Editors

The Malaise of Macy’s

EditorsFeb 08, 2017

The Malaise of Macy’s

One of Macy’s biggest problems has been its inability to convert Kaufmann’s shoppers, Editor-in-Chief (and Western Pennsylvania native) Michelle Graff writes.

2017_Macys-flagship.jpg
Macy’s flagship store in Herald’s Square, New York City. The retailer ranks No. 4 on National Jeweler’s 2016 list of $100 Million Supersellers with an estimated $1.56 billion in watch and jewelry sales in 2015.

I started this blog on Friday after reading numerous reports about the possible sale of Macy’s.

Since then, there has been other major news that’s broken in the retail world.

On Sunday, Tiffany & Co. announced that CEO Frederic Cumenal was stepping down and would be temporarily replaced by Chairman and former CEO Michael Kowalski while the jeweler hunts for a permanent leader.

Though some news outlets seemed shocked by the news, I wasn’t. 

The retailer’s sales have been, to coin Kowalski, disappointing. Worldwide net sales rose 1 percent, declined 6 percent and 7 percent in the last three quarters, and Tiffany has posted poor holiday performances back-to-back.

I don’t think it’s hard to understand why Cumenal no longer has the corner office, or why another big jewelry retailer, Signet Jewelers Ltd., also recently changed up its senior management after its holiday season was less than stellar.

Retail is changing and retailers--particularly public companies that have to answer to shareholders--have to change with it.

So, while I may return to the topics of Signet and/or Tiffany at a later date, for now I want to talk about Macy’s, Retail Dive and an interesting conversation I recently had with my mother.

While reading multiple stories about the murky future of Macy’s on Friday, I came across this excellent analysis from RetailDive.com.

In her article, Contributing Editor Daphne Howland argues that what’s killing Macy’s isn’t competition from Amazon or off-price outlets but, rather, Federated Department Stores’ (which later changed its name to Macy’s) 2005 purchase of The May Company. 

The acquisition left the retailer over-stored and unable to offer exactly what customers want in every market.

Federated/Macy’s bought up “thriving” regional chains--like Kaufmann’s in Western Pennsylvania, a retail staple of my youth--with roots in their respective communities and made them “cogs in a machine,” the articles states.

The story struck a chord with me because of a recent conversation I had with my mother, in which we got to talking about the state of retail where I grew up, in Beaver County, Pennsylvania.

Mom was telling me how she’d read in the local newspaper (long live print journalism!) that the Macy’s store in the Beaver Valley Mall--which I made famous via this blog before--was one of the many Macy’s that closed at the end of last year.

She wasn’t surprised to read that Macy’s was shutting down because it

was never very busy when she shopped there, which, she also said, was not that often because she didn’t really like it.

To my mom, the store went downhill after it was converted from Kaufmann’s into Macy’s; she never saw much in there that she wanted to buy and the store itself wasn’t as nice either.

And, Mom said, a lot of other people in the area felt the same way.

Kaufmann’s had deep local roots.

Founded by 1871 by Jacob and Isaac Kaufmann, the department store was part of the fabric of Western Pennsylvania for decades. There’s the iconic clock in downtown Pittsburgh (“Meet me under the Kaufmann’s clock.”) and Fallingwater, the amazing Frank Lloyd Wright-designed weekend home the Kaufmann family had built in Mill Run, Pennsylvania, a must-see if you ever get to the area.

There really wasn’t any way for Macy’s to emulate that and, as a result, what ended up happening is exactly what my mom observed: People really never came to love Macy’s the way they loved Kaufmann’s.   

My mom’s musings on Macy’s sum up perfectly the point that was made in the Retail Dive article.

The retailer got too big to deliver any kind of personalized experience to customers, to stock each store with merchandise that suited them and to make area residents feel that Macy’s knew what they liked.

And, it seems, this lack of personalization was especially detrimental to Macy’s in Midwest metropolitan regions like Pittsburgh, as this is where Macy’s is expected to close the most stores, according to Retail Dive.

Retail today is so different and so difficult that I cannot offer jewelers a panacea, a single solution for all their store’s problems. I cannot say that being a town’s “local jeweler” will save a store because, as we’ve seen, longtime family-owned retailers are closing down too. 

And I cannot say that remaining a Kaufmann’s would have saved this specific store, given the long, slow economic decline of the area surrounding it and the myriad challenges facing brick-and-mortar retailers today, particularly those situated in aging malls.

But I think what can be learned from Macy’s is that for retailers, local/regional names do carry weight among area residents and aren’t necessarily so easily replaced.

