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 July 31, 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 July 31, 1999





              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                                  FORM 10-Q

                       For Quarter Ended July 31, 1999


                                    INDEX

                                                                         Page
PART I:     FINANCIAL INFORMATION

   Item 1.  Financial Statements

            .  Consolidated Balance Sheets -July 31, 1999 and
               January 30, 1999                                            1

            .  Consolidated Statements of Earnings - Thirteen and
               Twenty-Six Week Periods Ended July 31, 1999 and
               August 1, 1998                                              2

            .  Consolidated Statements of Cash Flows - Twenty- Six
               Week Periods Ended July 31, 1999 and August 1, 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 4.  Submission of Matters to a Vote of Security Holders           15

   Item 6.  Exhibits and Reports on Form 8-K                              16

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


SIGNATURES                                                                17

INDEX OF EXHIBITS






              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                         CONSOLIDATED BALANCE SHEETS
                                (in thousands)
                                 (unaudited)

                                             July 31,   January 30,
ASSETS                                         1999        1999
                                            ---------   -----------
CURRENT ASSETS:
    Cash and cash equivalents               $   5,770    $   2,929
    Receivables from customers, net            25,683       32,151
    Merchandise inventories                    78,842       90,454
    Prepaid expenses and other assets           1,224        1,370
    Deferred taxes                              4,894        4,894
                                            ---------    ---------

                Total current assets          116,413      131,798
                                            ---------    ---------
PROPERTY AND EQUIPMENT, NET                    80,628       84,989
                                            ---------    ---------
OTHER ASSETS                                   20,115       20,088
                                            ---------    ---------
                                            $ 217,156    $ 236,875
                                            =========    =========

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
    Current portion of long-term debt       $   2,497    $   3,719
    Accounts payable                           25,918       34,769
    Accrued expenses                           15,404       16,774
    Accrued income taxes                         --            442
                                            ---------    ---------
                Total current liabilities      43,819       55,704
                                            ---------    ---------
LONG-TERM DEBT                                 95,458       99,803
                                            ---------    ---------
DEFERRED TAXES                                  4,866        6,386
                                            ---------    ---------
OTHER LIABILITIES                               3,855        4,045
                                            ---------    ---------
SHAREHOLDERS' EQUITY:
    Common stock                                5,975        5,975
    Paid-in surplus                             7,201        7,201
    Retained earnings                          56,381       58,160
    Treasury stock                               (399)        (399)
                                            ---------    ---------
                                               69,158       70,937
                                            ---------    ---------
                                            $ 217,156    $ 236,875
                                            =========    =========

  The accompanying notes are an integral part of these statements.


                                - 1 -



         JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


<TABLE>
<CAPTION>
                 CONSOLIDATED STATEMENTS OF EARNINGS
                (in thousands except per share data)
                             (unaudited)

                                            Thirteen Weeks Ended     Twenty-Six Weeks Ended
                                           ----------------------    -----------------------
                                            July 31,    August 1,     July 31,    August 1,
                                              1999        1998          1999        1998
                                           ---------   ----------    ---------    ----------
<S>                                        <C>          <C>          <C>          <C>
NET SALES                                  $  94,186    $  95,256    $ 208,145    $ 210,081
                                           ---------    ---------    ---------    ---------

COSTS AND EXPENSES:
    Cost of merchandise sold, buying and
        occupancy expenses                    68,609       70,184      142,306      142,946
    Selling, general and administrative
        expenses                              31,132       31,390       65,523       67,594
    Interest expense, net                      1,773        1,978        3,577        3,926
    Gain on sale of property                    (523)        --           (523)        --
                                           ---------    ---------    ---------    ---------

             Total costs and expenses        100,991      103,552      210,883      214,466
                                           ---------    ---------    ---------    ---------

EARNINGS (LOSS) BEFORE INCOME
   TAXES                                      (6,805)      (8,296)      (2,738)      (4,385)

PROVISION (CREDIT) FOR INCOME
    TAXES                                     (2,382)      (2,904)        (959)      (1,535)
                                           ---------    ---------    ---------    ---------


