New Owner, Old Name: Shoppers Wonder What Is in Store for Bullock’s
Will it be Macy’s or will it be Bullock’s?
The name R. H. Macy & Co. will use when it takes over the Bullock’s, Bullocks Wilshire and I. Magnin stores was a big topic of discussion in Southern California retailing circles and among shoppers Friday. Macy’s hasn’t said what it will do.
Although Macy’s, Bullock’s and I. Magnin all have premium store identities, they conjure up different images to shoppers.
“I think Bullock’s store will lose some value (by changing) its name,” said Patricia Hughes, a homemaker from Palm Desert. “Macy’s is like the Broadway. We’ll basically have an upgraded Broadway.”
“Bullock’s is higher priced. It’s higher classed, too. I would think Macy’s is more like the May Co.,” said Jean Mitchell of Huntington Beach, a student at Coastline College.
Macy’s $1.1-billion acquisition is part of Chairman Edward S. Finkelstein’s expansion plans for California. “Macy’s already wanted to move into the Southern California market. This accelerates their program of expansion into Southern California,” said Thomas H. Tashjian, vice president of retail trade at Seidler Amdec Securities in Los Angeles.
He said that when Macy has acquired other companies such as Davisons in Atlanta and Bamberger’s in New Jersey, they have changed the names to Macy’s.
“Ed Finkelstein is a very savvy merchant,” Tashjian said. “He is going to make the decision (on a name change) depending on what is going to be the best to attract people, whether it means changing everything to Macy or taking some of the stores to the Macy’s name or retain Bullock’s or the I. Magnin names, he will do whatever to attract the most people to the stores.”
Many Southern California shoppers are unfamiliar with Macy’s. Pam Andrusko, 45, a sales manager from Costa Mesa, says she’s never been to Macy’s. “Maybe that’s the problem--ignorance of the new daddy. I’ve never been there. But I did see the movie ‘Miracle on 34th Street,’ ” a Christmas classic, which features the Santa Claus at Macy’s on 34th Street as its hero.
Others familiar with Macy’s were excited. “I think it’s super. I’m from New York and I know about Macy’s Cellar. They have gourmet foods and housewares--it’s wonderful. Macy’s generally has more variety” than Bullock’s. “And Macy’s may get more New York and European designers because it’s Macy,” said Lorraine Passero, 37, a school teacher from Laguna Beach.
‘Macy’s Is Darn Good’
Macy’s is expected to take time to evaluate the effect of eliminating the Bullock’s name. Philip Sobel, president of Caesars World Merchandising, said: “My own personal reaction is that I don’t think a lot will be done. The Bullock’s name is well established. I think they will keep the Bullock’s name for a reasonable amount of time until they figure out whether it is best for them to change it.”
When it comes to day-to-day business, however, Southern California retail operators don’t see much change, and they all respect Macy’s merchandising skills.
“Macy’s is darn good. But Bullock’s was doing a good job, too. I don’t see much change,” said James F. Nordstrom, president of the Nordstrom chain.
Times staff writers Mary Ann Galante and Linda Williams contributed to this article.
BIG MERGERS Campeau Corp.’s $6.6-million takeover of Federated would rank as the largest non-oil merger in U.S. history. These are the largest U.S. takeover deals to date. Dollar figures in billions.
Year Target Acquirer Value ’84 Gulf Chevron $13.4 ’84 Getty Oil Texaco 10.1 ’87 Standard Oil BP 7.6 ’81 Conoco Du Pont 7.4 ’82 Marathon Oil USX 6.5 ’86 Beatrice Kohlberg 6.3 ’86 RCA GE 6.1 ’84 Superior Oil Mobil 5.7 ’85 Shell Oil Royal Dutch 5.7 ’85 General Foods Philip Morris 5.6 ’86 Safeway Kohlberg 5.3 ’88 Sterling Drug Kodak 5.1
Sources: Associated Press, Reuters
FEDERATED: BREAKING UP IS HARD TO DO Order of Battle Jan. 25: Toronto developer Campeau Corp. launches $4.2-billion takeover bid for Federated Department Stores. Feb. 3: Campeau raises its bid to $5.5 billion Feb. 5: Federated rejects the Campeau offers. Feb. 16: Federated puts its Ralphs Grocery division up for sale. Ralphs management and Lucky Stores emerge as rival bidders for Ralphs. Feb. 26: Federated confirms it is negotiating with Campeau. A takeover seems certain. Feb. 29: R.H. Macy & Co. emerges as surprise bidder for Federated. March 14: Macy’s lifts bid to $6.3 billion. Federated grants Macy’s an option to buy Bullock’s, Bullocks Wilshire and I. Magnin. March 22: Campeau raises bid to $6.53 billion. March 30: Federated directors meet to hear the best and final bids from Campeau and Federated. Campeau presents a $6.6-billion offer. April 1: Federated agrees to $6.6-billion purchase by Campeau. As part of the deal, Macy’s agrees to pay $1.1 billion for Bullock’s, Bullocks Wilshire and I. Magnin; all are based in California.
