We Were Merchants: The Sternberg Family and the Story of Goudchaux's and Maison Blanche Department Stores [Hardcover]

Hans J. Sternberg (Author), James E. Shelledy (Author)

Book Description

Publication Date: October 2009

The words "Goudchaux's/Maison Blanche" conjure up a wealth of fond memories for local shoppers. At this landmark Louisiana department store, clerks greeted you by name; children received a nickel to buy a Coke and for every report-card A; families anticipated the holiday arrival of the beloved puppet Mr. Bingle almost as much as Santa; teenagers applied for their first job; and customers enjoyed interest-free charge accounts and personal assistance selecting attire and gifts for the most significant occasions in life--baptisms, funerals, and everything in between.

While most former patrons have a favorite story to tell about Goudchaux's/Maison Blanche, not many know the personal tale behind this beloved institution. In We Were Merchants, Hans Sternberg provides a captivating account of how his parents, Erich and Lea, fled from Nazi Germany to the United States, embraced their new home, and together with their children built Goudchaux's into a Baton Rouge legend that eventually became Goudchaux's/Maison Blanche--an independent retail force during the golden era of the department store and, by 1989, the largest family-owned department store in America.

With a mercantile line extending back five generations to a small shop in eighteenth-century Germany, the Sternbergs were born to be shopkeepers. In 1936, as Nazi harassment of Jews intensified, Erich smuggled $24,000 out of Germany and settled in Baton Rouge. His wife and three children joined him a year later, and in 1939, Erich bought Goudchaux's and set about transforming it from a nondescript apparel shop into a true department store. He made buying trips to New York for quality fashions and furs, introduced imaginative sales promotions, and coached his staff in impeccable customer service, while also training his children to follow in his footsteps.

Hans details the manifold challenges of operating the store--from planning financial strategies and creating marketing campaigns to implementing desegregation and accommodating the repeal of blue laws. Through many transforming events--Erich's death in 1965, expansion into suburban shopping malls, the purchase in the 1980s of New Orleans retail icon Maison Blanche--the Sternbergs successfully maintained the company's core values: quality merchandise, employee loyalty, and superior customer service. At its height, Goudchaux's/Maison Blanche operated twenty-four stores in Louisiana and Florida and employed more than 8,000 people. With the economic downturn of the early 1990s, Hans made the difficult decision to sell the business, thus bringing to an end the Sternbergs' centuries-long mercantile tradition.

Supplementing the fascinating narrative are the recollections of former customers and employees, a wealth of pertinent photos, and even Hans's tried-and-true guidelines for negotiating a business transaction. At once a family, business, and community story, We Were Merchants richly recalls a bygone era when department stores were near-magical wonderlands and family businesses commanded the retail landscape.

Editorial Reviews

Review

"It was with great relish that I opened We Were Merchants, a wistful tribute to Goudchaux's, a name that in south Louisiana, where I grew up, once conjured the same superior customer service, quality goods and name recognition that Nordstrom's does in much of the rest of the country today. This oversize book, generously illustrated with black-and-white photographs, recounts the journey of Erich and Lea Sternberg, Jewish immigrants who escaped with their daughter and two sons from the Nazi terror in Germany in the 1930s and, speaking no English, went into the department-store business in the Deep South. We Were Merchants also describes how the Sternberg family--Erich and Lea would eventually be joined at work by their sons, Hans and Josef, and daughter, Insa--spent the next half-century building up what became the country's largest family-owned department store." ----Mark Robichaux, Wall Street Journal (October 10, 2009)

"The real gripping part of this book concerns the Sternbergs' escape from Nazi Germany, beginning with Hans' father, Erich, in 1936 and continuing with various family members until 1939. . . . Eventually, the Sternbergs were able to buy a store--in Baton Rouge. It was called Goudchaux's. Under the Sternbergs' management, it became a legend. Eventually, Hans and his brother Josef ran the company (with input from their mother, Lea). . . . Sternberg's account of the loss of the stores is frank, open and detailed. He talks about business practices and names prices. It's engrossing reading if you are a longtime Baton Rouge resident who remembers shopping at Goudchaux's. The black-and-white photos will also spark some recollections of Maison Blanche and Mr. Bingle and all the marketing devices that made the stores so popular." ----Greg Langley, Baton Rouge Advocate (October 4, 2009)

