March 09, 2006
Old Orchard Expansion Plans Downsized
Remember that big expansion plan leaked by Westfield last June regarding Old Orchard's future? At the core of that idea was tearing down both the Saks Fifth Avenue and Lord & Taylor anchor buildings and replacing them with space for smaller shops. It was going to be the catalyst for rebranding Old Orchard as a "lifestyle center."
Apparently, those grand plans have been downsized greatly, much to the dismay of myself. According to the Chicago Tribune, Skokie (the village where Old Orchard is based) just approved a much smaller plan:
Skokie OKs mall changesSource: Chicago Tribune
March 9, 2006
Tribune staff, wire reportsThe Skokie Village Board has approved changes to the Old Orchard shopping center that are far less ambitious than the plans floated last year by the mall's Australian owner, Westfield Group. As part of a redevelopment of the former Saks Fifth Avenue store, the existing 104,000-square-foot structure would be replaced with a 64,000-square-foot building for smaller specialty stores and restaurants, according to a village report released this week. The plans would affect Steve & Barry's University Sportswear, which took over the Saks store last year. A representative of the inexpensive apparel retailer, which sells jeans, jackets and licensed college goods, declined to comment. Construction is expected to begin this summer. In June Westfield considered adding as much as 300,000 square feet of space to the well-known center. A representative could not be reached for comment.
Posted by Tannerman at 10:33 AM
February 22, 2006
Field's Name Change: September 9
The jerks at Federated Department Stores have announced the date of the name change for Marshall Field's... it's going to take place the weekend of September 9. The stupid Macy's name will then appear at Old Orchard as well as every other Field's location, including the classic State Street store. Here's what the Chicago Sun-Times has to say:
Source: Chicago Sun-TimesField's to become Macy's in Sept.
February 22, 2006
By Sandra Guy, Business ReporterMarshall Field's will be officially renamed Macy's the weekend of Sept. 9-10, Field's parent company Federated Department Stores announced Tuesday -- the same day it reported better-than-expected holiday profits.
CEO Terry Lundgren also introduced a new marketing chief he hopes will make the Macy's name as well-known as Pepsi.
Lundgren said he wants to advertise Macy's in new ways so it becomes a national icon rather than a traditional department store.
To do so, Cincinnati-based Federated has hired Anne MacDonald, 50, a former top marketing officer at Citibank and Pizza Hut, as Macy's chief marketing officer and president of Macy's corporate marketing division.
MacDonald, most recently at Citibank, has built her career at consumer products companies such as AT&T, Citicorp and Procter & Gamble.
MacDonald, who will start her new job in late March, will succeed Peter Sachse, 48, who will take a new role as chairman and CEO of Macy's online site, www.Macys.com.
Macy's Web site is expected to grow in sales volume and functionality because Federated is pumping $130 million into its online and mail-order business in the next two years to boost its infrastructure and service capabilities.
MacDonald will be in charge of the TV ad campaign and other efforts to promote the company's growth as a national retailer, and as it prepares to change the name of some 400 stores it purchased to Macy's.
The Macy's nameplate will be affixed in phases to Marshall Field's and the other former May Department stores, but the nameplates will be covered with a banner until the Sept. 9-10 grand unveiling, a Federated spokesman said.
Profits at Federated during the important holiday season jumped 59 percent to $699 million, or $2.52 a share, on an 87 percent surge in sales to $9.57 billion.
Federated, which also owns Bloomingdale's, bought May Department Stores for $11.5 billion on Aug. 30.
It promoted deep discounts at the May Department Stores during the holidays to clear the racks so Federated can install its own brands, decor and private-label fashions.
Excluding merger costs and inventory adjustments to reflect clearance sales, Federated's earnings from continuing operations totaled $2.74 a share, easily topping analysts' consensus estimate of $2.62 a share.
Net income was bolstered by a tax settlement, a tight rein on costs and inventory and better-than-expected sales and profit margins at May Department Stores, including Marshall Field's, L.S. Ayres, Hecht's, Foley's, Famous Barr and five other regional department-store chains.
Sales at all of the May Department Stores unit, including Marshall Field's, inched up 0.1 percent, a far better result than Federated's earlier forecast of a sales decline of 5 to 7 percent.
Sales at Federated stores open at least a year -- a key gauge of a retailer's health -- were up 1.1 percent.
Lundgren has said 2006 will be a transition year with costs for store closings, the addition of 400 Macy's nameplates nationwide, and continued efforts to improve disappointing sales at the home-furnishings stores. Federated expects its same-store sales in 2006 to increase 2 to 3 percent, and to have full-year earnings of $3.45 to $3.70 per share.
Federated said it has buyers interested in the Lord & Taylor department-store chain and May's bridal group of stores, both of which it is selling. It declined to reveal the potential buyers' names, but said the sales should be completed this year.
Posted by Tannerman at 09:29 AM
February 14, 2006
Old photos of Old Orchard Shopping Center
Want to see how Old Orchard looked in the 1950s (pre-Westfield)? Thanks to a blog called Malls of America (catchy title), you can see retro photographs of various shopping centers from around the country.
The author has published two entries on Old Orchard. The first features a historical shot of Marshall Field's (soon to be Macy's -- blah). The second image depicts what I believe is now the intersection of The Park and The Garden looking north. The historical shot features a lot more trees!
Posted by Tannerman at 04:01 PM
January 13, 2006
Federated puts Lord & Taylor on the block
The anchor situation continues to be interesting at Old Orchard with Federated Department Stores announcing yesterday that they are selling their Lord & Taylor division. Old Orchard has a Lord & Taylor location, though it is rather small. In fact, the small store (along with the former Saks Fifth Avenue space, now a Steve & Barry's University Sportswear) were outlined for demolition by Westfield when their Old Orchard expansion plans were made public last June.
I'm guessing that the Steve & Barry's situation is a short-term lease and if Lord & Taylor gets sold/closed, Westfield will want to get their hands on that smaller building as well, clearing more hurdles for their expansion ideas. The Chicago Sun-Times has the full story on the Lord & Taylor ownership situation:
Federated to sell Lord & TaylorSource: Chicago Sun-Times
January 13, 2006
by Sandra Guy, Business ReporterLord & Taylor is up for sale, and its stores may end up as new locations for an expanded Saks Fifth Avenue or another department store, analysts speculated Thursday.
Lord & Taylor's owner, Federated Department Stores, announced Thursday it will sell the 55-store chain so it can focus on its Macy's and Bloomingdale's department stores. The news ended rumors that had circulated for a year-and-a-half that Federated would dispense with the modernized but floundering Lord & Taylor, which has five Chicago area stores.
The Lord & Taylor chain garnered $1.57 billion in sales in 2004, and analysts immediately speculated that it could sell for $745 million after taxes.
The most likely buyers would be private-equity companies flush with cash. Private-equity companies have recently gobbled up Neiman Marcus Group and Toys R Us in separate deals.
Deborah Weinswig of Citigroup Smith Barney speculated that a private-equity buyer could buy Saks Fifth Avenue and Lord & Taylor, and rename all of the stores Saks Fifth Avenue.
Another analyst who asked not to be named said a smarter pairing would be Lord & Taylor with the upscale Parisian chain of 40 department stores in the South. Parisian is being sold by Saks.
Federated bought the New York-based Lord & Taylor chain as part of its stunning $11.9 billion takeover of the May Department Stores, including Marshall Field's and L.S. Ayres. The consolidation of the country's top two department-store chains, announced a year ago, took effect Aug. 30.
May Department Stores had tried to turn around the Lord & Taylor chain by introducing more fashionable merchandise and closing 32 stores that represented 38 percent of Lord & Taylor's store base but only 19 percent of the chain's total sales.
Federated expects to sell Lord & Taylor this year. Federated CEO Terry Lundgren, the man responsible for renaming Marshall Field's as Macy's, said that although Lord & Taylor didn't fit Federated's focus, it has "a great name, many outstanding locations, an experienced management team and a strong customer following."
Local shoppers have lost two Saks Fifth Avenue stores in the last three years, and could see more closings of Lord & Taylor stores.
After Saks announced last May it would close its Saks Fifth Avenue store at Old Orchard Shopping Center in Skokie, the shopping center proposed tearing down the Lord & Taylor and Saks Fifth Avenue stores to build an open-air shopping area filled with specialty retailers.
Two years ago, Saks closed its Saks Fifth Avenue store at Oakbrook Center mall in the western suburbs. It was replaced by a Bloomingdale's Home Store.
Posted by Tannerman at 10:03 AM
November 29, 2005
So long Saks, hello Steve and Barry's
Back in May, we reported here at the Old Orchard Observer about Saks Fifth Avenue gearing up to close at Old Orchard. The store finally did close at the end of July.
Before Saks did say good-bye, there were various levels of Store Closing sales. Amy and I dropped by many of these to check in on the progress of clearing out the large Saks space. The Old Orchard location had 3 levels (main, upper, and basement). Here are some photos we took during those final days.
Inside the store, many of the fixtures were for sale, though it seemed like quite a few were earmarked for other Saks locations.
Eventually, all mention of Saks would be removed from the mall. This electronic sign mounted on the Professional Building was quickly changed after the Saks closing to remove the name of the store (and they probably fixed the burned out lightbulbs as well).
Signage was removed from the main Saks building as well, resulting in a very empty, barren spot. Much like everything at that end of Old Orchard.
You may remember that back in June, word was leaked that Westfield was considering adding a lifestyle center element to Old Orchard. According to the plans made public, this would involve the demolition of both the Lord & Taylor and Saks Fifth Avenue anchor buildings. I haven't heard anything new since that news came out, but we did wonder if Westfield would leave the Saks building vacant or try to find a new tenant. That question was answered in October when the Chicago Tribune reported on a tenant to fill the space:
$10-or-Less Clothing RetailerSource: Chicago TribuneSteve and Barry's University Sportswear was founded in 1985, and while it seems like a good short-term fit for Old Orchard, my money is that they have a short-term lease with Westfield so that the lifestyle center plans would not be harmed.
A new style for Old Orchard
October 7, 2005
By Becky YerakGone are the days when shopping malls relied solely on department stores as anchor tenants.
At Westfield Old Orchard in Skokie, a $10-or-less clothing retailer is moving into a vacated Saks store, an example of how even upscale malls in well-heeled areas are rethinking the notion of who should occupy the biggest spaces.
Steve & Barry's University Sportswear, which sells inexpensive men's, women's and children's clothes including jeans, jackets and licensed college goods, will occupy all three floors of the 105,000-square-foot space vacated by Saks in July. It is expected to open next month.
The privately held Port Washington, N.Y., firm typically operates stores ranging from 20,000 to 150,000 square feet in less prestigious malls.
"This is our first Class A mall," Steve & Barry's spokesman Rick Gomes said.
"They came to us because we're a company who can put something in quickly," he said of the retailer's relationship with mall owner Westfield Group.
At Old Orchard, Steve & Barry's joins such traditional mall stalwarts as Marshall Field's, Lord & Taylor, Bloomingdale's and Nordstrom. Spaces for those retailers range from just under 200,000 square feet to 400,000 square feet.
As retailers such as Wal-Mart Stores Inc. and Target Corp. open hundreds of free-standing stores a year, malls are trying new ways to remain relevant to consumers, particularly younger ones, and are looking beyond tried-and-true conventional department stores as key tenants.
"We thought Steve & Barry's would be a great addition and bring a different clientele," said Thomas Sikoral, Westfield Old Orchard general manager.
In May, Steve & Barry's was named in an International Council of Shopping Centers survey as one of retailing's five hottest merchants--along with Apple Computer Inc., Coach Inc., Williams Sonoma Inc. and White House Black Market, a subsidiary of Chico's FAS. Inc.
In a May interview, Steve & Barry's co-founder and co-Chief Executive Barry Prevor, said he is interested in any mall anchor spots that might open up as a result of industry consolidation, which recently has touched such retailers as Sears, Macy's and Marshall Field's.
Mall developers, he noted, have become more open-minded about what constitutes an anchor tenant in light of mergers that are making department stores more homogeneous.
"If a mall has four department store anchor spots, and one goes vacant, then years ago mall management would have thought, `Get another department store.' Now, they say, `We have three department stores selling the same brands at the same prices. What would be the point of bringing in an identical department store?'" Prevor told the Tribune.
"So they look for alternative uses. This has been one of the great drivers behind our growth," he said.
Steve & Barry's has 87 stores in 27 states and plans to open another 40 stores by year-end.
In June 2004, it opened one in Westfield Chicago Ridge mall in Chicago Ridge, followed in October 2004 by a location in North Riverside Park Mall in North Riverside.
The retailer has plans to open more stores across the area, including outlets at Westfield Fox Valley in Aurora, Randhurst Mall in Mt. Prospect, Westfield Louis Joliet in Joliet, University Mall in Carbondale and in Springhill Mall in West Dundee.
Amy and I checked out the new store shortly after they opened. While the merchandise was somewhat appealing (mainly for price), the store itself looked like the new tenants had done nothing to remodel the space. Thus indicating that this is probably not a long-term solution for Old Orchard. But we'll see.
The addition of Steve & Barry's will help The Promenade section of Old Orchard not seem so dead, but I'm not quite sure that it fits the image that the mall is trying to portray. Then again, Westfield has already done a pretty good job making the mall more crappy, so anything goes these days.
Posted by Tannerman at 12:26 AM | Comments (0)
November 01, 2005
Carson's name to stay in Chicago
As previously reported, Carson's has a new owner. Thankfully, according to this report by the Chicago Sun-Times, the name won't be changing anytime soon.
What about the name?Source: Chicago Sun-Times
November 1, 2005
BY SANDRA GUYChicagoans, still reeling from Federated Department Stores' impending change of Marshall Field's name to Macy's, can breathe easy about the future of Carson Pirie Scott & Co.'s name.
Carson's will remain Carson's, Bon-Ton CEO and President Bud Bergren told the Sun-Times.
"We think Carson's is a very good franchise, and has a lot of equity," Bergren said.
He added that he thinks it's "a shame" that Marshall Field's will become Macy's in 2006.
Posted by Tannerman at 03:00 PM
October 31, 2005
Carson's finds a new owner
Even thouugh Saks Fifth Avenue has closed at Old Orchard, their parent company is still making news... namely with the selloff of another Chicago brand name, Carson Pirie Scott. Now, I know Carson's has had lame Christmas windows on State Street the past couple of years, but here's hoping that their new owner, Bon-Ton Stores Inc., keeps the name alive in Chicago (unlike some other lame companies). Reuters has an article about the purchase:
Saks sells Carson Pirie Scott to Bon-Ton StoresSource: Reuters
October 31, 2005
ReutersThe Bon-Ton Stores Inc. said on Monday it agreed to buy 142 stores from Saks Inc. for $1.1 billion in cash, making it one of the largest regional department store retailers in the United States.
The deal involves 142 Saks department stores that operate under the Bergner's, Boston Store, Carson Pirie Scott, Herberger's and Younkers monikers. The purchase will more than double the size of Bon-Ton, which currently has 139 department stores in the Northeast and Midwest.
Bon-Ton shares jumped about 27 percent to $21.19 on Nasdaq on news it clinched the deal for a lower price than the $1.5 billion Saks had originally demanded, traders said.
"The transaction solidifies and strengthens our position in the Midwest and extends our footprint into the Great Plains states," he said.
Saks' Northern Department Store group generated $2.2 billion in sales last year or about one-third of the retailer's total sales. In April, Saks sold its Proffitt's and McRae's chains to Belk Inc. for $622 million.
Luxury retailers have reported strong results in recent quarters as a booming housing market helps to lift spending among high-income consumers. But Saks largely missed out on the bonanza amid a probe into accounting that led to the ouster of three top executives.
Saks restated last year's results after the internal investigation found that the retailer had improperly collected discounts from vendors known as "markdown allowances."
Once the Northern Department Store unit is sold, Saks will be left operating its main, luxury department store chains Saks Fifth Avenue Enterprises with 105 stores, its Parisian chain with 40 stores, and Club Libby Lu with 56 stores.
Saks said on Monday it continues to explore options for Club Libby Lu, which offers makeover and dress-up parties for girls. The chain has received buyout interest from Build-A-Bear Workshop Inc., Too Inc., and Claire's Stores Inc., according to media reports. Those retailers have declined to comment.
Birmingham, Alabama-based Saks said it will have received more than $1.7 billion in cash from the divestitures of the two department store units. With a stronger balance sheet and expectations for improved performance its Saks Fifth Avenue and Parisian businesses, Saks said it may use some the proceeds from the Northern Department Stores for share-buybacks, a special cash dividend, or both.
Saks shares were up 10.3 percent, or $1,72, at $18.38 on the New York Stock Exchange on the news of the dividends, traders said. Saks' stock trades at about 26 times Wall Street analysts' profit forecasts for next year, buoyed by expectation of the unit sales, compared with 17 times earnings for luxury retailer Nordstrom Inc.
The deal with Bon-Ton, which was approved by both companies' boards, is expected to close early in the first fiscal quarter of 2006. Bon-Ton said it expected the purchase to add to its earnings immediately after completion, with cost-cuts starting in 2006 and reaching at least $33 million by 2008.
The deal is subject to certain conditions, including Bon-Ton's financing for the transaction. Bank of America, N.A. has executed a commitment letter with Bon-Ton to provide for the financing of the transaction.
Lazard was Bon-Ton's financial adviser on the deal, while Wolf, Block, Schorr and Solis-Cohen served as its legal adviser. Goldman Sachs & Co. and Citigroup advised Saks.
Posted by Tannerman at 05:08 PM
September 29, 2005
Outside the Orchard - 09.29.05
We know you've been missing it (and have got to be saddened by all the Marshall Field's-Macy's news), so once again the Old Orchard Observer presents Outside the Orchard, a brief look at what the online world is saying about Skokie's mall.
Over on Jeni's Musings, a simple observation is made regarding the outdoor beauty of Old Orchard (even if it was posted way back in May) [Saturday, May 28]:
Saturdays are made for shopping
went with tita gina to old orchard mall (out door mall) in skokie - it is so beautiful. should have taken a picture. but too busy shopping
Jasmine writes about the recently-added Sephora store via News From The Flip Front [Monday, July 11]:
Stef and I shop for makeup at the Sephora store in Old Orchard Mall. This is where I find the Paul & Joe mascara which, when applied, makes me look like I could be an extra in a Bollywood musical.
Trey took a trip to Chicago back in June, and stayed at a hotel near the mall. Here are his thoughts posted via his blog, uniquely titled Trey's Blog [Thursday, June 30]:
To snap us back to reality, we trekked back across downtown to where we had parked. We drove back to Old Orchard, where our motel is located and visited the mall there, Westfield at Old Orchard. This mall is very cool because it has a indoor mall layout, but maintains an outdoor architecture. In other words, the stores are side-by-side, the walkways are close, and the roof only exists on top of the stores. A nice cool breeze blew through the entire time. This would be very nice to have in Houston, but the heat could make it a miserable experience. The girls ate a couple of New York style (thin crust) pizza slices. Cheri and I split a gyro and a Vienna Beef hot dog. They were decent, but still considered mall food. We finished out the day sharing a waffle cone of Fat Free Dreamsicle Frozen Yogurt. YUMM.
Andrew writes via md-2-b about leaving his church in Chicago to head to New York and med school! Apparently, he was suprised about what happened after that final Sunday service [Monday, July 25]:
So I figure something is up, but I'm not really sure what. At 6, Tai and I arrive at J&J's place. We're supposed to go to Maggiano's at Old Orchard, but Jeannie has to drop off a book at Tuscany's for a med school friend. I don't think anything of it... but when we get to Tuscany's, John suggests that we *all* go inside so that "we can see what it looks like." Hmm. So I follow, a little warily. Then the hostess greets us and asks, "Won, party of 20?" Haha... so the surprise was up.
