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Armani and Ferragamo Discontinue New Merchandise Shipments to Macy’s Stores – Customer support Atrocious!

The consolidation and transformation of the Bon Marche, May’s, and Marshall-Fields into Macy’s is speculated to be a good factor, right You’ve a huge retail merchandising conglomerate, Federated, that has tremendous purchasing power and affect over vendors. Theoretically, they’ll secure favorable deals with distributors and make a pleasant profit whereas passing financial savings alongside to customers.

It appears that some main excessive end brands are pulling their merchandise from Macy’s stores. In accordance to 2 gross sales associates on the Macy’s Males’s Retailer in San Francisco, both Ferragamo and Armani are pulling new merchandise from Macy’s stores. They didn’t provide a rationale for the change, however my personal opinion is that it’s as a result of Macy’s sucks. Fairly than elevating the bar with their multiple acquisitions and the consolidation of multiple retailers, they have lowered themselves to the lowest common denominator (on this case, the Bon Marche).

The one theoretic benefit Federated has is their actual property – they have many prime places throughout the US and they will focus their efforts on stores which might be performing properly and shut areas that are underperforming. However, Federated has made a big, Massive strategic mistake by consolidating their acquisition below the Macy’s model after which lowering the standard, service and selection of merchandise.

The addition of a new Bloomingdales’s in the renovated San Francisco City Heart, solely blocks from Macy’s on Union Sq. represents pointless duplication as each are Federated manufacturers.

A latest go to to the Macy’s Men’s retailer in San Francisco’s Union Sq. was a nightmare!
This is a run down of my dealings with Macy’s Affiliate #277632 on Terminal 511 (2/17/07 at four:27 PM within the SF Males’s Store at Union Square):

    The shoe guy was retarded when i requested questions about the sneakers – he didn’t now which of them had been on sale and couldn’t actually provide any details concerning the shoes (Nike and Adidas operating shoes – pretty fundamental).
    I instructed him I take a 9 or 9.5 relying upon the shoe – he repeated it twice and then solely introduced me the size 9.
    He handed me the box and watched whereas I struggled to drag the paper wadded up in the toe out in shreds and untie the knotted shoe strings. He did not provide to assist with a shoe horn.

4. He partially rang me up and then another associate threw my receipt at me because he wanted the cash register.

Miserable Macy’s Males’s Store in San Francisco.
Sadly, I had to shop at Macy’s because I had a present card to redeem, in any other case I would have made my buy at Nordstrom. I love Nordstrom. They offer moschino belt and ferragamo excellent service, a good choice of merchandise AND they have cheap costs. Neiman Marcus and Saks are too costly for my finances, however I can splurge at Nordstrom.

I would like to see FD tank during their 4Q Earnings Webcast on February 27, 2007. However, their same store gross sales were up in November they usually reported will increase of 8.6% on Feb. 8th. In the event that they needed to drastically scale back prices to get hit these gross sales targets, their revenue may still be out of reach.

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A well-known investor, Carl Icahn, recently indicated a desire to greater than tripled his stake in Federated Shops. Mr. Icahn is a well known for shaking things up at GM and Time Warner and he’s involved with many other firms. He moves in on companies where he thinks the management is doing a poor job after which tries to get on the Board of Administrators. He has had some success and who is aware of what it will imply for Federated Malls.

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