Topic: Macy's Department Stores Discussion Thread

[Florida Guy]

Macy's to cut 2,300 jobs
Management being consolidated
By Lisa Cornwell

The Associated Press

February 7, 2008

CINCINNATI

Macy's Inc. said Wednesday that it will cut about 2,300 management jobs as the department store operator consolidates three regional divisions and decentralizes buying in a bid to reduce costs and boost sales.

http://www.sun-sentinel.com/business/sfl-flzmacys0207sbfeb07,0,6798655.story

[UncleRando]

Macy's regroups, will cut jobs
Fashion changes to be targeted geographically
BY JOHN ECKBERG | CINCINNATI ENQUIRER
February 7, 2008

CINCINNATI - Rocked by weak holiday sales and facing a critical spring 2008 fashion season, Macy's Inc. on Wednesday moved to turn around its slumping share price by announcing layoffs of up to 2,300 employees, eliminating three divisions and creating a new district management structure.

"When you have to come out and be at a division that is no longer going to exist, it's never easy," said Terry J. Lundgren, chief executive of the Cincinnati-based retail giant and architect of the new initiative. "I really dislike this part of the job. But it's the reality of the business. If it was just a consolidation, well, I'd say we've done that and been there. This is something quite different."

...

Called "My Macy's," the localization initiative creates 20 districts of about 10 stores each. Cincinnati will be the base for one district that could bring up to 40 jobs here.

...

[rockandroller]

With the recent closing of the 3 local stores here, I wonder what else they'll cut?

[MyTwoSense]

My honest opinion is Macy's should close every damn store!

[Cincinnatus]

My honest opinion is Macy's should close every damn store!

Of course it is ... it's in Cincinnati.

[MyTwoSense]

My honest opinion is Macy's should close every damn store!

Of course it is ... it's in Cincinnati.

No dear...Macy's stores are nationwide. My opinion has nothing to do with the location of the HQ.  I just think Macy's is a mismanaged company!!

[Cincinnatus]

My honest opinion is Macy's should close every damn store!

Of course it is ... it's in Cincinnati.

No dear...Macy's stores are nationwide. My opinion has nothing to do with the location of the HQ.  I just think Macy's is a mismanaged company!!

My wink was a sign.

[columbusguy20]

Is it me, or did Macy's underestimate the effects of their decision to take over soo many locally-loved department stores? Maybe they would be doing better if they converted some of them to Bloomingdales instead.

[rockandroller]

Well, they clearly didn't know what they were getting into.  It was originally their intention to quit with the whole coupon deal and near-constant sales, which are more confounding and confusing to the customers, with all the exclusions and restrictions, than they are favorable.  But when they quit them, sales plummeted.  They brought them back and sales went up, but really, who is doing a booming business right now?  Xmas was off by most measures everywhere from what I've learned, and I don't think Macy's is doing any better or worse than any other store at the present.  I just think it's a sign of the current economic times everywhere.

[Florida Guy]

Not booming by any stretch but some are up slightly from a year ago:

Cosco +7.0%
Wal-Mart +0.5%

Target -1.1%
JC Penny -1.9%
Nordstorm -6.6%
Macy's -7.1%
Limited -8.0%

[MyTwoSense]

Xmas was off by most measures everywhere from what I've learned, and I don't think Macy's is doing any better or worse than any other store at the present.  I just think it's a sign of the current economic times everywhere.

You kids - especially you chic Cinci shoppers - can help Macy's bottome line with your Economic Stimulus checks!

[dmerkow]

Their big problem is that all of Chicago is pissed at them. Also people are moving down market with the poor economic picture. As a lot of people said when they bought May, May had lots of really craptastic stores in the mix. They needed a lot of work. Macy's had done pretty well getting its places up to snuff and separating it from the competition, but swallowing May's and not closing enough stores hurt.

On an unrelated aesthetic note, I think (and I'm not alone) that the clothes out there over the last couple years have had the bad mix of not looking very good or interesting and being of poorer quality. Nothing has any heft to it anymore. See the closing of most American apparel manufacturing. I buy less clothes than I used and the lack of a quality difference means I am as likely to shop at Target or Kohl's as Macy's.

[rockandroller]

I think it is absolutely amazing how much of Macy's merchandise is made in China.  The only thing I've seen there that's made in the US is the Fiestaware dishes.  I'm sure this is the case at other stores but I have been a regular shopper at this chain back from the O'Neill's days and then Robinsons-May when I lived in LA, and then Kaufmann's when I got home, and I agree, it's harder and harder to find clothes there that I like.  I don't really think the buyers are doing a very good job.

[MyTwoSense]

Their big problem is that all of Chicago is pissed at them. Also people are moving down market with the poor economic picture. As a lot of people said when they bought May, May had lots of really craptastic stores in the mix. They needed a lot of work. Macy's had done pretty well getting its places up to snuff and separating it from the competition, but swallowing May's and not closing enough stores hurt.

