Macy's adapts to the downturn
Retailers are facing grim predictions for meager Christmas-sales growth. So Kai Ryssdal spoke with Macy's CEO Terry Lundgren about how one of the biggest retail chains is dealing with the downturn.
Macy's CEO Terry Lundgren (Macy's)
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EXECUTIVE PROFILE
Who: Macy's Chairman and CEO Terry Lundgren.
Education: Lundgren earned an undergraduate business degree from the University of Arizona.
What you may not know: The Lundgren Center for Retailing at the University of Arizona is named for him.
Comments
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From Ashland, OH, 09/18/2009
I am the manager of a small, hospital gift shop. Somehow I received a Macy's email advertising a sale. I went into the website and ordered baby merchandise for the shop. I called a number listed on the website,which was in Cincinnati, to obtain tax exempt status. I was given a fax number to which to send the paperwork.
When I called back to tell her I was having trouble getting the fax through, she said for the inconvenience there would be no shipping and a $20.00 credit. To my surprise when the merchandise arrived tax had been charged,and some of the items from the "one day sale" were not at the sale prices. There were sleepers that had a tag stating "not fire resistant" so I took those back to the local store. It took me several days to get the other mistakes ironed out. Silly me, I tried ordering again from the "BABY" sale. None of the prompts worked and I received an email saying their system was down. I gave up on the tax exempt.
My husband reported that a company who watches business in trouble listed Macy's as one that would possibly go bankrupt. I can certainly see why. For the most part the sales people were trying, but the website and company regulations are antiquated.
From Champaign, IL, 09/07/2009
The decision to stick a nothing-special, bland, same-same macy's in every city in the U.S. and killing the regional department stores is already going down as the worst retail business decision, and the example of how NOT to conduct good business sense. Marshall Field's is a legendary icon of fashion, quality merchandising, superb service in the world and in the U.S. Terry Lundgren is already paying severely for his terrible poor decision. His arrogance and stubborn attitude in his own self-image prevents him from bringing back the Field stores...even though he now realizes the error of his ways. His so-called idea of having a "national department store" was not new, since we already have had the likes of JCPenney, Sears for centuries and Kohl's, Target and Wal*Mart for decades. The quality of his stores competes with the later two--Target and Wal-Mart. His board of directors and shareholders need to get rid of him for the financial future of the company.
From OH, 09/04/2009
Macy's is pathetic. Fake designers and fake sales. I's tired of their claims to a national department store chain as if Sears, Penny's and Kohl's were not there first. All that Macy's and Lundgren achieved was attempting to eliminate home town favorites they feared as competition. Macy's is not even New Yorks home town favorite. The only competition for Macy's inflated prices are the inflated egos of its leaders.
From Houston, TX, 09/03/2009
I absolutely despise Macy's. I live in the Houston area and Macy's is no Foley's. The stores are awful now and the merchandise is cheap and overpriced. I predict we will see massive store closings involving the old Foley's locations (along with the other former May divisions). I shopped Foley's without coupons. I disagree that Macy's problem is coupons. It is much more than that. It is a multitude of problems created by themselves. It is funny that every month that their poor sales figures come out they blame something - the weather, a change in promotions, couponing, customers needing to be re-educated due to their "confusion" over the change in merchandise. This is hysterical considering Macy's competitors do better in this difficult environment and have benefited from Macy's alienation of their former customer base (Nordstrom, Saks VonMaur on the high end, Penney's, Kohl's etc on the low end and Dillards in between). Dillard's associates have told me they have seen a marked increase in their business since Foley's demise. The arrogance of Terry Lundgren is appalling. Just admit you made a mistake and bring back the regional identities and traditions as well as the better merchandise. Atlantans are still not over Rich's nor are Floridians over Burdine's, Californians over Bullock's/Bullock's Wilshire, I Magnin, The Broadway, Robinsons, May and the list goes on and on. Folks across the country are sick of the cookie cutter stigma across the board. Everywhere you go are the same banks, department stores, restaurants. As I said before, Macy's downfall is their own fault. They should have been a good merchant and listened to the customer prior to abolishing all the regional nameplates and all the other changes. Bring back Foley's, Marshall Fields and the other iconic stores!!!
