Federated to capitalise on Macy’s brand
US department store operator to rename regional chains
May 23 2003
Macy’s, one of the best known department store names in the U, is being called on to kick start the regional store chains owned by parent company Federated Department Stores.
The strategy will effectively turn Macy’s, which is currently centred on the east and west coasts of the US, into a national store. The Macy’s name will be added to all Federated’s regional department stores from August.
A new central marketing function led by a chief marketing officer for Federated, is being created to support the national Macy’s branding strategy.
Terry J. Lundgren, Federated’s president and chief executive officer said: “By layering the powerful Macy’s national brand onto Federated’s strong divisional operations and regional nameplates – The Bon Marche, Burdines, Lazarus and Goldsmith’s – we not only will be able to fully capitalise nationally on the powerful Macy’s brand for the first time, but we will be able to operate more efficiently as a company.
“This will be very positive and exciting for customers who will be able to experience the best of both Macy’s and their favorite regional stores in each of our markets across the country.”
From August 1, Bon Marche will operate as The Bon-Macy’s in its 48 stores in Idaho, Montana, Oregon, Washington and Wyoming. Lazarus will become Lazarus-Macy’s in its 42 stores in Ohio, Kentucky, Indiana, Pennsylvania and West Virginia. Goldsmith’s will operate as Goldsmith’s-Macy’s in its five Tennessee stores.
From February 1, 2004 Burdines will operate as Burdines-Macy’s in its 56 stores in Florida, and at the same time will take responsibility for the seven Macy’s stores in the state.
The move builds on the success of the rebranding of the Rich’s store chain, operating in Georgia, South Carolina and Alabama, which became Rich’s-Macy’s earlier this year. Lundgren said: “Our Atlanta customers have responded favorably to the integration of Rich’s-Macy’s, which further supports our decision to extend the rollout of the Macy’s brand strategy to stores in our other regional markets on an expedited schedule.”
The rebranding will be supported by a capital investment programme which will see stores upgraded in areas including fitting room, in-store signage, automated price-check devices, as well as the integration of plasma video screens in selected store locations.
The New York-based Federated Corporate Marketing function supporting the Macy’s brand rollout will be headed by Peter Sachse, currently president and chief operating officer of The Bon Marche, who becomes the company’s chief marketing officer.
