By Seth DeWitt

Introduction

At the turn of the 20th century, Dayton was well on its way to cementing itself as an economic powerhouse of the Midwest. Home to national and international companies, numerous patents, and a hub for the movement of people and goods through the region. It was at this time, in the heart of the city proper, the Dayton Arcade was constructed. Originally constructed to replace the open air food markets of the past, the Arcade was meant to usher in the new consumer cosmopolitan culture that was already evolving in the metropolises such as New York and Chicago. Even before the Arcade’s construction, the downtown area was a place full of fresh food stalls, dry goods, and bustling consumers. However, the growth of the Arcade also diversified shopping in the area as the numerous stores and businesses that were inside the Arcade and its surroundings heralded the new age of consumerism. With the explosion of mass production in the post-Civil War America and the rapid development of new technology and patents, the average consumer had access to more goods and services than ever. Due to the unique nature of the Arcade as shopping mall cum food market cum dining location, it became an integral part of the cityscape in a very short time.

The Arcade remained an extremely popular destination through the first half of the 20th century but was hit hard by the Second World War. With the implementation of rationing and vouchers, a number of businesses were forced to close and leave the Arcade. The Arcade seemed to be revitalized after the war, as troops returned home and the economic growth of the 1950s cemented America as a global economic powerhouse.

Unfortunately, it was not to last. The growth of the car industry and suburban developments resulted in a country on the move. This iconic symbol of American family freedom, the automobile, was also a blow to the Arcade and other institutions like it. The mobility of cars meant workers no longer needed to live near their jobs in the city. In addition, the growth of suburbia gave birth to the suburban shopping center and outlet malls as retailers moved towards their consumer. The time of the Arcade as a staple of Dayton life was past, and many of its stores had to close. Only shops that catered specialty items such as jewelry or wigs, and a number of restaurants survived.

Photograph of the Sibyl Hat Shop storefront in the Dayton Arcade. Courtesy of Dayton Metro Library.

Over the next few decades the Arcade slowly declined and faced economic failure. It lay in a state of disrepair through the tail end of the 1990s and was only saved by the organization Friends of the Arcade that has spearheaded the revival attempts that are still ongoing. Beginning construction efforts in 2019, the Arcade is on its way to being reopened as a business hub in downtown Dayton, a move many hope will reinvigorate retail in the area. The future is looking bright for this renovation project, and as progress moves forward the office spaces are rapidly being leased by local organizations like the University of Dayton, Sinclair Community College, and The Entrepreneur Center. Within weeks of lease options opening, a quarter of the projected spaces had already been claimed by interested parties.[i]

In the early 21st century, Dayton resident Bob Thaman reminisced about visiting the Dayton Arcade when he was a child. To him, the Arcade not only was a central hub for shopping and business in the city but provided everything a person could want. The variety of foods and goods offered at the Arcade made it the heart of the city, and for many Daytonians the memories of downtown in that time were often inextricably tied to the Arcade. As he recalled:

“It was a building totally alive, full of excitement. Happy faces, blank ones, down-trodden expressions. A mixture of poor people, well-heeled and common folk. We all came together like the smells and the sounds and made the Arcade a central gathering place in downtown Dayton.”[i]

Retail Before the Arcade

When the Arcade first opened its doors in 1904, Dayton had already established itself as a center for retail and business in the Midwest. As the country expanded greatly in the early 19^th century, Dayton positioned itself as a hub through which goods could easily move East-West.  In the 1920s, the city connected itself to the first federally funded highway, the National Road. Traffic through the city grew even greater in the mid-1840s when the completed Miami and Erie canals connected Dayton to both Cincinnati in the south and Lake Erie to the north. This caused the city’s growth to expand quickly as traffic in both goods and people increased. By the 1880s the city had established itself as an industrial hub for the region. By 1900, a large number of railroad connections and an inventive spirit ensured Dayton’s growth as large companies like the National Cash Register Company developed and expanded operations and solidified the city’s importance.[i]

While the Dayton Arcade became the center of shopping and retail in Dayton soon after its opening in 1904, Dayton’s downtown had already established a firm retail environment. Commercial buildings had been slowly pushing out the residents and stables that filled downtown in the mid-1800s. One company of note the establish itself downtown in this time was the “Rike’s Department Store”, or as it was named in those days “Rike, Hassler and Company”. This store was originally opened as a dry goods store, but soon expanded into a department store for clothing. Located in the heart of the city, it soon became a key fashion center for Dayton.[ii] As more and more commercial buildings moved in, Dayton established itself as a shopping center. A variety of businesses filled the Kuhns Building and Commercial Building constructed near the New Union Station that had been built in 1901. These buildings were located on the land next to where the Arcade would soon be built.

