Macy’s Weighs Shopping Channel

Macy’s is rumored to be developing a home shopping channel that, sources say, would be broadcast nationally on cable TV, probably 24 hours a day.

Macy’s would neither confirm nor deny the reports.

“We recognize the business development potential the home shopping format might offer a retailer such as Macy’s,” said company spokeswoman Laura Melillo. “Many retailers and manufacturers have been analyzing the possibilities this format presents. We have been exploring for a number of months how best to capitalize on the many opportunities available to Macy’s as part of our long-term business planning process.”

Analysts met the possibility of a Macy’s channel with mixed reviews. Some said that the $2-billion TV-shopping industry could be a significant revenue source for the bankrupt retail chain. Others said Macy’s can’t afford to launch a venture that could cost it more money if it fails.

“When you compare it to costs of opening one new store, it certainly makes sense,” says Ike Lagnado, a New York-based retail consultant with Tactical Retail Solutions.

Lagnado said national viewership would open up a whole new merchandising opportunity for Macy’s, and he estimated it could generate $250 million a year in sales.

But Kurt Barnard, New York-based publisher of Barnard’s Retail Marketing Report, said “electronic retailing still has a long way to go. People still want to touch and feel the products they are purchasing, and I think the appeal of shopping channels has been overestimated.”