FORM 10-Q


                                UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION

                            Washington, D.C. 20549


        [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934


               For the quarterly period ended October 30, 1999

                        Commission file number 0-6319


                             JACOBSON STORES INC.
            (Exact name of registrant as specified in its charter)


                   Michigan                                  38-0686330
(State or other jurisdiction of incorporation              (IRS Employer
              or organization)                         Identification Number)

                  3333 Sargent Road, Jackson, Michigan 49201
                  (Address of principal executive offices,
                             including zip code)

                                (517) 764-6400
             (Registrant's telephone number, including area code)

                                Not Applicable
             (Former name, former address and former fiscal year,
                        if changed since last report)


              Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.

                                Yes [X] No [ ]

              Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable date.

                         Common Stock ($1 Par Value):
           5,788,209-2/3 Shares outstanding as of October 30, 1999






              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                                  FORM 10-Q

                      For Quarter Ended October 30, 1999


                                    INDEX

<TABLE>
<S>                                                                                     <C>
                                                                                        Page
PART I:       FINANCIAL INFORMATION

         Item 1.    Financial Statements

                    .   Consolidated Balance Sheets - October 30, 1999 and
                        January 30, 1999                                                 1

                    .   Consolidated Statements of Earnings - Thirteen and
                        Thirty-Nine Week Periods Ended October 30, 1999 and
                        October 31, 1998                                                 2

                    .   Consolidated Statements of Cash Flows - Thirty-Nine
                        Week Periods Ended October 30, 1999 and October 31, 1998         3

                    .   Notes to Consolidated Financial Statements                       4

                    Review by Independent Public Accountants                             6

                    Exhibit:

                    .   Report of Independent Public Accountants                         7

         Item 2.    Management's Discussion and Analysis of Financial
                    Condition and Results of Operations                                  8

         Item 3.    Quantitative and Qualitative Disclosures About Market Risk          14

PART II:      OTHER INFORMATION

         Item 6.    Exhibits and Reports on Form 8-K                                    15

                  All items except those set forth above are inapplicable and
                  have been omitted.


SIGNATURES                                                                             16

INDEX OF EXHIBITS

</TABLE>



              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                         CONSOLIDATED BALANCE SHEETS
                                (in thousands)
                                 (unaudited)

                                         October 30,   January 30,
ASSETS                                      1999          1999
                                         -----------   ----------

CURRENT ASSETS:
    Cash and cash equivalents             $     622    $   2,929
    Receivables from customers, net          27,589       32,151
    Merchandise inventories                 104,479       90,454
    Prepaid expenses and other assets         1,369        1,370
    Deferred taxes                            4,894        4,894
                                          ---------    ---------

              Total current assets          138,953      131,798
                                          ---------    ---------
PROPERTY AND EQUIPMENT, NET                  82,962       84,989
                                          ---------    ---------
OTHER ASSETS                                 20,072       20,088
                                          ---------    ---------
                                          $ 241,987    $ 236,875
                                          =========    =========

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
    Current portion of long-term debt     $   2,476    $   3,719
    Accounts payable                         40,024       34,769
    Accrued expenses                         15,800       16,774
    Accrued income taxes                       --            442
                                          ---------    ---------

              Total current liabilities      58,300       55,704
                                          ---------    ---------
LONG-TERM DEBT                              108,805       99,803
                                          ---------    ---------
DEFERRED TAXES                                3,622        6,386
                                          ---------    ---------
OTHER LIABILITIES                             3,763        4,045
                                          ---------    ---------
SHAREHOLDERS' EQUITY:
    Common stock                              5,975        5,975
    Paid-in surplus                           7,201        7,201
    Retained earnings                        54,720       58,160
    Treasury stock                             (399)        (399)
                                          ---------    ---------
                                             67,497       70,937
                                          ---------    ---------
                                          $ 241,987    $ 236,875
                                          =========    =========

       The accompanying notes are an integral part of these statements.

