Arriving from Germany in 1895 and starting out as a street peddler, Louis Blumstein opened his first store in Hudson Street in 1894, before moving the store to West 125th Street between Seventh and Eighth Avenues, four years later. After Blumstein's death in 1920, his family demolished the store and replaced it with a $1 million, five-storey building designed by , designed by Robert D. Kohn and Charles Butler with an odd mix of late Art Nouveau and early Art Deco in 1923.
A growing African American population in the area in the 1920s wasn't reflected by the store's employees. It wasn't until 1929 that the store hired its first African Americans, and then only in lowly jobs like elevator operators and porters. In 1932, J. Dalman Steele, called for a boycott of such companies, but his call was ineffective. In the spring of 1934, as more New Yorkers lost jobs because of the Depression, the Rev. John H. Johnson, vicar of the Protestant Episcopal St. Martin's Church, began a "Buy-Where-You-Can-Work" campaign, backed by The New York Age newspaper which noted that 75% of Blumstein's sales were to African Americans but the company refused to employ them as clerks or cashiers. A high profile boycott was called, with William Blumstein finally capitulating in July and pledging to hire 35 Africna Americans in clerical and sales positions by the end of September - a decision that attracted a 1,500-strong victory parade.
Blumstein's went on to have the first Afrcan American Santa Claus in 1943, became the first company to use black models and mannequins, and was the first to use black models and mannequins and successfully appealed to cosmetic manufacturers to produce make-up for non-white skin tones. For years its mechanical black Santa Claus was a Christmas fixture on 125th Street
Sold off by the family in 1976, The Blumstein building is now owned by Parkseen Realty Associates, with the main floor broken up into separate stores.