Bloomingdale's

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Bloomingdale's

Type Division

Industry Retail

Founded 1860

Headquarters New York, New York, USA

Clothing, footwear, bedding, furniture,

Products jewelry, beauty products,optical, and
housewares.

Owner(s) Macy's, Inc.

Website www.bloomingdales.com

Bloomingdale's (or Bloomie's) is an iconic American department store owned by Macy's,

Inc. (formerly Federated Department Stores). Bloomingdale's started in 1861 when brothers
Joseph and Lyman G. Bloomingdale started selling hoop-skirts in their Ladies Notions' Shop
on Manhattan's Lower East Side. The pair were sons of Benjamin Bloomingdale, a Bavarian-
born salesman who had lived in North Carolina and Kansas, and settled in New York City.
In 1872 the Bloomingdale brothers opened their first store at 938 Third Avenue.

Contents
[hide]
• 1 1872 Changing Neighborhood
• 2 1886 Trademark Window Displays
 • 3 1905 "All Cars Transfer to Bloomingdale's"
• 4 1930s A Flagship is Born
• 5 1961 The Brown Bag
• 6 1972 Bloomingdale's Turns 100 Years Old
• 7 1976 Queen Elizabeth II Visits Bloomingdale's
• 8 Expansion
• 9 Photo gallery
• 10 References
• 11 External links

