Treasure Island was founded as GMC's discount store division; its first location opened in Appleton, Wisconsin, on November 24, 1961.

The architecture of these stores, the work of Milwaukee architect Jordan A. Miller, was unique, having utilized a zig-zag pattern that was very prominent both inside and outside.

[1] The small chain, at this point only numbering five stores in Wisconsin, announced plans in March 1967 to enter the Atlanta, Georgia, market in its first expansion.

This was, according to Jack F. Behrendt, then-vice president of the stores under J.C. Penney, to shift the chain's image and better express its personality.

[2] However, the mail order business, which was the main reason for J.C. Penney's acquisition of Treasure Island, remains a thriving, multibillion-dollar endeavor.