FROM OUR JULY 2024 MR AWARDS ISSUE: DAVID RUBENSTEIN, RUBENSTEINS: HALL OF FAME

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Success, as officially defined in the Oxford dictionary, means “the accomplishment of an aim or purpose.” We prefer a different definition, one we discovered in writings by children with disabilities: “If you achieve what you want and are happy, that is success.” And to that, we add our own observation: the most successful people are those who follow their dreams and inspire others to follow their own. May dreams come true for MR’s innovative and intrepid 2024 honorees. May you keep on creating.

“Very few people,” confides Rubensteins’ president, David Rubenstein, “know the real reason we’re in business, now for 100 years. Our uncle Morris, in 1924, wanted to marry his girlfriend. Her father, a successful Memphis businessman, would not allow Morris to marry his daughter until he found a decent job. So Morris and my daddy rented an 11×14 space at 102 St. Charles Avenue and opened a store so Morris could marry the woman he loved. It was a tiny store, but they rented adjacent space as it became available, and by 1938, they pretty much occupied the entire corner building. Soon after, they bought the building they’d been renting, renovated, and ultimately leased out the space they weren’t using. This was before the war and business was good,” David explains. “Daddy ran an ad in the local paper announcing the opening of their brand-new store. It was December 8, 1941, the day after Pearl Harbor.”

For as long as they can remember, brothers David and Andre worked in the family business. As David explains, “Our mom died when I was a couple of months old, so Andre and I lived with our father, Elkin, and our single aunts. After school, we’d take the streetcar down to the store, Daddy would meet us at the stop, and we’d spend the afternoon working in the store. At 8 and 10 years old, we’d work in the stockroom. If we did a good job, we got a quarter each; if we swept the floor, we got an extra dime. There was a movie theater next door and Daddy would sometimes let us go there. The store closed at 5:30 during the war and Daddy would come charging into the theater shouting ‘Andre, David, time to go home!’ We never got to see the end of a single Roy Rogers movie!”

How did your father and uncle stay in business during WWII?
They were smart and built strong relationships. At that time, you couldn’t get white shirts because the fabric was needed for bandages, but they were good friends with the folks at Arrow, who offered to produce one more big cutting to see what happened. There were lots of young men getting out of the army at the time, so Morris and Daddy mailed out postcards saying, “Let us know your shirt size, and we’ll put aside a white shirt for when you get back home.” That’s how they got their clients’ sons as customers.

I graduated college in 1962 when there was this big Madison Avenue look that started in the late 1950s. Since young men dislike shopping in their fathers’ store, Morris built a wall along the side of the store with an entrance from the street so young guys could walk up to our second-floor Madison Shop without being seen from the main store. The kids loved it because they could charge everything to their fathers’ accounts!

How did Rubensteins evolve into the luxury business?
I had great teachers around me. Uncle Morris showed me early on how easy it was to sell expensive Louis Roth clothing from California to the wealthier clients who wanted to show off their success. He’d say that even fishermen in the Bayou would spend big bucks on clothing if we could just find that leader to legitimize the investment. Ralph Lauren confirmed this leader of the pack theory, showing me that finding the leader would bring in other customers aspiring to that upper-crust group.

What were the toughest times for the store over the years?
Surviving through hurricanes. But from tragedy, we learned that we have many fabulous friends in the men’s industry. We get lots of help every time a hurricane hits, and we are tremendously grateful.

Your survival secrets?
My father always talked about “cash flow.” That works well. It also helps that we’ve maintained a strong relationship with our bank. And fortunately, since we acquired the buildings, we have an income from the real estate, which takes much of the pressure off. When we were young, the store was our only source of family income, so it was a whole different world. Most importantly, we’ve learned to work together across generations, which creates a healthy family dynamic.

What do you see as your competitive edge?
Our competitive edge is location, winning brands, and a great staff. Also, the Forum Group has been an important component of our longevity: they bring to our attention new luxury collections and give realistic advice on solving problems.

Your greatest challenge these days?
Finding and training new employees, both sellers and tailors. But if you put in the time teaching them, they’ll stay very loyal.

What would you change about yourself if you could?
I’d like to be a little more patient when someone I’m trying to teach is reluctant to learn.

What’s the best advice you’ve received in your career?
I learned from my father, who learned from a friend in Memphis: “If you want your children to go into your business, pay them more money than they’ve ever seen.” A quarter or two back then seemed like a fortune to Andre and me compared to our weekly allowance. Also, from my father, I learned to change with the times. When I was considering careers, Daddy said that as long as men are not walking around naked, I’d have a future in this business. He told me, “Just remember to change with the times, as we did when styles changed from shirts with separate collars and cuffs to the new Arrow dress shirts.”

There isn’t a brand in the store today that was here when I started. Change is the lifeblood of the business. So many retailers these days are panicking because certain status brands are going direct to consumer at the expense of the independent specialty stores. Don’t panic. Change is good. Customers came in for Armani and Zegna because you were showcasing Armani and Zegna. They’ll continue to come in for whatever brands you showcase next.

Your sellers are on commission. Why do you favor this type of compensation when many retailers have moved away from it?
Because there’s no limit to how much a talented seller can earn. If a seller is really good, let him make money! It’s the incentive for him to sell luxury product. You’ll get your share because he’ll be selling more, and more expensive, goods. A group incentive makes sense as an extra bonus, but then you’re dependent on others, which doesn’t motivate everyone. No one should have to live off anyone else’s wallet.

