Thu 16 Aug 2007
Ouch! Macy’s slashes outlook for quarter after profits drop 77 percent
Posted by Daniel under Uncategorized
Macy’s should be reconsidering its move to Chicago after profits for the second quarter fell a resounding 77 percent. But while profits went up at a mere 13 cents per share, they’re fretting over this quarter’s profits, and they reduced their profit expectations to as low as five cents per share.
They should have left it as Marshall Field’s, but is this an omen?
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August 16th, 2007 at 8:07 am
As much as its an omen, its a direct result of actions taken to create a “national brand” that nobody wants or cares about!
As a former Bostonian, it was well known that Filene’s was part of the May Company, and that there were May department stores around the country. When gift cards came into the mainstream, it was well-known that you could use a Filene’s gift card at other May stores. A well-known and respected brand that was part of a larger entity that could leverage its size to get better prices - a true win-win if there ever was one.
What Macy’s did was decided it wanted to get a better price on bags and boxes. It had to change the signage of every store and every other physical, non-disposable item that had the name of all of the almost dozen May stores on it. It will still need to run “local” ads in each city, for as much as they are the same they are different.
This has put Macy’s in a good place to be taken over, and nostalgia will be the second reason for a VC to return the name Marshall Field’s, and profitability will be the #1 reason.
mp/m
August 16th, 2007 at 7:38 pm
Sandra Guy over at the Sun-Times has been doing a good job covering this story, so it’ll be interesting to see how it unfolds.
There’s also a good chance the Field’s building will be sold and turned into high-end retail and condos, just like Carson’s a few blocks away.