"This lively book is completely enthralling--it is a family history (the Sternbergs escaped Nazi Germany to make new lives in America), a business biography (by 1989, they helmed the largest family-owned department store in America), a guide to doing business, and a look behind Louisiana lore and tradition." ----Susan Larson, New Orleans Times-Picayune (October 14, 2009)

About the Author

Hans J. Sternberg was born in Aurich, Germany, and moved with his family to the United States at the age of one. He was chairman and co-CEO (with his brother, Josef) of Goudchaux's/Maison Blanche Department Stores from 1965 to 1992 and is now chairman and CEO of Starmount Life Insurance Company. He and his wife, Donna, live in Baton Rouge. They have four children and nine grandchildren. None are in retail.

James E. Shelledy spent more than thirty years as a newspaper reporter and editor in Utah, Idaho, Washington, and Arizona, as well as a correspondent for the Associated Press. He is the Fred Jones Greer Endowed Chair at the Manship School of Mass Communication at Louisiana State University and lives in Baton Rouge.

Product Details

• Hardcover: 141 pages
• Publisher: Louisiana State University Press (October 2009)
• Language: English
• ISBN-10: 080713449X
• ISBN-13: 978-0807134498
• Product Dimensions: 10.1 x 9.6 x 0.7 inches
• Shipping Weight: 2.2 pounds (View shipping rates and policies)
• Average Customer Review: 4.9 out of 5 stars  See all reviews (7 customer reviews)
• Amazon Best Sellers Rank: #585,960 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

6 of 6 people found the following review helpful:

5.0 out of 5 stars What's the difference between an "order-taker" and a "salesperson"?, November 28, 2009

By 

J. B Kraft "lonestargazer" (Palestine, TX United States) - See all my reviews
(VINE VOICE)    (REAL NAME)   

This review is from: We Were Merchants: The Sternberg Family and the Story of Goudchaux's and Maison Blanche Department Stores (Hardcover)

If you don't know the answer to this question, by all means read this book. The title of the book says a lot -- "We Were Merchants", and speaks of understanding customers' needs and satisfying them in an extraordinary fashion, and making a handsome profit while doing it.

This book is a matter-of-fact telling of the history of a remarkable merchandising family, the Sternbergs of Baton Rouge, Louisiana, and their stores Goudchaux's and later Maison Blanche. Emigres from persecution in Nazi Germany, they had a keen understanding of the public they served. I grew up in Louisiana, and my mother made at first only one or two trips a year to shop at Goudchaux's. As a young boy, I was taken along, rather as native bearers were taken along on safaris. Then as I grew old enough to drive and then go to college in Baton Rouge, the trips became more frequent but remained genuinely pleasant experiences.

One of the first things I discovered was the Sternbergs did not sit invisibly in their offices. One might be shopping in any department and be waited upon by Hans, Josef, or even their mother, Lea, if things were particularly busy. Each of them truly appeared to be "engaged" by interacting with their customers -- rich or poor. I believe one of the talents making them such formidable forces in retailing was their maintaining a constant relationship with their customers, which gave them insight unmatched by the competition. Another was department managers and sales people were expected to be knowledgeable both of their stock and their customers, and to be adept at skillfully matching each. Their staff seemed remarkably resistant to turnover, and it was not unusual to get to know and respect those you actually bought things from. As I grew to adulthood and entered my profession, this relationship extended to having the salesman who worked with me call me at home when he knew of was a sale about to take place ,or when a new suit in a style I needed was arriving. He knew my sizes, my tastes (and influenced them), and also knew what my wardrobe needs and my budget were.

The most unique thing about Goudchauz's was the "interest-free" charge accounts, which Hans explains in great detail. It made financial and marketing sense at the time.

Contrast this to the average "department store" or general shopping experience in the contemporary mall, and one sees what makes "internet shopping" so attractive.

But back to the book . . . the book is as I remember Hans himself -- succinct, efficient, and utterly without nonsense. While this book appeals to the nostalgic, I would also recommend it to anyone studying marketing, merchandising, popular culture, or the decline of Western Civilization.

The remarkably objective viewpoint of this book makes for a very valuable work to reflect upon what makes for excellence in our lives, and whether our culture has lost an appreciation of excellence. Long before I knew about Covey and his principles, I knew the Sternbergs as they exemplified many of those traits.