                                    - 1 -





              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                     CONSOLIDATED STATEMENTS OF EARNINGS
                     (in thousands except per share data)
                                 (unaudited)


<TABLE>
<CAPTION>

                                           Thirteen Weeks Ended     Thirty Nine Weeks Ended
                                          ------------------------  ------------------------
                                          October 30,  October 31,  October 30,  October 31,
                                              1999        1998          1999         1998
                                          -----------  -----------  -----------  -----------
<S>                                        <C>          <C>          <C>          <C>
NET SALES                                  $  94,380    $  95,636    $ 302,525    $ 305,717
                                           ---------    ---------    ---------    ---------

COSTS AND EXPENSES:
    Cost of merchandise sold, buying and
        occupancy expenses                    60,684       63,099      202,990      206,045
    Selling, general and administrative
        expenses                              34,554       35,165      100,077      102,759
    Interest expense, net                      1,697        1,881        5,274        5,807
    Gain on sale of property                    --           (659)        (523)        (659)
                                           ---------    ---------    ---------    ---------

           Total costs and expenses           96,935       99,486      307,818      313,952
                                           ---------    ---------    ---------    ---------

EARNINGS (LOSS) BEFORE INCOME
   TAXES                                      (2,555)      (3,850)      (5,293)      (8,235)

PROVISION (CREDIT) FOR INCOME
    TAXES                                       (894)      (1,347)      (1,853)      (2,882)
                                           ---------    ---------    ---------    ---------


NET EARNINGS (LOSS)                        $  (1,661)   $  (2,503)   $  (3,440)   $  (5,353)
                                           =========    =========    =========    =========



EARNINGS (LOSS) PER COMMON SHARE:
    Basic and diluted                      $   (0.29)   $   (0.43)   $   (0.59)   $   (0.93)
                                           =========    =========    =========    =========
<FN>
       The accompanying notes are an integral part of these statements.
</TABLE>


                                    - 2 -





              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (in thousands)
                                 (unaudited)

<TABLE>
<CAPTION>
                                                                     Thirty Nine Weeks Ended
                                                                     ------------------------
                                                                     October 30,  October 31,
                                                                         1999        1998
                                                                     ----------   ----------
<S>                                                                   <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net loss                                                          $ (3,440)   $ (5,353)
    Gain on sale of property                                              (523)       (659)
    Adjustments to reconcile net loss to cash provided by
    operating activities:
       Depreciation and amortization                                     6,312       6,336
       Deferred taxes                                                   (2,764)     (3,108)
       Other liabilities                                                  (282)       (210)

       Change in:
          Receivables from customers, net                                4,562       5,171
          Merchandise inventories                                      (14,025)    (18,969)
          Prepaid expenses and other assets                                  1         157
          Accounts payable and accrued expenses                          4,281      10,812
          Current income taxes                                            (442)       (360)
                                                                      --------    --------

                 Net cash used in operating activities                  (6,320)     (6,183)
                                                                      --------    --------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Proceeds from sale of property                                       2,315       1,163
    Additions to property and equipment                                 (6,077)     (7,218)
    Other non-current assets                                                16         (34)
                                                                      --------    --------

                 Net cash used in investing activities                  (3,746)     (6,089)
                                                                      --------    --------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Additions to long-term debt                                         10,702      15,559
    Reduction of long-term debt                                         (2,943)     (3,291)
    Proceeds of exercise of stock options                                 --           101
                                                                      --------    --------

                 Net cash provided by financing activities               7,759      12,369
                                                                      --------    --------

INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS                                                             (2,307)         97

    Cash and cash equivalents, beginning of period                       2,929       3,883
                                                                      --------    --------

CASH AND CASH EQUIVALENTS, END OF PERIOD                              $    622    $  3,980
                                                                      ========    ========

<FN>
       The accompanying notes are an integral part of these statements.
</TABLE>



                                    - 3 -






              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (unaudited)

                      For Quarter Ended October 30, 1999

         The condensed financial statements included herein have been
         prepared by the Company without audit and reflect all adjustments
         which are, in the opinion of management, necessary to achieve a fair
         statement of results for the interim periods. All adjustments are of
         a normal and recurring nature.

         Because of the nature of the specialty department store business,
         the results for the thirty-nine week periods ended October 30, 1999
         and October 31, 1998 (which do not include the Christmas holiday
         season) are not indicative of the results for the year as a whole.