I really didn't mean to find out about the dinner, and I really am sorry that it wasn't a surprise. It was very thoughtful and well planned out =c)
Did you know that Old Orchard has 12 movie screens? After that big rennovation a few years back, they doubled the capacity for movies. And bum writes on The Bum Log about seeing one of the summer's better films at the "Double O" (um, that's Old Orchard in can you couldn't figure it out) [Saturday, June 18]:
Just got back from seeing "Batman Begins" at Old Orchard. It was a good movie, commendable acting by Morgan Freeman, Michael Caine et al, but my favorite part? The fantastic job they did turning Chicago into Gotham City!!!
On the other hand, many bad films have been viewed at the mall as well, as Swain describes on The House of Swain [Saturday, June 18]:
I can recall sneaking into Cruel Intentions at Old Orchard in Skokie, Illinois... and many others so forgettable, that they're already out of my head for good. Having said that, I can tell you that I DID catch a free showing of Battlefield: Earth, and I STILL wanted my money back afterward.
The addition of extra theatres does make things rather confusing, however, because the screen locations are split 6 and 6. Screens 1-6 are located near Potbelly's while Screens 7-12 are near Maggiano's. The author of Modern Day Spinster shares in the confusion [Wednesday, August 10]:
In an interesting turn of events I went to the movies with BJ and saw March of Penguins at Old Orchard. I didn't park on the Maggiano's side because I inverted the theater numbers in my head.
The Beyond Retail blog "features opinion on retail, community and local projects and issues in the towns of Framingham and Natick, located in the MetroWest region of Massachusetts." And apparently, the author isn't happy that there aren't more Apple Stores in the area... using the example of Northbook Court and Old Orchard here in the Midwest [Wednesday, July 13]:
Old Orchard, an upscale shopping mall in Skokie, IL, is a mere 8.4 miles and 13 minutes from Northbrook. And not to diss Chicagoland, but I personally think that there are a lot more Apple users in MetroWest and Boston then in Chicago's North Shore and even the city of Chicago, seeing all of the universities and colleges in the area, not to mention the iPod craze that has been huge in this area.
Of course, Anabel (of Anabel Lee After Dark) likes the fact that Old Orchard has an Apple Store because, well, you can buy stuff there [Friday, August 5]:
Oh, I guess I should mention that tomorrow morning I'm going to Old Orchard to buy my ibook. I know, I know, I have no use for it. But to be honest, I really want it. Plus I have the money for it. Or well, I will in a week. I'll probably stop using my desktop as much. Perhaps only to play the sims. In any case, I'm excited.
Congress approved a transportation bill back in July. The Chicago Tribune had this interesting tidbit [Sunday, July 31]:
In addition to authorizing the CTA's proposed Circle Line, the legislation approves extending the Orange Line from Midway Airport to the Ford City shopping center, extending the Red Line from 95th Street to 130th Street and continuing the Yellow Line from Dempster Street in Skokie to the Old Orchard shopping center.
The Jade, who authors Jaded in Chicago apparently is divorced and has a kid... but has time to shop [Sunday, July 31]:
I got a pretty sweet divorce deal wherein The Ex paid my mortgage and all my bills and childcare costs for a year and a half. So, I just went to school, didn't work, and curbed my shopping tendencies. The limiting my shopping was hard considering that until that point I was like a homing pigeon trained to return to the shoe department at Nordstrom in Old Orchard on a regular basis. But I managed.
On More Nonsense, Nick writes about the worst year of his life, 1997 [Wednesday, July 27]:
The other thing that happened in 97 was that I had quit working at IRI and was now consulting. Consulting meant that I would not get a vacation all year. I worked a forty to fifty hour week every week with out any break. Holidays came and I didn’t even get paid for them. Plus I was no longer working downtown so I had to drive to work every day, which I hated. I missed being in the loop and being able to go to lunch in the big city. Instead I was relegated to going to Old Orchard mall and grabbing some fast food.
Rita describes herself as "a student at the University of Chicago. I'm unfriendly. And I don't like squirrels." I believe she's also Jewish if you take the posts of her Nobody Sasses A Girl In Glasses blog into context. As since Old Orchard is located on Chicago's North Shore, a heavily Jewish area, you are bound to get some overlap in blog postings [Thursday, August 4]:
But there's nothing in itself wrong with recording all the minutia that made up the geography of life for Chicago Jews, and a lot of which makes up my own geography a few generations later--West Roger's Park, Lincolnwood, Hyde Park, Devon Ave., Boone School, Old Orchard Mall, The Bagel, even Jimmy's gets a nod. There's always something personal at stake when your own geography is opened to the public via a book or a movie. You become the kid who sees himself in a family movie and recognizes himself for the first time: "That's me! That's my house!" And you wonder how everyone else watching perceives you and your house. Do they see the same things you see?
The folks at Steve's News Annex plagiarize the Chicago Tribune with info about the previously-discussed (here, here, here, and here) Forth & Towne concept store at Old Orchard. Here are some excerpts from the excerpts [Monday, August 8]:
As for Old Orchard, "it's a mall, but it's an outside mall" with a good tenant mix, Muto said. "It's an affluent area and it's close enough to the city that it draws city residents. We're trying a two-level store there."
Apparently, you will soon be able to get some facial work done at Old Orchard, per the Chicago Tribune [Tuesday, September 13]:
Consumers shopping for shoes at Westfield Old Orchard will soon be able to pick up a shot of Botox, too. Pure Laser, which performs its hair removal, acne treatments and facelifts-in-a-bottle from the sixth floor of a professional building at the Skokie mall, is expected to begin construction soon on a location that will make it neighbors to other tenants Marshall Field's, Lenscrafters, Big Toy Express and Champps Americana. "My guess is it will offer more exposure to customers in the mall and walk-in traffic," said Shannon Ridgeway, Westfield Old Orchard marketing director. The higher-profile site is expected to open before the end of the year. Pure is at the forefront of what could be an explosion of personal-care services popping up in shopping centers as Baby Boomers want to try to turn back the clock, one retail consultant said.
Finally, we have some photos of good old Old Orchard, hosted via that nifty Flickr service (which Yahoo! recently acquired, so you know it's going to turn bad soon... anyone remember Hotmail pre-Microsoft?). Mac(3) shares a photo of the fountain located in the Fountain Court (go figure). Also shot by this photographer was two photos of the lion statue (1 and 2), also found in Fountain Court. And last but not least, two odd photos of a parking sign (1 and 2).
And that pretty much wraps up this edition of Outside the Orchard. Hope you found the postings completely pointless!
Posted by Tannerman at 04:24 PM
September 20, 2005
Marshall Field's to become Macy's
Well, it looks like we'll see a namechange at Old Orchard soon (as well as downtown on State Street). Stupid Macy's.
Source: Chicago Tribune
Tribune staff reports
Published September 20, 2005, 11:01 AM CDTMarshall Field & Co., a name long venerated in the history of Chicago retailing, will disappear in the fall of 2006, to be replaced by Macy's.
All 62 Field's in Illinois and seven other states will be converted to Macy's, according to today's announcement by Federated Department Stores Inc., Field's new owner.
While Federated had "great respect for the legacy and traditions of Marshall Field's," the decision to drop the Field's name was made after Federated "carefully researched customer preferences and studied alternatives," Terry J. Lundgren, Federated's chairman, president and chief executive, said in a news release.
"While the store's name will change, much of what customers love will stay the same, including Marshall Field's traditions and its outstanding record of community and charitable giving," Lundgren said.
"From a shopping standpoint, customers will have the best of both worlds in major markets like Chicago, Minneapolis and Detroit," Lundgren said.
"They will continue to benefit from regional buying that remains attuned to local preferences and lifestyles plus enjoy the distinctive merchandise and shopping experience that's part of the Macy's brand," Lundgren said.
"As part of this name change process, we will do everything we can to honor the Marshall Field's heritage, particularly in its Chicago birthplace."
The stores will be operated under a Minneapolis-based division, Macy's North, the Cincinnati-based Federated said.
Federated, parent of Macy's and Bloomingdale's, doubled its size Aug. 30 by completing its $11 billion acquisition of Field's owner, May Department Stores Co.
The acquisition gave rise to immediate misgivings among Chicagoans familiar with Federated's history of changing the names of regional department store chains it acquired to Macy's.
Most other May chains, including Famous-Barr, with seven Illinois stores, are to be renamed Macy's by fall 2006. One exception is Lord & Taylor, which Federated has ruled out changing.
The deal between Federated and May marked the second time in less than two years that Field's has changed hands. In July 2004, May bought Field's from Minneapolis-based Target Corp., which dumped its department store holdings to focus on its more vigorous discount chain.
The Federated-May deal created a $28 billion retailer with about 950 department stores.
Despite changing the name to Macy's, Field's may remain a fixture on State Street for some time to come. Two days after Federated closed its acquisition of May, the Commission on Chicago Landmarks formally recommended that the City Council bestow landmark status to the retailer's flagship store at State and Washington Streets.
If approved by the City Council, the landmark designation would give the city legal power to restrict building changes, including tinkering with the large nameplates on its exterior.
Preservationists and politicians have said changing the State Street store from Field's to Macy's would strip away a piece of the city's identity. Many also hoped a landmark designation would preserve the name of the State Street shopping icon.
"It's like changing the name of the Eiffel Tower, honestly," Preservation Chicago president Jonathan Fine said earlier this month. "I don't think Chicagoans will ever accept it as a Macy's. To us, that's somebody who sponsors a parade in New York."
Posted by Tannerman at 12:06 PM
September 02, 2005
Field's Watch: Chicago moving to protect State Street building
Source: Chicago Tribune
By Johnathon E. Briggs
Published September 1, 2005, 9:48 PM CDTWhatever the new owners decide to call it, "Marshall Field and Company" may still be emblazoned on the outside of the historic department store, as the city moves closer to landmarking the building in the heart of the Loop.
The Commission on Chicago Landmarks formally recommended Thursday that the City Council bestow landmark status to the structure at State and Washington Streets.
If approved by the City Council, the landmark designation would give the city legal power to restrict building changes, including tinkering with the large nameplates on its exterior.
