Local media outlets could see their share of advertising dollars slip once Foley’s and other regional department- store chains become Macy’s.
The Colorado stores will join nearly 400 outlets of regional chains – including Filene’s, Marshall Fields, Meier & Frank and Kaufmann’s – in making the switch Sept. 9.
Together, the stores will help Macy’s owner Federated Department Stores Inc. create the first nationwide department-store brand.
The merger gives Macy’s the opportunity to advertise nationally, which some retail analysts have suggested was a major factor motivating the $11 billion takeover of Foley’s parent May Department Stores Co. by Federated.
“Obviously, in the case of broadcast, there is a shift from local stations to a national network buy,” said Mike Monroe, vice president of media and operations for Macy’s West. “Certainly, your local NBC, ABC and CBS affiliates are not going to get the dollars they had perhaps gotten in the past.”
John Curry, general sales manager at KMGH-Channel 7, the local ABC affiliate, declined to say how much Foley’s spent to advertise with the station or how much of a dip in sales the station anticipates.
“Whenever you lose a big retailer like that, it’s going to have an impact,” he said.
An advertising-sales executive from KCNC-Channel 4, the CBS affiliate, was unavailable Wednesday. The general sales manager for KUSA-Channel 9, the NBC affiliate, did not return calls.
Monroe said the impact on Colorado newspapers will not be as significant as in markets where both Macy’s and the regional brands competed.
In those markets, newspaper advertising will probably drop below the combined spending of the two former competitors, he said.
“As our plans exist right now, the level of newspaper advertising is higher than what Foley’s is running right now” in Colorado, Monroe said.
Nonetheless, some industry experts predict that newspapers could suffer in the long term.
In a report issued earlier this year, Deutsche Bank analyst Paul Ginocchio predicted that a shift from newspaper advertising to other media could result in losses ranging from $200 million to $425 million for the newspaper industry over the next few years.
“We think Federated may dramatically alter its mix to match its national ‘America’s Department Store’ strategy, which could affect newspaper advertising far more than nameplate conversion and store closures,” Ginocchio said in the report issued last spring.
Jim Nolan, a spokesman for the Denver Newspaper Agency, which oversees business operations at The Denver Post and the Rocky Mountain News, declined to comment on how the shift will affect advertising sales for the two newspapers.
While the changes have been phased in over several months and most of the signs have already been hung, Foley’s officially becomes Macy’s next month with a series of ribbon-cuttings, special events and appearances by Macy’s executives.
Staff writer Kristi Arellano can be reached at 303-954-1902 or karellano@denverpost.com.
Introductory events
Colorado Macy’s stores will host special events throughout September to mark the store’s introduction to the state. In addition, the company has scheduled the following events:
Sept. 8-10: At various locations, Macy’s “Dancing in the Streets” bus will stop at Oktoberfest in Larimer Square, Rockies games and the Cherry Creek Macy’s store.
Sept. 9: At Macy’s Cherry Creek, Macy’s West chief executive Robert Mettler and Mayor John Hickenlooper will preside over the store’s unveiling at 9:45 a.m. at the second-floor mall entrance.
Sept. 9: An outdoor block party will be held from 5 to 9 p.m. in the Steele Street parking area, with music by Opie Gone Bad and Junk Yard Dogs. Fireworks will be shot from Macy’s roof at 9 p.m.
Sept. 9: At Macy’s Park Meadows, Macy’s store executives and Lone Tree Mayor Jack O’Boyle will preside over a ribbon-cutting at 9:45 a.m. The Arapahoe High School percussion band will perform.
Sept. 10: Macy’s Kids and Family Day at Cherry Creek, 2 p.m. Kids ages 2 to 12 can leave their handprints on balloon fabric that will fly in the 80th-anniversary Macy’s Thanksgiving Day Parade.
Sept. 16: Shop for a Cause National Charity Shopping Day, shoppers can purchase $5 tickets good for price reductions on merchandise. Proceeds will benefit local charities and the American Heart Association’s Go Red For Women.
Sept. 30: Macy’s Thanksgiving Day Parade On Parade, with a stage show, exhibits and a 25-foot Grover balloon, will be at the Cherry Creek store from noon to 6 p.m.
