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Bill McNamara and Macy’s Midwest
predicts a strong future for St. Louis retail.
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Bill
McNamara
Chairman & CEO, Macy’s Midwest
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By
Laurie Burstein
Bill McNamara took a job out of college that has turned into
his lifelong career. The 56-year-old McNamara still remembers
his first job out of Boston College as an executive trainee
at Filene’s in Boston. Thirty-five years later, he is still
in the retail industry and today serves as chairman and CEO
of Macy’s Midwest, where he focuses on merchandise and marketing
in more than 100 stores, and making sure customers get the value
and affordable luxury they expect.
Today he oversees stores
stretching from Kansas City to western New York. His territory
covers stores in Illinois, Indiana, Kansas, Kentucky, Missouri,
New York, Ohio, Pennsylvania and West Virginia.
McNamara was named Chairman of Macy’s Midwest in October 2005,
after serving as vice chairman of May Company since 2000. As
one of two new Federated divisions, Macy’s Midwest brings a
bright new retail option to many Midwest cities.
In his new role, McNamara exudes excitement for the team of
employees that was brought together to create the Macy’s Midwest
division. He describes Macy’s Midwest as “the best of both worlds,”
having great talent from May Company and Macy’s. He also stressed
the importance of continuing the longstanding tradition of retail
in St. Louis, something Macy’s has done by establishing the
Macy’s Midwest headquarters in St. Louis. More than 1,000 employees
are based in downtown St. Louis and help make decisions for
all of the Macy’s Midwest stores.
The Boston native has now been in St. Louis for 11 years and
during that time has seen much take place in the changing retail
atmosphere in St. Louis.
St. Louis is an interesting case study in retail he says, because
of the shopping options that have emerged over the entire retail
spectrum. “In St. Louis, we really have retail choices for all
pocket books, from discounters like Wal-Mart to luxury retailers
like Neiman-Marcus. We also have options for all ages, all lifestyles
and all needs from Lowe’s to Barnes & Noble to apparel, accessories
and home goods at Macy’s, Dillard’s and Nordstrom’s.”
He also cites retail trends in urban and suburban areas. “From
Belleville to Wentzville and Alton to Mehlville, many malls
are being revitalized with food, fun and entertainment. We also
have lifestyle and open-air centers popping up such as The Boulevard
on Brentwood—another important retail trend.”
In terms of urban retailers, McNamara is encouraged by future
plans for St. Louis Centre and Ballpark Village in downtown.
“These new venues will add mixed-use retail, entertainment and
residential growth to the City. Macy’s is very committed to
a bright future downtown.”
The change over from Famous-Barr to Macy’s has been relatively
smooth in the St. Louis area McNamara says. “It’s all been very
positive. We have been able to make a fresh start and bring
many exciting new changes with it.”
| (Left
to right): Michelle Cooper, sales associate,
Macy’s Downtown; Bill McNamara and Bev Shea, general
manager, Macy’s Downtown. |
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This September, the downtown store celebrated the arrival of
Macy’s with a block party that drew 1,000 people. Celebrations
were also held at the Saint Louis Galleria and at stores throughout
the region.
Even with the fresh approach Macy’s is taking, McNamara acknowledges
that it is important to keep some of the Famous-Barr traditions
that St. Louisans have come to expect. “Of course, we kept the
onion soup!” he says with a smile.
Downtown Macy’s also continued the holiday tradition of the
model train window at the corner of 7th and Locust and brought
back “Saturday’s with Santa” to the downtown store as well.
Additionally, Macy’s added a new element to the holiday window
displays in the downtown store by featuring Christmas trees
highlighting St. Louis sports teams such as the St. Louis Rams,
Cardinals and Blues, along with trees decorated to represent
well-known St. Louis destinations including the Saint Louis
Art Museum, the Missouri Botanical Garden and the St. Louis
Public Library. All trees were auctioned off to benefit various
charities this holiday season. The auction raised over $7,700.
All this points to Macy’s commitment to its customers, stores
and employees. “Our street level entrance and window displays
are integral to our store and to downtown. We took great care
in opening up new windows and replacing old ones. Inside, our
first floor has been re-painted and re-lit, along with many
merchandise and display changes to re-energize the store. We
also have 1,000 employees in our downtown headquarters that
we are committed to. It’s all part of our focus on downtown
and being part of the revitalization taking place.”
McNamara also talks about changes in customer behavior that
Macy’s has taken into consideration. “We realize that all customers,
regardless of income level, expect value.”
