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Jury Out On Field's Fate

CHICAGO-Some predict "zero" fallout from Marshall Field's being replaced by Macy's, but a retail expert says comp sales could drop 20%.

By Mark Ruda | Updated on September 21, 2005

CHICAGO-Federated Department Stores Inc.’s decision to replace the Marshall Field’s name with Macy’s could prove costly, at least one top retail expert believes. On the other hand, a longtime civic booster sees only upside in Macy’s branching into the market, albeit at the demise of the Marshall Field’s name.

John Melaniphy III predicts the decision could result in a 20% drop in local same-store sales in the first year the 62 Marshall Field’s become Macy’s. “We feel initially there’ll be some backlash,” Melaniphy says, adding stores in the Chicago market will suffer the greatest impact. “Certainly, we saw sales slide when Target bought Field’s. We’ve seen sales decline at malls when the consumer is uneasy about a particular retailer or a theater.”

However, Chicagoland Chamber of Commerce president and chief executive officer Jerry Roper sees plusses in the move, which takes effect next fall. “We’re going to lose zero dollars because the Macy’s name across the US, as well as around the world, is bigger than the Marshall Field’s name,” Roper says. “We’ll gain sales by having Macy’s promoting this big store around the county and around the world.”

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