A History of Chain, Franchise, and National Retail Stores in Anchorage, Part 2

This is part of a weekly series on Alaska history by Anchorage historian David Reamer. If you have a question about Anchorage or Alaska history or an idea for a future article, please complete the form at the bottom of this article.

Anchorage residents, like other Americans, have a complicated relationship with national chains. People invest time and money in these stores and restaurants for years, sometimes decades. Memories accumulate, and they become a comfort zone. Given enough time, people can grow nostalgic about almost anything.

The following is the second of a two-part history of how major fast-food restaurants, casual dining establishments, big-box stores and other national chains came to Anchorage.

In the spring of 1970, a harbinger of the future arrived in Anchorage, albeit in the form of a largely forgotten retail store. After nearly two years of planning, construction and delays, the Seattle-based Valu-Mart chain opened its first Alaska store at the intersection of Northern Light Boulevard and Seward Highway in Anchorage, across the highway from Sears and before Benson Boulevard was built.

Aerial photo of Sears Mall when it opened in 1968. The view faces mostly east. The west end of the mall is closest to the camera. Northern Lights Boulevard runs from the bottom left of the frame to the back. The (now) Seward Highway is on the east side of the mall. Benson and Denali appear to be short unpaved roads. (Photo by Ward Wells, courtesy of Midtown Mall)

[A history of Anchorage restaurant chains, franchises and national retailers, Part 1]

As its parent company described the chain, Valu-Mart was “the ultimate in modern retail,” allowing customers to browse a wide selection of groceries, auto supplies, toys, music, clothing, electronics, jewelry and sporting goods in one place, without the need for multiple visits to more specialized stores. The smaller stores offered more curated inventory and personalized service. But the all-in-one experience proved as appealing in Anchorage as it was elsewhere. Residents voted with their purse strings, driving the evolution of retail, expanding Woolworth over Leonard Variety Stores, Walgreens over Hewitt Drug Stores, Wal-Mart over McKay Hardware, or, in restaurant terms, Olive Garden over Garden of Eatins.

Fred Meyer advertisement from the October 8, 1975, Anchorage Daily News.

While some residents may not remember Valu-Mart, they’re familiar with its successor. In 1975, Portland-based Fred Meyer acquired eight stores, including the Anchorage store, from Valu-Mart’s parent company. In October of that year, the transition was made official, the store was renamed, and Alaska’s first Fred Meyer was born.

On October 25, 1984, Costco opened its first store in Anchorage on Diamond Boulevard. At the time, annual membership fees were $25, which would be about $75 in 2024 when adjusted for inflation. In 1991, the wholesaler opened a new store on Dever Road, but only after a lengthy battle with local residents. When the Russian Jack store was originally proposed, it was designed as a simple warehouse surrounded by a no-frills parking lot. “It’s 414 feet long, 30 feet tall and made of white sheet metal. It’s beyond ugly,” said Cheryl Clemenson, Russian Jack Community Council president at the time.

The Costco developer, whose zoning restrictions forced a public review, agreed to revamp the project with a more visually appealing design. The developer also proposed building a new road to divert traffic from commercial to residential areas. During negotiations, the lead developer jokingly named the new road Saint Clemenson, after his arch rival. Clemenson took the distinction in stride, stating, “I’m going to drive down that street anyway.”

The warehouse wholesaler soon found itself facing competition: Just three weeks after the first store opened, a Price Savers Membership Warehouse opened near Northway Mall. It was renamed PACE Membership Warehouse after Kmart bought the discount chain in 1991. The Anchorage store was converted to a Sam’s Club in 1994 after Kmart sold part of its business to Walmart. Of course, Anchorage’s two Sam’s Clubs abruptly closed in 2018.

Hundreds of people line up to get into the Sam’s Club at Tikunatu Commons on Friday, Jan. 12, 2018. Sam’s Club announced it will close all three of its Alaska stores at the end of the month and offered most items for 25% off on Friday. (Lauren Holmes/ADN)

As the years pass, it becomes harder to comprehend the frenzy that erupted when Kmart opened here before Walmart and Target came north. The first Anchorage Kmart opened on September 23, 1993, in Old Seward near Diamond Boulevard. The parking lot was full and overflowing. Many locals parked on the other side of Old Seward and drove across the highway. The store quickly filled up, and crowds formed at the entrance. The cashier lines snaked around the store, and the waiting crowd quickly replaced each departing customer. NBA Hall of Famer Kareem Abdul-Jabbar signed autographs, an extremely rare celebrity event in Anchorage.

Kmart store opening advertisement published in the September 22, 1993 edition of the Anchorage Daily News.

Traffic continued to slow, back up and stop in all directions. City workers trying to get to the scene found themselves stuck in unfamiliar traffic. Cars were soon backed up along the exit ramps and onto the new Seward Highway. To address the congestion, Kmart partially subsidized the expansion of Old Seward, with Walmart also contributing.

One Kmart customer explained the reason for this excitement in a letter to the Daily News. She wrote: “As a consumer and a mother of six, I would love to welcome Kmart, Walmart, Payless Drugs and Toys R Us to Alaska. I know I’m not the only Alaskan who is tired of being charged 20-50 percent more than the lower 48 states, under the guise of shipping costs. The lack of competition that has kept this going will soon end, and we will be the winners!” Whether the fascination lasted is unclear, just as her perception of Alaskan companies was not entirely based on fact. Kmart as a chain famously failed. All of its Alaskan stores closed in 2003.

An advertisement for Walmart’s grand opening in the Anchorage Daily News in 1994.

Discounting Kmart, when did the first Walmart open in Alaska? This is a bit of a trick question, and one I’ve gotten wrong myself. Walmart advertised its grand opening date multiple times, confusing even locals at the time. The first three Walmarts in Alaska opened on the same day. On March 29, 1994, the Midtown Anchorage, South Anchorage and Wasilla stores first opened to the public. None of the Alaska Walmarts initially carried a full grocery selection.

Even more than the arrival of Value Mart, Fred Meyer, Costco and Kmart, small local retailers braced for the economic fallout from Wal-Mart’s move in. “You know what I tell my employees? Treat every customer as if it’s the last customer you’ll ever see. If necessary, we’ll go out and open their car door for them,” said Kent Harrington, Alaska president of Payless. “We’re not a discount store. We’re a drug store. We’re trying to coexist with Wal-Mart.”

Neither store long survived the new retail realities. Longs Drug chain, with its concept of “a place where everyone can save,” opened its first Alaska store in midtown Anchorage in 1977. The chain was later acquired by CVS, and closed its last Anchorage store in 1995. The first Pay’n Save opened in 1967 at the Northern Lights Shopping Center; PayLess acquired the chain in 1992. Rite Aid acquired more than 1,000 PayLess stores, including 10 in Alaska, in 1996, and closed all of its Alaska stores in 1998. The PayLess sign remained on the store’s doors when it was last locked.

As for books, B. Dalton was the first chain to open a store downtown in the early 1980s. Walden Books followed in June 1980 at Northway Mall. In January 2007, the moribund chain closed both of its Walden Books locations in Anchorage. Borders opened its first Alaska store in 1994 on Diamond Boulevard between the old and new Seward Highways. The store closed in 2010, and the rest of the chain went bankrupt in 2011. Like many old retailers, the building remains and still looks like a Borders store to those who shopped there. It is now the Alaska Neurology Center. Barnes & Noble took over the old Longs Drugs store and opened in 1996 after a lengthy renovation. In the face of competition, Anchorage staples such as Cyrano’s Bookstore and Book Cache have disappeared.

The Barnes & Noble Café in Midtown originally served Starbucks coffee and locally baked goods. Depending on how closely you define this milestone, it may or may not be the city’s first Starbucks. Anchorage’s first freestanding Starbucks opened inside the international airport on January 22, 1997.

Jason Eccles of Glacier Sign and Lighting removes a Blockbuster Video sign from behind a closed storefront on Northern Lights Boulevard in Midtown on September 30, 2016. (Mark Lester/ADN)

Blockbuster Video opened its first store in Anchorage in 1989. Two more opened within a year. At its peak, there were five stores in Anchorage and 15 throughout Alaska. The last store closed in 2018. Other well-known entertainment chains that have expanded to Anchorage include Kay Bee Toys (aka KB Toys) in 1987, Toys ‘R’ Us in 1993 (which closed in 2018), Babbage’s in 1994 (later renamed GameStop), Cinemark Theatres in 1998, Best Buy in 2002, and Dave & Buster’s in 2018.

This two-part series is too long to list every national chain, past and present, that has planted its flag in Anchorage, but to close, here are some retailers that have opened stores locally: Nordstrom in 1975 (closing in 2019), REI in 1979, Burlington Coat Factory in 1990, Home Depot in 1998, Lowe’s Home Improvement in 2000 (after acquiring Eagle Hardware & Garden), Petco in 2004, Bed Bath & Beyond in 2007 (the last one here will close in 2023), Target in 2008, Walgreens in 2009, Kohl’s in 2009, PetSmart in 2010, Sephora in 2013, Cabela’s in 2014, Bass Pro Shops in 2014, H&M in 2015, and Ulta in 2015.

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Key sources:

Berkowitz, Andrew. “Blue Lights Make Shoppers Worship” Anchorage Daily News, September 24, 1993, A-1, A-10.

“Discount Store Sold to Fred Meyer,” Anchorage Daily Times, August 8, 1975, p. 3.

Dugan, Mike. “Alaskans go into retail frenzy as Anchorage Kmart store opens.” Anchorage Daily News, September 24, 1993, B-1.

Jones, Jennifer. Letter to the Editor. “End of Price Gouging.” Anchorage Daily News, September 26, 1993, G3.

Meltzer, Bruce. “Costco Bows to Neighborhood Concerns,” Anchorage Daily News, March 22, 1991, C1.

Meltzer, Bruce. “Local Watchdog Russian Jack Neighborhood Leaders Address Latest Development Plans.” Anchorage Daily News, March 26, 1991, B1.

Murray, Tim. “Town’s Newest Retailer Gets Opening Announcement from Kareem.” Anchorage Daily News, September 24, 1993, D-1, D-4.

Pitte, Allison. “Paving the Way for Costco Expansion Plans.” Anchorage Daily News, May 24, 1991, B4.

Russell, Emily. “Blockbuster Closes Last Two Alaska Stores.” Alaska Public Media, July 12, 2018.

Scagliotti, Lisa. “Anchorage Gears Up for Big Boy,” Anchorage Daily News, January 31, 1993, C-1, C-3.

Scagliotti, Lisa. “Rite Aid to Close Alaska Stores,” Anchorage Daily News, April 25, 1998, A-1, A-11.

“Supermarket Among Center’s Features,” Anchorage Daily Times, October 14, 1968, p. 27.

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