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Macy’s chief admits tough row to hoe

Tuesday, Nov 14, 2006 - Posted by Rich Miller

I think I already told you that back when I lived next to the Loop I would shop at Marshall Field’s or cut through on my way to State Street. It was almost always empty, even around Christmas. But Chicagoans are a proud bunch, even if they had already abandoned the local brand.

Two months after changing Marshall Field’s name to Macy’s and facing the start of the critical holiday shopping season, Federated Department Stores Inc. Chairman and Chief Executive Terry Lundgren acknowledged Monday that winning over Chicagoans may be more difficult than originally anticipated.

“I’ve been here a lot because I know we have more work to do,” Lundgren said in a speech Monday evening to the Turnaround Management Association at the Standard Club in downtown Chicago. […]

Lundgren said he looked for ways to keep the Field’s name but decided it couldn’t be done and still accomplish his goal of creating a viable national department store with the economies of scale to save costs on merchandise, TV advertising and even shopping bags.

With the election and other important items on the agenda, we haven’t talked about this in a while, but have you been to Macy’s yet? I haven’t bothered to walk through the store since the name change. What do you think? Can Macy’s survive?

       

41 Comments
  1. - Skeeter - Tuesday, Nov 14, 06 @ 8:44 am:

    I have not been there, but it has nothing to do with the name change. The problems with the store have nothing to do with the name. The problems are that a lot of the staff is not well informed and that the prices are high relative to the quality. My wife was in the store this week and reported a similar experience to what we have seen in the past. Instead of buying something there, she walked over to Nordstrom’s where both the staff and selection are far better.

    It is easy to look at the place and blame the name. However, if you have quality products, fair prices, and well trained staff that should not be an issue.


  2. - jerry - Tuesday, Nov 14, 06 @ 8:46 am:

    I buy most of my clothes at Kohl’s, but when I need nice stuff for work, I would head to Field’s. I stopped shopping there after the name change. I won’t spend a penny there. It was a bad idea, imo, for Macy’s to change the name of the flagship store. I couldn’t give a care about all the other Field’s stores. Macy’s, to me, is a Thanksgiving parade on TV. Its a store in New York. It’s a poor replacement for Field’s. They lost my business over this. It’s hard for me to boycott any business I like (Target), but I won’t go into that thing with the black awnings.


  3. - bored now - Tuesday, Nov 14, 06 @ 8:53 am:

    we’ve abandoned the store once it changed it’s name. we got the obligatory charge card with the new name — and returned it cut in half. what’s the point in going there? if i want to shop at macy’s, i’ll go to new york.

    basically, the name change made us shop online more (coldwater creek for my wife, etc) for goods we used to buy at the downtown field’s. if macy’s wants to be in chicago, it should find a location on michigan ave, not state street…


  4. - JohnR - Tuesday, Nov 14, 06 @ 8:55 am:

    I have two words about Macys when we went there:
    Cheap, tacky.


  5. - NW burbs - Tuesday, Nov 14, 06 @ 9:03 am:

    We’ve been there. Bought a few things that were way marked down during the first few days after the rename. (Mrs. Burbs also had a coupon from receiving the replacement charge card.)

    Haven’t been back.

    Weren’t really planning on going there for the holidays either. We didn’t usually do holiday shopping at Field’s, but we’re less inclined to do it at Macy*s.

    If we wanted to go to a New York chain, there are already plenty of Nordstroms, etc in the area — and they’re much nicer to boot.

    In fact, my wife still blows the occasional raspberry when a Macy*s commercial comes on.

    Skeeter, I accept and agree with your point about quality products, fair prices and well trained staff. I think Field’s was slipping on all three points and had been for some time. We saw no immediate changes to that status quo when we were there after the name change a few months ago. JohnR’s “two words” sum it up.


  6. - anon - Tuesday, Nov 14, 06 @ 9:05 am:

    I used to shop at Field’s when I was in Chicago. I haven’t been to Macy’s in Chicago. I go to Nordstrom now. Springfield has a Macy’s. Macy’s are like A——-, everyone has got one.


  7. - Just Say No - Tuesday, Nov 14, 06 @ 9:25 am:

    No self respecting Chicagoan shops at big box retailers; they take jobs away from mom-and-pop stores, and decrease the character of our fine city.

    If you are giving a pass to Macy’s because they are a ‘nice’ stored compared to Walmart, you are simply a rationalizing snob.


  8. - VanillaMan - Tuesday, Nov 14, 06 @ 10:03 am:

    Just WHO are the freaking geniuses over there? Who is dumb enough to invest with these clueless wonders?