[edit] 1872 Changing Neighborhood

As the popularity of the hoop-skirt was declining, the brothers opened their East Side Bazaar
in 1872 in a small, ordinary row house on Third Avenue and 56th Street, selling a variety of
garments such as ladies' skirts, corsets, "gent's furnishings", and European fashions. At the
time the East Side was a working-class neighborhood with shantytowns, garbage dumps, and
stockyards. Most of their customers and competitors were in the Upper West Side, and at that
time most 'respectable stores' only specialized in one trade.
Within a few years after opening the store, the Metropolitan Museum of Art opened, the new
St. Patrick's Cathedral was dedicated near the store after moving from its downtown location,
Central Park would be completed, and the New York subway system would begin
construction. These additions brought wealthy customers to the East Side and built their
brownstones that surrounded the new park.
[edit] 1886 Trademark Window Displays
It moved in 1886 to its current location on 59th Street and Lexington Avenue. The store was
designed with large plate glass display windows and spacious merchandising areas. The two
innovated a Bloomingdale's trademark with the presentation of merchandise. Instead of the
common practice that cluttered the display windows with an assortment of the goods they
sold, each window featured a couple of products as props on a theatrical mise-en-scene.
Many of these products were European imports, which added to the store's elegance.
By the turn of the century, Bloomingdale's growth skyrocketed, facilitated by its convenient
location at a hub of New York City's horse-drawn trolley system. Offerings at the time
ranged from ladies' stockings at 10¢ a pair to $10 men's wool suits and $149 upright pianos.
In 1902, the advertising slogan "All Cars Transfer to Bloomingdale's" capitalized on the
store's location, and the company commissioned artist Richard F. Outcault to create a series
of paintings around the theme. The slogan appeared on billboards and on 5,000 free beach
umbrellas offered to street vendors and delivery cart drivers.
[edit] 1905 "All Cars Transfer to Bloomingdale's"
Around 1905, hard times hit as the popular upper class shopping area moved downtown
along Sixth Avenue between 14th and 23rd Streets. In 1913, the 59th Street Station of the
Lexington Avenue subway was constructed in Bloomingdale's basement, further reinforcing
the "All Cars Transfer to Bloomingdale's" slogan, and business recovered. By the 1920s, the
store covered the entire city block.
[edit] 1930s A Flagship is Born
Bloomingdale's flagship store on Lexington Avenue in New York
In 1930, Bloomingdale's would now take residence in a new location off of Lexington. The
building, which had grown by spurts and starts to engulf the entire block, receiving an eleven
storie addition and was completely redesigned by architects Starrett & van Vleck in the Art
Deco style.
In 1949, Bloomingdale's inaugurated its first branch store in Fresh Meadows, Queens.
Bloomingdale's also had a full line branch store in New Rochelle, NY and a furntirue store in
the Vernon hills shopping center in Eastchester, NY about seven miles away which they
wanted to expand, however, the City of New Rochelle and the surrounding neighborhood
were opposed to Bloomingdales being enlarged for fear of increased traffic congestion and
the loss of some other long times businesses along New Rochelle's Main Street.
Subsequently, Bloomingdales decided to build a full line store in White Plains combining its
Eastchester and New Rochelle stores into one location in White Plains. The White Plains
store is one of the only freestanding suburban stores as most others are a part of a mall
environment and the White Plains store is one of the busiest and most visited suburban stores
in the Bloomingdale's chain.
The same year Bloomingdale's joined the retail giant Federated Department Stores, now
Macy's, Inc.
[edit] 1961 The Brown Bag
In 1961, the company started marketing itself with designer shopping bags to promote its
"Esprit de France" exhibit. The design, by artist Jonah Kinigstein, was a reproduction of
French tarot cards in dramatic shades of red, black, and white. The iconic "Brown Bag"
debuted a decade later in 1973. The bags were designed by Mossimo Vignelli, who designed
the current store typeface, and prominently labeled in three sizes: "Little", "Medium", and
"Big". Fashion designer Michaele Vollbracht designed one of the classic shopping bags- that
in red, black, and white of a formally dressed man on one side and a woman on the other.
Other artists who have designed shopping bags were fashion illustrator Antonio Lopez and
