Macy's Goes Local - DOW JONES REPRINTS Reversing Field...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
April 21, 2008 DOW JONES REPRINTS Reversing Field, Macy's Goes Local By VANESSA O'CONNELL April 21, 2008; Page B1 Chicago The sprawling Macy's on State Street building here was once the home to the premier name in Chicago retailing, Marshall Field's. But about a year and a half ago, Macy's forged one chain with one name and one much-ballyhooed national strategy out of Marshall Field's, Robinsons- May, Kaufmann's and other local icons it owned across the country. Now, after Macy Inc.'s same-store sales dropped 1.3% in 2007 from the previous year, Chief Executive Officer Terry Lundgren is changing course. He is ditching the nationwide cookie- cutter approach in favor of tailoring merchandise at the world's largest department-store chain by sales to local tastes. "What the consumer wants in the Galleria of St. Louis is different from what the consumer wants in State Street Chicago, or what the consumer wants in Portland, Oregon," Mr. Lundgren says. He now wants 15% of the merchandise in stores to reflect local preferences.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Over the next several months, Macy's on State Street will begin stocking more brightly colored clothes and men's all-white suits that store manager Linda Piepho noticed were favored by her store's urban clientele. In cosmetics, she's also planning to add greater variety of makeup shades to attract trendier shoppers, while adding larger 3.4-oz. bottles of perfume to go after the thriftier ones. The localization strategy, called "My Macy's," is a dramatic reversal for Macy's and Mr. Lundgren, who set out to end the decades-long slide of department- store retailers by creating a huge national chain that had more clout with vendors and stronger marketing, with fewer expensive local TV and print ads and more national ones. After purchasing rival May Department Stores in 2005 for $11.5 billion, Mr. Lundgren dropped 11 venerable names to create a cohesive national identity of more than 800 stores under the Macy's nameplate. In some ways the plan worked -- Macy's was able to woo lifestyle maven Martha Stewart to create a line of products exclusively for the chain because of its immense reach -- but pressures on Mr. Lundgren are growing as the economic slowdown worsens. In his annual shareholder letter, sent Thursday, he said 2007 results were "softer than we had originally
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern