Other’s Loss is Macy’s Gain
Macy’s has developed
a strategy to take advantage of the misfortunes (specifically the move
into bankruptcy and liquidation) of competitors such as Fortunoff, Gottschalks
and Mervyns so it can pick up their customers.
is a store that has gone out of business, we are honing our sights on that
customer," Terry Lundgren, chairman and chief executive officer of
Macy’s, told The Wall Street Journal.
as The Journal article points out, is nothing new in retailing circles.
In New Jersey, for example, even though Walgreens purchased prescription
files from the failing Drug Fair chain, every pharmacy within miles of
the former chain’s stores have signs posted letting consumers know their
business is welcome.
a fallen rival’s customers is more important than ever considering the
realities of consumer spending at this time. According to Deutsche Bank,
closed chains in the clothing, electronics and home furnishings businesses
left behind roughly $21.4 billion in sales this year.
an example, is considering adding patio furniture to its stores in the
New York area following Fortunoff’s collapse. Outdoor furniture, according
to The Journal, was
the most successful category for Fortunoff. The company has even talked
with former execs at the chain about participating in an online launch
of patio furniture this year with product to reach stores in 2010.
Has market share become more important for a chain or independent’s success
in the current market than it has in the past? What are your thoughts
about the opportunity for retailers to pick off the bones of fallen competitors
in the current market?