Ever since Cincinnati-based Federated Department Stores Inc. bought Marshall Field's latest parent, May Department Stores Co., it has considered renaming all Field stores as Macy's, in its efforts to create a national brand. Federated spokesman Jim Sluzewski said the retail giant, which finalized its purchase Tuesday, would decide by year's end whether to keep or abandon the Field name.
Preservationists and politicians say a name change would strip away a piece of the city's identity, and many hope a landmark designation will preserve the name of the State Street shopping icon.
"It's like changing the name of the Eiffel Tower, honestly," said Preservation Chicago president Jonathan Fine. "I don't think Chicagoans will ever accept it as a Macy's. To us that's somebody who sponsors a parade in New York."
"The name Marshall Field is so synonymous with Chicago history," said Ald. Burton Natarus (42nd), who pushed for the designation of the department store, which lies in his ward.
In the 1890s, retail pioneer Marshall Field set out to create the finest department store in the world and commissioned the architectural firm of renowned architect Daniel H. Burhnam to design a retail palace.
The oldest section of the complex, the nine-story stone and terra-cotta clad Marshall Field Annex at the corner of Washington Street and Wabash Avenue , was constructed in 1892. The rest of the building, built in stages between 1902 and 1914, is clad in gray granite and rises 13 stories.
In 1907, a year after Field's death, the overall floor space of the store measured nearly 35 acres and was the world's largest department store.
The store was rated red in the Chicago Historic Resources Survey, the highest category among structures considered by the city to be architecturally or historically significant. And last year, the landmarks commission gave it preliminary landmark status.
Describing it as the "grand dame" of department stores, the commission recommends protecting the building's exterior and key interior features, including the two bronze "Great Clocks" on State Street at Randolph and Washington Streets which were immortalized in 1945 by illustrator Norman Rockwell on the cover of the Saturday Evening Post.
The designation would protect portions of the first-floor sales area, including its gilded pillars, the complex's white marble staircase and landing, cast-iron staircase and its 13-story atrium. Also recommend for protection is the six-story atrium on the south State Street section, including its Tiffany glass mosaic dome and the seventh-floor walnut-paneled dining room known as the Walnut Room.
The recommendation makes no specific reference to the Marshall Field's name plates that adorn the building. But Brian Goeken, deputy planning commissioner for the city's Landmarks Division, said Federated would have to get city approval if it seeks to remove or alter the name plates.
Goeken also said if Federated renames the building, it is possible it could end up like the landmarked Carbon & Carbide building at 230 N. Michigan Ave. The building's name remains on the exterior, but it also has modern signage indicating its conversion to a Hard Rock Hotel.
An attorney representing Federated at Thursday's hearing said the retail giant supports the recommendation for landmark designation.
Posted by Tannerman at 09:13 PM
July 29, 2005
Field's Watch: Name stays for now, Lord & Taylor safe
Since Old Orchard has department stores owned by Federated Department Stores (Bloomingdale's) and The May Department Stores Company (Lord & Taylor, Marshall Field's), here at the Triple-O we've been closely monitoring the Federated-May merger and the impact it will have on the mall and beyond.
With the merger pretty much finalized, as expected Federated announced this week that it is converting 10 individual May department store brands to the Macy's brand by fall 2006, resulting in Macy's bumping up to 730 stores across the country. Fortunately for us here in Chicago, that number does not include Marshall Field's at this time. Federated mentioned that they won't be converting Lord & Taylor to Macy's (as previously speculated by many back in June). The decision on the future of Marshall Field's won't be decided until "before Christmas." The company will also be closing 68 stores, while looking at converting others to Bloomingdale's.
The fact that Federated is keeping the Lord & Taylor brand rather concerns me, as that seems to be an outlier for them, somewhat hurting their "two nationwide brands" concept. Would they want another oddball brand in Marshall Field's as well? According to the Chicago Sun-Times, many are speculating that Field's may remain in name-only at the State Street location, while the other stores in the chain make the Macy's move. I guess we just continue to wait and hope they keep it Field's!
So, which chains lost their individual history and will now be assimilated by the Macy's Borg?
Famous-Barr (MI, IL, IN, KY)
David May started what became The May Department Stores in 1877. By 1892, his company acquired The Famous Clothing Store in St. Louis. Later, in 1913, he acquired the William Barr Dry Goods Company (founded 1849) and combined it with his other stores to become Famous-Barr. Thus, this Midwest chain has always been a part of The May Department Stores Company.
Filene's (CT, ME, MA, NH, NY, RI, VT)
Boston-based chain, and as such, lots of stores in the Northeast. Founded by William Filene in 1849. Despite similar names, not affiliated with Filene's Basement. Acquired by May from Federated in 1988. And the cycle continues.
Foley's (CO, LA, NM, OK, TX)
Primarily a southwestern store chain, it was originally founded as a Houston, TX, dry goods store in 1900 by the Foley brothers. Federated ended up owning Foley's, but sold them to May in 1988. Now they have them again.
Hecht's (DC, MD, NJ, NC, PA, TN, VA)
Founded in 1857 by Samuel Hecht, Jr. based in the New England area. Stores are primarily located in the East with an HQ in Washington, DC. Acquired by May in 1959. Contains previously acquired stores of Thalhimer's, Hess's, Wanamaker's, Woodward & Lothrop, and Strawbridge and Clothier.
Kaufmann's (NY, PA, OH, WV)
Founded in Pittsburgh in 1871, now based out of Boston. Located primarily in the northeastern part of the US. Acquired by May in 1946.
L.S. Ayres (IN)
Lyman S. Ayres purchased a dry good store in downtown Indianapolis, IN, back in 1872. The L.S. Ayres Tea Room, which operated at the downtown department store from 1905 to 1990, served a clientele of fashionable shoppers in a formal setting. Acquired by May in 1986.
Meier & Frank (OR, UT, WA)
Formed by a partnership between Aaron Meier and Emil Frank in 1873 in Oregon. A Pacific Northwest chain of stores. After a bitter battle between the two surviving families, the company was sold to May in 1966. A 2002 purchase of Zion's Co-operative Mercantile Institution increased the chain's size.
Robinsons-May (AZ, CA, NV)
May's department stores merged with J. W. Robinsons of Los Angeles in 1993 to create this brand, based on the West Coast. The first May stores in the area opened back in 1923.
Strawbridge's (DE, NJ, PA)
A northeastern US chain founded by Quakers Justus Clayton Strawbridge and Issac Hallowell Clothier in Philadelphia in 1862. Flagship is still based in downtown Philly. Acquired by May in 1996.
The Jones Store (KS, MO)
Department store founded in Kansas in 1887 by founder J. Logan Jones, a guy who was born in a wigwam on an Indian reservation. Moved his Stafford, KS, store called the Cyclone to Kansas City, KS, and The Jones Dry Goods Company. Acquired by May in 1996.
Federated, you suck.
Source: Chicago Sun-Times
July 29, 2005
BY SANDRA GUY Business ReporterMarshall Field's got a reprieve Thursday from a name change -- but customers will know by Christmas whether they will be shopping under a holiday tree at Macy's in 2006.
"We're going to get it done before Christmas this year," said Terry Lundgren, CEO of Federated Department Stores, which will take ownership of Field's this fall. "We're going to take our time and make sure when we make our decision, it's the right one."
On Thursday, Federated announced it is converting 10 department store banners to the Macy's nameplate in fall 2006, boosting Macy's nationwide presence to 730 stores.
The announcement leaves Field's and Lord & Taylor as the only two department-store chains being acquired by Federated whose futures are unknown.
Federated has been conducting surveys of shoppers, many with memories of Field's ornate clock and holiday windows, about a name change.
Insiders speculate that Federated may keep Field's name on the State Street flagship, and operate it as a destination store.
Asked about the possibility, Lundgren said, "It's speculation. It's a great store."
Is Federated playing politics with the Field's name?
One analyst thinks so.
"To be honest, it's all about the Field's store on State Street. There is a lot of political pressure not to convert it [to Macy's]," said Lois Huff, senior vice president of Retail Forward, a Columbus, Ohio-based retail strategy consulting firm.
Lundgren denied politics is playing a role.
"We're not going to make a move until we think it through and do the right thing by reviewing customer research," said Lundgren, who works out of Federated's offices in Manhattan.
Federated, which owns Macy's and Bloomingdale's, will acquire Field's, Lord & Taylor and the 10 other regional department-store chains after its $11 billion buyout of May Department Stores is completed sometime between Aug. 1 and Nov. 1.
The number of stores being converted to Macy's -- 330 -- represents about two thirds of May's 487 department stores.
The Lord & Taylor department-store chain will escape the Macy's conversion, but its fate is a matter of heated speculation.
Federated is studying whether a small number of unidentified stores should be renamed Bloomingdale's, and some analysts believe Lord & Taylor's highest-income stores could become Bloomingdale's.
Deborah Weinswig, an analyst at Citigroup Smith Barney, has speculated that Federated could sell Lord & Taylor's flagship store in New York for $384 million.
Lundgren said Thursday that Federated will have no information about Lord & Taylor until after its buyout of May is complete. At that time, Federated must decide how Lord & Taylor is executing its recent overhaul to upscale fashions and improved merchandising.
Before Cincinnati-based Federated makes any moves, its buyout of St. Louis-based May must win antitrust regulators' approval.
Analysts had speculated that Federated and May would be forced to sell up to 100 stores to keep from dominating the anchor stores in shopping malls nationwide.
Federated, based in Cincinnati, announced Thursday it will close 68 regional department stores in 66 malls where its anchor stores overlap those owned by May. Federated owns 27 of the stores in 14 states, and May owns 41 in 12 states. Most of the closings will occur in California, Pennsylvania and the Northeast. The closed stores accounted for $2 billion in sales last year.
Lundgren said he doesn't anticipate any more store closings.
Lundgren has cited customer research for expanding the Macy's brand, but experts say making Macy's a national name is a wise business move.
Macy's needs stores in Chicago, Detroit and Minneapolis to give it a presence in the Midwest's biggest markets.
Macy's expansion would make it easier and more efficient for Federated to advertise, manage inventory, buy merchandise from vendors and plan product assortments -- all important ingredients in staying profitable in a retail world filled with rivals ranging from Nordstrom to J.C. Penney to specialty boutiques, retail experts said Thursday.