Mark Kostabi.
In 1969 Bloomingdale's was outgrowing its flagship store and management focused on
managing space in the flagship and expanding through suburban branch stores. Two branch
stores opened in Garden City, New York on Long Island, and Jenkintown, Pennsylvania.
Bloomingdale's launched home furnishing stores on the East Coast with products from the
flagship's home furnishings department.
[edit] 1972 Bloomingdale's Turns 100 Years Old
According to a survey taken around 1972, over 60 percent of its customers lived and worked
in the luxury high-rise apartment and office towers nearby. Bloomingdale's catered to the
neighborhood's young and affluent professional class by capitalizing on the popular trends of
the day from pet rocks to glacial ice cubes. Also around this time, the careers of fashion
designers such as Ralph Lauren, Perry Ellis, and Norma Kamali were launched.
In 1973, Bloomingdale's capitalized on its relationship with the young and trendy by
stamping the name "Bloomie's" on ladies' panties as part of its launch for intimate apparel in
1973. The rising popularity launched Bloomingdale's into a major tourist destination, and
articles stamped with "Bloomie's" became hot souvenirs.
[edit] 1976 Queen Elizabeth II Visits Bloomingdale's
During Queen Elizabeth II's visit to New York City in 1976, traffic was reversed on
Lexington Avenue so the Queen could exit her vehicle on its right side and enter the famous
Manhattan flagship through the main entrance.
[edit] Expansion
The Bloomingdale's By Mail catalog launched in 1978 which expanded the store's reach to
high-income households across the United States where no Bloomingdale's stores existed.
One notable example of Bloomingdale's early expansion efforts is in the affluent city of
Newton, Massachusetts, just outside of Boston, where Bloomingdale's opened stores in 1974.
Their presence remains to this day, in Newton's Mall at Chestnut Hill.
The retail market boomed in the 1980s. New stores opened along the East Coast, Florida,
California, and in Dallas, Texas.[1]
Expansion in the 1990s included a 1992 opening of its 15th store in the Mall of America near
Minneapolis, Minnesota, and establishing a presence in California in 1996 with four stores.
The chain increased its presence in the southeastern U.S. with two Atlanta locations in 2003,
converting the longtime Davison's/R.H. Macy & Co. properties in Lenox Square and
Perimeter Mall. In addition, after several years of struggling to understand the merchandise
needs of the California market, it has recently begun refocusing on the state with high-profile
openings in 2006 and 2007 in San Francisco, San Diego, and Costa Mesa.
On February 14, 2008, parent company Macy's, Inc. announced plans to enter the Phoenix
and Pittsburgh market by 2009. Arizona will be the thirteenth state to have a Bloomingdale's
store location, with this store being the tenth in the western U.S., and 41st throughout the
chain.[2]
On September 10, 2008, Bloomingdale's announced plans to open a 3-level, 82,000-square-
foot (7,600 m2) anchor store at The Shops at Georgetown Park in Washington, D.C. by
August 2011. The store is reported to be modeled after the chain's concept store in New
York's SoHo neighborhood to carry select contemporary men's and women's apparel. With
this announcement Western Development Corp., owner of the property, believes Georgetown
Park will become "the highest fashion and trend center in the whole Washington area."[3]
Although the Phoenix and Georgetown plans have now fallen through, there are still plans for
Bloomingdale's to open a 3-level 150,000 sq ft store at Westfield Valley Fair in San Jose.
Twelve days later, the first proposed overseas locations for the chain were announced. A
September 22, 2008, press release from Macy's, Inc. told of plans for two Bloomingdale's
locations (a three-level 146,000 sq ft (13,600 m2). apparel and accessories store, as well as a
separate one-level 54,000 sq ft (5,000 m2). home store) to open in February 2010 in Dubai,
United Arab Emirates. As is the case for rival Saks Fifth Avenue, the international presence
for Bloomingdale's will be operated under license by a local interest — in this case, Al Tayer
Group LLC, a leading UAE-based conglomerate.[4] Bloomingdale's CEO announced that the
Dubai store will most likely be the only store outside of the US since Bloomingdale's has no
further plans to expand stores to other countries[5].
[edit] Photo gallery
 Flagship store during Exterior of Exterior of
Close-up of flagship Bloomingdale's South
holiday season at
store entrance
night Coast Plaza (Costa Mesa, Bloomingdales Boca
California) Raton