         Certain information in footnote disclosures normally included in
         financial statements prepared in accordance with generally accepted
         accounting principles has been condensed or amended, although the
         Company believes that the disclosures are adequate to make the
         information presented not misleading. It is suggested that these
         condensed financial statements be read in conjunction with the
         financial statements and notes to consolidated financial statements
         included in the Company's latest annual report on Form 10-K.

   (1)   EARNINGS (LOSS) PER SHARE

         Basic earnings per share are computed by dividing reported earnings
         available to common shareholders by weighted average common shares
         outstanding. Diluted earnings per share give effect to potential
         common shares represented by stock options and the Company's 6 3/4%
         Convertible Subordinated Debentures due 2011, except if
         anti-dilutive. Earnings (loss) per common share are calculated as
         follows:

<TABLE>
<CAPTION>
                                     Thirteen Weeks Ended    Thirty-Nine Weeks Ended
                                    -----------------------  -------------------------
                                    October 30,  October 31,  October 30,  October 31,
(in thousands except per share data)   1999         1998         1999         1998
--------------------------------------------------------------------------------------
<S>                                  <C>          <C>          <C>          <C>
Net loss                             $(1,661)     $(2,503)     $(3,440)     $(5,353)
                                     =======      =======      =======      =======

Weighted average common
     shares outstanding                5,788        5,788        5,788        5,783
Dilutive stock options                  --             45         --            166
                                     -------      -------      -------      -------

Shares used to calculate diluted
     loss per common share             5,788        5,833        5,788        5,949
                                     =======      =======      =======      =======

Loss per common share:
     Basic and Diluted               $  (.29)     $  (.43)     $  (.59)     $  (.93)
                                     =======      =======      =======      =======
</TABLE>

                                    - 4 -






              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (unaudited)


                      For Quarter Ended October 30, 1999



   (2)   CUSTOMER CREDIT AND RECEIVABLES

         Receivables from customers were as follows:
                                                    October 30,  January 30,
               (in thousands)                          1999         1999
               -------------------------------------------------------------

               Receivables from customers             $28,035     $32,749
               Less reserve for doubtful accounts         446         598
                                                      -------     -------

                                                      $27,589     $32,151
                                                      =======     =======

   (3)   MERCHANDISE INVENTORIES

         Merchandise inventories were as follows:
                                                    October 30,   January 30,
               (in thousands)                           1999         1999
               -------------------------------------------------------------

               Inventories at first-in, first out
                   (FIFO) cost                        $123,176     $108,263
               Less LIFO reserves                       18,697       17,809
                                                      --------     --------

                                                      $104,479     $ 90,454
                                                      ========     ========

   (4)   PROPERTY AND EQUIPMENT

         Property and equipment are set forth below:
                                                October 30,  January 30,
               (in thousands)                      1999          1999
               ---------------------------------------------------------
               Property and equipment            $179,769     $177,864
               Less accumulated depreciation
                   and amortization                96,807       92,875
                                                 --------     --------

                                                 $ 82,962     $ 84,989
                                                 ========     ========




                                    - 5 -








              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (unaudited)


                      For Quarter Ended October 30, 1999



   (5)   SUPPLEMENTARY CASH FLOW INFORMATION

         The Company considers all short-term investments with a maturity at
         date of purchase of three months or less to be cash equivalents.

         Interest paid (net of interest capitalized) totaled $4,879,000 and
         $5,328,000 in the thirty-nine week periods ended October 30, 1999
         and October 31, 1998, respectively. The Company paid income taxes
         totalling $1,359,000 and $652,000 in the thirty-nine week periods
         ended October 30, 1999 and October 31, 1998, respectively.

   (6)   FINANCING

         In May 1999, the Company and the lenders under its Revolving Credit
         Agreement extended the maturity date by one year to March 24, 2002.






         REVIEW BY INDEPENDENT PUBLIC ACCOUNTANTS

         Arthur Andersen LLP, independent public accountants, have performed
         a limited review of the condensed consolidated financial statements
         for the thirty-nine week period ended October 30, 1999. Since they
         did not perform an audit, they express no opinion on the financial
         statements referred to above.






