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 May 1, 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        (IRS Employer Identification Number)
 incorporation or organization)


                  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 May 1, 1999




              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                                  FORM 10-Q

                        For Quarter Ended May 1, 1999


                                    INDEX

                                                                         Page
PART I: FINANCIAL INFORMATION

    Item 1. Financial Statements

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

       .  Consolidated Statements of Earnings - Thirteen Week Periods
          Ended May 1, 1999 and May 2, 1998                                2

       .  Consolidated Statements of Cash Flows - Thirteen Week
          Periods Ended May 1, 1999 and May 2, 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    13

PART II: OTHER INFORMATION

        Item 6. Exhibits and Reports on Form 8-K                          14

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


SIGNATURES                                                                15

INDEX OF EXHIBITS





              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                         CONSOLIDATED BALANCE SHEETS
                                (in thousands)
                                 (unaudited)

                                                 May 1,    January 30,
ASSETS                                           1999         1999
                                                ------     ----------
CURRENT ASSETS:
    Cash and cash equivalents                  $   2,645    $   2,929
    Receivables from customers, net               30,521       32,151
    Merchandise inventories                       91,925       90,454
    Prepaid expenses and other assets              1,124        1,370
    Deferred taxes                                 4,894        4,894
                                               ---------    ---------

                Total current assets             131,109      131,798
                                               ---------    ---------
PROPERTY AND EQUIPMENT, NET                       84,119       84,989
                                               ---------    ---------
OTHER ASSETS                                      20,124       20,088
                                               ---------    ---------
                                               $ 235,352    $ 236,875
                                               =========    =========

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
    Current portion of long-term debt          $   2,504    $   3,719
    Accounts payable                              28,907       34,769
    Accrued expenses                              18,300       16,774
    Accrued income taxes                           1,367          442
                                               ---------    ---------
                Total current liabilities         51,078       55,704
                                               ---------    ---------
LONG-TERM DEBT                                   100,356       99,803
                                               ---------    ---------
DEFERRED TAXES                                     6,386        6,386
                                               ---------    ---------
OTHER LIABILITIES                                  3,951        4,045
                                               ---------    ---------
SHAREHOLDERS' EQUITY:
    Common stock                                   5,975        5,975
    Paid-in surplus                                7,201        7,201
    Retained earnings                             60,804       58,160
    Treasury stock                                  (399)        (399)
                                               ---------    ---------
                                                  73,581       70,937
                                               ---------    ---------
                                               $ 235,352    $ 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)

                                                     Thirteen Weeks Ended
                                                     --------------------
                                                       May 1,     May 2,
                                                        1999       1998
                                                      --------   --------

NET SALES                                             $113,959   $114,825
                                                      --------   --------
COSTS AND EXPENSES:
     Cost of merchandise sold, buying and
         occupancy expenses                             73,697     72,762

       Selling, general and administrative expenses     34,391     36,204
       Interest expense, net
                                                         1,804      1,948
                                                      --------   --------

               Total costs and expenses                109,892    110,914
                                                      --------   --------

EARNINGS BEFORE INCOME TAXES                             4,067      3,911

PROVISION FOR INCOME TAXES                               1,423      1,369
                                                      --------   --------

NET EARNINGS                                          $  2,644   $  2,542
                                                      ========   ========



EARNINGS PER COMMON SHARE:
     Basic                                            $   0.46   $   0.44
     Diluted                                              0.46       0.42
                                                      ========   ========






       The accompanying notes are a integral part of these statements.




                                    - 2 -






              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


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

                                                          Thirteen Weeks Ended
                                                          --------------------
                                                            May 1,     May 2,
                                                             1999      1998
                                                            -----      -----
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net earnings                                           $ 2,644    $ 2,542
    Adjustments to reconcile net earnings to cash
    provided by operating activities:
        Depreciation and amortization                        2,104      2,120
        Deferred taxes                                        --          (26)
        Other liabilities                                      (94)      (184)

        Change in:
            Receivables from customers, net                  1,630      1,910
            Merchandise inventories                         (1,471)    (4,282)
            Prepaid expenses and other assets                  246         83
            Accounts payable and accrued expenses           (4,336)       665
            Current income taxes                               925        974
                                                           -------    -------


                    Net cash provided by operating
                         activities                          1,648      3,802
                                                           -------    -------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Additions to property and equipment                     (1,234)    (3,216)
    Other non-current assets                                   (36)       (75)
                                                           -------    -------

                    Net cash used in investing activities   (1,270)    (3,291)
                                                           -------    -------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Additions to long-term debt                              1,038      2,596
    Reduction of long-term debt                             (1,701)      (620)
    Proceeds of exercise of stock options                     --            3
                                                           -------    -------

                    Net cash provided by (used in)
                        financing activities                  (662)     1,979
                                                           -------    -------

INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS                                                   (284)     2,490
                                                           -------    -------

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

CASH AND CASH EQUIVALENTS, END OF PERIOD                   $ 2,645    $ 6,373
                                                           =======    =======


       The accompanying notes are an integral part of these statements.