Exterior of
Bloomingdales at
Lenox Square in
Atlanta

[edit] References
1. ^ "Bloomingdale Plans Cuts". New York Times. June 6, 1990.
http://query.nytimes.com/gst/fullpage.html?
res=9C0CE2D8133BF935A35755C0A966958260.
2. ^ "Bloomingdale's to Open First Store in Phoenix". Macy's, Inc.. February 14, 2008.
http://phx.corporate-ir.net/phoenix.zhtml?c=84477&p=irol-
newsArticle&ID=1108394&highlight=.
3. ^ "Bloomingdale's to Come to Georgetown Mall," by Ylan Q. Mui, The Washington Post,
Sep 11, 2008, p. D4.
4. ^ "Bloomingdale's to Open in Dubai in 2010". Macy's, Inc.. September 22, 2008.
http://phx.corporate-ir.net/phoenix.zhtml?c=84477&p=irol-
newsArticle&ID=1199122&highlight=.
5. ^ http://www.arabianbusiness.com/580371-bloomingdales-from-jo

[edit] External links

• Bloomingdale's official website
• Bloomingdale's Happening in San Francisco website
• Macys, Inc. (Federated Department Stores)
[hide]
v•d•e
Macy's, Inc.

Terry J. Lundgren (Chairman, President and CEO)

Bloomingdale's · Macy's
Events: Glamorama · Macy's Great Tree · Macy's Thanksgiving Day Parade · Celebrate the
Season Parade
 Total Revenue: ▼ US$26.313 billion (FY 2007) · Employees: 182,000 · Stock
Symbol: NYSE: M · Website: www.macysinc.com
Retrieved from "http://en.wikipedia.org/wiki/Bloomingdale%27s"
Categories: Macy's, Inc. | Department stores of the United States | Luxury department stores
of the United States | Clothing retailers of the United States | Companies established in 1861 |
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Customer Service > About Bloomingdale's > Our History

•
•
○ 1860-1879
○ A Store Is Born
To think it all started with a 19th century fad - the hoop skirt. That was the first item that Joseph and Lyman Bloomingdale carried in their Ladies' Notions
Shop in New York's Lower East Side. In the late 1800's, most fashion retailers specialized in just one type of garment. Not the brothers Bloomingdale - their
East Side Bazaar, opened in 1872, sold a wide variety of European fashions. It was the beginning of what would become a "Department Store".
○ 1880-1929
○ Moving Up In The World
In 1886 came the visionary move uptown to 59th Street and Lexington Avenue. The store expanded steadily and by the 1920's, Bloomingdale's converted an
entire city block.
○ 1900-1910
○ Read All About It
Flexing his marketing muscle, Lyman created splashy ad campaigns to bring people in the door. People started seeing the "All Cars Transfer to
Bloomingdale's" slogan everywhere - on billboards, delivery wagons, and even ladies' beach umbrellas.
○ 1940's
○ Lights - Camera - Action!
Print ads couldn't say it all. The store had to be experienced. So Bloomingdale's became the stage for gala events and fashion shows, including "Woman Of
The Year, 1947." With music, lighting and sophistication, it was retailing as theater.
○ 1960's
○ It's In The Bag
It's not just what you buy - it's what you take it home in, too. We've always looked for new ways to be creative. In 1961, the Bloomingdale's team came up
with the first designer shopping bags. Since then, many have become collector's items.
○ 1970's
○ Not A Store, But A Destination
By the 70's, everyone was stopping by 59th Street and Lexington Avenue for a look - including Queen Elizabeth. People came to see and to be seen. Once
there, they were dazzled by the cutting-edge fashion of designers like Ralph Lauren, Perry Ellis and Norma Kamali, who got their first truly big opportunities
at Bloomingdale's.
○ 2000+
○ Looking Forward
Bloomingdale's is committed to once again lead the way with exclusive merchandise, customized services, and alternative shopping venues. Carrying on the
Bloomingdale's brothers' dream, we're always finding ways to set our stores apart. That's both the legacy and the promise of Bloomingdale's.

1000 Third Avenue

(between 59th & 60th Streets)
212.705.2000
 Occupying an entire square block, Manhattan's
fashionable eastside department store has been
offering the world's finest in fashion and home
furnishings since 1927.
Bloomingdale's is popular with New Yorkers and
tourists alike and is affectionately known as
Bloomie's.

Upon entering Bloomingdale's, make your first stop at

the International Services Desk / Visitor's Center,
located on the 1st floor balcony. The friendly staff can
assist you in making the most out of your shopping
experience.

The Visitor's Center features multilingual store

directories and shopping assistance, complimentary
personal shoppers, size conversion charts, tourist

information, and even an ATM and a currency

exchanger! See the end of this tour to find out how
you can get a free gift from the Visitor's Center.
Now that you're prepared...let's do Bloomie's!
The main floor highlights include "bway," an
emporium of the finest in cosmetics and fragrances.

Names like Chanel, Clinique and MAC all have

distinct areas within "bway." You'll also find La
Perfumerie for women and The Boardroom for men
featuring exclusive fragrances.
Specialized consultants with Bloomingdale's
"Beauty At Your Service" are available to assist you
in your cosmetics and fragrance shopping. Ask at
the main floor or Visitor's Center.

Page 1 PAGE 2 Page 3

 Before we head up, an important thing to mention is
that if you enter the store on its Third Avenue side,
you'll first see this Swatch display and the men's
section (shirts, ties, etc.)

The "bway" area is in the center of the store.

As we all have our handy store directory, we're ready

to explore! You can take the escalators (at front and
back) or head over to the beautiful Art Deco elevators
which are towards the Lexington Avenue uptown side
of Bloomie's

Going up!