    It was more than just a name change. Macy’s went from what little exclusivity they held in the market to no exclusivity. You can’t charge profitable prices for high end merchandise from stores you find in every shopping district!

    Macy’s blew it two ways. They cheapened their image, while at the same time destroyed the loyalties from the stores they took over.

    They think they have a “Chicago problem”? They have a marketing problem that is revealing itself in Chicago. Leave it to their stupidity and arrogance to think there is something wrong with us.

    They JCPenney-ed themselves. I buy my everyday clothes at JCPenney and respect their tradition and culture. But I used to shop at Fields, Bloomingdales and Nordstroms for my special and business clothes. I shop high end for Christmas. Macy’s was NEVER on my short list because they NEVER had a decent image to justify their prices.
    We would shop at Carson’s before Macy’s.

    So, just what is Macy’s now? There is no exclusivity behind the brand. There is little quality behind the brand. No one tells you they are going to shop there, because it doesn’t mean anything.

    Watching Fields and other regional department stores become Macy’s is like seeing a slew of old Cadillac Cimarrons, or Cateras. Fake. Unauthentic. Mass produced mediocrity.

    Macy’s has a bigger problem than just loyal Chicagoans. The Chicagoans that are not shopping at Macy’s are the ones that know the difference between bling and jewelry. We don’t shop for bling.


  9. - Skeeter - Tuesday, Nov 14, 06 @ 10:07 am:

    People, wake up.

    The Field family has not owned the place for about 20 years.

    It was a part of the Dayton Hudson chain for a long time, and now it is part of the Federated chain.

    It hasn’t been locally owned in a long time.
    If you like the store before the name change, you should like it now.

    If, like me, you thought it was a beautiful building but didn’t see a point of shopping there, that also shouldn’t change.

    The real loss was when the Field family sold. That was long ago though.

    If you boycott the place just because of the name, you are just hurting the employees. If they have quality merchandise for a fair price (and I don’t think they do) buy it. If not, go someplace else.

    But all this talk about the name is just ridiculous.


  10. - Niles Township - Tuesday, Nov 14, 06 @ 10:44 am:

    They made such a mistake. They could have made every Field’s store a Macy’s except State Street. This would have generated goodwill, and made the State Street Field’s store even more of a tourist destination. It would be the only Field’a, like the one and only Harrod’s. How short-sighted that they missed that chance.


  11. - Angie - Tuesday, Nov 14, 06 @ 10:50 am:

    I live near a suburban one, and it looks exactly the same, unless they plan to revamp everything at some point.

    Too crowded a floor display, but a lot of the same brands that Field’s used to have. The thing is that consumers really don’t see much difference with a lot of these large retailers (and there are so many specialty shops, known as category killers, that the large stores compete with), so there’s been a ton of consolidation.

    Anywho. Kept the account when it switched over from Field’s to Macy’s, but still have to recommend Nordstrom as the five star store if you want a large store environment. Best customer service in town, best floor plan of all the large specialty stores, and yes, you can find reasonable price-points (some of their private label stuff, for instance).

    Different crowd. People are more polite. Service is A+.

    Field’s went downhill after they ended up with Dayton-Hudson, then Target (ugh, horrible changes when Target Corp. took over), and then sort of tanked from there on out.

    Should be interesting to see how Macy’s competes in this area, especially with competition from Nordies and Bloomies.


  12. - Angie (post-script) - Tuesday, Nov 14, 06 @ 10:54 am:

    The Oak Brook Nordstrom is the largest outside of downtown, by the way. And you can actually, unlike in the city, find some friggin’ parking!!


  13. - Way Northsider - Tuesday, Nov 14, 06 @ 11:16 am:

    Fields or Macy’s - they were/are owned by chains. I try to avoid shopping in chains. Sometimes have to but see no reason to go to Macy’s. Try to support local businesses. They put their money back into the local economy so the multiplier effect is much higher.


  14. - zatoichi - Tuesday, Nov 14, 06 @ 12:23 pm:

    Call the store whatever you want. If the bodies are not in the aisles, buying, it simply will not matter. Macy’s ego just shot both feet. They could have simply kept the Fields name, added a small “division of Macy’s Inc” sign somewhere, pushed the tradition angle, and worked on getting people back into the store. If the products are overpriced, average quality, people will shop elsewhere and Macy Inc will follow the success of Goldblatts and Korvettes.


  15. - the Other Anonymous - Tuesday, Nov 14, 06 @ 1:08 pm:

    While I agree that the big change came when the Field family sold the store, I still give credit to Dayton for trying to keep the pretense of a Chicago brand.

    I have very purposefully refused to shop at Field’s/Macy’s since they announced the name change. I don’t know what Macy’s in Chicago looks like, and I’m not curious.

