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Thursday, Mar 28, 2024

Macy’s, Bloomingdale’s: Hard to Tell the Difference?

Macy’s, Bloomingdale’s: Hard to Tell the Difference? RETAIL By SHELLY GARCIA Late last month Macy’s Fashion Square in Sherman Oaks unveiled a new, gussied up ready-to-wear department, with 14 new designer labels including such A-list names as Marc Jacobs and Trina Turk. The new selection, which will be further expanded in the spring with designers including Killah, a division of Miss Sixty, and Moschino, fits well into the mix of Westfield Shoppingtown Fashion Square, which draws an upscale shopper, including stylists working for the studios to the East. But what’s unusual about the facelift at Macy’s is that the new selection, more often than not, overlaps directly with the offerings of the mall’s other anchor, Bloomingdale’s, just feet away. Even more perplexing, Macy’s and Bloomingdale’s are both divisions of the same company, Federated Department Stores Inc. There was a time when the different units of a department store company were easily distinguishable one chain might appeal to moderate price shoppers and another might focus on a more high-end clientele. But as department stores have been squeezed out of the mid-priced niche by retailers like Target and Kohl’s, more are turning to high-fashion, even if their brethren occupy the same territory. “Macy’s, in their attempt to try to become more important in the retail mall environment, is doing what a lot of other big name retailers are doing, and that is showcase the luxury market,” said Marshal Cohen, chief industry analyst for NPD Group, a market information company in Port Washington, N.Y. “But what ends up happening is at the same time Macy’s is doing it, so is Bloomingdale’s and so is Nordstrom. In many cases they end up looking a lot alike.” Macy’s, which is traditionally a mid-priced department store, says the changes were made to meet customer demand. “We wanted our assortment to reflect the needs of our customers,” said Amy Pierce, the store manager at Sherman Oaks. “We continually ask for feedback from them so that we can meet their needs.” But others point out that shoppers still want the moderately priced fare that Macy’s once offered, only now they are more likely to look for it at a wider variety of stores. “They’re relying on the old days when the consumer was dedicated to a store. You went to Bloomingdale’s because it matched your expectations,” said Cohen. “That’s not true anymore. Today, 56 percent of consumers shop across the distribution channels, so every other shopper is shopping at a different store. It’s a major issue.” Holiday Heat ‘Tis the make it or break it holiday shopping season, and there is more than the usual hand-wringing this year. First, there is a great deal of uncertainty over how much consumers will be willing to spend. And competition is expected to be more brutal than it’s ever been. Added to those dynamics, shopping malls have another dilemma. Aggressive store expansions in recent years has made one mall look pretty much like the next. All are looking for a point of differentiation. For Westfield Holdings Ltd., which operates Westfield Shoppingtown Topanga in Canoga Park, Shoppingtown Promenade in Woodland Hills and Shoppingtown Fashion Square in Sherman Oaks, among others, at least part of the answer lies in an elaborate promotion that combines charitable gift giving with special discount offers to shoppers. The promotion, called Westfield Works Wonders, held last weekend, was timed to capture shoppers’ attention before the official start of the holiday shopping season Thanksgiving weekend in hopes of keeping shoppers loyal throughout the season. In Sherman Oaks, Westfield distributed discount coupon brochures featuring most of the stores in the center to about 30 non-profit community groups in the area, from Cat Connection to Sherman Oaks Elementary. The groups in turn distributed the brochures to their members, who then can ask the mall to credit their favorite charity for the purchases they make on the designated day. A $7,500 cash prize is divided among the participating non-profits based on the purchase tally assigned to each one. At Topanga Plaza, shoppers buy tickets to a dedicated night of shopping from their local community groups about 70 organizations ranging from the West Valley Boys and Girls Club to the local high school soccer team. The organizations keep the funds collected from the tickets sold and the shoppers in turn get stickers that entitle them to discounts at most of the stores in the mall the individual retailers set their own promotional offers. Last year, participating charities raised $30,000 from the event, which draws about twice as many shoppers more than 65,000 as a typical Sunday night at the mall. Both centers offer other freebies and prizes to shoppers, such as a free photo with Santa, often tied to making a return trip to the mall. “Whatever we can do to jump start the holiday season is obviously going to be a plus for the retailers and Westfield Works Wonders is a way we can maximize the amount of exposure we get and the stores get,” said Najla Tabbah, marketing director at Westfield Shoppingtown Fashion Square. Malls have increasingly added services and amenities in hopes of garnering shoppers’ loyalties for the holiday season, and this year, with the jury still out on how strong holiday sales will be, many have added new services. Fashion Square has added designated parking spaces for expectant mothers close to the mall’s main entrances, for example. Shoppingtown Topanga this year has added an ice rink at the corner of Victory Boulevard and Owensmouth Avenue. “I think there is shopper loyalty because of these things we do,” said Beth Silhasek, marketing director of Westfield Shoppingtown Topanga. ” This is the first installment of a new Business Journal feature focusing on retailing and marketing in the greater San Fernando Valley. The column will appear periodically. Please send news and comments to Senior Reporter Shelly Garcia at (818) 316-3123 or by e-mail to [email protected].

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