                                    - 6 -







                                                                      EXHIBIT

                             ARTHUR ANDERSEN LLP




                   Report of Independent Public Accountants




To Jacobson Stores Inc.:

We have reviewed the accompanying condensed consolidated balance sheet of
JACOBSON STORES INC. (a Michigan corporation) and subsidiaries as of October
30, 1999, and the related condensed consolidated statements of earnings and
cash flows for the thirty-nine week period then ended. These financial
statements are the responsibility of the Company's management.

We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, the
objective of which is the expression of an opinion regarding the financial
statements taken as a whole.
Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that
should be made to the condensed consolidated financial statements referred to
above for them to be in conformity with generally accepted accounting
principles.

We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of Jacobson Stores Inc. and
subsidiaries as of January 30, 1999, and the related consolidated statements
of earnings, shareholders' equity and cash flows for the year then ended (not
presented herein), and, in our report dated March 5, 1999, we expressed an
unqualified opinion on those consolidated financial statements. In our
opinion, the information set forth in the accompanying condensed consolidated
balance sheet as of January 30, 1999, is fairly stated, in all material
respects, in relation to the consolidated balance sheet from which it has
been derived.



                                                      /s/ ARTHUR ANDERSEN LLP

Detroit, Michigan
November 12, 1999




                                    - 7 -





              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                        PART I: FINANCIAL INFORMATION

                      For Quarter Ended October 30, 1999




  ITEM 2.      MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
               AND RESULTS OF OPERATIONS.

               The registrant, Jacobson Stores Inc., a Michigan corporation
               and successor to a business founded in 1868, offers customers
               distinctive apparel and accessories for women, men and
               children, as well as decorative accents for the home. The
               Company operates 24 specialty stores in Michigan, Indiana,
               Kansas, Kentucky, Ohio and Florida, catering to discerning
               customers with preferences for high quality merchandise and
               individualized service provided by knowledgeable sales
               associates.

               The Company owns a substantial portion of the real property
               used in its business, primarily through its consolidated,
               wholly-owned real estate subsidiary, Jacobson Stores Realty
               Company ("Jacobson Realty"). The Company also has a
               consolidated wholly-owned finance subsidiary, Jacobson Credit
               Corp. ("Jacobson Credit"). As used in this report, the terms
               "registrant", "Company" and "Jacobson's" refer to Jacobson
               Stores Inc. and its subsidiaries unless the context indicates
               otherwise.

               The principal distribution functions are performed at service
               centers in Jackson, Michigan and Winter Park, Florida.
               Functions common to all stores, such as management
               coordination, merchandising, sales promotion, data processing
               and accounting, are centralized at the corporate headquarters
               in Jackson, Michigan.

         a.    OPERATING RESULTS: THIRTEEN WEEKS ENDED OCTOBER 30, 1999
               COMPARED TO THIRTEEN WEEKS ENDED OCTOBER 31, 1998

               Sales for the quarter ended October 30, 1999, totaled
               $94,380,000, a decrease of 1.3% from 1998. The Company
               operated the same number of stores in 1999 and 1998. The sales
               decrease in the quarter this year is primarily due to a
               phase-out of the Company's bridal salons, which began in
               mid-1998, and disruptions caused by the extensive remodeling
               of the Sarasota store and expansion of the Naples store this
               year. These projects were completed in mid-November.

               The Company's gross profit percentage increased to 35.7 % for
               the thirteen weeks this year from 34.0% in 1998, reflecting
               principally lower markdowns.

               Selling, general and administrative expenses totaled 36.6% of
               sales for the quarter, essentially unchanged from 36.8% one
               year ago. Expense dollars decreased $611,000 in the quarter
               this year, reflecting in part savings from integration of the
               Company's Florida and Midwest buying offices.



                                    - 8 -





              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                        PART I: FINANCIAL INFORMATION

                      For Quarter Ended October 30, 1999

               Interest expense, expressed as a percentage of sales,
               decreased to 1.8% for the quarter from 2.0% one year ago,
               primarily due to lower revolving credit interest rates and
               borrowings and lower secured debt and 6 3/4% Convertible
               Subordinated Debenture borrowing levels.