From Chicago, IL, 09/03/2009
I find it impossible to see anything positive about Lundgren. The Macy's on State in Chicago (once our proud Marshall Field's) has become so neglected it is an absolute eyesore to have to walk by, much less go inside. People who live in Chicago and work near State Street can't help but see the decline since the "takeover" of 2006. Macy's isn't even appealing to Chicago as Macy's without the stigma of having abolished Marshall Field's. Lundgren is head of all this.
07/24/2009
Terry Lundgren is a brilliant CEO and works tirelessly to see that Macy's survives these tough economic times. Everyone who has said negative things about him and his decisions should be ashamed. I know him personally and when he is not working extremely long hours, he is giving back to the community. It is so sad to see people put so much negativity on a businessman with such a big heart. His business decisions are always made with the people in mind.
From Beverly, MA, 03/13/2009
I recently encountered a problem that macy's doen't care to address or resolve.
A tennant where I live had a couch delivered to them. In the process the movers broke a peice of furniture of mine in the hallway. I have called the executive customer service department 2 times, they have not returned my calls. I have called and spoken to the Macy's in my area and the furniture manager has not returned calls, the assistant manager has not returned my calls,and the store manager seems not to be concered either as she has not returned my call. one would wonder when a corporation does not care to assist the consumers that have complaints or problems, they must forget who keeps them in bussiness in the first place. In times of so much corporate strife one would imagine you would do your best to rectify problems and keep people comming back
From pembroke pines, FL, 01/26/2009
I reeived a mothers day e-gift card which I have been turned down in the store in pembroke pines. I qrote to corporate cistomer service at least five or six times. no respopnse. have had a macys card since 1954 and a burdines card since 1973. i9 am completely disgusted with the fact that no one seems to care about fixing this situation. It is a $100.00 gift from my daughter.they have said i am missing some numbers. enclosed are the numbers I have. e-gift card number 851752611017125120, order number 451681129 sent by Holly Krakower. one of my accounts ens in 930-1 beside three others. I look forward to some response
From Atlanta, GA, 12/17/2008
So glad Terry is at the helm of this great dept. store. Clearly those old names like Fields, Foley's and others had to go. One main brand (like Target, WalMart, Norstrom, etc is the only way to go. Macys is the BEST in the group and with ONE BRAND they should go a long way.
From Chicago, IL, 11/25/2008
Mr. Lundgren is certainly persona non grata in my current city, Chicago. His destruction of Marshall Fields will go down in infamy both in Chicago and retail history. If Fields was not performing up to par, as Mr. Lundgren constantly affirms, one cannot escape the fact that the converted stores are doing exponentially worse. Rather than enter the Chicago market on its own and compete on its strengths, Macy's eliminated a regional icon and alienated a sizeable consumer base. The result, both a small vocal cadre that even now, two years later, decries the corporate arrogance, and more importantly, a large contingency of Chicago and midwest shoppers who silently stay away in droves.
From Renton, WA, 11/25/2008
I've lived in two cities where local department store chains were taken over by Macy's, these being Chicago (Marshall Field's) and Seattle (Bon Marché). The Bon was "the" department store in Seattle after Frederick & Nelson folded in the early '90s and Marshall Field's was to Chicago what, well, Macy's was to New York. If either was in distress, the news was well-concealed. When Lundgren said that keeping its acquisitions under their legacy names "wasn't working", my guess is that he means that it wasn't working for Macy's, which wanted a national brand and a unified national ad campaign. It was all about the conceit that that led them to believe that everybody, everywhere wants to shop at a "New York" store. Well, I've never been inside of a Macy's (although I've been inside of a lot of places before they were Macy's) and I feel no need to visit one. I suspect that he made about as much effort to keep The Bon as The Bon as the guy who took the Sonics to Oklahoma City expended to keep them in Seattle. Both came to town with a plan and both got what they came for.
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