The 2nd to 4th floors are where we'll find DKNY, Calvin Klein, Giorgio Armani,
designer clothing for women. and all your favorite designers are
here, presented in spacious and
elegant style.
 Also on 4 is the designer shoe salon.
After all, what's a new outfit with old
shoes?

If you wind up having a few too many

packages or you've made plans after
shopping, the Visitor's Center can help with
shipping to your home, hotel, or anywhere
in the world!

On to the men's department, kids, and more!

In a flash we've arrived downstairs in the Lower

Level where all the men's clothing is located.
There's an access point to the men's department
from the north entrance on Lexington Avenue.

All sorts of suits, from the funky to the conservative,

from designer-brand to Bloomingdale's own label
can be shopped for in this newly remodeled
department.

And if you're into the casual/sportswear look,

Bloomie's offers the latest styles from line by
Tommy Hilfiger and Polo Sport by Ralph Lauren.
The hottest selection of jeans are here as well!
 Shopping for the kids? Head on up to the 8th floor to
Bloomingdale's children's department. Fashions for
infants, toddlers and young girls are all found here.
The boys are sent upstairs to 9 but you can access it
from this circular stairway featuring a suspended
sailboat!

The children's wear department features the top

designer lines.
Also on 8 is the toy department where you can get
the Bloomie's Barbie made exclusively by Mattel for
Bloomingdale's.

Would you like your own personal shopper?

Mandolin player near Bloomingdale

Bloomingdale’s (or Bloomie’s) is a beautiful chain of upscale ,attractive American
department stores owned by Macy’s Inc., which is also the parent company of Macy’s.
Bloomingdale’s has 36 stores nationwide, with annual sales of $1.9 billion. It is at a slightly
higher price level than lord & Taylor,Nordstrom,and the former Parisian, and slightly below
that of Saks Fifth Avenue,Neiman Marcus, Bergdorf Goodman and Barneys New york.It has
a deserved reputation for class , style and distinction.

Bloomingdale
Bloomingdale’s started in 1861 when brothers Joseph and Lyman G.Bloomingdale started
selling hoop-skirts in their Ladies Notions’ Shop on Manhattan’s lower East Side while their
father peddled the highly fashionable hoop-skirts along the Eastern Seaboard. The pair were
sons of Benjamin Bloomingdale, a Bavarian-born salesman who had lived in North Carolina
and Kansas, and settled in New York City.
As the popularity of the hoop-skirt was declining, the brothers opened their East Side Bazaar
in 1872 in a small, ordinary row house on Third Avenue and 56th Street, selling a variety of
garments such as ladies’ skirts, corsets, “gent’s furnishings”, and European fashions. Their
location and merchandise was a bold statement for their time. At the time the East Side was a
working-class neighborhood with shantytowns, garbage dumps, and stockyards. Most of their
customers and competitors were in the Upper West Side, and at that time most respectable
stores only specialized in one trade.

bloomingdales
The brothers must have been aware that the neighborhood was changing. Within a few years
after opening the store, the Metropolitan Museum of art opened, the new St.Patrick’s
Cathedral was dedicated near the store after moving from its downtown location, Central park
would be completed, and the New York subway system would begin construction. These
additions brought wealthy customers to the East Side and built their brownstones that
surrounded the new park.