It would be difficult to make Field's or Lord & Taylor national brands because of their small sizes and limited reach, the experts said.
Field's has 60 stores in the Midwest and Great Plains, and Lord & Taylor will have 54 stores scattered throughout the Midwest and Northeast after May divests three stores scheduled for closing.
"You can't live with these tiny little sub-brands any more. It's not cost-effective," said Robert Passikoff, president of Brand Keys, a research consulting firm based in New York.
Field's also would have trouble holding its own between middle-class Macy's and upper-class Bloomingdale's, said Huff of Retail Forward.
"Macy's is moving up-market with higher-quality goods and distinct product lines. Is it going to be any different than a Field's?" Huff said.
Even diehards' efforts to save the Field's name may not be enough.
"The core of fanatics is too small to make a difference," Passikoff said. "They're not enough to make a company profitable."
Posted by Tannerman at 05:07 PM
July 27, 2005
KeepItFields.org
Well, not a surprise, but a website has been launched to help save the Marshall Field's name. Will the folks at Federated ever care? Probably not. They'll just use pointless, rigged "surveys" to prove that a name change doesn't really matter to Chicago residents. I will say one thing, however... I really like the Flash-based intro to this website! The Chicago Sun-Times has the full story:
Battle to preserve Field's name makes its way to the InternetSource: Chicago Sun-Times
July 27, 2005
BY SANDRA GUY Business ReporterA Web site claiming that Federated Department Stores' threat to "erase" the Marshall Field's name "is nothing short of criminal" launched Tuesday to organize Field's loyalists to keep their beloved store from becoming a Macy's.
The site, www.KeepItFields.org, seeks shoppers' stories on what Field's means to them, and includes links to news articles on the anticipated name change and an online petition to show "tangible support for keeping Field's as Field's."
Nick Potts of Minneapolis, a 25-year-old architect intern, said Tuesday he created the site with the intention of forming an online community.
Potts said he is concerned about the loss of regional identity in the face of globalization, and he respects Field's as a strong part of the community.
Federated bought Field's and other stores owned by St. Louis-based May Department Stores for $11 billion. The deal is expected to close this fall, and Federated CEO Terry Lundgren has touted his efforts to substitute Macy's for regional department store names.
Federated has already ditched Lazarus, Rich's, Burdine's, Goldsmith's and other longtime store names in favor of the Macy's nameplate.
Lundgren told reporters after a July 13 shareholders' meeting that Federated has hired an outside company to poll Field's customers about a name change.
"So far in our markets, our customers said it doesn't make that big a difference," Lundgren said.
The KeepItFields Web site dares shoppers in the Upper Midwest to "show Federated that we are not to be underestimated."
Potts wrote on the Web site that he created it "half out of desperation, and half out of optimism."
He wrote that his desperation stemmed in part from the fear "that the homogenization and dumbing-down of America is most likely going to take away one of the great icons of American history."
He called the Macy's brand "one that stands for nothing but an overhyped parade in a faraway city and economies of scale."
Potts wrote that he is optimistic that Lundgren will realize "that we in the Upper Midwest are more than a blank spot in a map waiting to be filled in and told what to do, think and buy."
A Field's spokeswoman said Tuesday that Potts has no affiliation with the retailer.
"We are fortunate to have such a strong emotional connection with our guests and the communities we serve," said Jennifer McNamara, Field's spokeswoman at Field's headquarters in Minneapolis.
A separate Web log started by a Web site editor urges Field's supporters to write to Lundgren or to call Federated's switchboard or manager of community relations to let their feelings be known.
Scott Smith, the blog's creator, is associate editor of arts and entertainment at the Web site, called Chicagoist. Smith, 30, said he found it interesting that young people who frequent the Chicagoist Web site were passionate about keeping the Field's name.
"We're not just talking about changing the name of a minimart. This will be taking away a part of Chicago's history."
Posted by Tannerman at 09:38 AM
July 17, 2005
Field's Watch: Roger Ebert isn't a fan of a name change
Source: Chicago Sun-Times
July 17, 2005
BY ROGER EBERTThe historic and honorable Chicago name ''Marshall Field's'' is headed for the Dumpster. How do I know this? Sandra Guy, a business reporter for the Sun-Times, reports that the name ''hung in the balance'' as Federated Department Stores approved a $17 billion takeover of the May Co., which owns Field's. And the balance is tipping, she added ominously.
This is an abomination on a par with renaming the Chicago Cubs the Chicago Mets. To pave the way, Federated is ''surveying customers'' and has hired an ''independent company'' to conduct interviews at malls, online, on the phone and by mail.
I can save Federated the trouble by informing them:
1. No one in Chicago wants Marshall Field's to be named Macy's. Absolutely no one.
2. The ''survey'' and the ''independent company'' will uncover a surprising groundswell of support for the name change.
This is because such surveys always produce the results desired by the people paying for the survey, a truth well known in business.
Everything depends on how the question is worded. For example, if I were to ask a Chicagoan, ''Do you think the name of Marshall Field's should be changed to Macy's?'' the result would be 100 percent negative. If I were to ask, ''Does a company have the right to choose its own name for a store?'' the result might be 100 positive.
So let me just assure Terry J. Lundgren, the three-headed chairman, president and chief executive officer of Federated, that I have been discussing this subject for several months at dinner parties, in line at the movies, on airplanes, while walking in the park and while engaging in brief but rewarding conversations with countless citizens of our city, and every single person has responded with outrage.
Lundgren believes he must ''brand'' his stores as Macy's or Bloomingdale's as a ''declaration'' to his shareholders that his company is built around the two national chains. How would his shareholders react if the Chicago flagship of his company found itself hated, shunned and reviled?
Marshall Field's is a name as closely associated with Chicago as Macy's is with New York -- an excellent reason for not making the change. Chicago is a world-class city, more beautiful, better mannered and cleaner than New York. We do not pile up our garbage on the sidewalks, and we do not trash our heritage. We even value a living and breathing Marshall Field among our population.
When Donald Trump came to town to tear down the venerable Chicago Sun-Times building and erect another of his phallic grotesqueries, I was sentimental but serene, because the Sun-Times building was homely and outworn, and because Mayor Richard M. Daley made Trump revise his plans until they were finally up to Chicago's architectural standards.
But as the holder of a Marshall Field's charge card and a citizen who takes out-of-town visitors into the building just to gaze upon it, if I should ever see the name ''Macy's'' under the clock at the corner of State and Randolph, I would never darken its doors again. I would be joined, I can promise Mr. Lundgren, by thousands if not millions of other Chicagoans.
Posted by Tannerman at 06:45 PM
July 14, 2005
Field's Watch: "Two outstanding national retail brands: Macy's and Bloomingdale's"
Source: Chicago Sun-Times
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 12:31 PM
July 12, 2005
Outside the Orchard - 07.12.05
The Old Orchard Observer presents once again... Outside the Orchard, a brief look at what the online world is saying about Skokie's mall.
Flickr user lay-c dot com posts this photo and this photo, highlighting the fountain located in the Fountain Court section of Old Orchard.
On the Dianatics blog, an interesting analysis is made regarding "Mall Mice", using Old Orchard as an example: [Saturday, June 11]:
My guess is we're switch hitters in our membership at the mall. We've been the field trip leaders who planned to go there for something new for the wedding, shirts for work or Aunt Zelda's birthday present next month. Most likely we've also been the tag-alongs — by volunteerism or having been cajoled into the trip, perhaps with the mythical promise that it'll be fun.
Observed on a recent Saturday at Old Orchard was a classic study in a mall goer and go-along.
He: Are you looking for nice shoes or casual shoes? These are good. He holds up a pair red flats.
She: I'm just looking for shoes.
He: Moving to a chair where he can see her through the racks of shoes... What size do you wear?
She: 7 to 7 1/2.
He: Noticing she's in the size 6 to 6 1/2 section... You're looking at the wrong shoes. These are the wrong shoes.
She: More annoyed... They're all mixed up. You just have to look.
Carolyn Moncel chimes in all the way from Paris, France, where she is adjusting to living. She writes in in Tales from the Seine [Monday, June 27]:
Now, here's what I don't get and no one yet has been able to give me a straight answer. Why are there only store sales roughly four times per year? ...In the US, if a store decides to put their inventory on sale, they just do it. They don't need what appears to be the government's approval to do it.
Chuck Berry sings "I'm so glad I'm living in the USA," and when it comes to shopping, it has become my anthem. That's because it's true when he says "Anything you want we got it right here in the US of A." When I get back home for vacation, I'm going shopping at Old Orchard, River Oaks, Orland Square, the Mag Mile or someplace. What's more, I just might kiss the ground in the process!
Over on The Savvy Traveler, it seems like biking has become hazardous for the author [Friday, July 1]:
...yesterday I went on this long bike ride to Glenview to get immunizations shots for typhoid and craziness, but i ended up on this highway, where there was no bike path. ...alas! about 3/4 of the way back my bike got stuck on a tree branch (a la nature reserve) and it broke, just like that. haha. now this seems funny but at the time i was wicked pissah. so i walked a bit, and got a cab ride from old orchard. ah well, i think i'm gonna have to go to the evanston hospital for the immunizations and malaria medication.
Reading Putting Power In Their Hands, it's argued that Dad's aren't too bright when it comes to shopping at Crate & Barrel [Wednesday, July 6]:
...we took our shopping skills to the suburbs as we tore through Old Orchard Mall. Mom and I got all sneaky on Brian and bought him new glassware that was on sale at Crate and Barrel before he had a chance. It was Mom's idea I swear. We tried to get Dad in on the plot to occupy Brian while we stood in line but Dad's not always bright in that area. He just kind of looked at us and smiled as Brian walked right up behind him. We made the two of them leave together and after our purchase, found them sitting and chatting in front of a flowerbed.