               1999 net loss for the thirteen weeks totaled $1,661,000, or 29
               cents per common share, compared to $2,503,000, or 43 cents
               per common share, last year. As a percent of sales, net loss
               totaled 1.8% in 1999 compared to 2.6% in 1998. 1998 results
               included an after-tax gain on sale of property totaling
               $428,000, or 7 cents per share.

         b.    OPERATING RESULTS: THIRTY-NINE WEEKS ENDED OCTOBER 30, 1999
               COMPARED TO THIRTY-NINE WEEKS ENDED OCTOBER 31, 1998

               Sales for the thirty-nine weeks ended October 30, 1999,
               totaled $302,525,000, a decrease of 1.0% from 1998. The
               Company operated the same number of stores in 1999 and 1998.
               The sales decrease in the thirty-nine weeks this year is
               primarily due to a phase-out of the Company's bridal salons,
               which began in mid-1998, and disruptions caused by the
               extensive remodeling of the Sarasota store and expansion of
               the Naples store this year. These projects were completed in
               mid-November.

               The Company's gross profit percentage increased to 32.9% for
               the thirty-nine weeks this year from 32.6% in 1998, reflecting
               principally higher markup.

               Selling, general and administrative expenses, expressed as a
               percentage of sales, decreased to 33.1% for the thirty-nine
               weeks from 33.6% one year ago. The decrease is due primarily
               to reduced sales promotion expense this year and savings from
               integration of the Company's Florida and Midwest buying
               offices.

               Interest expense, expressed as a percentage of sales,
               decreased to 1.7% from 1.9% in 1998, primarily due to lower
               revolving credit interest rates and borrowings and lower
               secured debt and 6 3/4% Convertible Subordinated Debenture
               borrowing levels.

               1999 net loss for the thirty-nine weeks totaled $3,440,000, or
               59 cents per common share, compared to $5,353,000, or 93 cents
               per common share, last year. As a percent of sales, net loss
               was 1.1% in 1999 compared to 1.8% in 1998. 1999 and 1998
               results included after-tax gains on sale of property totaling
               $340,000, or 6 cents per share, and $428,000, or 7 cents per
               share, respectively.

         c.    LIQUIDITY AND CAPITAL RESOURCES

               At October 30, 1999, the Company's current ratio was 2.38 to 1
               and working capital totaled $80,653,000, including $622,000 of
               cash and cash equivalents. At January 30, 1999, the current
               ratio was 2.37 to 1 and working capital totaled $76,094,000,
               including $2,929,000 of cash and cash equivalents.

                                    - 9 -






              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                        PART I: FINANCIAL INFORMATION

                      For Quarter Ended October 30,1999


               The Company utilizes cash flows from operations and revolving
               credit line borrowings to fund its seasonal working capital
               needs, debt service and expenditures to modernize and
               refixture existing stores. To support its present and planned
               working capital requirements, the Company has a $100,000,000
               revolving credit facility under a Revolving Credit Agreement
               with a commercial lender. The revolving credit facility
               currently provides for borrowings of up to $80,000,000,
               subject to a borrowing base limitation and lender reserves.
               The Company may, at its option, increase the maximum available
               borrowings under the revolving credit facility to up to
               $100,000,000 in the aggregate, subject to the borrowing base
               limitation and lender reserves. As of October 30, 1999, the
               Company had borrowings and outstanding letters of credit under
               this facility totaling $47,832,000 and had $32,168,000 of
               borrowing availability. For the thirty-nine weeks ended
               October 30, 1999, the daily weighted average interest rate on
               borrowings under the Revolving Credit Agreement was 7.4%.

               The Company's debt obligations that are sensitive to changes
               in interest rates, scheduled principal maturities, weighted
               average interest rates associated with those maturities and
               market value of debt have not changed materially from fiscal
               year-end, except that in May 1999 the Company received a
               one-year extension of the revolving credit facility maturity
               date to March 24, 2002. In the Form 10-K for the year ended
               January 30, 1999, revolving credit borrowings of $34,875,000
               were included in 2001 principal maturities.

         d.    CASH FLOWS

               Cash and cash equivalents decreased $2,307,000 in the
               thirty-nine weeks ended October 30, 1999, compared to an
               increase of $97,000 in the thirty-nine weeks ended October 31,
               1998. Cash flows are impacted by operating, investing and
               financing activities. In the thirty-nine weeks this year, cash
               used in operating activities totaled $6,320,000, compared to
               $6,183,000 in 1998.

