Saturday, February 09, 2008

Macy's Marketing Mishaps

What happens when you try and transform two or three well known brands into one? Such is the case of Macy's/Marshall Field/L.S.Ayres.

In Fort Wayne, L.S. Ayres was THE upscale-ish department store for the middle class. Then the consolidation began. L.S. Ayres was renamed Macy's.

And before this, we had both Marshall Field and L.S. Ayres as anchor stores in Glenbrook Mall, the largest Mall in Indiana.

There was outrage in Chicago-land when they lost their hometown store, Marshall Field, as it was renamed Macy's, a New York City store. In Fort Wayne, the Marshall Field anchor store at Glenbrook is empty.

Meanwhile the lean and mean Macy's is becoming even leaner. Mediapost reports:

Macy's Sales Skid, Cuts 2,600 Jobs
Thursday, Feb 7, 2008 5:00 AM ET
WHILE MOST RETAILERS WON'T POST their January same-store sales until today, Macy's got the expected bad news rolling a day early.

The company says its same-store sales fell 7.1% in January, worse than the 4 to 6% decline it had forecast. And it announced a sweeping reorganization, which will eliminate some 2,600 jobs and strengthen local market focus.

"Improving sales and earnings performance requires innovation in engaging our customer more effectively in every store, as well as reducing total costs," the company says in its release. "We believe the right answer is to reallocate our resources to place more emphasis and talent at the local market level to differentiate Macy's stores, serve customers and drive business."

--Sarah Mahoney

You can read more about the background of these stores here.

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