In 1876 Douglas borrowed $875 in order to open his own shoe factory. One critical decision he made in establishing the business was that he would sell the shoes he manufactured through his own line of retail outlets, rather than shipping them to other retailers or intermediaries. His business grew rapidly: every few years the factory's output doubled, and by 1892 he was making 3,600 shoes per day. By the early 1900s his factory was the largest shoe manufactory in the world. The retail side of the business also grew: the first store opened in 1894, and by 1900 there were 55 stores nationwide.