How did you end up with a luxury hotel adjacent to your store?
This brand-new hotel was suggested as a partnership by one of our local friends in the boutique hotel business. (Having an experienced partner meant we didn’t have to carry luggage or park guests’ cars!) We realized it was a great use of the buildings we owned that were not fully utilized and that it was important to provide a source of future income for the next generation. It’s still too early to tell exactly how much impact the hotel will have on our menswear business; we’re still learning how to attract hotel guests into the store.

What’s hot right now in menswear?
Everything is selling well. We have a great customer base in both our local customers and our visitors. We see an irreversible shift to sport coats over suits (by units) and “casual” pants over dress pants. Shoes are selling well, and not just sneakers. New Orleans is still a party city and people dress up, so our penetration of tailored clothing is considerably higher than most independent stores.

How’s Gen 3 doing in the business?
They’re doing great, as are our younger non-family sellers who relate to the new fashion trends. Trust me: we’d be in big trouble if my generation had to deal with all the electronics and digital components needed to run a store today.

Are you worried about current business in an election year and a world at war?
No. I don’t think the election will affect the economy as much as people think: nobody likes either of these candidates, so much of the population has stopped paying attention!

What would you do differently if you could start your career over?
I wish I’d listened to my father when he warned us not to go into the women’s business. We did, and it was the same failure he experienced years before. Other than that, I have no regrets. I feel like the luckiest guy in the world. I love my wife, Niki (who’s been by my side through it all), my children and grandchildren, my work, and my life. I know I’m incredibly fortunate to be in a business where I get to see friends and family every single day!

THE FUTURE

Andre’s son Kenny, chief experience officer, and David’s daughter Allison, marketing manager and jack-of-all-trades, answer a few questions.

What’s the best and worst part of working in a family business?

Kenny: The best is family: people who share my pride of ownership, purpose,
and struggle. The worst is also family: it’s much easier to deal with partners, bosses, and employees who are not your father, uncle, or brother. It’s tough to separate the family from the business, but sometimes you have to.

Allison: The worst part for me: the hurricanes. During Katrina, so many people lost everything, couldn’t get money from the banks, and were in desperate situations. That’s when I decided I didn’t want a full-time executive position at the store. I wanted to work here part-time doing whatever’s needed but remaining always available to my children. Dad and Andre have devoted their lives to the business because they love it. I love being with my kids. I remember years ago, Lisa Michael from Larrimor’s told me she’ll work harder than anyone at her family’s store as long as she’s the one picking up her daughter from school every day. That comment stayed with me.

The best part of working at Rubensteins is my close relationship with my parents. I’ve worked at the store more than 23 years and we’ve gotten even closer. Every morning, we get coffee together. We talk about grandkids, the store, new restaurants; we have Sunday night dinners together. This time is so special, and I realize how few people have the opportunity to connect with their parents every day.

 

What have you learned from working with family?
Allison: From my dad, I learned to be kind. I can’t tell you how many people come into the store and share wonderful stories about Daddy: what a thoughtful and generous person he is. This morning when I drove by the fire station, I remembered that every morning on my way to school, we’d stop to drop off a box of donuts for the firemen.

Kenny: From my father, I learned how to be a part of a community, as well as patience and levelheadedness in dealing with employees. My uncle has taught me the value of relationships: with vendors, clients, and employees. He also taught me how to be more direct and ask for what I want, particularly with vendors. And to look for the changes, the updates, the newness in what I see. I no longer walk into a vendor and ask what they’ve got; I now ask what they’re doing differently, what changes they’ve made since I last saw them.

What are the odds of a fourth generation joining the business?
Allison: I’m not sure. As of now, my daughters aren’t even close to knowing what they want to do. My husband is a lawyer, and they’re certain they don’t want to be lawyers. I guess that means there’s a chance…

Kenny: I’d love for my kids to join the company. This is a wonderful career where every day is different, and you meet people from all over the world. Currently, my kids are out in the world, establishing themselves in the workforce and generating their own credentials. I look forward to a day when I might work with them in the store, or else observe them from a remote Caribbean island….

INDUSTRY ACCOLADES

“I’d like to extend my heartfelt wishes to David, Niki, Kenny, Andre, and Allison. This remarkable family has navigated countless challenges with grace and resilience. Their unwavering dedication and commitment to excellence have been cornerstones of the New Orleans community for many years. Despite the challenges that often accompany working together as a family, they’ve consistently delivered the finest service and quality apparel to the area.” —Robert Stock, designer

“David Rubenstein is that rare merchant always open to discovering new product and blending Southern culture with an infusion of international elegance. David and his family have created a destination shopping experience; I offer my deepest congratulations on their success this past century and a toast to the next one.” —Massimo Bizzocchi, Kiton

“David Rubenstein is a prince of a man, a first-class gentleman. I consider him Southern Royalty.” —Ron Wurtzburger, Peerless

“David’s achievements stem from his love of our industry, a deep understanding of his customers, a curious and creative mind, and his commitment to New Orleans and the family business. I also count David’s warm and engaging style and personal charisma as key factors in his long and successful career. What a deserving choice for the MR Hall of Fame Award!” —Alan Victor, Jack Victor

“I have known David for a long time, thanks to the longstanding loyal relationship between Rubensteins and Canali. He is a meticulous, precise and analytical merchant with a deep knowledge of his market and clientele. Dedication, passion, and business acumen made it possible for the business to reach this century milestone. His genuine interest in many subjects always make appointments and lunches very interesting and engaging.” —Giorgio Canali

“David Rubenstein has always been an amazing mentor to me. He’s a great friend, the unofficial mayor of New Orleans, and the most upbeat, positive person I know.” —Howard Vogt, Rodes in Louisville