The original Rike, Hassler and Company Store. From the Lutzenberger Picture Collection.  Courtesy of Dayton Metro Library.

Following the national explosion of consumerism at the turn of the century, Dayton quickly grew its retail sector to keep up with growing demand. As urban populations boomed, wages rose, and prices dropped, retail for its own sake became increasingly common in middle class America. The growing importance of consumption gripped the nation and Dayton was no exception. New patents and technology had led to new products, faster output, and cheaper production. Suddenly the average American was able to buy a much wider range of luxury goods than ever before, and at a lower price as well.

Perhaps the starkest effect of this explosion of consumption, besides the economic was the social. Retailers had begun the ad campaigns that continue to this day. Conducted primarily in newspapers, and the social strength of products and brand names soon arose.  As America became a country of consumers, rather than Jefferson’s ideal nation of farmers, it became apparent the appeal of “modern” goods could not be understated. By espousing their modern production and storage methods, companies like Heinz were able to force out local producers through advertising and presentation. Rather than local condiments and goods, consumers sought canned and packaged goods because of a belief in superior quality and more advanced production methods.[i] This marked a turning point in markets everywhere, but one that the Arcade seemed uniquely adept to handle. The importance of fresh local produce began to wane, but the modern appliances installed in the Arcade for its construction allowed it to shift towards mass produced foodstuff and the varied dried goods stores to expand and thrive.[ii]

One of the clearest examples of the growth of the consumer mentality in the average American was the change in the celebration of holidays, primarily Christmas. Historically this religious holiday had been celebrated by raucous behavior and partying as the year wound down to an end. However, with the growth of consumption and development of a middle class that sought to distinguish itself from the lower classes, Christmas began to experience a change around the turn of the century. Foremost in these new Yuletide traditions was the replacement of partying with the giving of gifts[iii]. No shift could more perfectly showcase the rapid consumer shift that occurred than the most paramount of American religious holidays being subverted by the need to buy more goods for one another. This consumerism made itself known in Dayton as well with success and growth of Rike and many other urban retailers, setting the stage perfectly for the construction of a multi-faceted, retail based center downtown; the Arcade[iv].

Arcade Construction and Early Retail

Seeing the opportunity to tap into the growing retail market in Dayton at the turn of the century, a trio of local business interests joined together to fund and develop the Dayton Arcade. E.J. Barney, M.J. Gibbons, and the Adam Shantz estate worked together and constructed the Arcade on the block between Third and Fourth street, Ludlow and Main. The Arcade was comprised of four main buildings: the Ludlow Street Arcade, the rotunda, the Fourth Street Arcade, and the Commercial Building. Both the Third and Ludlow Buildings had their entire first floors devoted to retail.[i]

The Central Neighborhood of the Arcade. Taken from Dayton Atlas Map, 1918.  Courtesy Wright State Archives.

The prime location the Arcade was built in played a large role in its future success. Located itself on Main Street made the Arcade the logical hub from which the growing retail sector in the city would expand. Before the Arcade’s construction, the nearby Rike-Kumler Company was so successful that it needed to expand, and the new headquarters and they decided to build their new location a mere block away from the Arcade on Second and Main. When it opened in 1912 this seven story building joined the Arcade as an icon of Main street and the two buildings firmly formed the core of the retail business in the area.

From left to right in this photograph can be seen the Ludlow Street Arcade Building, Commercial Building, 4th Street Arcade. Courtesy Dayton Metro Library.

This arcade represented an effort for the city to modernize in order to reach the heights of cities such as New York and Chicago. With the growth in population and industry the city had experienced in the second half of the 19^th century, the Arcade was an attempt elevate the urban center to the shopping centers that had arisen in those cities.

When the Arcade opened its doors for the first time, it was met with acclaim. The Dayton Daily News covered the event and the newspaper praised the opening with phrases like “Interior of the Spacious Building is a Veritable Bower of Beauty and Entertainment”[i] and “Festival Marks the Birthday of One of the Country’s Most Modern and Complete Structures of Its Kind”[ii]. However, one description in particular seemed to encapsulate the spirit of the Arcade and the struggles is would endure in the following century: “The Energy of Dayton Capitalist and a Testimonial to Their Abiding Faith in the Commercial Future of the Gem City”[iii]. This comment by the news was just a hopeful for the future as the current renovation efforts are.

An article in the Dayton Herald covering opening day in 1904.

