Jim Boscov, the third-generation chairman and CEO of Boscov’s, the largest family owned department store in the country, had some advice for those attending the Berks Family Business Alliance’s fall forum Tuesday at the DoubleTree by Hilton Hotel in Reading.
If you’re a family member in a family-owned business, he said, think hard before you announce you’re leaving.
“Don’t ever leave a family business with the expectation that you’re going to come back,” Boscov said. “You’re burning some bridges when you do that.”
The Berks Family Business Alliance is a special program of the Greater Reading Chamber Alliance.
The fact that he was welcomed back to Boscov’s after leaving the company for about 18 years to start his own business and pursue other interests was extremely fortunate, he said, based on circumstances that threatened the future of the company.
Boscov, 72, rejoined the family business in 2009, months after Boscov’s had declared bankruptcy and his uncle, the legendary Albert Boscov, orchestrated a campaign to raise millions of dollars from lenders, relatives, associates and others to repurchase the bankrupt chain of what was then 39 stores. The chain recently opened its 49th store in Eastwood Mall in Niles, Ohio.
Disturbed at how hard his uncle was working – Al Boscov retired in 2006 and returned two years later to handle the bankruptcy reorganization – Jim Boscov offered to help for one year until things were back on track.
“And that’s the last time we ever talked about that,” Boscov said. “Things just worked out, and I stayed.”
He was named vice chairman of the company in 2011, working closely with his uncle until Albert retired for the second time in 2015, at which time Boscov was named CEO.
While Boscov has remained true to family values of service, loyalty to vendors and employees, providing value to customers and creating a pleasant shopping experience, he acknowledged his management style is different from his uncle’s and has evolved over time. He tends to be more hands-off with managers than his uncle, Boscov said, allowing them to make their own decisions.
When stores were shut down in March 2020 due to the COVID-19 pandemic, Boscov immediately formed a 17-member task force to figure out how to handle the crisis.
“We didn’t have a COVID playbook,” he said. “Like everyone, we figured it out as we went along.”
Made up of managers from across the company, the task force continues to shepherd the company as it faces pandemic-related worker shortages, supply chain disruptions, vaccine issues and other concerns.
“We look at every little detail and assess how we’re doing,” Boscov explained. “It’s good to step back and take a look at your progress.”
The company’s long history with vendors and suppliers has buffered it from supply issues, and store managers are dealing with finding enough people to work.
While Boscov does not plan to retire soon, he is not leaving the future of the family business to chance.
“I know we have to think about transition,” he said. “The next CEO doesn’t need to be a family member, just the best person for the job.”
Fortunately, he said, Albert Boscov’s grandson, David Aichenbaum, has been working for the company and has many of the skills needed to help it succeed.
“He’s just a terrific kid,” Boscov said. “I can’t tell you how thrilled I am. Everyone he’s worked with just loves him.”
Boscov said the store needs to rethink the way it advertises, and he has several people, including Aichenbaum, addressing strategies for using digital marketing to supplement print. The company also is working to improve its online presence and plans to implement an app to make shopping easier for online customers.
“We need an app and we’re changing the way we’re advertising, but we’re doing it slowly,” he said. “We’re not throwing out the baby with the bathwater.”
In closing, Boscov again recognized his good fortune as a member of a long-time family business.
“I am part of a family business where family members continue to care about our values and the well-being of the business,” Boscov said. “I’m here to tell you I’m a really lucky guy.”