                                    - 3 -





              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (unaudited)


                        For Quarter Ended May 1, 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 thirteen week periods ended May 1, 1999 and
           May 2, 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 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 per common share are calculated
           as follows:

                                                         Thirteen Weeks
                                                        ---------------
            (dollars and shares in thousands)            1999     1998
            ---------------------------------           ------   ------

           Earnings available to common shareholders    $2,644   $2,542
                                                        ======   ======

           Weighted average common shares outstanding    5,788    5,779
           Dilutive stock options                         --        204
                                                        ------   ------

                 Shares used to calculate diluted
                    earnings per common share            5,788    5,983
                                                        ======   ======

           Earnings per common share:
                 Basic                                  $  .46   $  .44
                 Diluted                                   .46      .42
                                                        ======   ======


                                    - 4 -




              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (unaudited)


                        For Quarter Ended May 1, 1999


   (2)     CUSTOMER CREDIT AND RECEIVABLES

           Receivables from customers were as follows:
                                                         May 1,   January 30,
                  (in thousands)                          1999       1999
                  ----------------------------------    --------  -----------

                  Receivables from customers             $31,142    $32,749
                  Less reserve for doubtful accounts         621        598
                                                         -------    -------

                                                         $30,521    $32,151
                                                         =======    =======

   (3)     MERCHANDISE INVENTORIES

           Merchandise inventories were as follows:
                                                         May 1,   January 30,
                  (in thousands)                          1999       1999
                  ----------------------------------    --------  -----------

                  Inventories at first-in, first out
                      (FIFO) cost                       $110,069   $108,263
                  Less LIFO reserves                      18,144     17,809
                                                        --------   --------

                                                        $ 91,925   $ 90,454
                                                        ========   ========

   (4)     PROPERTY AND EQUIPMENT

           Property and equipment are set forth below:
                                                         May 1,   January 30,
                  (in thousands)                          1999       1999
                  ----------------------------------    --------  -----------

                  Property and equipment                $179,066   $177,864
                  Less accumulated depreciation
                      and amortization                    94,947     92,875
                                                        --------   --------

                                                        $ 84,119   $ 84,989
                                                        ========   ========



                                    - 5 -






              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (unaudited)


                        For Quarter Ended May 1, 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) totalled $1,439,000
           and $1,483,000 in the thirteen week periods ended May 1, 1999 and
           May 2, 1998, respectively. The Company paid income taxes totalling
           $502,000 and $423,000 in the thirteen week periods ended May 1,
           1999 and May 2, 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 thirteen week period ended May 1, 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 May 1,
1999 and the related condensed consolidated statements of earnings and cash
flows for the thirteen 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 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
May 14, 1999



                                    - 7 -




              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                        PART I: FINANCIAL INFORMATION

                        For Quarter Ended May 1, 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 MAY 1, 1999 COMPARED TO
       THIRTEEN WEEKS ENDED MAY 2, 1998

       Sales for the quarter ended May 1, 1999, totalled $113,959,000, a
       decrease of 0.8% from 1998. The Company operated the same number of
       stores in 1999 and 1998.

       The Company's gross profit percentage decreased to 35.3% for the
       thirteen weeks this year from 36.6% in 1998, reflecting principally
       higher markdowns partially offset by higher markup.

       Selling, general and administrative expenses, expressed as a
       percentage of sales, decreased to 30.2 % in the quarter from 31.5% one
       year ago. The decrease is due primarily to lower sales promotion
       expense, partially offset by one-time expense (primarily severance) to
       integrate the Company's Florida and Midwest buying offices.

       Interest expense, expressed as a percentage of sales, decreased to
       1.6% for the quarter from 1.7% one year ago, primarily due to lower
       average long-term borrowings.

       1999 net earnings for the thirteen weeks totalled $2,644,000, or 46
       cents per common share, compared to $2,542,000, or 44 cents per common
       share, last year. As a percent of sales, net earnings were 2.3% in
       1999 compared to 2.2% in 1998.


