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Macy's Home mails first circular

Carole Sloan -- Furniture Today, January 30, 2005

Macy's Home Store launched its first circular last week, the initial corporate effort since the store's parent, Federated Department Stores, said almost a year ago that it was consolidating the home goods buying, merchandising and marketing of several of its chains.

The circular represents a marked change from past circulars, which featured some common corporate programs but more regional offers for the five now-consolidated divisions — Macy's East, Macy's West and the former Burdines, The Bon and Rich's/Goldsmith's/Lazarus. The latter three units have been hyphenated with the Macy's name for months, and on March 6 all will change to the Macy's name only.

Furniture has the cover slot and the first 39 pages of the new circular. Eric Salus, president of Macy's Home Store, said the mailing "defines our strategy, focusing on fashion and affordable luxury for our customer. We are trading up, offering compelling value, differentiation and exclusivity."

Pointing up the complexity of merging five divisions' merchandising approaches — even with common corporate furniture programs — the new circular has many variables to accommodate specific divisions' needs and product offerings.

Federated Chairman and CEO Terry Lundgren said earlier this month that 60% of the product featured in the circular were Macy's exclusives, up from 5% in previous circulars. On the store floors, 20% of the product is exclusive, compared with 5% before the Home Store move.

Furniture is in 63 of the full-line Macy's department stores and in 50 freestanding furniture galleries.

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