NET EARNINGS (LOSS)                        $  (4,423)   $  (5,392)   $  (1,779)   $  (2,850)
                                           =========    =========    =========    =========



EARNINGS (LOSS) PER COMMON SHARE:
    Basic and diluted                      $   (0.76)   $   (0.93)   $   (0.31)   $   (0.49)
                                           =========    =========    =========    =========





  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)

                                                     Twenty-Six Weeks Ended
                                                     ----------------------
                                                      July 31,    August 1,
                                                        1999        1998
                                                     ---------   ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net loss                                         $ (1,779)   $ (2,850)
    Gain on sale of property                             (523)       --
    Adjustments to reconcile net loss to
    cash provided by operating activities:
        Depreciation and amortization                   4,208       4,228
        Deferred taxes                                 (1,520)     (1,724)
        Other liabilities                                (190)       (199)

        Change in:
            Receivables from customers, net             6,468       6,580
            Merchandise inventories                    11,612       7,461
            Prepaid expenses and other assets             146          (7)
            Accounts payable and accrued expenses     (10,221)     (2,343)
            Current income taxes                         (442)       (360)
                                                     --------    --------

                    Net cash provided by
                      operating activities              7,759      10,786
                                                     --------    --------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Proceeds from sale of property                      2,315        --
    Additions to property and equipment                (1,639)     (5,302)
    Other non-current assets                              (27)       (202)
                                                     --------    --------

                    Net cash provided by (used in)
                      investing activities                649      (5,504)
                                                     --------    --------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Reduction of long-term debt                        (5,567)     (6,241)
    Proceeds of exercise of stock options                --            81
                                                     --------    --------

                    Net cash used in financing
                      activities                       (5,567)     (6,160)
                                                     --------    --------

INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS                                             2,841        (878)

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

CASH AND CASH EQUIVALENTS, END OF PERIOD             $  5,770    $  3,005
                                                     ========    ========


  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 July 31, 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 twenty-six week periods ended July 31, 1999
           and August 1, 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        Twenty-Six Weeks
                                                  ------------------    ------------------
           (dollars and shares in thousands)        1999      1998        1999       1998
           -----------------------------------    -------    -------    -------    -------

           <S>                                    <C>        <C>        <C>        <C>
           Net loss                               $(4,423)   $(5,392)   $(1,779)   $(2,850)
                                                  =======    =======    =======    =======

           Weighted average common shares
             outstanding                            5,788      5,782      5,788      5,781
           Dilutive stock options                       9        225          2        213
                                                  -------    -------    -------    -------

                Shares used to calculate
                 diluted loss per common share      5,797      6,007      5,790      5,994
                                                  =======    =======    =======    =======

           Loss per common share:
                 Basic and Diluted                $  (.76)   $  (.93)   $  (.31)   $  (.49)
                                                  =======    =======    =======    =======
</TABLE>



                                - 4 -




         JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (unaudited)


                   For Quarter Ended July 31, 1999



   (2)     CUSTOMER CREDIT AND RECEIVABLES

           Receivables from customers were as follows:

                                                    July 31,  January 30,
           (in thousands)                            1999        1999
           ----------------------------------       --------  ----------

           Receivables from customers               $26,127     $32,749
           Less reserve for doubtful accounts           444         598
                                                    -------     -------

                                                    $25,683     $32,151
                                                    =======     =======

   (3)     MERCHANDISE INVENTORIES

           Merchandise inventories were as follows:
                                                     July 31,    January 30,
           (in thousands)                              1999         1999
           -----------------------------------       -------     -----------

           Inventories at first-in, first out
               (FIFO) cost                          $ 97,261      $108,263
           Less LIFO reserves                         18,419        17,809
                                                    --------      --------

                                                    $ 78,842      $ 90,454
                                                    ========      ========

   (4)     PROPERTY AND EQUIPMENT

           Property and equipment are set forth below:
                                                    July 31,    January 30,
           (in thousands)                             1999         1999
           ------------------------------           --------    -----------
           Property and equipment                   $175,327     $177,864
           Less accumulated depreciation
               and amortization                       94,699       92,875
                                                    --------     --------

