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Macy’s reigns on name parade

When Federated Department Stores begins folding May Department Stores Co.’s stable of regional banners into its Macy’s operation sometime next year, the Cincinnati-based retailer will do so with total confidence, executives say. They learned during the last round of conversions that the Macy’s brand trumps regional names — even a powerhouse like Burdines.

In March Federated put the 107-year-old Burdines brand on ice in Florida, unveiling gleaming new Macy’s signs on its 61 former Burdines-Macy’s stores throughout the Sunshine State.

Federated executives did not make the decision lightly, says Timothy Adams, the first president of the newly christened Macy’s Florida, who was also the last CEO of Burdines and the only president of Burdines-Macy’s.

“For a brief moment, Federated considered keeping Burdines as a stand-alone concept like Bloomingdale’s,” because of its rabid Floridian following, Adams told investors at a Smith Barney conference in Florida in February.

But now that the whole conversion process is done, Federated is more than pleased with its decision, he says. Industry watchers predict that Federated will consider the same option for May’s Lord & Taylor and Marshall Field’s brands, including whether to sell or operate the brands as stand-alone operations.

On the same day Burdines disappeared, so did Bon Marché, Goldsmith’s, Lazarus and Rich’s. They were all storied regional retailers in their own right, but Federated says consumer research revealed that the power of the Macy’s brand overshadowed them — including Burdines. “Forty-two million people watch the Macy’s Thanksgiving Day parade,” Adams said.

The Burdines-Macy’s stores did better-than-average sales last year thanks to the added appeal of the Macy’s name, Adams says. “The west coast of Florida didn’t have any Macy’s,” Adams said. “When we added that powerful national brand, it drew in new shoppers.”

Federated has already committed dollars to expanding and renovating former Burdines-Macy’s stores in Bradenton, Fort Lauderdale, Miami Beach and St. Petersburg, he says.

Now Federated hopes to accomplish similar feats with May’s regional brands, including Famous-Barr, Filene’s, Foley’s, Hecht’s, Robinsons-May and Strawbridge’s. It won’t be easy, but it will be worth it in the long run, Adams says. He admits that the hard-core Burdines shopper is still out there, waiting for Macy’s to flop. “We’ll have to overachieve,” he said, “just to stay where we are in her mind.”

— BB