                                    - 8 -




              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                        PART I: FINANCIAL INFORMATION


                        For Quarter Ended May 1, 1999


b.     LIQUIDITY AND CAPITAL RESOURCES

       At May 1, 1999, the Company's current ratio was 2.57 to 1 and working
       capital totalled $80,031,000 including $2,645,000 of cash and cash
       equivalents. At January 30, 1999, the current ratio was 2.37 to 1 and
       working capital totalled $76,094,000, including $2,929,000 of cash and
       cash equivalents.

       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 May 1, 1999, the Company had borrowed $35,914,000
       under this facility and had $44,086,000 of borrowing availability. For
       the quarter ended May 1, 1999, the daily weighted average interest
       rate on borrowings under the Revolving Credit Agreement was 7.5%.

       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.

 c.    CASH FLOWS

       Cash and cash equivalents decreased $284,000 in the thirteen weeks
       ended May 1, 1999, compared to an increase of $2,490,000 in the
       thirteen weeks ended May 2, 1998. Cash flows are impacted by
       operating, investing and financing activities. In the thirteen weeks
       this year, cash provided by operating activities totalled $1,648,000,
       compared to $3,802,000 in 1998.

       Net operating cash inflows in the 1999 quarter resulted primarily from
       earnings before non-cash charges and collection of receivables from
       customers, partially offset by seasonal inventory increases and
       paydown of accounts payable. Net cash inflows in the 1998 quarter
       resulted primarily from earnings before non-cash charges and
       collection of receivables from customers, partially offset by seasonal
       inventory increases.


                                    - 9 -




              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                        PART I: FINANCIAL INFORMATION


                        For Quarter Ended May 1, 1999


       Investing activities used cash of $1,270,000 in the thirteen weeks
       this year compared to $3,291,000 used in 1998. Capital expenditures
       totalled $1,234,000 in the first thirteen weeks of 1999 compared to
       $3,216,000 in the comparable 1998 period.

       Financing activities used cash of $662,000 in the thirteen weeks this
       year compared to $1,979,000 provided last year. In the thirteen weeks
       in 1999, the Company borrowed $1,038,000 under its revolving credit
       facility, used $471,000 to service current maturities of long-term
       debt and used $1,230,000 to purchase 6 3/4% Convertible Subordinated
       Debentures, satisfying all but $30,000 of the December 1999 sinking
       fund requirement. In 1998, the Company borrowed $2,596,000 under its
       revolving credit facility and used $620,000 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.

d.     CORPORATE DEVELOPMENT

       The Company has no commitments for any new store locations at the
       present time. 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.
       At May 1, 1999, the Company holds a closed facility in Dearborn,
       Michigan, pending disposition.

       In 1999, the Company is constructing a 17,000 square foot expansion of
       its leased store in Naples, Florida and is remodeling its Sarasota,
       Florida store. Both projects are scheduled for completion in time for
       the 1999 Holiday season.

       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. The Company expects to complete remediation or
       replacement, testing and implementation of all key systems by
       September 1999.




                                   - 10 -




              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                        PART I: FINANCIAL INFORMATION

                        For Quarter Ended May 1, 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 and expects to complete testing and implementation of those
       third-party software programs that have been identified as critical to
       the Company's operation by September 1999.

       The Company believes its information systems will be ready for the
       year 2000. Under the most reasonably likely worst case scenario, it
       may experience isolated incidences 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 is currently evaluating
       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 expects to
       spend 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, of which approximately
       $550,000 had been spent through May 1, 1999. These system replacement
       and internal costs are expected to be funded primarily through cash
       flows from operations.





                                    - 11 -





              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                        PART I: FINANCIAL INFORMATION

                        For Quarter Ended May 1, 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
       Company's ability to reduce its 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.















                                    - 12 -





              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                        PART I: FINANCIAL INFORMATION


                        For Quarter Ended May 1, 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.


















                                    - 13 -






              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                          PART II: OTHER INFORMATION


                        For Quarter Ended May 1, 1999


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

        (a)  Exhibits

             10  Release and Waiver Agreement, dated as of March
                 29, 1999, between George Kelly and Jacobson
                 Stores Inc.

             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 May 1, 1999.

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










                                    - 14 -





              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                        For Quarter Ended May 1, 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:    June 11    ,  1999        BY: /s/  P. Gerald Mills
       -------------                   -------------------------------------
                                       P. GERALD MILLS
                                       Chairman of the Board, President and
                                       Chief Executive Officer



Date:    June 11    ,  1999        BY: /s/   Paul W. Gilbert
       -------------                   -------------------------------------
                                       PAUL W. GILBERT
                                       Vice Chairman of the Board
                                       (Principal Financial Officer)






                                    - 15 -




              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                              INDEX OF EXHIBITS




           10   Release and Waiver Agreement, dated as of March 29,
                1999, between George Kelly and Jacobson Stores Inc.

           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.