The Arcade exemplified the ideals of the day with its ample use of technology, open layout, and high standard of construction. These factors were hugely popular in the early 1900s as the populace sought to experience the modern, sanitary living that technological advancements had made possible. The newly opened arcade was primarily intended as an open market, but there was also a plethora of retail shops in the Ludlow and Fourth Street buildings. The variety of goods the Arcade offered shocked visitors on those opening days. Stalls had been transformed to transport visitors to Central America with a Panama themed booth selling fresh citrus. Next door shoppers were transported to a field of flowers as they were surrounded by a multitude of fresh tulips[i]. From fresh fruits and meats to stores such as jewelry and clothing.

In some ways, the Dayton Arcade was constructed in the optimal time for buildings of its kind. Open air food markets were on the way out, allowing the Arcade to fill a food supply niche for the urban resident, and the explosion of consumerism allowed the shops in the complex to succeed as spending rose and customers bought everything from the dry goods to jewelry as a sign of status. This conflict in the American psyche between the growth of modern culture and traditional values was embodied by the Arcade as it straddled the line between traditional food market and shrine of cosmopolitan consumerism.

However, the American consumer was changing, and the concept of buying only what you need and making what you could was disappearing. Forced out by rapid production and aggressive marketing of the era, the American people embraced the newfound luxuries with a passion[ii]. The self-sufficient Protestant work ethic of the American Midwest was undermined by the advertising efforts of processed food producers who hoped to subvert the saving instincts of consumers into a steady, reliant income source.[iii] By the twenties and thirties, consumerism was a fact of life. In a 2020 interview, Mary Becks discussed her memories of the Arcade from her time there as a young girl in the 1930s. The retail nature of the Arcade is prevalent as she remembers visiting the Arcade with her aunt, saying:

“My aunt was good about taking me places, so she took me down to the arcade probably in 1930. I would guess I was probably four years old and they were having auctions down there I don’t remember for the life of me what they sold, but I do remember that I had a fit because she wanted to take me out and I wanted to stay, I liked it… they brought chairs out into the middle of the area down there and whatever they were selling, I guess… Now there was a one shop that sold, uh, leather goods, like uh, suitcases and briefcases and I don’t know what other leather things they sold. But there was a place, had umbrellas. Now that’s all I can remember about that. But it was busy. There were a lot of people there, and it was kind of nice to be down there.”[i]

Front of Trexler’s Department Store, longtime staple of the Arcade. Courtesy of Dayton Metro Library.

Development of Modern Consumerism 1920s-40s

The time period of the 1920s through the 1940s was an era of economic upheaval and massive national change. The rapid technological development of the first half of the 20th century saw the decline of the traditional consumer values of the nation. The ease of access to goods challenged previous living norms. As a city of industry with companies like the National Cash Registry located there, Dayton witnessed this evolution firsthand. The mass production of goods like the refrigerator transformed the way America lived. The technology that had originally made locations like the arcade seem sophisticated, with its extensive refrigeration capabilities, was now available in the homes of middle class America, and merely fueled the consumerism more.  

Other pieces of technology like the rapid growth of the movie industry provided the modern boon to social prestige for millions of Americans across the country. This gave rise to a form of escapism. The silver screen allowed the middle class viewers it was catered for to gain a taste of other lifestyles and immersing them in a fantasy that pulled them out of their homes[i]. In much the same way, the modern goods and appliances like the refrigerator allowed the illusion of a higher social standing and wealth as the middle class strived for modern amenities. This allowed retail centers like the Arcade to thrive, offering a wide range of products. However, this fantasy of economic success across the country hid a larger problem. The wealth gap expanded greatly, and the majority of the country did not have the savings to support this rampant consumption[ii].

The economic boom gave way to a harsh downturn with the stock market crash of 1929, and retail all over the country struggled to stay in business. The Arcade was no exception, and shop owners were forced to repeatedly cut prices in an attempt to keep business afloat. Trying every avenue to keep customers interested, retail in the Arcade stepped up their advertisements in newspapers, renovations and even food samples. Although times were tough, the implementation of the New Deal showed signs of economic recovery and the United States slowly got back towards its feet through the second half of the 1930s.

If the second half of the 1930s was America moving back towards getting on its feet, then the 1940s and expansion of wartime production was America preparing to soar to new heights. War time factory production, military mobilization, conscription, and the nationalization of numerous national sectors all but eliminated unemployment and the destruction across Europe gave America access to a huge market with almost no competing producers. In a mere number of years, the country went from rampant unemployment to not having enough workers to fill the factories. This increased wages through competition, and women and minorities entered the workforce in record numbers with fair wages. This economic surplus in the pocket of the average American drove up the price of goods, and with a global war to supply, the U.S. government stepped in to implement rationing and vouchers for select goods. This changed the shape of the Arcade’s recovery, as shops that were just moving back into the Arcade after the depression were forced to handle goods, especially foodstuffs, through vouchers. This rationing limited what Americans could spend their money on, and they were forced to save for much of the war[iii]. When this was combined with soldier’s having little to spend money on while deployed, their salaries accrued as well.

