Footstar history

In 1960, Miles established a division called Meldisco, whose name was a contraction of "Melville Discount Corporation." Meldisco did not have its own stores, but rather leased space to sell its shoes in department or other large stores.

Footstar's history could be said to begin in 1893, with the founding in New Jersey of the Melville Corporation, a shoe manufacturer. Its first Kmart-based outlet, in Greenville, North Carolina, was opened a year later, and in 1962 Meldisco signed an agreement to act as Kmart's exclusive shoe retailer.

By 1990, Footaction had opened its 100th store, and annual sales were estimated at over $50 million.

In 1991, Melville purchased a privately owned Dallas, Texas-based chain of 128 athletic shoe stores called Footaction, and converted the 129 FanClub stores into Footaction stores, creating the third largest chain of athletic shoe specialty stores in the nation.

Stock was offered on the New York Stock Exchange in October 1996.

In early 1998, Footstar announced that it was planning on finding a third shoe store format by year's end, with acquisition or internal development both under consideration.