Macy's didn't recategorize the stores.  so if you're local store was bad - in terms of merchandise - it's now a bad Macy's.

On an unrelated aesthetic note, I think (and I'm not alone) that the clothes out there over the last couple years have had the bad mix of not looking very good or interesting and being of poorer quality. Nothing has any heft to it anymore. See the closing of most American apparel manufacturing. I buy less clothes than I used and the lack of a quality difference means I am as likely to shop at Target or Kohl's as Macy's.

I disagree.  But I guess that depends on where you shop and what you're buying.

[David]

My honest opinion is Macy's should close every damn store!

Of course it is ... it's in Cincinnati.

No dear...Macy's stores are nationwide. My opinion has nothing to do with the location of the HQ.  I just think Macy's is a mismanaged company!!

They just re-engineered their management structure and you're saying they're a mismanaged company!

[MyTwoSense]

They just re-engineered their management structure and you're saying they're a mismanaged company!

Dear I'm speaking about PRIOR to those announcements.  In addition, the management changes have yet to be analyzed. 

I doubt there will be any change as long as Terry Lundgren is CEO. 

[UncleRando]

Who shops at department stores anyways...

[MyTwoSense]

Who shops at department stores anyways...

Me!

[David]

I love Macy's. I hate Dillards. Macy's is so much better. I was just in there today, thinking about pulling a Winona Rider and snatching all the Cremieux and Murano stuff.

I can't believe Donald Trump, the man with the worst comb-over in history, has his own line.

[MyTwoSense]

I love Macy's. I hate Dillards. Macy's is so much better. I was just in there today, thinking about pulling a Winona Rider and snatching all the Cremieux and Murano stuff.

I can't believe Donald Trump, the man with the worst comb-over in history, has his own line.

Trump, Jessica Simpson.  humph!  Its all crap.  Another reason to avoid Macy's.  When products in Trump's line are among Macy's overall top sellers in their category, its a crime.  Yes, TOP SELLERS.

[Cincinnatus]

I love Macy's. I hate Dillards. Macy's is so much better. I was just in there today, thinking about pulling a Winona Rider and snatching all the Cremieux and Murano stuff.

I can't believe Donald Trump, the man with the worst comb-over in history, has his own line.

Trump, Jessica Simpson.  humph!  Its all crap.  Another reason to avoid Macy's.  When products in Trump's line are among Macy's overall top sellers in their category, its a crime.  Yes, TOP SELLERS.

You don't think this has anything to do with Trump's ingenious way of selling an idea or product? I'm just playing devil's advocate here ...

[David]

Trump wouldn't be sh!t without inheriting the wealth of his father. That's probably the only reason he got into Wharton too.

[MyTwoSense]

You don't think this has anything to do with Trump's ingenious way of selling an idea or product? I'm just playing devil's advocate here ...

The man has "selling" power. His branks portfolio widened and the TV shop does nothing but pimp him and his products.  On that - I'm not hating.  I would do the same thing!

My personal opinion is the items in Macy's are crap!

[UncleRando]

City doesn't make Macy's new cart
Regional merchandising office to be in Pittsburgh
BY LISA BIANK FASIG | CINCINNATI BUSINESS COURIER
May 2, 2008

CINCINNATI - Macy's Inc. has opted against establishing one of four regional merchandising offices in its hometown of Cincinnati, choosing instead to locate the operation in Pittsburgh because that city is more centrally located.

The regional offices are part of a companywide reorganization announced in February, when Macy's, a chain of 850 stores, said it would close and consolidate three of its seven major divisions and cut 2,300 positions. The move means Macy's will close divisional headquarters in St. Louis, Minneapolis and Seattle. At the same time, Macy's said it would create four regional merchandising offices, each of which would oversee roughly five districts of 10 stores, or 50 stores each.

...

[urbanpreppie05]

My personal opinion is the items in Macy's are crap!

I know this is old, but it's so nice to see I'm not the only one that thinks this.

A LOT of people here miss Kaufmann's. And look at the revolt of the loss of Field's in Chicago.

[MyTwoSense]

My personal opinion is the items in Macy's are crap!

I know this is old, but it's so nice to see I'm not the only one that thinks this.

A LOT of people here miss Kaufmann's. And look at the revolt of the loss of Field's in Chicago.

Well I do feel that way, but in all honesty, I've never shopped Macy's and definitely do not fit the mold of their "target" customer.

[UncleRando]

Macy's looks to restore local feel
Slumping sales lead to new tactic
http://news.cincinnati.com/apps/pbcs.dll/article?AID=/20080713/BIZ/807130347/1076/NEWS

[AndrewN]

This a publicity rehash of news Macy's shared a couple months ago.  How many times do I need to hear about them leaving swimsuits out longer in Phoenix vs. Minneapolis as an example of the changes they are making.   

