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July 14, 2005
Field's Watch: "Two outstanding national retail brands: Macy's and Bloomingdale's"
Source: Chicago Sun-TimesClock is ticking for Field's name
July 14, 2005
BY SANDRA GUY Business ReporterCINCINNATI -- Survival of the Marshall Field & Co. name hung in the balance here Wednesday as Federated Department Stores shareholders approved the $17 billion takeover of Field parent May Co.
And the balance was tipping toward erasing the 124-year-old company's name from Chicago's retail landscape.
Survival of the Lord & Taylor name looks even less likely.
Terry J. Lundgren, Federated's chairman, president and chief executive, told reporters following the shareholders' meeting, "Certainly Marshall Field's is a very well-known, strong name. But the real answer is not with us in this room. It's really with what customers actually will do with that name and how important it is."
Perhaps most telling was Lundgren's declaration to the shareholders: "First and most important, we have a clear vision for being this premier retailing company built primarily around two outstanding national retail brands: Macy's and Bloomingdale's."
Shoppers will know whether Field's will become Macy's by fall or perhaps earlier, but no name changes will occur before 2006.
Federated is already surveying customers in Chicago, Minneapolis and Detroit about the importance of the Field's and Lord & Taylor names. An independent party was hired to conduct interviews at malls, online, on the telephone and by mail, Lundgren said. Similar surveys of shoppers at once-venerated stores such as Rich's in Atlanta, Burdine's in Florida and Bon Marche in Seattle failed to stay Federated's hand from renaming them Macy's.
"The biggest resistance to changing the names came from our own employees," Lundgren said. "To get to the truth, you've got to go deeper, be more challenging and point out what's different inside the store. So far in our markets, our customers said it doesn't make that big a difference."
On the bright side, no Field's stores are expected to be sold because of overlap between Federated and other May nameplates, including Lord & Taylor, Filene's and L.S. Ayres.
But even if the Field's name survives, the chain faces extensive changes.
Federated will introduce its merchandise in Field's stores by fall 2006, including private labels such as INC, Charter Club and Tasso Elba.
Unique merchandise is crucial to Lundgren's mandate to increase sales. However he declined to endorse the continued presence of Field's State Street boutiques, operated by outside companies including Thomas Pink, Alexandre Savile Row and Baccarat crystal.
On the other hand, Lundgren signaled that State Street could remain as is but that its new parent would use more real estate inside the store for merchandise.
"There's a lot of room in the State Street store for upscale assortments," he said.
Posted by Tannerman at July 14, 2005 12:31 PM | Categories: Anchors | News