He continued, “It’s not about cheap prices, but prices that
are in line with product quality. Today’s customers shop at
Saks, Macy’s, Wal-Mart and Target. We know there is a high demand
for affordable luxury.”
McNamara says Macy’s has adapted to the changing retail landscape
in St. Louis in order to compete in a number of ways. It starts
with the Macy’s vision, which states: “We are Macy’s, America’s
department store. We are our customer’s first choice for fashion
and affordable luxury.”
Today, Macy’s has four priorities: compelling and distinctive
products; price simplification; improving the shopping experience
and compelling marketing.
McNamara says Macy’s offers product selections that connect
with customer lifestyles. Macy’s has added six new exclusive
brands in women’s clothing including Charter Club Inc. and Style&Co.,
which are doing very well, along with six new exclusive brands
in men’s clothing and six new exclusive lines of home furnishings.
Macy’s has expanded its offerings of well-known brands, including
Jones New York, Polo, and Coach. The product mix is tailored
to each individual store.
Another priority is price simplification with less coupons,
but more everyday value and special offers for our best customers.
Macy’s has already taken steps to make shopping easier with
automated price checkers, more directional signage, wider aisles
that can accommodate shopping carts and improved fitting rooms
and waiting areas.
“We have made our stores easier to shop in,” McNamara explains.
“We have reduced the clutter and really streamlined the visual
environment.”
A new marketing focus is another of Macy’s priorities. Macy’s
Midwest is taking advantage of national advertising and leveraging
Macy’s brand image and major special events to expand its presence
McNamara explains.
The new changes are paying off. “The response to many of our
changes has been very encouraging. As a result, we are seeing
a great deal of customer traffic in our stores,” he says.
McNamara wraps up by saying, “In the end, our ability to prosper
in the changing retail atmosphere is about making the customer
number one and operating in a strong economic environment for
retail growth and development—both of which are alive and well
in St. Louis today.” And regarding Macy’s future in St. Louis,
McNamara is optimistic. “Business, civic and community groups
are increasingly collaborating on initiatives to stimulate our
economy and make St. Louis a vibrant, affordable and safe place
to live and work.”
“I’m most excited about watching our people grow as individuals
and as a team to serve our customers with continuous new ideas,
product innovations and outstanding service.”
For an overview of the business environment in Greater St. Louis,
click here.
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Look
Again:
IT ISN'T ALL AT THE MALL
Downtown Retail Brings Shopping
Back to Street Level
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By Bill
Beggs jr.
First they moved out.
Now they’re moving back in.
As downtown's lost industry and retail establishments large
and small shriveled on the vine for lack of street traffic,
commerce moved farther and farther out. First came the shopping
plaza, with a dime store and drugstore, maybe a dry cleaners,
shoe repair shop and soon-to-be-super market. In the 1970s,
enormous shopping malls sprouted from coast to coast, with
two anchor tenants—here it was Famous-Barr at one end and
Stix, Baer & Fuller at the other, maybe Sears at one end
and JCPenney at the other, depending on the demographic.
A mix of shoe stores, record stores, specialty apparel shops
and the like have kept shoppers and their wallets occupied
from here to there. Some shopping plazas morphed into mega-malls,
as happened with the former River Roads, now the Saint Louis
Galleria.
Meanwhile, some cities managed to duplicate the success
of the suburban mall concept in or near downtown, as has
been the case in Chicago with Water Tower Place, and Kansas
City with Country Club Plaza. Developers tried to duplicate
the success of the downtown mall in St. Louis, with mixed
success. St. Louis Centre thrived for awhile in the late
1980s and early 1990s, but fortunes faded as Ann Taylor,
The Sharper Image and other national retailers pulled up
stakes when the developer team of the project went through
a “contentious divorce.”
This overview is anecdotal, condensed and simplified, of
course, but it does beg this simple question: What next?
Well, look around you. The tide is coming back in—or going
out, based on whether you’re a suburbanite or an urban pioneer.
You can go downtown and shop with local merchants, not just
drop in and out of the tenant spaces at the mall. There’s
a place for both, of course. Downtown’s not as convenient
for residents of either O’Fallon to do this as it is for
someone who lives just upstairs in a stylish new apartment
in the resurging downtown loft district. That’s why Mid-Rivers
Mall and St. Clair Square continue to thrive, not to mention
attract satellite development, both retail and residential.
“Most downtown malls tried to duplicate the success of the
suburbs,” says Kevin Farrell, former Rouse Company executive
and now senior director of economic and housing development
for the Downtown St. Louis Partnership. But by and large,
the traffic at St. Louis Centre came from downtown workers
who could only spare a limited amount of time out of the
office, especially if lunch was part of the deal.
“Nobody can survive on two hours a day. But now, downtown
has residents, as well as office workers,” Farrell says.
Enticements have included everything from historic tax credits,
to a forgivable loan program, a stipulation of which is
that the establishment fulfill several specific needs of
the downtown retail mix. Subjectively, says Farrell, the
business must provide a needed service to the local community
(very local; within a walk or bicycle ride of a few blocks)
or be an attractive neighbor for other prospective merchants.
| Niche,
922 Washington Ave. |
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A casual observer or infrequent visitor might be flabbergasted
to see that 21 new shops and services, and 31 restaurants
have popped up all along Washington Avenue. But things are
hopping there and elsewhere, all over downtown and on the
fringes—in Soulard, Lafayette Square, Grand South Grand,
plus the Gate District, the Bottle District, the Ice District.
“You’re also seeing tremendous development in these gaps,
right on the edge of downtown,” Farrell points out. “The
more density you have, the better it is for retail. I think
you’re going to continue to see revitalization.”
In the not-too-distant future, civic leaders expect this
to be the case in a brand-new neighborhood to spring up
adjacent to Busch Stadium—which, lest we forget, is itself
not even a year old. Construction on the $400 million-plus
Phase I of Ballpark Village is anticipated to begin in the
next few months with over 400,000 square feet of new retail
and restaurants, with projected completion in spring 2009.
Over the past year, government and corporate leaders have
been working intensively with The Cordish Co., largest developer
of entertainment districts and concepts in the nation, to
move the mixed-use residential, retail and entertainment
district off the drawing board and PowerPoint presentation
to bricks and mortar.
Cordish, based in Baltimore, is no stranger to this type
of development. Witness the amazing transformation of a
downtown at the opposite end of the Show-Me State: the Kansas
City Power & Light District, a mixed-use retail, entertainment,
office and residential district taking up nine city blocks
in the heart of downtown Kansas City. The $850 million district
is the cornerstone of a massive $2 billion urban renaissance
which includes major new attractions such as a new performing
arts venue, arena, convention-center expansion and 10,000
new urban loft units.
The company has won numerous awards from the Urban Land
Institute (ULI), and continues to wow residents, civic leaders
and the media from coast to coast: Charleston, S.C., Baltimore,
Atlantic City, N.J., Niagara Falls, N.Y., Detroit, Salt
Lake City.
Louisville, Ky., is one of the closest examples to the east
of here. Fourth Street Live! is the jewel in the crown.
“Fourth Street Live! is a classic example of retail space
and entertainment jump-starting a moribund downtown,” says
Ron Nyren of ULI.
Cordish becomes a part of the management team after opening
a development, has never sold an entertainment complex they
built and never had a failure, emphasizes Kansas City Mayor
Kay Barnes. Plus, the company’s track record brings with
it no small amount of prestige.
“Having Cordish involved allowed us to entice H&R Block,
one of our hometown companies, to plan its new world headquarters
for downtown,” says Barnes. “This was huge. Cordish, H&R
Block—suddenly people across the nation were taking notice.”
St. Louis got to bask in that spotlight last fall when the
whole world watched the Redbirds win the World Series. But
the feeling hasn’t worn off, as exemplified by the continued
excitement in town, plus serious commitment and investment
from both inside and out. Farrell is among scores of professionals
in the public and private sector encouraged by the momentum
that continues throughout downtown St. Louis.
These aren’t little-town dreams, but a big-city reality.
Metamorphosis is not too strong a word.
To wit: A white elephant for years, St. Louis Centre has
a new lease on life, with Pyramid Cos. set to reconfigure
the nearly vacant space into as many as 120 condominiums,
with ground-floor retail. Construction at the complex, now
600 Washington, should be full steam ahead by April.
Plus, an expanded light-rail system is one more sign that
St. Louis is on the move.
“Now you can walk out of the ballpark, and there’s MetroLink
right there,” exclaims Farrell. “It’s an exciting time down
here.” |
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St. Louis Brings Home
Prestigious International Award
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By Bill
Beggs jr.
LONDON—Acknowledging
the ongoing revitalization of downtown St. Louis, the U.K.-based
World Leadership Forum in December selected St. Louis as
its top international winner in the Urban Renewal category.