               Net operating cash outflows in both the 1999 and 1998
               thirty-nine week periods resulted primarily from seasonal
               inventory increases and the net loss adjusted for non-cash
               items, partially offset by collection of receivables from
               customers and an increase in accounts payable.

               Investing activities used cash of $3,746,000 in the
               thirty-nine weeks this year compared to $6,089,000 used in
               1998. Capital expenditures totaled $6,077,000 in the first
               thirty-nine weeks of 1999 compared to $7,218,000 in the
               comparable 1998 period. Proceeds from the sale of property in
               1999 and 1998 totaled $2,315,000 and $1,163,000, respectively.



                                    - 10 -



              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                        PART I: FINANCIAL INFORMATION


                      For Quarter Ended October 30, 1999



               Financing activities provided cash of $7,759,000 in the
               thirty-nine weeks this year compared to $12,369,000 provided
               last year. In the thirty-nine weeks in 1999, the Company
               borrowed $10,702,000 under its revolving credit facility, used
               $1,260,000 to purchase 6 3/4% Convertible Subordinated
               Debentures, satisfying the December 1999 sinking fund
               requirement, and used $1,683,000 to service current maturities
               of long-term debt. In 1998, the Company borrowed $15,559,000
               under the Revolving Credit Agreement, purchased $1,695,000 in
               principal amount of 6 3/4% Convertible Subordinated Debentures
               to satisfy the $1,725,000 annual sinking fund requirement and
               used $1,596,000 to service current maturities of long-term
               debt.

               The Company believes its cash flows from operations, along
               with its borrowing capacity and access to financial markets
               are adequate to fund its operations and debt maturities.

         e.    CORPORATE DEVELOPMENT

               The Company reviews the performance of its less profitable
               stores from time to time to determine whether it would be in
               the Company's best interest to close any of these stores.
               Store closings could have a significant impact on the
               Company's sales, expenses and capital requirements and would
               likely entail additional significant one-time charges to
               effect the closing and to recognize any impairment of assets
               resulting from the closing decision. In 1998, the Company sold
               closed facilities in Jackson and Kalamazoo, Michigan. In the
               second quarter of 1999, the Company sold a closed facility in
               Dearborn, Michigan.

               In 1999, the Company constructed a 17,000 square foot
               expansion of its leased store in Naples, Florida and remodeled
               its Sarasota, Florida store. Both projects were completed in
               November 1999.

               In August 1999, the Company signed a non-binding letter of
               intent for an 80,000 square foot leased store to be
               constructed at Meridian Mall in Okemos, Michigan, a suburb of
               Lansing. The Company is scheduled to relocate its present East
               Lansing store operations to that location in November 2000.

               The Company is actively addressing the issues related to the
               year 2000. In 1997, the Company assessed its critical
               information systems, communications networks, equipment and
               facilities, and established a plan of action to remediate or
               replace all non-compliant software and hardware that could
               pose a significant risk to the Company's operations.
               Remediation or replacement, testing and implementation of all
               key systems is complete.



                                    - 11 -





              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                        PART I: FINANCIAL INFORMATION

                      For Quarter Ended October 30, 1999


               In addition, the Company has contacted third-party providers
               of computer hardware and software to secure appropriate
               representations that such hardware or software is or will be
               year 2000 compliant. The Company has received year 2000
               compliant versions of most third-party software. Testing and
               implementation of those third-party software programs that
               have been identified as critical to the Company's operation is
               complete.

