MUSINGS: THE RISE AND FALL OF THE EATON EMPIRE

Ghosts of Toronto's Past | Carys Owen

_________________________________________________________________________________

The Eaton empire began when Timothy Eaton moved from County Antrim (now Northern Ireland) to Canada in 1854. He first went to Kirkton to join his brother James in the dry goods business before moving to St. Mary’s and later leaving James to come to Toronto. In December 1869, Timothy and his wife Margaret bought a dry good operation for $6, 500. Their first store would eventually include a candy factory, optical services, interior decorating services, shopping advice, wig cleaning, party supplies and disabled assistance. Mr. Eaton’s business was devalued by Canadians for catering to the middle and working classes as he would try to offer a luxury experience for a discounted price. Mr. Eaton had several unique business ideas that were often labeled as passing fads. At the time, retailers would often allow customers to pay for goods in instalments, but Mr. Eaton had a strict cash-only policy at a set price that would help customers on a budget. He would also offer a money-back guarantee in 1870 that would allow customers to get their money back if they were unhappy with their purchase. One of Eaton’s most notable contributions was their catalogue, first issued in 1884. The catalogue was a successful way for the company to advertise its products and sell outside of Toronto.

Original T. Eaton Store. City of Toronto Archives, Fonds 1244, Item 3059.

The T. Eaton Company Limited. City of Toronto Archives, Fonds 1488, Series 1230, Item 3382.

Another notable contribution from Eaton’s was the launch of the Santa Clause parade in 1905. These first parades in Toronto and Winnipeg were originally small affairs, but as the years went by, they became more complex, with more floats, and longer parade routes. As we all know, the Santa Clause parade went on to become an iconic Toronto event.

Eaton's Santa Clause Parade, 1930. City of Toronto Archives, Series 71, Item 6086.

In 1907, Timothy Eaton died and his son, Edward Eaton took over the business. Despite this, the company continued to experience great success as they opened more stores in Toronto and across Canada and expanded their catalogue. Edward introduced a pneumatic tube system into stores that transferred cash, letters and documents around the large buildings. This system included a motorized delivery service that coincided with the rise of the automobile. After the outbreak of the First World War (1914-1918), Eaton’s was extremely patriotic in their war efforts. As the company saw many of their own employees go to war, the company provided supplies such as uniforms and equipment overseas. In 1930, Eaton’s further expanded with a new location on Yonge and College. In an effort to make Eaton’s more fashionable and elegant, this location featured marble-faced elevators, an auditorium and a restaurant, the Round Room. The restaurant was actually a project started by Lady Florence Eaton who wanted to emulate the European shopping experience. In fact, the story of the Eaton’s is similar to Harry Gordon Selfridge and Selfridges in London.

John David Eaton and Lady Eaton at the opening of Eaton's College St. Store. City of Toronto Archives, Fonds 1244, Item 1638.

Window Shopping at Eaton's. City of Toronto Archives, Fonds 1257, Series 1057, Item 4764

By 1930, Eaton’s was dominating the Canadian retail market as they employed over 25,000 people and controlled nearly 60% of department store sales in Canada. However, Eaton’s also faced harsh criticism during this period. The company’s relationship with its workers was mixed. Eaton’s did provide reasonable work hours and a number of benefits. On the other hand, Eaton’s resisted unionization and during a public examination of the company’s books, it was found that the company was cutting jobs and wages while executives were making millions in wages, bonuses and pensions. The economic hardships of the great depression also contrasted with the opulence of stores and the wealth enjoyed by the Eaton family.

After the Second World War, things only got worse for Eaton’s. In 1948, the Canadian Congress of Labour (CCL) launched a four year attack on the company in order to unionize the 12,000 Toronto employees. Eaton’s resisted the CCL’s efforts and after a long battle, Eaton’s employees voted against unionization. In 1952, Eaton’s faced further set-backs as the U.S. department chain Sears Roebuck partnered with the department chain Simpsons. This presented a great challenge to Eaton’s. As the competition grew, the president of Eaton’s, John David Eaton, struggled to respond to new market changes. The company closed its struggling Canadian Department Store branches, and by 1978, Eaton’s was behind Sears and the Hudson’s Bay in Canadian retail sales. Eaton’s did build its downtown location (the one we all know and love) during this period, but the store struggled to generate enough revenue to cover the size of the building.

Eaton's College Street, 1972. City of Toronto Archives, Fonds 124, File 3, Item 1.

After years of hardship, in 1977, George Eaton announced that the company could no longer pay their debts (a total of over $300 million), and the company sought protection under the federal Companies Creditors’ Arrangement Act. Alas, this would not save the company, and in 1999 the company declared bankruptcy. Eaton’s sold their remaining shares to Sears Canada and turned their remaining stores into Sears stores. A very sad ending for a company that moulded Canadian shopping for the bulk of the 20th century.