    I bet the Macy’s people put ketchup on their hot dogs, too.


  16. - Suburbanon - Tuesday, Nov 14, 06 @ 1:49 pm:

    I have shopped and purchased Macy’s stuff since the name change, despite my Chicago loyalty. I found the staff very helpful because I was the only shopper in their section. It was so quiet, it was eerie. Anyway, I took advantage of a sale while I was there. But I must admit, it just doesn’t seem the same. It looks and feels like a high end JCPenney.


  17. - publius - Tuesday, Nov 14, 06 @ 2:27 pm:

    i have no interest in their national brand—and won’t shop in their store—for my money neiman’s is a wonderful,classy place to shop


  18. - frustrated GOP - Tuesday, Nov 14, 06 @ 2:37 pm:

    So they couldn’t use: Macy’s at “Marshall Fields on State” and made it a flagship for higher end good? Not hard there! It’s really hard to diss 100+ years of history and think people won’t be hacked off. Even the target folks ran it into the ground they at least kept the name, screwed the brand. bunch of dumb new yorkers. Probably a mets fan.


  19. - Jacketpotato - Tuesday, Nov 14, 06 @ 3:52 pm:

    I was in the State Street Macy’s last Friday. It’s pretty much the same. There are definitely a lot more store brands exclusive to Macy’s and from what I’ve read that’s where the margins are. Pretty much the same service. I still feel like I’m cheating if I buy anything there. I can’t even bring myself to buy lunch on the Seventh Floor.

    Even with the mediocre service people who made their purchases could at least buy some nostalgia. Federated has only enraged longtime consumers of that nostalgia. Just anecdotally, I know of at least three generations of women that have cut up their Macy’s cards and sworn never to go. The changeover to Macy’s has just hastened the death of any sort of mid-market department store in Chicagoland.


  20. - Frosty Da Snowman - Tuesday, Nov 14, 06 @ 4:15 pm:

    First off, Macy’s IS NOT a New York department store, it is a Cincinatti department store. Macy’s hasn’t been a New York store in years. Likewise for Bloomindales - another Cincinatti store.

    Department stores are dinosaurs in their last death throes. Consolidation is the last bid for any semblance of survival.

    The Internet and specialty stores are where people shop now. I’d much rather do my X-Mas shopping sitting at home, on my computer, in my skivvies, picking my toes than trudging around a hot, stuffy big box. Of course, with Capitol Fax open in a window as well…


  21. - Just me - Tuesday, Nov 14, 06 @ 4:42 pm:

    I was there for the first time this weekend, but only because they’d sent me a promotional $10 gift card.


  22. - A. Nonymous - Tuesday, Nov 14, 06 @ 4:45 pm:

    I have been through the State Street store, but didn’t buy anything. I think the name change was foolish, however, the New York elite that run the chain didn’t know any better. Now they’re seeing it in their bottom line. This could be the best Chicago - New York battle (outside of Sunday’s game) since Jordan v. Starks.

    BTW, they kept the Lord & Taylor name, so there should have been some way to keep Marshall Field’s.


  23. - The Horse - Tuesday, Nov 14, 06 @ 5:56 pm:

    duh… they standardized the merchendise last year, this was just a name change. As someone who never lived in chi, I will break it to you gently … Fields hasnt been no big deal for a long time! The walnut room is still a pretty place for lunch, but the store is still just as hard to get around in as it always was… a dinosaur is still a dinosaur.

    Famous Barr was a late/recent addition to Spfld, and now its a Macy’s too.

    What ya all should be sad about is the closing of Carsons. gee, i’ll miss those ribs. ;)


  24. - Angie - Tuesday, Nov 14, 06 @ 9:53 pm:

    [Department stores are dinosaurs in their last death throes. Consolidation is the last bid for any semblance of survival.]

    Right. That’s why the specialty stores, like Nordies, will survive. There’s something distinct about the service and the atmosphere that sets such stores apart from the ones that are just one big bunch of individual departments full of stuff you can find at a category killer specialty store at any suburban strip mall.

    Gee, maybe the service will get better since they’re all dying now, huh? lol


  25. - Anonymous - Tuesday, Nov 14, 06 @ 10:10 pm:

    I love how people say they are upset about the name change and won’t shop at Macy’s…and then admit that they never shopped there that much when it was Field’s, either. Frankly, I never liked Field’s that much — I got tired of garishly made-up, heavily-perfumed saleswomen jumping on me as soon as I came within 10 feet of the cosmetics counters and stalking me until I bought something. I never buy anything at Field’s, er, Macy’s anyway, except for make-up — and Clinique is Clinique, regardless of the store selling it.