               The Company believes its information systems are ready for the
               year 2000. Under the most reasonably likely worst case
               scenario, it may experience isolated incidents of
               non-compliance. The Company expects that its technically
               trained personnel, working in cooperation with key vendors and
               service providers, should be able to address any year 2000
               issues that may arise. As part of its contingency planning
               effort, the Company has made inquiries as to the year 2000
               readiness of select key merchandise vendors. The Company
               continues to evaluate the responses to identify any
               significant exposure that may exist and to establish alternate
               sources or strategies where necessary. The Company believes it
               generally will have alternative sources of comparable products
               and services and does not expect to experience any material
               business interruption.

               Many risks, however, such as the failure to perform by public
               utilities, telecommunications providers and financial
               institutions, and the impact of the year 2000 issue on the
               economy as a whole, are outside the Company's control and
               could adversely affect the Company and its ability to conduct
               business. While the Company believes its remediation and
               contingency planning efforts adequately identify and address
               the year 2000 issues that are within the Company's reasonable
               control, there can be no assurance that the year 2000 issue
               will not have a material adverse impact on the Company's
               financial condition, operating results or business.

               The substantial majority of the costs to replace non-compliant
               software and hardware would have been incurred regardless of
               the year 2000 issue to meet current business needs and to take
               advantage of new lower cost technology platforms. In addition,
               the Company spent approximately $800,000 in internal
               development costs related to year 2000 readiness, principally
               for payroll costs of its internal information systems staff in
               1998 and 1999. These system replacement and internal costs
               were funded primarily through cash flows from operations.







                                    - 12 -






              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                        PART I: FINANCIAL INFORMATION

                      For Quarter Ended October 30, 1999


               Each of the above statements regarding future revenues,
               expenses or business plans (including statements regarding the
               sufficiency of the Company's capital resources to fund future
               operations) may be a "forward looking statement" within the
               meaning of the Securities Exchange Act of 1934. Such
               statements are subject to important factors and uncertainties
               that could cause actual results to differ materially from
               those in the forward-looking statement, including the
               continued support of the Company's trade creditors and
               factors, the risks inherent in the level of the Company's
               long-term debt compared to its equity, the risks inherent in
               the Year 2000 computer issue, the risk of unanticipated
               operating expenses, general trends in retail clothing apparel
               purchasing, especially during the Christmas season, and the
               factors set forth in this Management's Discussion and Analysis
               of Financial Condition and Results of Operations.





                                    - 13 -



              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                        PART I: FINANCIAL INFORMATION


                      For Quarter Ended October 30, 1999



ITEM 3.        QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

               The Company's debt obligations that are sensitive to changes
               in interest rates, scheduled principal maturities, weighted
               average interest rates associated with those maturities and
               market value of debt have not changed materially from fiscal
               year-end, except that in May 1999 the Company received a
               one-year extension of the revolving credit facility maturity
               date to March 24, 2002. In the Form 10-K for the year ended
               January 30, 1999, revolving credit borrowings of $34,875,000
               were included in 2001 principal maturities.





                                    - 14 -






              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                          PART II: OTHER INFORMATION

                      For Quarter Ended October 30, 1999




ITEM 6.        EXHIBITS AND REPORTS ON FORM 8-K

       (a)     Exhibits

               15        Letter from Independent Public Accountants
               27        Financial Data Schedule

       (b)     Reports on Form 8-K

               The Company did not file any reports on Form 8-K during its
               fiscal quarter ended October 30, 1999.

All exhibits except as set forth above have been omitted as not applicable or
not required.







                                    - 15 -







              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                      For Quarter Ended October 30, 1999



                                  SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.










                                                JACOBSON STORES INC.
                                         ------------------------------------
                                                     (Registrant)


Date:    December 10    ,   1999     BY:    /s/  P. Gerald Mills
      ------------------                 ------------------------------------
                                         P. GERALD MILLS
                                         Chairman of the Board, President and
                                         Chief Executive Officer



Date:     December 10   ,   1999     BY:    /s/  Paul W. Gilbert
      ------------------                 ------------------------------------
                                         PAUL W. GILBERT
                                         Vice Chairman of the Board
                                         (Principal Financial Officer)






                                    - 16 -






              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                              INDEX OF EXHIBITS







         15          Letter from Independent Public Accountants
         27          Financial Data Schedule



            All exhibits except as set forth above have been omitted as not
applicable or not required.