[MyTwoSense]

This a publicity rehash of news Macy's shared a couple months ago.  How many times do I need to hear about them leaving swimsuits out longer in Phoenix vs. Minneapolis as an example of the changes they are making. 

Because the execution of this has been horrible!  It will continue to be an issue as long as the economy is bad.  Now those in outside of Cleveland (as well as Chicago and Boston) who were not in a Macy's market, know exactly what we experienced when that tacky hillbilly chain acquired Higbee's and destroyed it.

Ironically, as I type this there is a Macy's add on my screen.   

[eastvillagedon]

Leaving aside all considerations about whether or not Macy’s sells crap (and does or does not do a crappy job of marketing that crap) is not a question I am qualified to address. Being the furthest thing from a clothes horse, I find that most people just want basic clothes at affordable prices, and the consensus seems to be that Macy’s no longer delivers (I think my last purchase at Macy’s was a Salton Rice Cooker on sale for $20 three years ago). And I suspect that those who are really serious about clothing—profligate label whores with six-figure wardrobe budgets, such as Barney’s customers—never shopped there anyway (My one and only foray into Barney’s was the weekend its flagship on Madison Avenue opened many years ago, when the public—i.e. riff-raff—was invited to tour the store. I suspect that of the thousands who came through their hallowed halls during that period a few “normal” people might have sprung for one of their $600 shirts—maybe even having been transformed into a lifelong Barney’s customer!). Having said all of this (whew), I still regularly visit Macy’s Herald Square, because it’s still one of the few places in America where you can get the thrill of a big-city department store experience (albeit in perhaps a theme-park form). This might sound hokey, but I still get a sense of excitement walking through the Broadway entrance and onto the multi-tiered main floor with its soaring gilt columns, pulsating with people from all over the world, heading to the upper floors with their ancient, rattling wooden escalators (I believe the only place in the country where these are still in service—so far though, I’ve never seen Maureen O’Hara or the young Natalie Wood among the throng). Granted, much of the "mystique" of Macy’s comes directly from that famous movie, as well as the parade (a brilliant PR spectacle if there ever was one); but if you’re planning on visiting New York, make sure to at least stroll through this (once) great store, or perhaps sit in the Starbucks on the mezzanine level and enjoy the view—it’s still an only in New York experience.

[MyTwoSense]

EVD.  You  hit a sore spot.

Walking thru Macy's or Lord & Taylor hurts because I think, "Why can't I walk into Higbee's today and experience that "feeling"?:  Sigh...

And hey...take it easy on the Barney's shoppers. 

[eastvillagedon]

EVD.  You  hit a sore spot.

Walking thru Macy's or Lord & Taylor hurts because I think, "Why can't I walk into Higbee's today and experience that "feeling"?:  Sigh...

And hey...take it easy on the Barney's shoppers. 

aha! so you're the one buying those $600 shirts!! That's okay, nice work if you can get it. But you're right about Higbee's, etc. I don't think there is one big-city downtown store left in Ohio (I loved hanging out in Lazarus when I lived Columbus--that closed a few years ago. Sad)

[rockandroller]

I don't think the style of clothes Macy's is selling is appreciably different than that of other anchor stores (I don't think they can or should be compared to Barney's, but fairly, should and are compared to Dillard's, JCP, Sears), but the quality seems to have gone down.  JMO.

[MyTwoSense]

I don't think the style of clothes Macy's is selling is appreciably different than that of other anchor stores (I don't think they can or should be compared to Barney's, but fairly, should and are compared to Dillard's, JCP, Sears), but the quality seems to have gone down.  JMO.

I think it depends on the market.  The 34 Street Macy's is OK.  The Macy's in the outer Boro's , Jersey or Long Island are crap.  The State Street Macy's seems OK as well. My nephew and niece thought the Macy's in the WaterTower was crap.  the Macy's in Atlanta and Florida are crappy.

Macy's has done to Regional Brands what Dillard's did to Higbee's.  Their stores in Chicago, and Philadelphia are hurting.  Higbee's stores at Tower City, Severance (although they tried to make separate mens and women's stores) and Beachwood had more inventory, higher price point inventory along with luxury and niche items. Then Dillard's downsized the stores and now all of them are suspect and marginal at best.

[dmerkow]

Dillard's destroyed McAlpin's in the Cincy area as well. It was the dominant department store. Most of the crowd left and ran Laz's up through the transition to a national Macy's brand. Things were going well in and around when they shifted toward a national Macy's brand, then the May purchase and the recent addiction to crappy 'famous' folks and the quality and selection really dropped.

Part of it might be that they make their money on the house brands so there is no reason to push the other brands so why not invest in crappy famous people brands instead.