Federated Department Stores of Cincinnati owns Macy's and Bloomingdale's.
Macy's was founded in 1858 as a dry-goods store in New York City and R.H. Macy & Co. merged with Federated Department Stores in 1994, creating more than 400 department stores and 157 specialty stores in 37 states.
Federated identified that department stores were running into some problems and they had to differentiate and that's where the private brands came in.
Macy's will be a national department store but will be run locally in its seven divisions so it will continue to feel like a local department store.
The creation of the Macy's mega-brand comes when consumers shop less at department stores.
Department stores snared nearly 4 percent of total retail sales last year, down from more than 7 percent a decade ago.
Macy's will now have more than 800 stores in 45 states and thinks it can turn the tide of consumer sentiment toward it and away from fast-growing retailers.
It launched a national advertising campaign this week and sponsors the reality design show "Project Runway" on Bravo.
But it also will continue to give to local charities and sponsor local events.
Macy's bringing back some of the polish that distinguished premier department stores from cookie-cutter ones.
Shoppers will perceive it as a company proud to be a department store instead of a poor stepchild of another company.
People in the market will just be elated that someone who is a first-class operator is putting forth the energy and will restore the luster and polish that Hudson's had many, many years ago.
marketing@alchempro.com