These factors, combined with America’s newly bolstered production base meant that coming out of World War II, the American populace had more in savings than ever before and the capabilities to produce enough goods to meet the explosion in demand. World War II had changed the city of Dayton in a major way, and also changed the Arcade itself. For Dayton, wartime rationing had tightened belts and caused the retail industry to face repeated challenges to stay afloat. On the opposite side however, manufacturing in Dayton shifted to wartime production, and the job market soared. The stores within the Arcade faced rationing restrictions as well as stores had to do business in vouchers. Even the iconic rotunda had been blacked out during the war for fear of bombing. But the future looked very bright for retail establishments like the Arcade, whose broad selection of goods and central location was just waiting for customers to return from the war and switch back from vouchers to cold, hard cash.

The 1950s

By the 1950s, the Arcade had firmly entrenched itself in the fabric of the city. The war had ended, and the factories switched back to previous products. The increased infrastructure from the war allowed rapid growth and Dayton quickly established itself as a city made up of a well-paid working class, earning farm over the national average per capita. This influx of capital in the pockets of the expanding middle class also meant great things for downtown retail. Shops quickly returned to the Arcade and by the 1950s the Arcade once again flourished. The saved income from the war years allowed for rapid expansion in consumerism as the average American had more liquid capital on hand than ever in history. This was a lifeline for the previously struggling Arcade that had never truly recovered to its heights from before the Great Depression. As the economy boomed in the post-war years, the Arcade quickly reclaimed its position in the city. Much of this success was attributed to Arthur Beerman, who bought the Arcade in the post-war era. By focusing on food stalls and remodeling the Arcade to increase foot traffic flow, Beerman lured customers back to the Arcade after the war with new novelty stalls like Smales Soft Pretzels.[i]

By this time the Arcade was filled with a plethora of shops that attempted to appeal to every type of customer. This ranged from a millinery, numerous dress shops, and jewelry stores to drug stores and grocers. The Dayton Camera Shop was across the thoroughfare from the Dayton Card Shop, and there was even a chiropodist! Although the arcade was no longer quite as focused on fresh food options as it had been at its inception, the Arcade was nevertheless still a vital point of retail in Dayton.

This economic success continued into the early 1960s as the transition period from continued urbanization during the war to consolidate the workforce shifted towards the suburban growth that appeared rapidly with the cheap cost of automobiles and affordable housing outside of cities. This transition period was still a time of economic success as the shoppers still came into the city center for goods, but the country was changing.

Downfall of Main Street

Unfortunately, such success was not to last. With the explosion of the suburbanization movement and the development of shopping centers in the suburbs, retail traffic slowly began to ebb out of the city center. Once the downward trend began, it seemed almost to be inevitable that the urban retail glory once enjoyed by the Arcade and Main Street was doomed. By the middle of the 1950s a number of department stores had already moved out to the suburbs, following the growing middle class. By 1960 there were a large number of shopping centers in the surrounding townships and smaller shops in the city were struggling to stay open. Without the constant daily traffic of an urban resident clientele, stores that sold everyday supplies were forced to close down. Even the downtown staple department store, Rike’s had begun opening suburban branches. By the end of the 1960s and the early 1970s, the surviving stores were mainly specialty shops. Stores that offered special goods like jewelry or shoes, as well as tailors and wigs stayed open due to the specific nature of their goods.

Other businesses like banks and hotels managed to stay open as well, reliant on the business sector of downtown. In this time, the Arcade was hit particularly hard. Though some specialty shops were located in the arcade, much of the retail in the Arcade had been reliant on the urban population, with a large number of grocers and food suppliers.

By the middle of the 1970s many stores had collapsed, and banks & hotels moved in, filling the financial sector for the growing suburban sprawl. Other stores were demolished and replaced with skyscrapers for office space and business growth.

Graph showing number of business at the Arcade in the 1980s. Courtesy of “Jeffrey Guest.”