4 of 4 people found the following review helpful:

5.0 out of 5 stars The Best Store in Louisiana, ever, December 17, 2009

By 

Mary L. Ehrhardt "Geaux Tigers" (La) - See all my reviews
(REAL NAME)   

This review is from: We Were Merchants: The Sternberg Family and the Story of Goudchaux's and Maison Blanche Department Stores (Hardcover)

All I can say about the book is that it is written with that same sense of honesty and integrity with which they ran the business. It's intriguing, and so nice to get to read the history about a store that was so special to so many people. I just thought I'd share how special this store was to so many of us. I think this is an important book in the history of Baton Rouge, and I thank Hans Sternberg for writing it.

My mother made trips there sometimes twice a week. I remember asking her why she went there so much, and she replied that the Sternberg's were fine people who cared about their customers. She said that Hans Sternberg's door was always open to the customer if they had a problem or complaint. The first reviewer is absolutely right about having the sames sales people who knew you and gave exemplary personal service. And, they didn't just care about the older, established, rich customer.

It always seemed during the holidays they would hire any teenager or college student needing a job. They would find something for you to do. I'm sure they had to turn some away, but honestly I have several friends who worked there who all say no, they really tried their best to hire everyone who applied. Later I had a co-worker who said the same thing. They have the fondest memories of working there.

And, the interest free charge accounts were just the best thing. Goudchaux's gave me my very first credit card with me having no credit history at 18, based upon my mother's having a card there forever with no payment problems. This was back in the day before "easy" credit. In other words, they treated you like family.

One story I remember that proves the Sternberg's held the Holy Grail of customer service concerned a wedding. The bride (as all brides did in that day) went to Goudchaux's for her gown. She was very tall, and chose a dress that was long enough. When it arrived, it was too short, and couldn't be lengthened. The bridal consultant told them she'd ordered the dress in a tall, not an average or petite. She said she'd have to see what could be done, as there was not time to re-order a new dress. The bride's future mother-in-law marched up to Hans Sternberg's office (always open to customers), and told him what happened. He told the bridal consultant that the bride would choose whatever in stock dress she wanted that would be long enough, no matter the price, and she would not pay for it, nor would she pay for any alterations. They would do whatever it took to make this bride happy. Luckily she found a nice dress she liked that was actually long enough. I have no idea what rabbits he'd have pulled out had there not been a "tall" dress in stock, but I'm sure he'd have gone to the ends of the earth.
That's serious customer service. Another store might have done the same, but you'd have still paid for the original dress.

My mother had a fur coat from there, and after Maison Blanche closed, around 10 years ago we went to the only store left in BR that stored and refurbished mink coats. The young lady helping us was somewhat of an expert, and as she went over the coat and noted all of the things that would be done, she absolutely flipped out seeing the huge embroidered Goudchaux tag sewn into the back of the jacket. She said that the coat would be worth more having that tag in it, still in great condition, due to the local history of the store.

1 of 1 people found the following review helpful:

5.0 out of 5 stars You just have to have been there., May 24, 2010

By 

Ray Michaels (Louisiana) - See all my reviews

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This review is from: We Were Merchants: The Sternberg Family and the Story of Goudchaux's and Maison Blanche Department Stores (Hardcover)

Ok, you've been to Macy's, Dillards, Nordstrom, heck, even to the name stores of London or New York. But you won't forget Goudchaux's if you shopped there a lot. From up north I was introduced to Goudchaux when I lived in Louisiana. Then married a local who would shop no where else. People who moved away would come to visit and make a stop at Goudchaux. They would have family still in town watch for sales. This book does a great job of explaining why the customers were so loyal. Maybe today's business leaders should read this book, along with those by Tom Peters. While it will be a hit in Louisiana, there is a lot to learn from this book in any business, anywhere. To paraphrase James Carville (I can't believe I'm giving him credit for anything) "It's about the customer, stupid!"
IF it were still open, and IF it were still run by Sternbergs, who walk the floor and know everything that goes on, I'd still be a customer. Everyone in Baton Rouge, site of their home store, has a story about Goudchaux. It was one of the largest, and most successful stores in the nation, and yet in the departments you frequented, someone knew your name and what you would be interested in see--and call if it was going on sale. It's still a legend. But again, this book is an education about Nazi Germany, the depression and decades since, and about how to be successful. Everyone should read it.