Saturday, November 03, 2007

Macy's holiday cheer forecast

Macy's is still attempting to show that they can make it in Chicago. They hope that this year will end years of declining sales at the Macy's unit that used to be known as Marshall Field's...
Frank Guzzetta, CEO of Macy's North, formerly Marshall Field's, predicts this holiday season's sales will equal those of a year ago and end years of declining sales.

Macy's recently started a new campaign, "My Macy's," in which each store is being designed and merchandised to reflect local tastes, Guzzetta said.

Macy's holiday celebrations occur Saturday, Nov. 10: Windows with the Nutcracker theme will be unveiled at 9 a.m.; Santa will appear at 10 a.m. in the Cozy Cloud Cottage, and Martha Stewart will light the Great Tree in the Walnut Room at noon.
At 111 N. State St., a flagship store, for example, Macy's:

• • Has added an exclusive 5,200-square-foot FAO Schwarz shop on the fifth floor, filled with life-size stuffed animals and retro children's kitchenware.

• • Is creating a "blockbuster headquarters" for the exclusive Tommy Hilfiger brand.

• • Recently started offering free Wi-Fi access in certain areas.

• • Offers a greater selection of denims and casual clothes than in the past.

• • Is nearing a deal to bring a grocery store.

• • Will soon introduce new shops and brands for the site.

At the unveiling of the new FAO Schwarz store Thursday, the theme was obvious: Macy's is appealing to newcomers while still trying to prove to loyalists that it is the place for warm holiday memories.

The State Street store will cater to new residents moving downtown with a campaign to furnish their homes, Guzzetta said in an upbeat analysis after the toy shop event.
We'll see is all that I can say.

1 comment:

Anonymous said...

Regarding Macy's claim that the hope to end years of declining sales at Marshall Field's. This is not simply misleading, it is patently untrue.

Prior to 2003, the entire department store sector experienced declining sales, yet Field's remained profitable with average sales per store higher than Macy's or Bloomingdales.

In the years immediately prior to Macy's takeover, Marshall Field's was profitable and sales were not declining. In 2003, Field's posted profits of $106 Million and in the first quarter of 2004 revenues began to increase by 6.1%. This was the beginning of Field's turnaround.

Also in 2004 Field's State Street store completed a $115 Million in upgrades and renovation with significant additions of more high-end merchandise. Customers responded and Field's growth continued in 2004, 2005 and 2006, up until the week that Macy's eliminated and replaced Chicago's iconic brand.

As Macy's, sales at former Marshall Field's stores took a nose dive - some analysts estimate by more than 40% - and customer anger towards Macy's for eliminating Field's remains strong.

If Macy's seeks to show an increase this holiday season on State Street, it will be comparing Macy's performance this year to Macy's dismal decline in sales during its first holiday season after commandeering Marshall Field's landmark store.

As Marshall Field's, the store was the center of Chicago holiday traditions and gift giving as it has been for generations. An outpost of Macy's 800 national discount chain store will never compare to Marshall Field's.

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