As National Jeweler columnist Peter Smith stated when commenting on this story about San Francisco retailer Shreve & Co. closing the Portland, Oregon storeit opened in the space once occupied by 88-year-old store Carl Greve Jewelers: “I wonder if things would have been different if they had kept the Carl Greve name? Shreve’s had no awareness in that market. Sad to see.”

There is value in having a connection to the community and in knowing exactly what your customers want.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

National Jeweler Columnist Emmanuel Raheb
ColumnistsApr 29, 2025
Google Ads vs. Social Media Ads: Which Are More Effective?

Emmanuel Raheb outlines the differences between the two platforms and posits that the most successful jewelers use both.

Counterfeit Van Cleef & Arpels Alhambra jewelry
CrimeApr 28, 2025
Customs Seizes Nearly 2,000 Pieces of Counterfeit Van Cleef & Arpels Jewelry

U.S. customs agents in El Paso, Texas, intercepted the package, which would have been worth $9 million if the jewelry was genuine.

Suzanne Kalan Tech Ring Jacket Collection
TrendsApr 28, 2025
Suzanne Kalan Launches Tech Ring Jacket Collection

Health monitors become statement pieces when paired with the brand’s new collection of stackable diamond-studded bands.

Supplier Spotlight -Recorded-Webinar.png
Brought to you by
Watch: The Winston Red: GIA Examines the Smithsonian’s Newest Addition

Supplier Spotlight Sponsored by GIA

JCK Industry Fund
Events & AwardsApr 28, 2025
JCK Industry Fund Announces 2025 Grant Recipients

Ten organizations were selected this year.

Weekly QuizApr 24, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Kim Carpenter and Sam Gevisenheit
IndependentsApr 28, 2025
John Atencio Appoints 2 to Wholesale Team

Kim Carpenter and Sam Gevisenheit have joined the brand.

Sylvie Jewelry Auranova Collection Campaign Imagery
CollectionsApr 25, 2025
Sylvie Looks to Water in New Sculptural Bridal Collection

“Shell Auranova” is the next generation of the brand’s bridal line, featuring half-bezel engagement rings with bold and fluid designs.

ejap cohort 1872x1052.png
Brought to you by
Emerging Jewelers Accelerator Program Announces Second Cohort of Aspiring Jewelry Entrepreneurs

Six new retail businesses were selected for the 2025 program, which began in January.

Pomellato Nudo toi et moi ring
FinancialsApr 25, 2025
Kering’s Jewelry Brands Persevere as Q1 Sales Sink 14%

Boucheron and Pomellato performed well in an otherwise bleak quarter for Kering amid struggles at Gucci.

Melee diamonds from De Beers
SourcingApr 25, 2025
De Beers Sales, Production Fall in Q1 Amid Uncertainty

The company said it expects sightholders to remain “cautious” with their purchasing due to all the unknowns around the U.S. tariffs.

LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (1).jpg
Supplier BulletinApr 24, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Iowa jeweler Herman Ginsberg
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99

A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.

Charles & Colvard moissanite ring
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to Noncompliance

The company failed to file its quarterly reports in a timely manner.

Young Diamantaires
SourcingApr 24, 2025
Young Diamantaires Transition to Nonprofit

The organization also announced its board of directors.

Mined + Found "Hope" Matchbox Locket
TrendsApr 24, 2025
Amanda’s Style File: So Charming

Charms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.

Bulgari’s expanded factory in Valenza, Italy
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in Italy

Located in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.

Jason McNary accepting FGI Fine Jewelry Rising Star award for Paola Sasplugas
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ Award

Paola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.

1999 Cosmograph Daytona, Ref.16516
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to Auction

A platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.

Carmelo Anthony and Jaylen Brown David Yurman campaign
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen Brown

The basketball stars wear men’s jewelry from the “Curb Chain” collection.

Woman wearing Zales jewelry
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine Jewelry

The Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.

JAR Apricot Blossom bracelet
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry Collection

The 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.

National Jeweler columnist Lilian Raji
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of Mouth

Lilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.

Avi Levy
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth Officer

GCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.

Scottsdale Fine Jewelers store exterior
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow Independent

The Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.

Cartier Exhibition Installation at Victoria & Albert Museum
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display

“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.

Bill and Birdie Levine of Van Cott Jewelers
IndependentsApr 21, 2025
New York Jeweler to Close After 111 Years

Van Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.

IJO Director Samantha Larson
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise Strategy

Industry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy