L. S. Ayres
Historic Indianapolis-based American department-store company known for women's fashion, holiday displays, its Tea Room, and the Ayr-Way discount chain.
Last updated August 24, 2026
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Overview
L. S. Ayres and Company was an American department-store business founded in Indianapolis in 1872 by Lyman S. Ayres. It developed from a downtown dry-goods store into one of Indiana's most prominent department-store organizations, combining a large full-line flagship with suburban branches, acquired regional stores, specialty formats, discount retailing, food-related operations, and real-estate investments. The company began when Ayres obtained control of N. R. Smith and Company, also known as the Trade Palace, on West Washington Street in Indianapolis. After buying out his partner, Ayres established the L. S. Ayres & Co. name and operated as a one-price retailer, emphasizing consistent merchandise quality and prices. The business moved across Washington Street in 1875 and remained downtown for three decades before opening a major new store at One West Washington Street in 1905. Designed by Vonnegut and Bohn, the eight-story building became the physical and symbolic center of the business. Repeated additions, including the South Building opened in 1929 and a postwar Meridian Street expansion, eventually created a very large downtown retail complex. Ayres became especially associated with women's fashions and the slogan “That Ayres Look,” which positioned the retailer as a fashion authority. Its customer experience was broader than merchandise alone. The flagship included a formal Tea Room, seasonal food service, an Economy Basement or Budget Store offering lower-priced goods, and elaborate Christmas and Easter presentations. Holiday windows, a Santa's workshop, the Christmas cherub placed on the store clock, children's train rides, and other events made the downtown store a civic attraction as well as a shopping destination. After World War II, the company responded to suburbanization by opening branches in shopping centers, including locations in Indianapolis, Lafayette, Greenwood, and Fort Wayne. It also diversified through acquisitions and new concepts. These included the John Bressmer Company in Springfield, Illinois; Wolf & Dessauer in Fort Wayne; Kaufman-Straus in Louisville; specialty formats such as Sycamore Shops and Cygnet Shops; Murray Showrooms for home furnishings; and Ayr-Way, a self-service discount chain. Ayr-Way was notable as an early discount format launched by a full-line department-store company and later became a significant part of Ayres's broader retail strategy. The company was acquired by Associated Dry Goods in 1972. It subsequently absorbed or rebranded other regional department-store operations, including Pogue's and Stewart Dry Goods, while competitive pressure, declining downtown traffic, and profitability problems led to store closures and organizational changes. Associated Dry Goods was acquired by The May Department Stores Company in 1986. During the May period, Ayres operations were combined with the Famous-Barr division, though the Ayres name remained in use for several years. The Indianapolis flagship closed in 1992 after May decided it would not anchor the adjacent Circle Centre development. The building later became part of a redevelopment that included a Parisian department store and subsequently Carson's. In 2006, after Federated Department Stores acquired May, L. S. Ayres was folded into Macy's Midwest. Most surviving stores were converted to Macy's, and the L. S. Ayres name was retired in September 2006. The brand is therefore defunct, although elements of its buildings, retail history, Tea Room, and holiday traditions remain part of Indiana's cultural and architectural heritage.
History
Lyman S. Ayres established the Indianapolis business in 1872 after acquiring controlling interest in N. R. Smith and Company, a dry-goods retailer known as the Trade Palace. The store initially operated as N. R. Smith and Ayres; after Ayres bought out Smith, the L. S. Ayres & Co. name appeared in advertising in 1874. In 1875 the business moved to 33–37 West Washington Street, where it developed a reputation as a “first class one price establishment.” Ayres spent years assembling land near the intersection of Washington and Meridian streets for a much larger store. The resulting eight-story Indianapolis flagship opened on October 3, 1905, with more than 130,000 square feet of selling space. Designed by Vonnegut and Bohn, it was expanded in 1915 and again through the construction of the South Building, which opened in 1929. Postwar additions along Meridian Street further enlarged the complex. The flagship became central to the company's identity and was recognized for women's fashion, customer services, seasonal presentations, and its distinctive food facilities. The Tea Room operated from 1905 until 1990. Although it was not intended primarily as a profit center, it encouraged shoppers to remain downtown and became a popular social setting. Ayres also maintained an Economy Basement that sold reasonably priced goods rather than simply inferior merchandise. The store's Christmas and Easter programs were major attractions, featuring decorated windows, children's activities, Santa appearances, and other seasonal installations. These experiences helped transform the store into an Indianapolis institution. As retail activity moved away from downtown after World War II, Ayres invested in suburban branches and shopping-center locations. It opened stores in Lafayette, Indianapolis suburbs, Greenwood, and Fort Wayne, while building distribution and service infrastructure. Expansion also came through acquisitions: John Bressmer Company in Springfield, Illinois, Kaufman-Straus in Louisville, and Wolf & Dessauer in Fort Wayne. The company created Ayr-Way, a self-service discount operation, and added specialty and home-furnishing formats. By the late 1960s, Ayres had become a diversified merchandising and real-estate group rather than a single department store. Associated Dry Goods acquired Ayres in 1972. During the 1980s, Ayres absorbed Pogue's stores in Cincinnati and Stewart Dry Goods in Louisville, but those markets proved difficult and several locations were closed or sold. The May Department Stores Company acquired Associated Dry Goods in 1986. May later consolidated Ayres with Famous-Barr and reduced the chain's footprint. The downtown Indianapolis store closed in 1992, while the former flagship was subsequently redeveloped for other retail and office uses. Federated Department Stores acquired May in 2005. On February 1, 2006, Ayres was dissolved into Macy's Midwest, and the remaining Ayres stores were generally converted to Macy's. The name was formally retired on September 9, 2006. The former flagship complex, historic merchandise concepts, and reconstructed Tea Room remain important reminders of the company's role in Indiana retail history.