By the time 1980s, retail was almost non-existent in downtown as a whole, with entire blocks of retail shops disappearing in the last decade as more businesses closed. By the mid1980s the Arcade itself had gone bankrupt just years after its renovation efforts, and the last movie theatre downtown closed. As the graph above illustrates, the 1980s were a time of fluctuation for the Arcade before its eventual closing in 1991. While the number of businesses did top 40 in 1983 and 1984, the large number of vacancies left the Arcade with a challenge it could not overcome at the time. In 1980 itself, between 30%-50% of the business spaces in the Arcade were vacant, and its lowest vacancy rate in the decade still almost 10%. These types of numbers proved that the Arcade would not be able to sustain itself unless something greatly changed, and the Arcade ended up closing in 1991.

While the Arcade did open again briefly in 1990 and host holiday events in the early 1990s, it seemed true renewal was not in the cards and retailers never really moved back in. After Christmas of 1992, the Arcade seemingly closed down for good. Retail has not recovered much in the intervening years, and it is hard to tell if it ever will. Although a large renovation project has recently gotten underway to transform the Arcade as well as restore its former glory, it is hard to tell if the project will be successful. In addition, it is important to note that although the new Arcade will have some retail in it, it is also being championed as a business development center. This makes sense for the current state of downtown Dayton as it stands right now, with the city and investors hoping to rejuvenate the stagnant Dayton economy, but that does not mean that retail will return.

Conclusion

The Arcade is an icon of Dayton, but the Arcade’s history exemplified aspects of the nation’s changing history  over the last hundred years. From its conception as a cosmopolitan food market in the early 20th century, the Arcade became a centerpiece for the city. Indicative of Dayton’s rapid growth and success in the 1900s, the Arcade was soon a burgeoning retail center with a wide range of stores and food options that tied the community together as a place to gather and a social center for the city. The growth of the consumer capitalist in the first half of the 20th century was exemplified in the arcade as what was primarily a food market gave way to a primary retail option for the city. Although it was hit hard by the Great Depression and the economic restrictions of the Second World War, the Arcade persevered and flourished once again in the late 1940s through the early 1960s. The increased spending power of the average American allowed diverse retail options like the Arcade to thrive. However, the shift to suburban living and retail struck a blow to the Arcade, starting its long and slow decline through the second half of the 20th century. However, all is not lost, and current reconstruction and reclamation efforts in the early 21st century have reignited hope for the future and many are hoping to see the new Arcade business and retail center to revitalize downtown when it is completed. Bill Burnett has lived in Dayton his entire life and views the Arcade as a central facet of the life of the city, and like most who remember the old Arcade, he is very supportive of the new construction efforts.

“…do the whatever has to be done to complete the project for the Dayton Arcade. The people will come, the people that have lived here a long time, like myself or, just people visiting or, other parents come, coming to visit their students at UD, a little trip down to the arcade and the downtown Dayton. And (The Arcade) gives a feel for a historical preservation and, and concern for holding on it. So, um, I feel that’d be a big plus.”

Endnotes

[i] NEW DETAILS: Arcade office space in high demand; Sinclair newest tenant, Dayton Daily News, 25 February 2020.

[ii] Friends of the Arcade Interviews, Bob Thaman

[iii] Dayton Urban History Survey Report,23-26

[iv] Lost Dayton History, 87

[v] Customer to Consumer: The New Consumption in the Progressive Era.

[vi] Eyer, Sarah, “Feeding Dayton: City Food Markets”, Dayton History Project

[vii] William B. Waits, “Something for the Kid: Gifts from Parents to Children.” In The Modern American Christmas (New York: New York University Press, 1993).

[viii] Reed, Ryan, “Children and Holidays: Public Spectacle, Consumer Capitalism, and the American Childhood”, Dayton History Project.

[ix] Jeffery’s Arcade

[x] Jeffery’s Arcade History, 34

[xi] “Beautifully Dedicated by a Labor of Charity”, Dayton Daily News, 3 March 1904

[xii] Ibid

[xiii] Ibid.

[xiv] Ibid.

[xv] Nancy F. Koehn, “Henry Heinz and Brand Creation in the Late Nineteenth Century: Making Markets for Processed Food,” The Business History Review 73, no.3 (1999)

[xvi] Eyer, Sarah, “Feeding Dayton: City Food Markets”, Dayton History Project

[xvii] HST 498 Interview, Mary Becks

[xviii] Regina Lee Blaszcyck, American Consumer Society 1865 – 2005: From Hearth to HDTV (Wheeling, Illinois: Harlan Davidson Inc, 2009), 106.

[xix] Ibid, 107.

[xx] Ibid. 115

[xxi] Sikora, Nate, and Phil Drayton and Chandler Mott, “Part 3: 1945-1980 Boom to Bust”, Dayton History Project