The Story of Katz Drug Stores
Isaac “Ike” Katz. Courtesy: MVSC.
In the annals of Kansas City's commercial legacy, the story of Katz Drug Stores looms large—a narrative steeped in entrepreneurial genius, community engagement, and an enduring influence on the retail pharmacy sector. The Katz story intertwines with Kansas City's growth, reflecting a period of transformation and innovation that would ripple through time. Let's journey through the Katz chronicles, from the Ukrainian roots of its founder to the lasting imprint left on Kansas City's streets and beyond.
The Ukrainian Immigrant's Dream
Photo of a 16th century Synagogue in Husiatyn, Ukraine - Ike’s hometown.
The origins of Katz Drug Stores can be traced back to the small Ukrainian town of Husiatin. Here, in 1879, Isaac "Ike" Katz was born into a world far removed from the bustling American cityscapes he would one day help shape. His early life was not one of privilege but of challenge, leading his family to seek a new life in America.
Upon arriving in St. Paul, Minnesota, the Katz family encountered the hardships familiar to many immigrant families of that era. Ike's schooling was cut short as he took to the rails, selling newspapers and an assortment of goods to passengers. These formative years on the Great Northern railroad were Ike’s first foray into the world of retail, teaching him invaluable lessons in tenacity, customer service, and the art of the sale—skills that would later become the cornerstone of his business empire.
Ike and Mike Katz - brothers and co-founders of Katz Drug Stores.
By the time Ike and his younger brother Mike ventured to Kansas City, they were ready to put down roots and explore new business avenues. After some initial success with their fruit stands, the Katz brothers found themselves in a twist of fate that would redirect their entrepreneurial journey—the relocation of the city’s main railroad commerce hub to Union Station and the advent of World War I.
These two events catalyzed the conversion of their cigar stores into what would become the first Katz Drug Stores. By employing a pharmacist to skirt wartime store closures, Ike Katz inadvertently planted the seed for a retail revolution. The Katz Drug Store quickly became a cornerstone of convenience for the Kansas City community, offering an array of products and services under one roof.
A Retail Revolution
Katz Drug Store located on the ground floor of Boley Building, northwest corner of 12th and Walnut. Courtesy: MVSC
The Katz business model was revolutionary. Ike’s insight into customer preferences led to a diversification of offerings unheard of at the time. Katz Drug Stores were among the first in the nation where one could fill a prescription, purchase groceries, select a new refrigerator, or even buy an exotic pet, all in a single visit. This business model created a blueprint for the future of drug stores and supermarkets alike.
As the business grew, so too did the stores' inventiveness. Katz Drug Stores became famous for their unique marketing campaigns. During World War I, they absorbed the 10% war tax on cigarettes, using the slogan “Katz pays the tax!” to attract customers. It was this blend of strategic foresight and marketing acumen that would help Katz Drug Stores flourish through the Roaring Twenties and beyond.
“Katz Pays The Tax!”
The 1920s marked a period of rapid growth for Katz Drug Stores, with Ike Katz at the helm of an expanding retail chain that captured the American spirit of convenience and affordability. The stores became known for their wide range of products, novel marketing, and affordable prices. It was during this time that Katz Drug Stores truly became a household name in the Midwest.
The Great Depression, a time of economic strife for many, was a period of growth for Katz. In 1934, the Katz brothers opened their flagship store at Main Street and Westport Road. Designed by architect Clarence Kivett, it was the epitome of modern retail space at the time and included features like air conditioning and a large parking lot, which were rare in those days. This store was a palace of consumerism and would go on to be a Kansas City landmark.
Flagship Katz Drug Store at Main and Westport.
Under Ike’s leadership, Katz Drug Stores became a part of Kansas City’s cultural fabric. Beyond just retail, the stores served as community hubs where people could meet, eat at the lunch counters, and enjoy a soda from the fountain. The stores even played a role in Kansas City's civil rights movement; in 1954, Katz Drug Store at 12th Street and McGee was the site of a successful sit-in that led to the desegregation of its lunch counters.
Interior of a Katz Drug Store
Ike’s generosity extended to various sectors of the Kansas City community, including substantial support to health care, religious institutions, the arts, and even an orchestrated rescue of his brother from kidnappers. Katz's philanthropy was felt across the city and helped forge a strong bond between the business and the people it served.
Evolution & Legacy
Interior of Katz Drug Store at Linwood & Troost. Courtesy: MVSC
At their peak, Katz Drug Stores had 65 locations generating over $100 million in annual sales. The Katz brand would eventually merge with Skaggs, then Osco, and finally transition to CVS Pharmacy.
Yet the architectural and cultural legacy of Katz Drug Stores remains. The art deco clock tower of the Main Street store still stands and will be preserved as a part of a larger redevelopment. This iconic landmark, much like the story of Ike Katz, continues to inspire a sense of community and the potential for innovation in commerce.
Autochrome photograph of the Katz Residence at 2435 Drury Ln, Kansas City, MO. Courtesy: Frank Lauder Autochrome Collection, MVSC.
Ike died on this day (November 9th) in 1956 and is buried in Rose Hill Cemetery. His legacy is not merely a chapter in Kansas City's commercial history but a foundational stone of modern retail principles. His innovations in marketing, customer service, and community engagement are still mirrored in today's retail strategies. The trail blazed by Katz Drug Stores in Kansas City is a narrative of resilience, adaptability, and foresight—a story that transcends generations and continues to inform the ethos of the American retail experience.
As we reflect on the permanent mark left by Katz Drug Stores, it’s not only a tale of business acumen but also one of a community's affection for a brand that once stood as a testament to innovation and customer dedication. In the bustling corridors of Kansas City, the spirit of Ike Katz’s visionary enterprise lives on, reminding us that from the roots of necessity can grow a legacy of enduring success.
Katz Drug Store, once located on the ground floor of the Hotel Phillips at the intersection of 12th Street and Baltimore Avenue. Courtesy: MVSC.