The award recognizes exceptional leadership in transforming
stagnant urban settings into models of positive revitalization
and renewal. St. Louis bested three other finalist cities
in the category: Calcutta, India; Manchester, England; and
Kansas City. Last year’s winner was Phnom Penh, Cambodia.
“Everyone in St. Louis should be proud,” said St. Louis
Mayor Francis Slay, who had traveled to London to make a
presentation for the Gateway City. “This honor recognizes
the vision and hard work of the many people who are making
St. Louis a great city.”
Rollin Stanley and Mayor Francis Slay accept
the World Leadership Award from Malcolm Turner,
president, World Leadership Forum. St. Louis
received the award in the category of urban
renewal. |
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Slay underscored “culture of change” that has empowered
people to improve the City’s quality of life.
“It isn’t just bricks and mortar,” Slay said. “We are certainly
revitalizing downtown and our neighborhoods. But, we are
also addressing healthcare, education, affordable housing,
and homelessness.”
The judges applied three criteria in selecting the winner:
Quality of leadership; obstacles that a city has overcome;
and the degree of inspiration a city may give to others.
Last year, the World Leadership Forum invited leaders in
400 of the world’s largest cities to submit synopses of
their most successful urban ventures. In September, St.
Louis was among 28 cities named as finalists in 11 categories
of accomplishment.
The Forum promotes leadership internationally by spotlighting
exceptional progress in science, technology, education,
communication and the arts. Also honored was U.S. Sen. John
McCain, R-Ariz., who was named Policymaker of the Year.
Earlier in the year, the Forum had acknowledged the efforts
of the world’s top business and financial journalists, including
Peter Elkind of Fortune and Bill Emmott of The Economist.
This was at least the second major award that St. Louis
has received over the past year for its urban renewal efforts.
In March, the city received the National Entrepreneurial
American Leadership Award from Partners for Livable Communities,
a national, nonprofit organization working to revitalize
communities throughout the country. |
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Too
Soft, Too Hard, This Bed’s Just Right
BUILD-A-BEAR WORKSHOP MAKES FORAY INTO FUNITURE
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By Bill
Beggs Jr.
Formerly dedicated specifically to making all manner of
plush pets, from teddy bears year-round to reindeer at the
holidays—actually, helping customers themselves put together
their own soft, fuzzy toys—Build-A-Bear stores will soon
be selling furniture, too.
But there hasn’t been the racket of hammers and saws inside
the St. Louis Galleria and elsewhere the company has its
270-some stores. The furniture is premanufactured.
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The
new Build-A-Bear Workshop Home Collection
will be rolled out to stores in February and
March. |
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Shoppers have been able to find furniture, shoes and accessories
made to fit the plush critters at the stores and elsewhere,
including online at sites such as NecessaryExtras.com.
But this is furniture actually designed to fit customers—the
kids who’ve “adopted” bears and others animals.
The furniture, which debuted last fall at the High Point
wholesale furniture market, was expected to be rolled out
to stores in February and March. Observers say the four
collections—two for girls, one for boys and one offering
modular storage—created the most buzz in a hot furniture
category.
Pulaski Furniture of Pulaski, Va., last March signed a four-year
agreement to produce the Build-A-Bear Workshop Home Collection
as well as lamps, rugs and accessories. Pulaski solicited
input from children and their parents in designing the collection,
which was created for boys and girls ages 4 to 12.
A bedside table has a detachable book and magazine rack
that can be hooked to either side of the table. The table
has built-in lighting controls that will accommodate any
lamp, allowing kids to turn the lamp on or off, or even
dim it, at just a touch. The bottom shelf of a bookcase
even lifts to expose a secret hiding place.
“The loft bed,” as Maxine Clark shared in November with
a California newspaper, “is like having your own private
treehouse in your room.” Clark is founder and CEO of Build-A-Bear—which,
although it may seem to some in St. Louis to have been around
much longer, opened its first store here in 1997.
The girls’ bedroom collections—two, because 70 percent of
Build-A-Bear’s customers are of the fairer sex—are a “princess”
group and a more casual group. Both are in white. The boys’
furniture is finished in a warm honey.
All drawer fronts feature color panels that can be changed
quickly and easily—pastels for girls, primary colors for
boys. So as not to get misplaced, the panels store in a
pouch on the back of the chest or dresser. Drawer and doorknobs
are available with and without the bear logo. Deep drawers
under a craft table feature chalkboard fronts, so children
can make notes on what’s inside.
“We wanted this to be versatile,” Clark said. “A girl might
be a ballerina this week, a soccer player next week.” |
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