A Parade of Macy’s Ready to March Into the Southland

Macy’s signs are being hoisted up onto some of the old Bullock’s and Broadway stores this weekend, changing Southern California’s retailing landscape.

The entire 23-store Bullock’s chain will reopen as Macy’s between Monday and Wednesday.

Each of the remaining 25 Broadway stores in Southern California will be converted to Macy’s over the next month. Cincinnati-based Federated Department Stores Inc., which owned the Bullock’s and Macy’s chains when it acquired Broadway Stores Inc. last year, is also converting Broadway’s 22 Emporium and Weinstocks stores in Northern California into Macy’s stores.

The transformation is another step in the consolidation of the department store field. It sets up a rivalry between Macy’s and Robinsons-May, a chain born of the 1993 union of the Robinson’s and May Co. stores.

The Broadway acquisition vaulted Federated past May Department Stores Co.--operator of Robinsons-May and other chains--to become the nation’s largest department store operator. The 48 Macy’s in Southern California will give the chain an edge over Robinsons-May, which has 46 stores in the region.

Shoppers will notice little change at Bullock’s besides the new signs and shopping bag logos, because the stores already operate in the Macy’s mold. Bullock’s has long offered the same merchandise found in Macy’s.

But major changes are in store for the Broadway sites. Executives at Macy’s West, the San Francisco-based division that operates Federated’s Western stores, frequently use the word “more” to characterize what’s in store for the Broadways.

“More service . . . more famous labels . . . more career clothing for women . . . more accessories” is the litany recently recited by Macy’s West Chairman Michael Steinberg, who is overseeing the changes at the former Broadways.

May Department Stores had no comment on what it might do to counter the competition from Macy’s, but industry analysts say May will continue to mount a strong challenge in California and nationwide.

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The St. Louis-based company earlier this month announced its 21st consecutive year of record earnings. May also completed the spinoff of its Payless Shoesource stores this month. Now that the shoe store chain is independent, May will focus its resources on department store retailing.

“May Department Stores will continue to do well because they are masters of promotional sales events,” said Kurt Barnard, a New Jersey-based retailing economist.

Shopper preferences on selection will decide which chain comes out on top, Barnard said. Robinsons-May will present a greater amount of moderately priced merchandise and Macy’s will offer a greater range of prices, including more high-end items, Barnard said.

Both stores will have to compete with Nordstrom, a chain with a strong reputation for service that operates 16 stores in Southern California. But Nordstrom will also compete more directly for the upscale market with the three Bloomingdale’s stores Federated plans to open in the region in November.

Broadway customers will notice the most dramatic differences between their old chain and the new Macy’s, particularly in clothing. Macy’s says it will stock fewer private labels than Broadway did, instead carrying more cachet labels such as Polo and Tommy Hilfiger and more hot-selling women’s accessories such as Dooney & Bourke.

“We’ll be very competitive on price--especially on brand labels,” said Steinberg of Macy’s West.

Macy’s plans to retain some of the successful parts of Broadway’s merchandising mix. For example, denim women’s clothing was a big seller at the Broadway stores, so Macy’s will stock more women’s denim in Southern California than at its other locations.

Federated will spend $75 million to remodel the Broadway stores in Southern California. Among the planned changes are lighting and fitting room improvements. Broadway’s cosmetics section will be enlarged and located near store entrances.

The changes in store design and name will generate curiosity among Southland consumers, said Jack Kyser, senior economist at the Economic Development Corp. of Los Angeles County.

Macy’s will try to stimulate that interest by hosting opening-day celebrations at three locations Monday.

A ceremony at Broadway Plaza in downtown Los Angeles will feature members of the Hollywood Bowl Orchestra, a giant balloon in the shape of a bow and confetti fired out of a cannon.

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In San Diego, costumed characters representing animals at the city’s zoo will be featured at a transformed Bullock’s. And bundles of helium-filled balloons will be found at South Coast Plaza in Costa Mesa. Nine other Bullock’s will open as Macy’s on Monday.

“Ultimately, Macy’s will have to deliver attractive merchandise and good service,” Kyser said. “But the company has an advantage. Shoppers in Southern California are very familiar with the Macy’s name, and the name has appeal.”

However, executives in retail real estate said Macy’s also has another major asset.

“Macy will have great locations in Southern California,” said James Rosenfield, president of J.S. Rosenfield & Co., a Santa Monica-based retail real estate consultant. “If Macy’s can’t succeed at these [Broadway] stores, they can’t succeed at all in Southern California.”