<P> By the 21st century, the grand Paris department stores had difficulty surviving in the new economic world . In 2015, just four remained; Au Bon Marché, now owned by the luxury goods firm LVMH; BHV; Galeries Lafayette and Printemps . </P> <P> Arnold Constable was the first American department store . It was founded in 1825 by Aaron Arnold (1794?--1876), an emigrant from Great Britain, as a small dry goods store on Pine Street in New York City . In 1857 the store moved into a five - story white marble dry goods palace known as the Marble House . During the Civil War, Arnold Constable was one of the first stores to issue charge bills of credit to its customers each month instead of on a bi-annual basis . Recognized as an emporium for high - quality fashions, the store soon outgrew the Marble House and erected a cast - iron building on Broadway and Nineteenth Street in 1869; this "Palace of Trade" expanded over the years until it was necessary to move into a larger space in 1914 . In 1925, Arnold, Constable merged with Stewart & Company and expanded into the suburbs, first with a 1937 store in New Rochelle, New York and later in Hempstead and Manhasset on Long Island, and in New Jersey . Financial problems led to bankruptcy in 1975 . </P> <P> In New York City in 1846, Alexander Turney Stewart established the "Marble Palace" on Broadway, between Chambers and Reade streets . He offered European retail merchandise at fixed prices on a variety of dry goods, and advertised a policy of providing "free entrance" to all potential customers . Though it was clad in white marble to look like a Renaissance palazzo, the building's cast iron construction permitted large plate glass windows that permitted major seasonal displays, especially in the Christmas shopping season . In 1862, Stewart built a new store on a full city block with eight floors and nineteen departments of dress goods and furnishing materials, carpets, glass and china, toys and sports equipment, ranged around a central glass - covered court . His innovations included buying from manufacturers for cash and in large quantities, keeping his markup small and prices low, truthful presentation of merchandise, the one - price policy (so there was no haggling), simple merchandise returns and cash refund policy, selling for cash and not credit, buyers who searched worldwide for quality merchandise, departmentalization, vertical and horizontal integration, volume sales, and free services for customers such as waiting rooms and free delivery of purchases . His innovations were quickly copied by other department stores . </P> <P> In 1858, Rowland Hussey Macy founded Macy's as a dry goods store . Benjamin Altman and Lord & Taylor soon competed with Stewart as New York's earliest department stores, later followed by "McCreary's" and, in Brooklyn, "Abraham & Straus ." (The Straus family would be in the management of both Macy's and A&S .) </P>

How are pieces of clothing classified in a department store