- 2006
Ayres dissolved into Macy's Midwest
[1]The legal and operating identity was folded into Macy's Midwest, and the nameplate was retired later that year.
- 1992
Downtown Indianapolis flagship closes
[1]The historic store ceased operations in the spring of 1992.
- 1986
May acquires Associated Dry Goods
[1]The May Department Stores Company acquired Ayres's parent company.
- 1972
Acquired by Associated Dry Goods
[1]Ayres became part of Associated Dry Goods.
- 1966
Fort Wayne expansion
[1]Ayres opened a branch at Glenbrook Square and expanded its regional presence.
- 1958
First suburban branches and Bressmer acquisition
[1]Ayres opened branches in Lafayette and Indianapolis and acquired the John Bressmer Company in Springfield, Illinois.
- 1929
South Building opens
[1]A major addition on Meridian Street expanded the downtown store complex.
- 1905
Indianapolis flagship opens
[1]The large eight-story store at One West Washington Street opened on October 3.
- 1874
L. S. Ayres name appears in advertising
[1]After Ayres bought out his partner, the L. S. Ayres & Co. name was used publicly.
- 1872
L. S. Ayres founded in Indianapolis
[1]Lyman S. Ayres acquired control of N. R. Smith and Company and began building the Indianapolis department-store business.
Products and positioning
A regional, fashion-oriented full-line department store with a strong Indianapolis identity, complemented by suburban branches, hospitality and seasonal experiences, value retailing, and later discount-store operations.
Department-store retail · 1872
Full-line department stores
Ayres stores carried a broad range of apparel, accessories, cosmetics, home goods, toys, and seasonal merchandise. The Indianapolis flagship was particularly associated with women's fashion and offered extensive service and hospitality facilities.
Discount retail
Ayr-Way
Ayr-Way was Ayres's self-service discount-store subsidiary. It extended the company into lower-price retailing and was notable as an early discount chain created by a full-line department-store operator. The concept later included Ayr-Way Discount Foods.
Retail hospitality · 1905
Ayres Tea Room
The Tea Room at the Indianapolis flagship served shoppers in a formal setting and became a long-running local gathering place. Its menu included such enduring items as chicken pot pie, chicken velvet soup, and children's desserts. It closed in 1990; a recreation is displayed at the Indiana State Museum.
Value retail · 1905
Budget Store
Originally called the Economy Basement and later the Downstairs Store, this department offered lower-priced merchandise intended to retain value-conscious customers without presenting the goods as inherently inferior. The concept declined after the rise of Ayr-Way and was eliminated in the mid-1980s.
Specialty retail
Sycamore Shops and Cygnet Shops
These specialty formats were created in the late 1960s to serve younger adult shoppers and broaden Ayres beyond conventional full-line department-store retailing.
Marketing campaigns
- 1958Santa Claus Express
Indianapolis
Ayres introduced a miniature electric train that carried children through the Christmas display at the downtown store.
Outcome. The attraction operated from 1958 through 1961 and supported the store's family-oriented holiday positioning.
- 1947Christmas cherub clock tradition
Indianapolis
On the night before Thanksgiving, Ayres placed a bronze cherub on the flagship's outdoor clock. The display remained through Christmas and became an annual holiday attraction.
Outcome. The tradition strengthened Ayres's role as an Indianapolis seasonal destination and continued for decades.
- That Ayres Look
United States
The long-running slogan presented Ayres as a source of distinctive, fashionable appearance, particularly in women's clothing.
Outcome. By 1972 it was described as the oldest continuously used retail slogan in the United States.
Brand decisions
2006
Fold Ayres into Macy's MidwestM&ABackground
Federated Department Stores acquired The May Department Stores Company in 2005 and reorganized its regional divisions.
Action taken
On February 1, L. S. Ayres was subsumed into the newly created Macy's Midwest division, with most remaining stores converted to Macy's.
Aftermath
The Ayres name was retired on September 9, 2006, ending the brand's independent retail identity.
1991
Close the downtown Indianapolis flagshipStrategyBackground
Downtown Indianapolis had lost retail traffic, surrounding properties had deteriorated, and the May Company did not plan to include the Ayres store in the adjacent Circle Centre project.
Action taken
May announced the closure of the flagship and three Indiana branches.
Aftermath
The flagship closed in spring 1992; the building was later reused by other retailers and offices.
1972
Accept acquisition by Associated Dry GoodsM&ABackground
Ayres remained a substantial regional retailer but operated in an increasingly competitive department-store environment.
Action taken
The company was sold in a stock transaction in which Ayres shares were exchanged for Associated Dry Goods common shares.
Aftermath
Ayres continued as a regional operating name within a larger retail group.
Transaction value. $78.5 million (1972 announced transaction value)
Sources1 sources
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