George Gilman facts for kids

George Francis Gilman (born around 1826 – died March 3, 1901) was a clever American businessman. He was born in Waterville, Maine. He later moved to New York City to work in his father's leather business. By the time he was 30, he had his own leather company. After his father passed away, Gilman decided to try something new: the tea and coffee business. This new venture eventually became a very famous company called The Great Atlantic and Pacific Tea Company, or A&P for short.

Gilman was great at marketing. He invented many sales ideas that are still used today. He first opened stores in New York City. He also ran a business that sold tea and coffee by mail all over the country. In 1871, he opened a store in Chicago, Illinois. Within a few years, his company had stores in 16 different cities.

In 1878, Gilman retired to his large home in Bridgeport, Connecticut. There, he became known for his unusual habits. The company was then run by George Huntington Hartford. Hartford had been in charge of the company's business matters. They had an unwritten agreement that Hartford would get half of the profits. Gilman never had children and died without a will. Hartford went to court, saying he deserved half of the company. Gilman's family agreed to a deal that allowed Hartford to eventually buy out Gilman's share of the business.

George Gilman's Early Life and Business

George Gilman was born in Waterville, Maine. His family was quite wealthy. They could even trace their family history back to the Mayflower ship. George's father, Nathaniel Gilman, was a successful privateer (a type of legal pirate) and ran goods during the War of 1812. In 1834, Nathaniel started a leather business in New York City. His company, Gilman, Small and Company, grew to have three leather warehouses.

Starting a New Business Path

George Gilman founded the company that would become A&P in the mid-1850s. It was first called Gilman & Company. In 1858, Gilman built his own warehouse in Manhattan. His business also had an office in St. Louis, Missouri.

Gilman's father died in 1859 without a will. This led to a long legal fight that lasted 50 years. That same year, George Gilman's company started selling tea and coffee from his warehouse. Some people think Gilman wanted to start a more respected business because he was so wealthy. In May 1861, Gilman gave his leather business to his brother, Winthrop. George then moved his tea business to a new location.

From Wholesaler to Retailer

At first, Gilman & Company sold products in large amounts to other businesses (this is called being a wholesaler). In early 1863, the company started selling directly to customers. They called themselves the Great American Tea Company. Soon, Gilman opened five stores. He also moved his office and warehouse to a bigger spot on Vesey Street.

Marketing Genius and Company Growth

Gilman was very good at promoting his business. Some people compared him to P. T. Barnum, a famous showman. Early A&P stores were very fancy. They were painted bright red and had large gas-lit "T" signs. Inside, you could see crystal chandeliers and shiny tin ceilings. The walls had fancy Chinese panels with gold edges. A clerk would serve customers from behind a long counter. The place where you paid looked like a Chinese pagoda. In 1865, Gilman put his coffee roasting plant in a busy shopping area in Manhattan. The smell of fresh roasting coffee helped attract customers and boost sales.

Low Prices and New Ideas

The business grew quickly because it advertised low prices. The company could offer low prices because it bought products in bulk (as a wholesaler) and then sold them directly to customers (as a retailer). Gilman also built a successful nationwide mail order business. This meant people could order tea and coffee by mail and have it delivered.

In 1869, the transcontinental railroad was finished. This made it easier to transport goods across the country. Gilman started using the name Great Atlantic & Pacific Tea Company. He used this name to sell prepackaged tea under the brand name Thea-Nector. The company still used the Great American name for its mail order business. In 1871, A&P came up with another marketing idea. They offered special gifts, called premiums, when customers bought coffee and tea at their stores.

Gilman's Retirement and Hartford's Leadership

While Gilman came up with the marketing ideas, he relied on the business skills of George Huntington Hartford (1833–1917). Hartford first worked for Gilman's tanning company. He joined Gilman & Company in New York in 1861. He was promoted several times. By 1871, Hartford was in a powerful position. Gilman sent him to open a store in Chicago after the Great Chicago fire. This was A&P's first store outside New York City. By 1875, A&P had stores in 16 cities.

In 1878, Gilman retired and let Hartford manage the company. By then, the company had 70 fancy stores and a mail order business. Their total sales were about $1 million a year. Gilman lived in his large home in Bridgeport, Connecticut. He loved to entertain guests. At one point, he owned 39 horses and 35 carriages. When his house burned down in 1894, he built an even bigger one with 20 rooms and many bathrooms.

The Legal Battle for A&P

Gilman never had children. He died in March 1901 from a kidney disease without a will. This led to a legal fight among his many relatives. Hartford claimed that in 1878, Gilman had given him half of the company in an unwritten agreement. Evidence showed that Hartford had received half of A&P's profits since 1878. Also, all of the company's store leases were in Hartford's name.

Gilman's family realized that without Hartford, the company would likely lose money quickly. So, they agreed to a settlement. The company was valued at $2.1 million. Under this deal, Gilman's family received $1.25 million in special shares that paid 6% interest each year. Hartford received $700,000 in regular shares and the rest of the special shares. This gave Hartford control of all the shares that had voting power. Over the years, Hartford was also able to buy back the special shares from Gilman's family.