The folks over at life (over IP) are one of the few to write the full official name of Old Orchard in a blog post [Wednesday, July 6]:
I also decided to walk back from work tonight, a nice 20-minute walk. Every little bit helps. The Westfield Shoppingtown Old Orchard is right near the hotel, so I stopped in at the Apple Store, and grabbed a bite at the Cheesecake Factory. It's amazing that a open-air mall like this could exist in a cold-weather area like Chicago.
In this blog (Caution: NSFW) blog, author poiesia shares "100 factoids about me," including [Monday, June 27]:
74. I no longer like Old Orchard.
Evan writes in draykopf about being Jewish and shopping in the 'burbs [Thursday, July 7]:
Today I was shopping at Lowes in Lincolnwood. For those of you unfamiliar with this Chicago suburb, it is roughly in between two HUGE Jewish neighborhoods. At the blinds section, I found myself standing in line behind a nice woman and her two children - both wearing shorts and ratty t-shirts with dirty kippot and tzit tzit dangling. 20 minutes later, as I walk out of the paint aisle, I nearly run into a man pushing a cart and talking on his cell phone (don't you need an ear piece for this?) - he is wearing black pants, a white dress shirt a long beard and a kippah.
After that, I end up at Old Orchard in Skokie where after lunch at a place called "The Bagel" I found myself sitting in a sunny spot while waiting for my wife, and reading the July edition of the World Jewish Digest, which, by the way, has a couple of great articles about Jewish blogging.
Finally, Crain's Chicago Business featured an article about the Midwest losing jobs in the month of June, specifically [Wednesday, July 6]:
Illinois ranked second in the number of jobs lost in the Midwest in June, while employment cuts on the national level reached a 17-month high at a time of year when downsizing activity is typically slow, according to a report released today.
...In the retail sector, home decorating store The Great Indoors made significant cuts as did local branches of department store operator Saks Inc.... Both announced store closures in suburban Chicago, with the home decorator closing its Deerfield branch and Saks saying it would shut its high-end Saks Fifth Avenue store and its connected discount outlet at Skokie's Old Orchard mall.
Posted by Tannerman at 01:18 PM
July 11, 2005
Field's Watch: More speculation on name change
Mary Jo Feldstein of the St. Louis Post-Dispatch writes on the May-Federated merger and more speculation on the future of the Marshall Field's name:
Most conversions to Macy's stores are likely to occur next year, Cohen wrote. Federated has not said which chains will move under the Macy's name, but most industry experts believe it will be the majority. Possible exceptions are Marshall Field's and Lord & Taylor.Source: St. Louis Post-Dispatch"I think Marshall Field's and, to some extent, Lord & Taylor will stay," said William Cody, managing director of the Jay H. Baker Retailing Initiative at the Wharton School of Business at the University of Pennsylvania.
Marshall Field's is the oldest department store chain in the nation, and its name still carries cachet, particularly in its key markets, such as Chicago, he said.
Cody sees Lord & Taylor as the May chain with the most flexibility. Depending on location or size, Lord & Taylor stores could be sold off to other chains, such as Nordstrom, or converted into Macy's or Bloomingdale's, he said.
Full story after the bump...
May Co.'s stores might be Macy's by Thanksgiving 2006
By Mary Jo Feldstein
Of the Post-Dispatch
07/10/2005Macy's parade plans to march across May Department Stores Co. in time for Thanksgiving 2006.
Federated Department Stores Inc. of Cincinnati is moving forward with plans to convert the majority of May stores into Macy's, industry analysts and retail experts said. May's chains include Famous-Barr, Lord & Taylor and Marshall Field's.
Shareholders of both companies will vote Wednesday on the $17 billion union, which is expected to pass. May and Federated have yet to receive approval from the Federal Trade Commission, but the deal is still scheduled to close by the Christmas shopping season.
Already, Federated management has been meeting with May employees, researching May's markets and planning to put new fashions in its stores by fall 2006, Dana Cohen, an industry analyst with Banc of America Securities, wrote in a research note to investors after meeting with Federated's top management.
Even before the deal was announced in February, Federated's purchase of St. Louis-based May was viewed as a potential savior for department stores. Federated used its "Reinvent Strategy" to revitalize its stores and converted its regional chains into Macy's. The goal was to establish Macy's as a national brand that represents quality and fashion.
Adding May's stores will expand the company's geographical reach and give it more power to negotiate with vendors and mall owners.
But creating a national brand also will require Federated, which also owns Bloomingdale's, to balance its desire to move upscale with its need to retain May's core shoppers, who have preferred more moderately priced clothing.
Federated soon will begin researching the types of merchandise May customers want and whether they would be willing to pay for higher-quality fashions, Cohen wrote. This market research will help Federated decide which regional chains to convert into Macy's and which stores to fill with more upscale merchandise, perhaps as Bloomingdale's.
Rachel Taylor, a paralegal who lives in St. Louis, said Famous-Barr is fine, but she likes the mystique of a Macy's store.
"Me, I'm like, 'Ooh, it's Macy's,'" Taylor said. "It's not like they have something the other stores don't; it's just the whole idea. It's like Bloomingdale's."
Most conversions to Macy's stores are likely to occur next year, Cohen wrote. Federated has not said which chains will move under the Macy's name, but most industry experts believe it will be the majority. Possible exceptions are Marshall Field's and Lord & Taylor.
"I think Marshall Field's and, to some extent, Lord & Taylor will stay," said William Cody, managing director of the Jay H. Baker Retailing Initiative at the Wharton School of Business at the University of Pennsylvania.
Marshall Field's is the oldest department store chain in the nation, and its name still carries cachet, particularly in its key markets, such as Chicago, he said.
Cody sees Lord & Taylor as the May chain with the most flexibility. Depending on location or size, Lord & Taylor stores could be sold off to other chains, such as Nordstrom, or converted into Macy's or Bloomingdale's, he said.
Merchandise inside the stores probably will change before the names on the outside, Cohen wrote.
In areas such as juniors, where assortments change quickly, some new merchandise could hit as soon as next spring. But the majority of the product changes will not occur until fall 2006, Cohen wrote.
She thinks the company will see the $175 million in savings it estimated for 2006 and $450 million the next year.
It's still unclear how the May deal will affect St. Louis. Federated has said there will be no layoffs before March, and it promised to keep a divisional headquarters here.
The city and state paid $50,000 to former interim St. Louis Schools superintendent William V. Roberti's consulting firm to negotiate with Federated on the city's behalf.
A spokesman for Federated said the company is meeting with city and state officials, but declined to comment further on those talks.
May has not been involved in those conversations, said Sharon Bateman, a spokeswoman for May.
Posted by Tannerman at 09:01 AM
July 08, 2005
History: Venture Stores
We've previously discussed both the future of the Marshall Field's name in Chicago, as well as its presence at Old Orchard. When the merger of The May Company with Federated Department Stores is finalized, many feel that Marshall Field's will be renamed as Macy's. What's ironic in all this is that the very company that sold out to Federated, The May Company, actually may have put the nail in Marshall Field's coffin way back in 1970. Well, at least indirectly via a division called Venture Stores.
You see, back in the 1960's, the big department stores were looking at launching divisions that targeted the discount store market. They figured why not try to target all these different demographics and reap the profits of everyone. Thus, in 1962, Dayton (which today after many acquisitions and name changes is known as the Target Corporation) launched Target. In response, and to hop on this trend, the May Company launched Venture in 1970 as a "family value retailer." Stores were primarily located in the Midwest.
Growing up in Chicago, of course I remember Venture. Their buildings were shaped much like a Kmart, with a distinctive black/white stripped design over the entryway. There was actually a Venture within walking distance of my boyhood home, so I spent a lot of time there before learning how to drive and shop elsewhere.
As the retail story continues, The May Company purchased Associated Dry Good (ADG), owner of Caldor. Both Venture and Caldor operated as discount chains that featured style, which made sense given their department store heritage. Eventually, The May Company spun off Venture and Caldor in 1990. Unfortunately, having to compete with Wal-mart, Kmart, and Target, both chain's sales decreased quickly.
By 1996, Venture tried to relaunch itself as a value-oriented store, in addition to creating a Venture Dollar chain. However, that didn't help. The next year, Venture sold off many of its stores to Kmart (including the one I grew up with). Finally, in 1998, Venture filed for bankruptcy. Kmart purchased more stores from Venture and that was pretty much the end of the chain.
The ironic part of all this is that The May Company currently owns Marshall Field's. Field's was once part of Target, which was a big competitor to Venture, created by May. Thus, May's failed attempt to make Venture work allowed Target to grow and eventually mishandle the Marshall Field's brand, dumping it on May. In turn, now May is merging with Federated in what may be the final death blow to Field's.
The retail world sure is crazy sometimes!
Posted by Tannerman at 02:16 PM
June 22, 2005
Saks selloff could harm State Street
Saks continues to shop around their Carson Pirie Scott chain for new buyers. As previously reported, the company has already sold off their southern department stores division (Proffitt's, McRae's) to Belk, Inc. They are looking to find a home for their northern stores as well, intending to focus solely on their flagship brand, Saks Fifth Avenue (which will be leaving Old Orchard at the end of July) and Parisian, which offers merchandise slightly above the level of its mid-range department store chains.
The northern group of stores up for sale includes Boston Store (WI), Carson Pirie Scott (IL, IN), Herberger's (CO, IA, MN, MT, NB, ND, SD, WI, WY), Bergner's (IL), and Younkers (IA, IL, MI, MN, NB, SD, WI), as well as Club Libby Lu.
Of interest to those in the Chicago area is how this potential sale will affect the retail landscape on State Street. Our sister blog, SteveandAmySly.com has been chronicling the State Street Christmas Windows produced by the "big 3" on State Street: Marshall Field's, Carson Pirie Scott, and Sears. An exit by Carson's would not only make their window displays disappear (which have been quite lame over the past few years anyway), but also provide a potential lack of shopping downtown. The Chicago Sun-Times has more details on this development:
Renewed speculation on Carson's Loop siteSource: Chicago Sun-Times
June 21, 2005
BY SANDRA GUY Business ReporterCarson Pirie Scott's parent company, Saks Inc., took new steps Monday to hold off its debtors, and speculation bubbled about the future of the Carson's store on State Street.
