Kelly Pascal Gould was initially excited when she learned Colorado Foley’s stores would soon become Macy’s.
A native of Long Island, N.Y., Pascal Gould, 37, recalls shopping for high-style brands at the venerated department store when she was a teen. Visits to Macy’s stores outside New York have since tempered her enthusiasm, and she’s waiting to see how big a splash the retailer will make when it comes to Colorado.
“When I travel for work, I try to stop at Macy’s, and the stores I’ve seen (in other markets) tend to have messy clothes and deep discounts. None of it feels like the Macy’s experience I remember,” said Pascal Gould, director of corporate communications for Boulder-based Noodles & Co.
Colorado’s 12 Foley’s stores will become Macy’s on Sept. 9 – the result of an $11 billion takeover of Foley’s parent May Department Stores Co. by Macy’s parent, Federated Department Stores Inc. Two more stores are under construction in metro Denver. Nationally, Macy’s will convert 330 stores previously owned by May.
Company officials promise customers like Pascal Gould won’t be disappointed.
Colorado “is a market Macy’s has wanted to be in for a long time,” said Mike Wirkkala, chief financial officer for Macy’s West, the company’s San Francisco-based division. “Over the years we’ve looked (at Colorado), but it’s difficult to go in with one store.”
He acknowledged that Colorado Macy’s won’t offer the over-the-top experience of the company’s massive flagship stores in New Yorkand San Francisco. He said the stores will still provide the trendy selection and service customers expect.
The Cherry Creek Macy’s store will be the company’s “premier” location, offering the best selection and most amenities. Selections at other stores will be based on sales and demographics for the area, he said, declining to be more specific.
“A lot has to do with the sales levels at the individual stores. Cherry Creek does a significant amount of business. It’s far and away more than any other store,” he said.
Foley’s stores are already undergoing face-lifts that will include dressing room and bathroom upgrades and new directional signage. Stores will also get new carpet, fixtures and paint, although the company said changes will vary by store.
Other changes planned for the stores include the expansion of some departments. At least one department – kids’ shoes – will be eliminated.
The company plans changes to the cosmetics areas and other parts of the store that will likely take place in 2007.
The biggest changes will be the merchandise, some of which is already arriving in the stores. Macy’s private-label lines will start showing up in July.
“The consumer who will go to Macy’s will probably see a little trendier, more fashionable store,” said Britt Beemer, chief executive of America’s Research Group, a Charleston, S.C.-based consumer-research firm.
That’s enough to excite Sonya Lipman, a 27-year-old freight broker from Parker.
“I’m from California, and I like Macy’s better than Foley’s. They’re more modern. Foley’s is geared toward older generations,” she said.
Other customers, who have watched the department store sector lurch through a series of mergers and acquisitions, are less enthusiastic.
“I guess it will be probably the same thing with a different name,” said Annie Kim, 27, of Aurora, who owns a photo kiosk in Cherry Creek Shopping Center.
Wirkkala promises the changes will go deeper. The company’s merchandising strategy, for example, calls for a less-cluttered, more open store.
“We believe we don’t need to stick our products in the customer’s face. We don’t need to stack it or put it in the aisles and make it harder to get around,” he said.
Mary Beth Jenkins, president of The Laramie Co., a Denver retail brokerage and consulting firm, said Colorado customers may be also be struck by Macy’s tendency to be less promotional in pricing than Foley’s.
Foley’s frequent Red Apple sales often drew customers toting hefty “percent-off” coupons. Macy’s ties most of its discounts to using its store credit card.
“We want to reward the customer that is most loyal to us,” Wirkkala said.
Developers and shopping center owners are also enthusiastic about the switch. They said smaller tenants are eager to be located near the chain.
“They’re more excited about having a Macy’s,” said Bob Wil liams. He is senior vice president of development leasing for Phoenix-based Westcor, a division of the Macerich Co., which owns FlatIron Crossing and is developing the Twenty Ninth Street project in Boulder. “It seems to have a little more cachet.”
Department store competitors said they also welcome Macy’s to the market.
“We think it can only help the whole shopping center. It will only bring more traffic,” said Nancy Sagar, public relations manager for Nieman Marcus at Cherry Creek.
Staff writer Kristi Arellano can be reached at 303-820-1902 or karellano@denverpost.com.
