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A Department Store Comeback?

Come to Toronto and hear what the experts think.

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A couple of years ago, Macy’s launched its “My Macy’s” strategy to offer local appeal from a national brand.

But could they really convince those old customers of Rich’s in Atlanta, Marshall Field’s in Chicago, Bon Marche in Seattle, Foley’s in Houston, et al., that Macy’s had their best interests at heart – after taking those time-honored names off the doors? What about a century’s worth of loyalty and brand identification?

Last week, in announcing a projected 4 percent same-store sales increase for 2010, ceo Terry Lundgren explained the success of the strategy. Macy’s now requires all its store managers to study the local population, not just for long-held cultural habits but also for changes in the market. For instance, the Seattle area has experienced an enormous growth in Asian population. So the Bellevue, Wash., Macy’s has added more extra-small sizes; got rid of its big and tall section; and added gold and precious gems to its jewelry selection to appeal to the tastes of Indian customers.

Furthermore, reports The New York Times, the store doubled its sock department because of the many Microsoft visitors who travel and apparently forget their socks.

One of Macy’s Atlanta stores sells an inordinate number of men’s hats, from fedoras to baseball caps, so the store has doubled the merchandising space devoted to hats.

How local does the drill-down get? Atlanta stores carry a lot of low-heeled black leather pumps because Atlanta-based Delta Air Lines requires its flight attendants to wear low heels.

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Macy’s merchandisers around the country have local responsibilities and those merchandisers are required to visit stores every day, checking sales trends, inventory levels and shopper comments, even interacting with customers in the store.

So is Macy’s localization strategy a template for department store success in the 21st Century? Don’t ask me. Ask the panel of department store experts who’ll be presiding over a session at next week’s International Retail Design Conference in Toronto. Representatives of The Bay, Saks Fifth Avenue, Holt Renfrew and Nordstrom will be on hand to discuss the future of department stores and to answer your questions.

For decades, the department store model drove what we now know as the science of store design, visual merchandising and branding. Then it was subverted by category killers who deconstructed everything the department stores were selling – clothes, appliances, books, sporting goods, furniture, bedding, toys, stationery, even food – and built stores selling only that one single sector of goods.

Now the category killer model has stalled. Can the department stores come back? And how can they make that happen?

Come to Toronto next week and ask the experts. To register or for more information, visit www.irdconline.com.
 

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