  26. - Emily Booth - Tuesday, Nov 14, 06 @ 10:33 pm:

    It just about broke my heart to exit 111 N. Wabash and see the Macy’s name on the awning to Marshall Field’s. For those of us who grew up in Chicago, Marshall Field’s has a strong cachet. Everyone has a story about their excellent customer service. I went with my mother on many shopping trips to Field’s then began shopping there on my own after college. We could take the el or the subway and enter the store directly from the train. The downslide of Marshall Field’s began when Dayton-Hudson took it over. They upgraded the facility but replaced many of Marshall Field’s lines with lines of lesser quality. The sales clerks were not as well-trained. I don’t understand why they couldn’t keep the name and the green paper shopping bags and improve the merchandise and customer service. I don’t think Chicago will ever warm up to Macy’s.


  27. - HRH Weezer - Wednesday, Nov 15, 06 @ 11:26 am:

    Macy’s stinks. They got rid of the Field Gear line, which had plenty of talls for both men and women. Now it is impossible to find decent tall and long sizes there. Macy’s will never be what Marshall Field’s was. I won’t shop there.


  28. - Angie - Wednesday, Nov 15, 06 @ 1:55 pm:

    [I got tired of garishly made-up, heavily-perfumed saleswomen jumping on me as soon as I came within 10 feet of the cosmetics counters and stalking me until I bought something.]

    Chuckle chuckle. They train ‘em that way on purpose, so they can increase sales.

    The goal is to make women look like complete streetwalkers so they sell more products all at one time. In reality, you need some blush to brighten up your cheeks and maybe play up ONE feature (eyes?) at a time, but not the whole Las Vegas showgirl thing.

    They can’t sell multiple shades of something more neutral, because women only need one. Hence, the sales and marketing plan is designed to convince clueless twits that eight different shades of eyeshadow will look great if only they were “blended” well (snorts with laughter).

    Putting that look on floor #1 is often what ruins the upscale image of some of the higher end stores, but I guess it sells products to silly people.


  29. - Skeeter - Wednesday, Nov 15, 06 @ 2:11 pm:

    Although this may sound weird to people from the suburbs or elsewhere, the Loop is becoming increasingly residential. The result is that people want to walk around with the family — including pets.

    I don’t think I can bring my Germ. Shep. into Macy’s. However, Nordstrom’s on Michigan Ave. welcomes him. On a cold day when we need to get out of the house but don’t really want to just walk around outside, my wife and I will often wander to Nordstrom’s with the dog. It is a great way to stretch our legs and my wife and I can also get our shopping in. We’ve spent a lot of money in places that we went into specifically because the dog was allowed in. A walk around the neighborhood turns into some major purchases.

    Macy’s is not from here, and I don’t think they understand the neighborhood yet.


  30. - tryit - Wednesday, Nov 15, 06 @ 3:28 pm:

    http://www.fieldsfanschicago.org/


  31. - Erick Ambassador - Wednesday, Nov 15, 06 @ 4:10 pm:

    Join a unique and special boycott of Macys at 1pm on Black Friday, November 24, the day after Thanksgiving under the Great Clock of our beloved Marshall Fields. Also visit our web site for chats and the latest news on this great Chicago institution.


  32. - Erick Ambassador - Wednesday, Nov 15, 06 @ 4:20 pm:

    www.fieldfans.org


  33. - Erick Ambassador - Wednesday, Nov 15, 06 @ 4:22 pm:

    my apologies, the correct address is www.fieldfanschicago.com


  34. - KPO'M - Wednesday, Nov 15, 06 @ 6:27 pm:

    I think Federated wasted an opportunity with the name change. They are spending a lot of money upgrading stores nationwide, and locally could have capitalized on the Field’s name by restoring the store to what it was before Target commoditized them, and launching a “Field’s is back” campaign. Instead, they have created so much negative goodwill by changing the name to Macy’s, they will have to bend over backwards to get some people into the stores.


  35. - 5th gen chicagoan - Wednesday, Nov 15, 06 @ 7:43 pm:

    Terry Lundgren goofed by not knowing the Chicago market. Field’s could be a viable high-end store, suitable to its State Street building. To me, it’s a total desecration of the Marshall Field name and many people, not just in Chicago, are extremely upsent about the loss of regionalism and homogenization of everything.


