ALCO Stores

History

In its early years the company operated five and dime (or "variety") stores called Duckwall's. Duckwall's began their foray into the discount retail business with the opening of the first ALCO store in Clovis, New Mexico, on August 15, 1966. ALCO stores (somewhat smaller than a non-supercenter Walmart) provided the full selection of merchandise offered by the company, as opposed to the five-and-dime store's limitations.

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.

First bankruptcy and later history

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 the business strategy of targeting communities where no direct retail competitor existed (such as Walmart, Target or Kmart). The strategy initially proved to be successful for the chain, and there were 205 ALCO stores and 59 Duckwall stores as of June 2008.

The company previously experimented with a combination discount and food store called C.O.L.A. (Cost of Living Adjusters) in Mineral Wells, Texas, which was discontinued. The company also began a supercenter concept, ALCO Market Place, by providing limited perishable goods. These stores were considerably smaller than Walmart's or Target's supercenter stores.