                                                    $ 80,628     $ 84,989
                                                    ========     ========







                                - 5 -




         JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (unaudited)


                   For Quarter Ended July 31, 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 $3,606,000 and
           $3,959,000 in the twenty-six week periods ended July 31, 1999 and
           August 1, 1998, respectively. The Company paid income taxes
           totalling $1,007,000 and $548,000 in the twenty-six week periods
           ended July 31, 1999 and August 1, 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 twenty-six week period ended July 31, 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 July 31,
1999, and the related condensed consolidated statements of earnings and cash
flows for the twenty-six 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
August 13, 1999




                                - 7 -




         JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                    PART I: FINANCIAL INFORMATION

                   For Quarter Ended July 31, 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 JULY 31, 1999
                 COMPARED TO THIRTEEN WEEKS ENDED AUGUST 1, 1998

                 Sales for the quarter ended July 31, 1999, totaled
                 $94,186,000, a decrease of 1.1% 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, beginning in the
                 second quarter of 1998.

                 The Company's gross profit percentage increased to 27.2% for
                 the thirteen weeks this year from 26.3% in 1998, reflecting
                 principally higher markup and lower markdowns.

                 Selling, general and administrative expenses totaled 33.1%
                 of sales for the quarter, essentially unchanged from 33.0%
                 one year ago. Expense dollars decreased $258,000 in the
                 quarter this year, reflecting savings from integration of
                 the Company's Florida and Midwest buying offices and lower
                 direct selling payroll.



                                    - 8 -




              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                        PART I: FINANCIAL INFORMATION

                       For Quarter Ended July 31, 1999



                 Interest expense, expressed as a percentage of sales,
                 decreased to 1.9% for the quarter from 2.1% one year ago,
                 primarily due to lower revolving credit interest rates and
                 borrowings and lower 6 3/4% Convertible Subordinated
                 Debenture borrowings.

                 1999 net loss for the thirteen weeks totaled $4,423,000, or
                 76 cents per common share, compared to $5,392,000, or 93
                 cents per common share, last year. As a percent of sales,
                 net loss totaled 4.7% in 1999 compared to 5.7% in 1998. 1999
                 results included an after-tax gain on sale of property
                 totaling $340,000, or 6 cents per share.

           b.    OPERATING RESULTS: TWENTY-SIX WEEKS ENDED JULY 31, 1999
                 COMPARED TO TWENTY-SIX WEEKS ENDED AUGUST 1, 1998

                 Sales for the twenty-six weeks ended July 31, 1999, totaled
                 $208,145,000, a decrease of 0.9% from 1998. The Company
                 operated the same number of stores in 1999 and 1998. The
                 sales decrease in the twenty-six weeks this year is
                 primarily due to a phase-out of the Company's bridal salons,
                 beginning in the second quarter of 1998.

                 The Company's gross profit percentage decreased to 31.6% for
                 the twenty-six weeks this year from 32.0% in 1998,
                 reflecting principally higher markdowns, partially offset by
                 higher markup.

                 Selling, general and administrative expenses, expressed as a
                 percentage of sales, decreased to 31.5% for the twenty-six
                 weeks from 32.2% one year ago. The decrease is due primarily
                 to reduced sales promotion expense in the first quarter this
                 year.

                 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 6
                 3/4% Convertible Subordinated Debenture borrowings.

                 1999 net loss for the twenty-six weeks totaled $1,779,000,
                 or 31 cents per common share, compared to $2,850,000, or 49
                 cents per common share, last year. As a percent of sales,
                 net loss was 0.9% in 1999 compared to 1.4% in 1998. 1999
                 results included an after-tax gain on sale of property
                 totaling $340,000, or 6 cents per share.

       c.        LIQUIDITY AND CAPITAL RESOURCES

                 At July 31, 1999, the Company's current ratio was 2.66 to 1
                 and working capital totaled $72,594,000, including
                 $5,770,000 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 July 31, 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 July 31, 1999, the Company had borrowed $31,529,000
       under this facility and had $48,471,000 of borrowing availability. For
       the twenty-six weeks ended July 31, 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.

 d.    CASH FLOWS

       Cash and cash equivalents increased $2,841,000 in the twenty-six weeks
       ended July 31, 1999, compared to a decrease of $878,000 in the
       twenty-six weeks ended August 1, 1998. Cash flows are impacted by
       operating, investing and financing activities. In the twenty-six weeks
       this year, cash provided by operating activities totaled $7,759,000,
       compared to $10,786,000 in 1998.