Saks is trying to sell the Carson's department store chain, and that could open up new possibilities for the historic Carson building at 1 S. State.
The building's owner, Joseph Freed and Associates LLC, has built a reputation as a developer of mixed-use projects such as the Arlington Town Square with Ann Taylor Lofts, Jos. A. Bank Clothiers, California Pizza Kitchen and a six-screen movie theater.
"There's unlimited numbers of things you could do [with the Carson's store on State Street]," although condos would never work, said Jeff Renkert, Freed's vice president of marketing.
The space is too cumbersome and the building's landmark designation too restrictive for condos, he said.
The building, a masterwork designed by Louis Sullivan, could keep a scaled-down Carson's store and open up space for specialty boutiques, or it could house a new retailer altogether, even a big-box retailer such as Target.
Other possible tenants include a grocery store to serve the many new residents living downtown, and a student center for the 55,000 college students who attend classes in the State Street corridor, said Ty Tabing, executive director of the Chicago Loop Alliance, formerly the Greater State Street Council.
A $17 million upgrade of the 600,000-square-foot Carson's store heightens the possibility that new tenants will move in. The building's original cornice is being replaced, and the floors, elevator banks, communications systems and heating-and-air-conditioning systems upgraded. Another 400,000 square feet is occupied by offices.
Retail experts have argued that State Street required three "anchor" department stores to attract shoppers, and those anchors are Carson's, Marshall Field's and Sears, Tabing said.
"With Block 37 coming, a new anchor could emerge," he said, referring to retailers that will be part of the planned redevelopment of the long-vacant parcel between Field's and the Daley Center.
Furthermore, new retail could better serve the residential development springing up around the Carson's building: A 33-story condo building is going up on the Walgreens site at State and Randolph, a condo tower is proposed behind buildings at 21-39 S. Wabash, and people already live above H&M, Nordstrom Rack and the Children's Place on State Street.
Retail analyst Lois Huff said a private-equity firm such as Bain Capital, which is rumored to be a potential bidder for the Carson Pirie Scott chain, would look to make money from Carson's real estate.
"The downtown store is, at best, a store that could stand some reinvention, but it is great real estate," said Huff, senior vice president of Retail Forward, a Columbus, Ohio-based retail strategy consulting firm.
Carson's, along with other mid-tier department stores, is stuck in an untenable position between discounters such as Target and Wal-Mart and fashionable luxury stores such as Bloomingdale's, Nordstrom, Neiman Marcus and Saks Fifth Avenue, Huff said.
"The Carson's [on State Street] would be extremely vulnerable for Carson Pirie Scott, but extremely attractive" for a new owner looking to profit from its real estate, she said.
Meanwhile, Saks Inc. announced Thursday that it would offer its bondholders a special payment to persuade them not to force Saks to default on $1.22 billion in debt.
Saks now wants another two months, until Oct. 31, to file its financial statements with federal regulators. Saks is being investigated by federal authorities for allegedly improperly collecting $20 million in vendor markdowns in its 1999-2003 fiscal years. Stores take markdowns when goods don't sell at full price, and they ask their suppliers to eat some of the cost.
Posted by Tannerman at 11:46 AM
June 20, 2005
Field's Watch: Name may stay after merger?
A recent article in the Chicago Tribune provides hope that the Marshall Field's name will remain after the Federated-May merger is completed. According to the article, the Lord & Taylor name may be the one to get the ax instead. We'll see.
Field's likely to keep its nameSource: Chicago Tribune
By Becky Yerak
Tribune staff reporter
Published June 18, 2005The chances that the Marshall Field's name will survive might be better than expected, according to two Wall Street analysts.
When Federated Department Stores Inc. announced plans in February to buy May Department Stores Co., some retail observers said the deal spelled doom for the Field's name, a Chicago-born chain owned by May.
Federated has a track record of changing the names of its regional department stores to Macy's. The May acquisition is expected to close in the third quarter.
Two retail analysts expressed optimism, however, about the future of the Field's name in a Women's Wear Daily report on Friday about the New York flagship of Lord & Taylor, another May asset.
"The L&T banner is not going to be the one that survives," Citibank Smith Barney analyst Deborah Weinswig told the trade publication. "Marshall Field's has been chosen as the one to survive."
Weinswig couldn't be reached Friday to elaborate.
Also in the article, Deutsche Bank analyst Bill Dreher noted Field's "tremendous following."
"I wouldn't expect Federated to move away from that name but rather expand it in the Midwest," he said.
A Federated spokeswoman would not comment on the report. "We've got nothing to say on that right now," she told the Tribune on Friday.
Posted by Tannerman at 09:56 AM
June 06, 2005
Proposed Expansion: Old Orchard Goes Lifestyle
Here at the Old Orchard Observer, we've talked about consolidation in the retail industry, especially as it pertains to mall anchors. With Marshall Field's being acquired by Federated, 3 out of 5 anchors at Old Orchard will be owned by the same company. Then just last week it was announced that Saks Inc. would be closing the Saks Fifth Avenue store at the mall, resulting in another unknown for Old Orchard Center. In short, anchors are going to be lost. So what do you do instead?
Traditionally, large malls have been built on the assumption that anchors draw you to the center. Hence the label, "anchor." Often, the appeal of a mall has been built on what anchor stores are present. From a business perspective, rent and leasing rates are determined based on the number and size of the anchors in a mall.
But in case you haven't noticed, there aren't enough anchors to go around these days. There is consolidation, like what is taking place with Federated and May. There is a change in strategy, like what you see in Sears moving away from mall-based stores. There is a downsizing and focus on profitable stores, evident in what took place last week with Saks; J. C. Penney is also a good example here. And of course there is the loss of anchors altogether, as in Montgomery Wards and the like.
This has created a void for traditional malls as they try to figure out what to do. Many have chosen to go with somewhat alternative anchors. For example, the mall I used to work at, Randhurst (Mt. Prospect, IL), recently built a Costco as a part of the mall. Here in the city, unique architecture has allowed traditional "all in one stores" stores like Target to serve as anchors.
The growth of big boxes (Wal-Mart, Target, warehouse clubs, etc.) and category killers (Best Buy, Barnes & Noble, Home Depot, etc.) has changed the way people shop. It also is changing the world of mall design and planning. Unfortunately, malls are large and heavy on infrastructure... you can't easily change course and reconfigure.
Sometimes there are exceptions, such as Brickyard Mall, a local mall I grew up with here in the city. It was a large, two-story, indoor mall that basically outlived its usefulness. It recently reopened after being completely torn down and rebuilt as The Brickyard, an outdoor center with a mix of big box retailers and specialty stores. So far, it's been quite a success story.
Other local shopping centers are shooting to become lifestyle centers, the big buzzword in retail these days. A lifestyle center is typically an open-air shopping center that doesn't really feature anchors. Instead, the mix of stores comes more from the specialty retail/boutique side of things. Often they are modeled to look like small towns, full of sidewalks, park-like places, and common areas. They don't require as much space as a large indoor mall and they offer convenience to a typically affluent shopper, as they can just park their oversized SUV nearby and quickly shop.
The "lifestyle center" concept was pioneered by Poag & McEwen with the construction of The Shops of Saddle Creek in Germantown, TN, in 1987. My current employer is located near another lifestyle center that recently opened, 500,000 sq. ft. Deer Park Town Center in suburban Chicago.
So what do you do when you are a traditional mall, you are losing anchors, and the trend seems to be towards lifestyle centers? Well, you build a hybrid! Last July, a suburban mall called Yorktown Center (previously the home of Big Idea) announced that they were going to tear down some vacant anchor space (formerly populated by Montgomery Wards) and build a lifestyle center concept called The Shops on Butterfield. Uniquely, this development would actually connect with the existing traditional indoor mall and feature an attached hotel. It will be interesting to see how that plays out, as the new development is set to open in 2006.
Even knowing these trends, I was shocked today when I read the following story in Crain's Chicago Business regarding what may happen to Old Orchard down the road. I guess the concept makes sense when you think about it...
Giant expansion for Old Orchard
Size would rival Woodfield as new vision for regional malls takes shape
June 06, 2005
By Sandra JonesThe owner of Old Orchard shopping center has drawn up plans to bulldoze the Saks Fifth Avenue and Lord & Taylor spaces there to make way for a Main Street-style shopping promenade — an estimated $100-million expansion that would put the Skokie mall on par with the region's largest, Woodfield Shopping Center in Schaumburg.
Source: Crain's Chicago BusinessOwner Westfield Group's proposed site development plan, obtained by Crain's and dated May 20, calls for building 53 new specialty stores and restaurants totaling 650,000 square feet. The plan calls for a string of 24 stores backing up to Skokie Boulevard with trees, walkways and small courtyards modeled after the so-called lifestyle centers that have been drawing shoppers from traditional malls.
That strip would replace parking on the east side of the mall, the most traffic-congested. The surface parking would be eliminated and the parking deck outside Lord & Taylor would be torn down. In its place, a new parking deck would be constructed at the southeast end of the promenade near Golf Road. More specialty retail is proposed on the west and north sides of the mall.
The expansion, if approved as-is, would bring Old Orchard to 2.3 million square feet, an increase of about 25%. Retail experts estimate the cost of the overhaul at more than $100 million.
A spokeswoman for Australia-based Westfield calls the plan "very exploratory," explaining the proposal is a way for Westfield to get "a sense of the marketplace." And it still needs the approval of Skokie village officials and the remaining department store anchors: Nordstrom, Marshall Field's and Bloomingdale's.
Still, the ambitious proposal underlines the problem facing all mall operators these days. Malls like Old Orchard were designed to be anchored by department stores. But the department store industry is shrinking, and shoppers now have fewer reasons to go to the mall.
"The rules of the game have completely changed," says Gerhard Plaschka, managing partner at Chicago-based MindFolio, a consulting firm that studies malls. "You have to break the rules and come up with something that makes customers choose a mall. The old story that anchor stores are the mall magnets isn't true anymore."
AMONG OLDEST MALLS IN U.S.