  36. - Li - Wednesday, Nov 15, 06 @ 9:11 pm:

    Terry Lundgren made his choice and I have made mine. In this day and age there are so few opportunities to take a stand and really feel that it might make a difference or even be noticed. Personally boycotting Macy’s and spending all my Christmas dollars at any other Chicago store is one of those times. I have made a point to friends and relatives that I do not want any gifts purchased from Macy’s either. So I am clear, I will spend as much money as usual in Chicago so the city of Chicago will still get its sales tax revenue and some other Chicago store will get the profit from my purchases. The thousands of others like me who are refusing to patronize the store formerly known as Fields are sending a cumulative message to Federated’s board of directors that is far more powerful than any words.


  37. - fromCalifornia - Wednesday, Nov 15, 06 @ 9:45 pm:

    There was a time back in the 70’s and 80’s when Macy’s was a cool store even up until 10 years ago .I did alot of my shopping there. Very elegant, sharp and fashionable. Beautiful clothing and housewares. The stores now by me are kinda sad looking. Crowded merchandise, clothing on the floor, dirty torn carpets, flooring missing tiles, lighting that hasn’t worked in years, very depressing. The prices are not what I would call inexpensive either. All the cool name brands designer merchandise were discontinued and the crummy housebrands are now the rule. When I was a kid, my local Macy’s was the sharpest store in town. If you shopped at Macy’s it meant something. Any schmo could shop at Penny’s or Sear’s but Macy’s had class. Sadly it’s not the case anymore. No one will ever convince me that Macy’s is the equal to Field’s. Field’s on a bad day is still better than what your getting now with Macy’s. I read that Macy’s is cutting back on maintenance, well it stands to reason the same thing will happen to your stores as what happened to the one’s by me in California, it’s only a matter of time, that’s very sad. FDS is driving Macy’s into the ground.


  38. - FieldsIsChicagoDotOrg - Wednesday, Nov 15, 06 @ 10:20 pm:

    People shopped at Marshall Field’s because it was a Chicago tradition. It was where your mom bought her wedding dress, where your son bought a suit for that first “real job,” where your daughter bought her prom dress. Marhshall Field’s was it. Period. It was THE store for Chicagoans.

    Marhall Field (the man) helped build the Shedd Aquarium, the Merchandise Mart, the Field Museum, and the ulitimate department store in the world - Marshall Field’s. No one can take ownership of that. That was Marshall Field’s hard work and legacy - not Macy’s.

    Macy’s will not last.

    www.fieldsischicago.


  39. - Mapleleaves - Wednesday, Nov 15, 06 @ 11:00 pm:

    I spent a LOT of money at Field’s - in fact, if they hadn’t chosen to close down my former Dayton’s and Hudson’s accounts with the merger, I’d have THREE platinum Macy’s cards.

    I don’t live in Chicago, but I go about twice a year. Marshall Field’s was the last of the great full-line, mid-range department stores. If you wanted a $20 shirt or a $200 one, a $10 set of wine glasses or a $1,000 set, you could get it. And the sales staff treated you the with the same courtesy no matter what you were shopping for.

    Macy’s has dropped Field’s better brands and replaced them with their high-margin, low quality store brands. Their “improvements” are all designed to eliminate customer service - who needs price scanners and shopping carts when you’ve got an attentive salesperson?

    The traditions and practices they’ve dropped are irritating, and the ones they’ve kept seem usurped by conquering hordes. There’s nothing positive or pleasant about Macy’s running a store at 111 N State Street. Or anywhere else.

    The Macy’s where I live have unattentive cashiers who will only venture from behind the register for a smoke break or to check out the clearance racks to see what they can buy with their discount. Their selection is shoddy, prices are higher (it’s funny when the same thing is cheaper at Bloomingdale’s!), and service is bad. Why would I visit Chicago to see all this when I don’t want to see it in my own back yard?


  40. - Angie - Thursday, Nov 16, 06 @ 1:52 am:

    Man, is this depressing. They’re gonna revamp a little, right?

    They sent me a gold card, and since I closed my Lord & Taylor account when I noticed that “The Signature of American Style” had Made in China stuff that costs way too much considering it was made practically from slave labor. It is always good to keep at least one store charge card around.

    How bad is it gonna get? Hopefully better if they listen to the public about what changes they should make?


  41. - GVT - Thursday, Nov 16, 06 @ 4:23 pm:

    I did shop at Fields, often doing all of my Christmas shopping there. I have not set foot in Macy’s on State (or any former Fields store) and never will. For those who say Fields changed long ago, they are partly right. But the goal should have been to restore Fields to its former glory, not to downgrade it to a Macy’s. Didn’t the geniuses at FDS learn about the power of branding? Why do they think people pay $3 a cup for coffee at Starbucks? The Fields brand kept people coming back despite the changes over the years. The goal should have been to match the quality of the store with the strength of the brand, not to throw out the brand and lessen the quality of the store!


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