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

       Investing activities provided cash of $649,000 in the twenty-six weeks
       this year compared to $5,504,000 used in 1998. Capital expenditures
       totaled $1,639,000 in the first twenty-six weeks of 1999 compared to
       $5,302,000 in the comparable 1998 period. Proceeds from the sale of
       property in 1999 totaled $2,315,000.


                                    - 10 -




              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                        PART I: FINANCIAL INFORMATION


                       For Quarter Ended July 31, 1999



       Financing activities used cash of $5,567,000 in the twenty-six weeks
       this year compared to $6,160,000 used last year. In the twenty-six
       weeks in 1999, the Company paid down $3,347,000 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 $960,000 to service current maturities of
       long-term debt. In 1998, the Company paid down $4,978,000 under the
       Revolving Credit Agreement, purchased $324,000 in principal amount of
       6 3/4% Convertible Subordinated Debentures toward satisfaction of the
       $1,725,000 annual sinking fund requirement and used $939,000 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 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.
       In the second quarter of 1999, the Company sold a closed facility in
       Dearborn, Michigan.

       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 the end
       of September 1999.





                                    - 11 -




              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                        PART I: FINANCIAL INFORMATION

                       For Quarter Ended July 31, 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 the end of 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 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 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
       $675,000 had been spent through July 31, 1999. These system
       replacement and internal costs are expected to be funded primarily
       through cash flows from operations.








                                    - 12 -





              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                        PART I: FINANCIAL INFORMATION

                       For Quarter Ended July 31, 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 July 31, 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 July 31, 1999



ITEM 4.          SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

                 The Annual Meeting of Shareholders of the Company was held
                 on May 27, 1999. At the Annual Meeting, Herbert S. Amster,
                 Herman S. Kohlmeyer, Jr., P. Gerald Mills and M. Marnette
                 Perry were elected as Directors to serve until the 2002
                 Annual Meeting of Shareholders and until their successors
                 are elected and qualified. Also at the Annual Meeting,
                 Leslie E. Dietzman was elected as a Director to serve until
                 the 2000 Annual Meeting of Shareholders and until his
                 successor is elected and qualified. The following votes were
                 cast for or were withheld from voting with respect to the
                 election of each of the following persons:

                                                         Votes
                                                 ------------------------
                                                                Authority
                      Name                         For           Withheld
                      ----                         ---           --------
                 Herbert S. Amster               5,391,886        24,773
                 Herman S. Kohlmeyer, Jr.        5,390,742        25,917
                 P. Gerald Mills                 5,049,603       367,056
                 M. Marnette Perry               5,052,543       364,116
                 Leslie E. Dietzman              5,042,320       374,339

                 There were no abstentions or broker non-votes in connection
                 with the election of the directors at the Annual Meeting.

                 In addition, at the Annual Meeting, the shareholders voted
                 to appoint Arthur Andersen LLP, independent certified public
                 accountants, as auditors for the fiscal year ending January
                 29, 2000. The following table shows the number of votes for
                 and against the proposal and the number of votes abstaining
                 with respect to the proposal:

                            For             Against           Abstain
                            ---             -------           -------
                          5,368,238         44,752             3,669

                 There were no broker non-votes in connection with the
appointment of the Company's auditors at the Annual Meeting.



                                    - 15 -




              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                          PART II: OTHER INFORMATION

                       For Quarter Ended July 31, 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 July 31, 1999.

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













                                     -16-





              JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                       For Quarter Ended July 31, 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:  September 10  , 1999        BY:    /s/  P. Gerald Mills
      ---------------                  ----------------------------------
                                       P. GERALD MILLS
                                       Chairman of the Board, President
                                       and Chief Executive Officer



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






                                    - 17 -




              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.