Stein Mart was founded in 1908 by Sam Stein, a Russian Jewish immigrant who opened his first store in Greenville, Mississippi; he had arrived there by steamboat from New York City three years before. The department store carried general merchandise until his son, Jake Stein, took over the company upon his father Sam's death in 1932. The store then redirected its focus toward discounted clothing.
Under Jay Stein's leadership, Stein Mart grew from three stores in 1977 to 40 stores in 1990, and then to 123 stores by the end of 1996. In determining the prime locations for new Stein Mart stores, management targeted cities with populations of 125,000 or more and relied on demographic research regarding income, education, and occupation to help predict whether a community might support a discounter of designer merchandise.
In 2003, Stein Mart introduced the "Real Shopper" campaign with support from Orlando-based advertising agency, Fry Hammond Barr. This multimedia advertising campaign features real Stein Mart shoppers chosen via casting calls held throughout the country. Each season six to eight female shoppers are chosen to appear in the campaign and are featured in Stein Mart's Sisterhood book online.
For decades Stein Mart leased its shoe department to other retailers, such as DSW Shoe Warehouse. In 2010, Stein Mart started working with Perfumania in 2010 to stock an assortment of fragrances.
Stein Mart expanded their home department in 2010, adding houseware and décor for the house. The "Boutique" portion of the store offered women special occasion clothing. The "Attitudes" section of the store carried clothing for women.
In October 2010, due to popular demand by Stein Mart shoppers, the retailer began offering limited online shopping with Ship from Store for shorter delivery times.
In 2013, the company reported a profit of $25.6 million (~$33 million in 2023) with operation of 260 stores in 29 states.
In October 2017, in response to the downward trend of the company's stock price, the company announced plans to improve its financials by cutting 10% of their corporate staff, trimming inventory by 15%, slashing $22 million (~$26.9 million in 2023) from the prior year's capital expenses, and suspending the 4th quarter stock dividend.
In January 2018, Stein Mart announced that it would explore strategic alternatives for the company. In February 2020, Stein Mart entered into a deal to make the company private; its common stock would no longer be listed on any public stock market. The transaction is subject to approval by Stein Mart shareholders and was "expected to close in the first half of calendar year 2020."
In August 2020, Stein Mart filed for Chapter 11 bankruptcy protection due to the company being largely affected by the COVID-19 pandemic, and announced that it would permanently shutter all 279 of its remaining stores by the end of October 2020. During the bankruptcy process, it also announced that all of its assets were for sale, and it was looking for a buyer to purchase those assets.
In August 2020, the company announced that it had filed for Chapter 11 bankruptcy due to the COVID-19 pandemic, and that it planned to close all of its 279 stores. Stein Mart continues to operate as an online retailer, which is not related to the former company.
During the fall of 2020, an agreement had been reached with the private equity firm Retail Ecommerce Ventures to acquire the Stein Mart operations. In March 2023, Retail Ecommerce Ventures announced that it would be exploring options in effort to save themselves, including a potential Chapter 11 bankruptcy filing, which would mark Stein Mart's second bankruptcy in 3 years. They have also hired restructuring lawyers in effort to stave off bankruptcy.
On March 2, 2023, Retail Ecommerce Ventures, Stein Mart's current parent, announced that it was mulling a possible bankruptcy filing.