Department 56 Turns 25
Meredith Schwartz -- Gifts & Decorative Accessories, 2/1/2001
Department 56 dates its inception to 1976, the year that it introduced the Original Snow Village collectible line and made its reputation. But the company's roots go even deeper. Department 56 began life as the gift department of Bachman's, a floral retailer in Minneapolis. The gift department began importing Italian ceramics to sell at both retail and wholesale, and the Bachman's accountants labeled everything involved with it "Department 56." At the time, of course, no one expected it to become a consumer company.
Leaving Home
Gradually, Department 56's wholesale business began to outstrip its retail business. In 1984, the company was incorporated separately, with the Bachman family and Ed Bazinet (who had originally run the gift department) as owners. From that point on, expansion occurred rapidly, with the introductions between 1984 and 1990 of the Dickens Village, the New England and Alpine Villages, the Christmas in the City series, the Little Town of Bethlehem, Snowbabies, and the North Pole Village.
In October 1992, the owners sold the company to New York-based investment firm Forstmann Little. The following June, Forstmann Little took Department 56 public.
Today, the company, located in Eden Prairie, Minnesota, and traded on the New York Stock Exchange (symbol "DFS"), is headed by CEO and chairwoman Susan Engel. Engel joined Department 56 as president and COO in 1994, took on the role of CEO in 1997, and became chairwoman about nine months later when Bazinet retired.
New Directions
Today, Department 56 is expanding on its popular village motifs by moving beyond the traditional Christmas themes. Seasons Bay, introduced in 1998, is the company's first year-round village series. According to Engel, the company also plans to "capitalize on the trend of decorating and gift giving for other holidays," such as Halloween.
Licensing is another hot area for Department 56, and that doesn't just mean current licensing favorites like Harry Potter and the Grinch. The company is also introducing licensed names such as Ford, Harley-Davidson, Crayola, Starbucks, McDonald's, Coca-Cola, and others into its existing village lines. Engel hopes that these introductions will appeal to new and crossover collectors and keep veteran Department 56 fans engaged. For example, the company has created John Deere and Bob Timberlake pieces to appeal to outdoorsmen. Department 56's goal is to make the products more accessible to a wider range of people. "You don't have to buy the whole thing," Engel points out, "only the part that is relevant to your life."
Reaching Out
Other new ventures for Department 56 include its own retail stores. Currently there are three: one in Las Vegas at the Aladdin hotel, one in California at Downtown Disney, and one in the Mall of America in Minnesota. These stores are not designed to compete with collectibles retailers. Located in high-traffic tourist spots, they serve not just as retail outlets but as advertising tools. None of the stores take phone or Internet orders. "The purpose [of the retail outlets] is to engage new people and send them back to a dealer near where they live," explains Engel.
Department 56 has developed a business-to-business Web site that will roll out this year. Retailers can use it to file claims, get tracking numbers, see invoices, and buy online. The company also plans to redesign its consumer site, but that site will not be used for e-commerce purposes; it will remain information-only.
Party Time
Department 56 plans to celebrate its 25th birthday in a number of ways. The company will introduce several limited-edition products for its dealers, and it will host a silver anniversary celebration in St. Paul, Minnesota. The party, held August 17 to 19, will take place at the new RiverCentre as well as at Rice Park and the Landmark Center. The festivities will include a river cruise with Department 56 artists, seminars, dinners, exclusive event pieces, a house decorated for Christmas, and a tea with Gerald Dickens, a descendant of the legendary author.
Department 56 may have come a long way since its birth as one humble department in a garden center, but it remains true to its roots: Bachman's is a big Department 56 customer to this day.
