News Updates: September 2005
from the month of September 2005 are listed below.
Marshall Field's name to become history
Written by Justin on September 21, 2005 at
Federated announces more local changes
- As if the cuts mentioned below
were not enough, at least we're not Chicago.
- The biggest news in this round
of changes is that Marshall Field's
will be changing their name along with all of May's other chains.
Unlike most of May's other department store, Marshall Field's is likely
the best-known regional department store. Federated had reportedly
considered keeping the name of the chain for quite a while, but has now
announced the final decision. Marshall Field's flagship store, located
on State Street in Chicago, is particularly well-known as a Chicago
emblem and is the second largest department store in the country,
following, of course, Macy's flagship store in New York City.
- While most in Detroit,
Minneapolis, and the rest of the Midwest could care less, this change
has Chicagoland in fury. Stories are online at the Chicago Tribune (http://www.chicagotribune.com/business/chi-050920fields-story,1,3255062.story),
along with a great media section at the Tribune's main page (http://www.chicagotribune.com).
The Chicago Sun-Times also has quite a few stories on their main page (http://www.suntimes.com), but the
best two are probably (http://www.suntimes.com/output/news/cst-nws-fields21.html)
- It's a tale of two polls.
Federated likes to claim that their name changes at Rich's, Burdine's,
Bon-Marche, Goldsmiths and Lazarus were made as the result of polls
which said that consumers found that "66% of customers have neutral to
positive feelings toward a name change, 89% of customers see Macy's as
more fashionable or see no difference, and 71% say they are neutral or
more likely to shop at Macy's than Marshall Field's". In contrast, the
Chicago Tribune has an online poll about the name change, in which
90.1% of respondents feel that a name change will make a difference to
them, and 96.6% of respondents who are not in support of the name
change say that they will shop at Macy's less. Is the research real?
Well, would the customers of five unique department stores all just
happen to want to want the stores to change their names to Macy's? Like
Bob's Discount Furniture, "I doubt it".
- What's Chicago's firebrand
mayor, Richard Daley, saying about the merger? Actually, very little.
The CEO of Federated Department Stores, Terry Lundgren, met with the
mayor to discuss the change. When Lundgren mentioned that he will look
into bringing Frango
Mint production back to Chicago, Daley became very optimistic. So,
in order to bring back the approximately 157 jobs for the Frango Mint
factory, Daley ain't talking.
Written by Justin on September 21, 2005 at
Natick Mall breaks ground on expansion
- In a press release yesterday,
Federated announced that more changes would be underway for the Boston
- First, it has been announced
that the Downtown Crossing store which serves as the flagship for the
Filene's department store chain will be closing. The combined company
decided that it would be less expensive to keep a long-term lease on
the old Jordan Marsh store which currently serves as Macy's than to
relocate the Macy's store to the Filene's building, which is currently
owned by Federated. Federated is looking to sell this building. Not to
worry, Filene's Basement will remain in it's flagship location,
although there will need to be entrance modifications when Filene's
- The upper floors of the
Filene's building in Downtown Crossing house the regional headquarters
for both Filene's and Kaufmann's, a May chain originating from
Pittsburgh which lost it's headquarters a few years ago. Now, in a
previously unannounced cut, Federated will be closing the Boston
regional headquarters, as there will no longer be any Filene's or
Kaufmann's stores to run. The Boston Globe reports that 1,100 jobs are
expected to be cut. Federated
is also closing most of May's regional offices, specifically the
locations in Los Angeles, CA; Arlington, VA; and Houston, TX.
- Finally, the Filene's store at
The Mall at Chestnut Hill will be closing and will be replaced with a
new Bloomingdales store. In case you were wondering, yes, there is
already a Bloomingdales at that mall. The old Bloomingdales store will
close and the building will be sold.
- The Boston Globe has these
local issues online at http://business.bostonherald.com/businessNews/view.bg?articleid=103526.
Written by Justin on September 4, 2005 at
drops appeal of Natick Mall
- In a ceremony held in a white
tent on top of Parking Garage B, General Growth Properties, along with
100 invited guests, celebrated the groundbreaking of the new expansion.
The process started for GGP in 2001, and even with the groundbreaking,
the mall will not open until 2007, with the condominiums following a
year or two after that.
- The project is clearly very
important to GGP. In fact, GGP's president, Bob Michaels, flew in from
Chicago to take in the ceremony. This is largely based on the fact that
the Natick Mall will be something never tried before; being a luxury
mall with attached condos. The mall is now set to house Neiman Marcus,
Nordstrom, 4 restaurants, and about 100 other stores. The MWDN reports
on the groundbreaking at http://www.metrowestdailynews.com/localRegional/view.bg?articleid=107483.
Written by Justin on September 4, 2005 at 11:04PM
- Federated has dropped their
appeal of the Natick Mall's Expansion. Apparently, the Massachusetts
Attorney General required for Federated to drop the appeal of the mall,
allowing competition from Nordstrom and Neiman Marcus, and also close
of the company's stores at the mall in order for the Federated-May
merger to be approved. The announcement comes as the mall begins
construction on the new expansion. The Boston Business Journal reports
on the move at http://boston.bizjournals.com/boston/stories/2005/08/29/daily31.html.
Copyright 2005 Framingham/Natick Retail and Tardiff.net. All Rights