Not sure where to put this, but interesting nonetheless...
http://www.suntimes.com/business/122...tail03.article
Sales lag at Macy's
Federated denies shopper anger involved in slowdown at new stores
November 3, 2006
BY SANDRA GUY Business Reporter
The grinch stole holiday buildup from Federated Department Stores' efforts to win over shoppers to Macy's in Chicago and nationwide.
Federated representatives insist that shoppers' anger at Marshall Field's and other regional stores' changeover to Macy's has nothing to do with disappointing sales reported Thursday. The weakness was concentrated in Field's and other department stores formerly owned by May Department Stores, including L.S. Ayres, Famous and Barr, Hecht's, Meier & Frank, Robinsons-May and Strawbridge's.
Federated bought Marshall Field's and the other former May Department Stores for $11.9 billion in August 2005.
Those stores continue to lag in sales, according to Federated, which declines to be more specific or to disclose figures by chain.
In contrast, the original Macy's and Bloomingdale's department store chains showed strong sales results in October from a year ago, with same-store sales jumping 7.7 percent, Federated announced on Thursday. The increase was higher than analysts' forecast for a 6.1 percent gain.
Marshall Field's loyalists have made plans to protest outside Macy's flagship store at 111 N. State St. every Saturday throughout the holidays.
Macy's spokeswoman Jennifer McNamara said Thursday that customers are pleased with the improvements Federated has made to former Marshall Field's and other stores.
She noted that the National Retail Federation on Thursday named Macy's for the first time among the top 10 retailers in the nation for customer service. Macy's brick-and-mortar stores ranked No. 10.
Macy's expects more than 4 million people will view the State Street store's holiday windows theme of Mary Poppins, McNamara said.
Federated's total revenue declined 7.9 percent, to $1.86 billion for the four weeks that ended Oct. 28, because Federated closed 79 stores that were too close together and would have impeded competition after it acquired the May department stores.
Third-quarter sales grew 6 percent to $5.89 billion.
Federated CEO Terry Lundgren remained optimistic about the holidays, saying same-store sales should increase 3 percent to 5 percent in November and during the entire holiday season. But analyst Carol Levenson of Gimme Credit research firm told investors that Federated might find it more difficult than executives expect to issue new bonds in order to back up a tender offer for up to $750 million because of billionaire corporate raider Carl Icahn's increased stake in the company.
Other department stores continued to see strong sales, outperforming discount stores in a reverse of a long-held trend. The stars included J.C. Penney and Nordstrom. Discounters Target and Kohl's same-store sales fell short of analysts' expectations.
Analysts believe shoppers motivated by lower gasoline prices and cold weather will boost retailers' sales by 5 percent nationwide this holiday, slightly below last year's 6.1 percent increase.