When Old Orchard opened in 1956, it was one of the first malls in the nation. It led the suburban retail revolution, bringing downtown department stores to the newly constructed neighborhoods that ringed the city. Marshall Field's, Old Orchard's oldest tenant, spearheaded the project and played a key financial role in its construction.
Now, Marshall Field's, which has had a string of owners since the mall was built, is about to be sold for the second time in a year. Federated Department Stores Inc. of Cincinnati agreed earlier this year to buy Field's as part of its $11-billion acquisition of St. Louis-based May Department Stores Co. May purchased Field's from Target Corp. last year.
THREE ANCHORS, ONE OWNER
Once the deal closes, as expected this fall, Federated will own Field's, Bloomingdale's and Lord & Taylor at Old Orchard — three of the four remaining anchors.
Saks Inc. announced in May that it intends to shutter its Saks Fifth Avenue store at Old Orchard in July as part of a move to scale back and reorganize the luxury chain. Federated is expected to shutter the Lord & Taylor store and eventually turn either Field's or Bloomingdale's into Macy's, according to retail sources. The two department stores combined accounted for about 220,000 square feet of retail space and about $30 million in annual sales, retail sources say. Officials with May and Federated decline to comment.
"All the major malls are facing department store consolidation," says John Melaniphy III, vice-president of Melaniphy & Associates, a retail real estate consulting firm in Chicago. "There aren't department stores waiting in the wings (to expand), so malls are looking to specialty stores and restaurants."
A sign of how times have changed in just a decade: Old Orchard's last major renovation in 1995 — under a previous owner, a group led by real estate mogul Sam Zell — hinged on the arrival of two new department stores, Bloomingdale's and Nordstrom, to the mall. The $100-million makeover targeted the stroller set with gardens, fountains and outdoor play areas for children.
Today, malls are scrambling to meet fickle shoppers' demands for convenience and entertainment. If either is lacking, they aren't likely to show up, analysts say.
Old Orchard has already begun sprucing up the mall with a new Apple Computer store, which is often crowded. It's also opened harder-to-find specialty stores in the past year including Lacoste, Clarks Shoes and Sigrid Olsen. Soon to debut: NikeWomen.
Still, competition to attract desirable retailers is expected to get tougher as Northbrook Court, another North Shore mall, goes through a similar, but smaller, effort to attract one-of-a-kind stores.
'POSITIVE' ADVANCE REVIEWS
Potential tenants have so far viewed Westfield's preliminary proposal as "positive," says the Westfield spokeswoman. She declines to comment on specifics of the plan. Retail sources familiar with the makeover say it's likely to be complete in 2007.
"This is a great opportunity," says Mr. Plaschka, the mall consultant. "They just need to understand that you have to break the rules. That's the challenge. There is no standard mall mix anymore."
Source: Crain's Chicago Business
Posted by Tannerman at 10:38 PM
May 27, 2005
Saks closing at Old Orchard
Last month, I speculated about the anchor situation at Old Orchard, given the pending merger of Federated and May. Who would have expected that the anchor to make the first move would actually be Saks Fifth Avenue, which has announced that they are closing their Old Orchard location at the end of July.
Recently, the parent of Saks (Saks Incorporated) started the process of unloading chains in the company portfolio that didn't quite fit with their preferred direction. Recently, they sold off their southern department stores division (Proffitt's, McRae's) to Belk, Inc., which operates stores in the Southeast and Midwest. They have also expressed an interest in selling off all or parts of their northern department store division, which would include Chicago's own Carson Pirie Scott.
It seems the strategy that Saks is taking involved breathing new life into their Saks Fifth Avenue stores, stepping up to compete with Federated Macy's and Bloomingdale's. According to the Chicago Sun-Times, "The Saks Fifth Avenue store, a major presence at 72,000 square feet, opened at Old Orchard 27 years ago. The Off 5th store, measuring 33,000 square feet, opened two years ago... Saks' new focus centers on Saks Fifth Avenue stores that average 100,000 square feet."
Here's the official press release about the closing:
Saks Fifth Avenue and Off 5th to Close in Skokie, Ill.
May 26, 2005NEW YORK--(BUSINESS WIRE)--May 26, 2005--Saks Fifth Avenue Enterprises ("SFAE"), a business segment of retailer Saks Incorporated (NYSE: SKS) ("Saks" or the "Company"), today announced it plans to close its 72,000 square foot Saks Fifth Avenue store and its 33,000 square foot Saks Off 5th store, both located in the Old Orchard Shopping Center in Skokie, Illinois (metropolitan Chicago). The stores are expected to close by the end of July 2005. Both locations are leased.
Fred Wilson, Chairman and Chief Executive Officer of Saks Fifth Avenue Enterprises, commented, "This announcement is consistent with our strategy of focusing our energy and resources on our larger and more productive units. We remain very committed to metropolitan Chicago, and we will be able to enhance our merchandise assortments and service offerings at both our flagship Saks Fifth Avenue Michigan Avenue store and our Highland Park location in order to better serve our many loyal Chicago-area customers."
SFAE also will continue to operate its two other Off 5th stores in metropolitan Chicago, located at Gurnee Mills and Woodfield Village.
Approximately 70 associates are employed in the Old Orchard Saks Fifth Avenue store, and approximately 50 associates are employed in the Off 5th location. All affected associates either will be offered transfer opportunities or will receive appropriate severance packages. "We are very grateful for the dedicated Old Orchard team, and we will make every effort to provide needed assistance to our associates during this period," Wilson continued.
Saks Incorporated operates Saks Fifth Avenue Enterprises (SFAE), which consists of 57 Saks Fifth Avenue stores, 52 Saks Off 5th stores, and saks.com. The Company also operates its Saks Department Store Group (SDSG) with 232 department stores under the names of Parisian, Proffitt's, McRae's, Younkers, Herberger's, Carson Pirie Scott, Bergner's, and Boston Store and 43 Club Libby Lu specialty stores. On April 29, 2005, the Company announced that it had entered into an agreement to sell 22 Proffitt's stores and 25 McRae's stores to Belk, Inc. The sale is subject to various closing conditions, including the expiration or termination of all waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act. The Company expects to complete the sale in the second quarter of 2005.
Now the speculation can begin regarding what Westfield will do to fill this vacant space. Saks is located at the northern tip of the mall, covering the already dead and highly-vacant section known as The Promenade. This is a huge blow to occupancy rates.
But, as the Sun-Times recaps, "Old Orchard, whose owner recently dropped the name 'Shoppingtown,' is no stranger to change. Ten years ago, Chicago investor Sam Zell led a $100 million renovation and expansion that resulted in a shift toward more luxury stores. Bloomingdale's opened at the center, and Nordstrom replaced Montgomery Ward."
Posted by Tannerman at 10:59 AM
April 27, 2005
Another Marshall Field's in Chicagoland?
Even with all the previously reported hype about the future of Marshall Field's, the company just announced that they would be opening a new store in Bolingbrook, IL (about 40 miles from Old Orchard). Apparently it's part of a new shopping development called The Promenade at Bolingbrook, being built by Forest City Enterprises, a firm I've never heard of before. One wonders if this store will eventually become a Macy's.
Marshall Field's Announces Plans for New Store In Chicagoland
Tuesday April 26, 11:00 am ET
Bolingbrook to Be The Company's First Store Opening In Six YearsMINNEAPOLIS, April 26 /PRNewswire/ -- Marshall Field's today announced plans to open a new store in spring 2007 at The Promenade at Bolingbrook, a new mall development on Boughton Road near Interstate 355 and the Interstate 55 exit in Bolingbrook, Ill.
The Bolingbrook store will be Marshall Field's 18th store in Illinois and its first new full-line department store in the Chicagoland area since the opening of its Northbrook Court store in 1995 and is the retailer's first new store since its Grandville store opened in 1999. Construction of the new two-level, 180,000-square-foot Marshall Field's store will begin in fall 2005.
"We are thrilled to be part of the new growth and development of Bolingbrook and to be expanding our presence in the Chicagoland area," said Frank Guzzetta, Marshall Field's president and chief executive officer. "This is a terrific opportunity for us to create an exceptional shopping experience and introduce the Marshall Field's brand to the Bolingbrook community in a new, exciting environment."
The Promenade at Bolingbrook is a 1.1-million-square-foot retail center that is being built on two separate pieces of undeveloped land and will be linked to form a seamless shopping destination covering more than 121 acres. The first phase of The Promenade at Bolingbrook is scheduled to be completed in fall 2005, and Marshall Field's Bolingbrook will open on the south side of Boughton Road during the second phase of the development.
Source: Marshall Field's Press Release
Posted by Tannerman at 10:22 AM
April 25, 2005
Anchors: Will they change?
Currently, there are 5 anchor stores at Old Orchard. These are Bloomingdale's, Lord & Taylor, Marshall Field's, Nordstrom, and Saks Fifth Avenue. Interestingly, consolidation is bringing many of these anchors under common owners. This may soon change the face of Old Orchard like it has at so many other shopping centers.
For example, Marshall Field's was sold to The May Department Stores Company in July 2004. This put both Field's and Lord & Taylor under the same roof. Then in February 2005, Federated Department Stores acquired May, resulting in Bloomingdale's, Marshall Field's, and Lord & Taylor all being owned by the same company. That's over half of Old Orchard's anchors.
Will Federated keep all 3 stores running at Old Orchard? Will they sell off the real estate to someone else? Will the much-rumored name change of Field's to Macy's actually happen? I think we'll start to see some answers form this year. In the meantime, here's a quick rundown of who owns what when it comes to the anchor stores (Old Orchard anchors denoted with an astrick):
- Famous-Barr
- Filene's
- Foley's
- Hecht's
- Kaufmann's
- L.S. Ayres
- Lord & Taylor*
- Marshall Field's*
- Meier & Frank
- Robinsons-May
- Strawbridge's
- The Jones Store
- David's Bridal
- After Hours Formalwear
- Priscilla of Boston
- Saks Fifth Avenue*
- Parisian
- Proffitt's
- McRae's
- Younkers
- Herberger's
- Carson Pirie Scott
- Bergner's
- Boston Store
- Off 5th
- Club Libby Lu
Posted by Tannerman at 06:47 PM