According to a report by the Pioneer Press, Frank Guzzetta, chief executive officer of Macy's North, is willing to admit the national chain has had rough going, especially when it comes to the former May Department Stores' locations. What he will not agree with, however, is that the problems relate to the company changing the names above the door on those locations.
"We didn't focus on developing new customers and explaining what Macy's was all about," he told an audience at the Carlson School of Management on Tuesday. "It was not the name."
Mr. Guzzetta points to Marshall Field's to make his point. While consumers, particularly in Chicago, have reacted negatively to the Macy's banner, the former Field's chain was struggling well before it was acquired in the deal with May.
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| "Field's Fan" distributing leaflets outside Macy's State Street, Chicago. Photo: RetailWire |
While there is no guarantee that Chicago consumers (or others in other cities) will ever come around, Macy's believes it is making changes that will help it connect with consumers in markets across the country. Even now, stores in markets including Chicago are beginning to improve, he said.
Macy's has also had problems in Minneapolis where stores have gone through several name changes. According to Mr. Guzzetta, Macy's in downtown Minneapolis and at the Mall of America are doing well.
The national department store chain has turned to star power and familiar private labels to help it regain lost ground.
The company recently announced a new ad campaign that features celebrities with lines sold in Macy's. The highest profile celeb, from a group that includes Donald Trump, Jessica Simpson, Diddy, and Usher, is Martha Stewart.
Ms. Stewart's line, The Martha Stewart Collection, has 2,000 products including home goods, textiles, cookware and holiday decorating items. Eventually, it has been reported, the line will be broadened to home furnishings, bridal registry items and cookbooks.
Count Donald Trump among those who believe that Macy's chief Terry Lundgren has a winning strategy. He told The Enquirer, "I believe (Mr. Lundgren) is absolutely on the right track. He's a winner, and he's always been a winner. This ad campaign will be very successful."?
Discussion Questions: Has too much been made of the Macy's name change when it comes to explaining some of the difficulties the chain has encountered? Will the company's focus on "star power" help it to begin to attract shoppers who have refused to this point to shop in its stores?