Macy's launches big ad campaign

0 Comments | Deseret News (Salt Lake City), Sep 7, 2006 | by Lisa Cornwell Associated Press

CINCINNATI -- Federated Department Stores Inc., the nation's biggest department store retailer, on Wednesday unveiled a large promotional campaign to relaunch the Macy's brand nationwide.

The promotions are aimed at building Macy's into a nationwide brand while luring customers of the former May stores that include such longtime retailing names as Foley's, Filene's, Kaufmann's, Meier & Frank, Robinson-May, Strawbridges and Marshall Field's. The switch to the Macy's nameplate will give Federated more than 800 Macy's stores in 45 states, the District of Columbia, Guam and Puerto Rico -- including eight in Utah.

Federated became the nation's largest department store retailer when it bought May Department Stores Co. last year. It is converting about 400 May stores to the Macy's nameplate.

Advertising will run on national and cable television, newspapers, magazines, radio, billboards and online. The company also will send 54-page catalogs to 3.8 million people in markets new to Macy's.

The switch of the stores Saturday will be celebrated by block parties, ribbon-cutting ceremonies and gift-card giveaways, Federated said Wednesday.

"Consumers soon will see Macy's as a fashion leader on the national stage, yet accessible locally," said Anne MacDonald, Macy's president of corporate marketing and chief marketing officer.

Cincinnati-based Federated completed the $11 billion buyout of May in August 2005. Its plan for a national retail strategy for Macy's started before that as it began changing other regional department store nameplates -- including Bon Marche, Burdines, Goldsmith's, Lazarus and Rich's -- to the Macy's brand.

Robert Passikoff, president of Brand Keys Inc., a New York-based customer research marketing firm, said the extent of the Macy's campaign came as no surprise.

"I think it's exactly what they should be doing," he said. "The use of TV to get higher attention and get the announcement out is a very smart move, although it's not likely to be the long-term strategy. After the dust settles, they likely will migrate back to more traditional methods such as newspapers."

James Dion, founder and president of the Chicago-based retail consulting firm Dionco Inc., said the plans for a nationwide program of community service projects that will begin Sept. 15 in selected cities also was a good move.

"I think that any business or retailer has got to be perceived as giving back to the community," Dion said. "This resonates with people that Macy's is not just a big company coming in to suck money out of the local community."