Orangefair Mall*
* Outlets at Orange
* Shops at Mission Viejo
* South Coast Plaza
* Village at Orange
* Westminster Mall

Riverside|

* Desert Fashion Plaza
* Galleria at Tyler
* Hemet Valley Mall
* Indio Fashion Mall*
* Main St. pedestrian mall, Riverside
* Moreno Valley Mall
* La Plaza (Palm Springs)
* Promenade In Temecula
* Riverside Plaza
* Shops at Palm Desert

San Bernardino|

* Barstow Mall
* Carousel Mall
* Citrus Plaza
* Citrus Village
* Inland Center
* Mall of Victor Valley
* Montclair Plaza
* Ontario Mills
* Redlands Mall
* Victoria Gardens

San Diego|

* Chula Vista Center
* College Grove
* Escondido Village*
* Fashion Valley
* Grossmont Center
* Horton Plaza
* La Jolla Village Square
* Las Americas Premium Outlets
* Linda Vista Shopping Center (demolished)
* Mission Valley
* North County Mall
* One Paseo
* Otay Ranch Town Center
* Parkway Plaza
* Seaport Village
* Shoppes at Carlsbad
* South Bay Plaza
* Westfield Plaza Bonita
* Westfield UTC

Santa Barbara|

* La Cumbre Plaza
* Paseo Nuevo
* Santa Maria Town Center

Ventura|

* Collection at RiverPark
* Esplanade
* The Oaks
* Pacific View Mall
* Simi Valley Town Center

Elsewhere|

* Imperial Valley Mall, El Centro
* Valley Plaza Mall, Bakersfield

See also: History of retail in Southern California – History of retail in Palm Springs — Note: starred (*) listings indicate former regional mall now site of strip-style community center with new name
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