Federated unveils campaign for Macy's relaunch

Operator plans for nationwide special events and community service projects to convert former May department stores.

NEW YORK -- Federated Department Stores Inc. Wednesday unveiled plans for the first national advertising and marketing campaign for the Macy's department store chain.
Federated (down $0.21 to $39.03, Charts) shares fell 1 percent during morning trade in New York.
The plan, which Federated called the largest nationwide campaign in its history, comes as the department store operator gets ready to convert more than 400 former May Department Stores to the Macy's nameplate on Sept. 9.
Federated did not disclose the budget for the campaign, which will include national broadcast and cable television, local newspapers, local and national magazines, radio spots, outdoor boards and online advertising that will center on a new spin to its theme, "Way To Shop."
"Expanding Macy's presence nationwide presents a once-in-a-lifetime opportunity to introduce our brand to new shoppers," said Anne MacDonald, chief marketing officer, in a statement.
Federated is integrating its $11 billion purchase of May Department Stores and is changing hundreds of former May locations into Macy's stores. The conversion will create a nationwide chain of roughly 800 Macy's stores.
While having a nationwide presence gives Macy's more advertising power and sway with its vendors, analysts are waiting to see how well Macy's can attract former May shoppers or bring in new customers.
"When you've got a customer that's been shopping [at a May store] for years and years, you can't change them overnight," said Stacy Turnof, a retail analyst with Merrill Lynch.
Turnof, who said the conversion of former May stores into Macy's is going well, said she will be watching to see how Federated's third-quarter sales shape up and whether Federated is able to make progress at the former May stores, where sales were lagging.
Federated said it expects fiscal year sales to be more than $27 billion, compared with the current Wall Street average target of $27.2 billion, according to Reuters Estimates.
Federated said the advertising campaign will be supported by hundreds of special events, such as an electronic gift card giveaway at all 800-plus Macy's stores on Sept. 9 and a nationwide program of community service projects.
It also said Macy's advertising through the fall will feature new marketing campaigns.