[1] Founded by World War II veteran Eugene Ferkauf and his friend, Joe Zwillenberg, E. J. Korvette did much to define the idea of a discount department store.

It displaced earlier five and dime retailers and preceded later discount stores, like Walmart, and warehouse clubs such as Costco.

Korvette's founder, Eugene Ferkauf, began his discounting career in a 400-square-foot (37 m2) loft in mid-Manhattan, New York City.

[4][5] Korvette's low-price, low-service model was in some ways similar to that of earlier five and dime retailers such as Woolworth's, McCrory's, and S.S. Kresge.

But Korvette's was innovative in avoiding the anti-discounting provisions of the Robinson-Patman Act, and undercutting the suggested retail price on such expensive items as appliances and luxury pens.

Korvette used "membership cards" (which it distributed in front of its stores and to surrounding offices) to style itself as a retail cooperative.

Founder Eugene Ferkauf attributed his idea for membership cards and deep discounts to luggage wholesaler Chas.

It successfully disputed the state and local Sunday closing ordinances and laws after a December 20, 1976 internal financial feasibility study created by this contributor, then an employee.

[2] In February 1961, Eugene Ferkauf brought Jack Schwadron in from Alexander's Department Stores as general merchandise manager of ready-to-wear.

The retailer established a rather out-of-context[clarification needed] series of high-end audio salons within selected stores.

Korvettes went so far as to market its own "XAM" brand of stereo receivers, amplifiers (some manufactured by Harman Kardon and Roland), television sets, and speakers.

In June 1965, Schwadron resigned over policy differences, including opposing philosophies on merchandising, methods of advertising and public relations, among others.

[11] In late 1965, Korvette's formed its own home furnishings division and ceased subcontracting furniture and carpet sales.

During this period, New York area Korvette's stores advertised heavily on local television, using game show host Bill Cullen as a spokesman.