Bloomingdales
As the store and its success grew, it moved in 1886 to its current location on 59 th Street and
Lexington Avenue. The store was designed with large plate glass display windows and
spacious merchandising areas. The two innovated a Bloomingdale’s trademark with the
presentation of merchandise. Instead of the common practice that cluttered the display
windows with an assortment of the goods they sold, each window was decorated with a
couple of products as props on a theatrical mise-en-scene. Many of these products were
European imports, which added to the store’s elegance.
By the turn of the century, Bloomingdale’s growth skyrocketed, facilitated by its convenient
location at a hub of New York City’s horse-drawn trolley system. Offerings at the time
ranged from ladies’ stockings at 10¢ a pair to $10 men’s wool suits and $149 upright pianos.
In 1902, the advertising slogan “All Cars Transfer to Bloomingdale’s” capitalized on the
store’s location, and the company commissioned artist Robert F. Oucault to create a series of
paintings around the theme. The slogan appeared on billboards and on 5,000 free beach
umbrellas offered to street vendors and delivery cart drivers.
Around 1905, hard times hit as the popular upper class shopping area moved downtown
along Sixth Avenue between 14th and 23rd Streets. In 1913, the 58th Street Station of the
Lexington Avenue subway was constructed in Bloomingdale’s basement, further reinforcing
the “All Cars Transfer to Bloomingdale’s” slogan, and business recovered. By the 1920s, the
store covered the entire city block.
Fashion at bloomingdale
In 1930, Bloomingdale’s joined Federated Department Stores, now Macy’s, Inc. In 1931, the
Bloomingdale’s building, which had grown by spurts and starts to engulf the entire block,
was completely redesigned as a coherent store by architects Starrett & van Vleck in the Art
Deco style. The store weathered the Great Depression and World War II. In 1949,
Bloomingdale’s inaugurated its first branch store in the Fresh Meadows section of Queens.
Over 25,000 people came through the store on opening day.
In 1961, the company started marketing itself with designer shopping bags to promote its
“Esprit de France” exhibit. The design, by artist Jonah Kinigstein, was a reproduction of
French tarot cards in dramatic shades of red, black, and white. The iconic “Brown Bag”
debuted a decade later in 1973. The bags were designed by Michael Vollbracht, the current
designer for Bill Blass Couture, and prominently labeled in three sizes: “Little”, “Medium”,
and “Big”.
Style at bloomingdale
In 1969 Bloomingdale’s was outgrowing its flagship store and management focused on
managing space in the flagship and expanding through suburban branch stores. Two branch
stores opened in Garden City,New York on Long Island, and Jenkintown,Pennsylvania.
Bloomingdale’s launched home furnishing stores on the East Coast with products from the
flagship’s home furnishings department.
According to a survey taken around 1972, over 60 percent of its customers lived and worked
in the luxury high-rise apartment and office towers nearby. Bloomingdale’s catered to the
neighborhood’s young and affluent professional class by capitalizing on the popular trends of
the day from pet rocks to glacial ice cubes. Also around this time, the careers of fashion
designers such as Ralph Lauren,Perry Ellis, and Norma Kamali were launched, and opened
in-store boutiques for other well-known designers.
Bloomingdale’s capitalized on its relationship with the young and trendy by stamping the
name “Bloomie’s” on ladies’ panties as part of its launch for intimate apparel in 1973. The
rising popularity launched Bloomingdale’s into a major tourist destination, and articles
stamped with “Bloomie’s” became hot souvenirs. During Queen Elizabeth II’s visit to New
York City in 1976, traffic was reversed on Lexington Avenue so the Queen could exit her
vehicle on its right side and enter the famous Manhattan flagship through the main entrance.
Her visit cemented the popularity of the store.
Sales continued to grow and branch stores continued to open outside of New York City in the
late 1970s. The Bloomingdale’s By Mail catalog launched in 1978 which expanded the
store’s reach to high-income households across the United States where no Bloomingdale’s
stores existed.
Paris style at bloomingdale
The retail market boomed in the 1980s. New stores opened along the East Coast,
Florida,California, and in Dallas,Texas (which did well upon opening but closed because of
Chapter 11 bankruptcy).
Expansion in the 1990s included a 1992 opening of its 15th store in the Mall of America near
Minneapolis,Minnesota, and establishing a presence in California in 1996 with four stores.
The chain fortified its presence in the southeastern U.S. with two Atlanta locations in 2003,
converting the longtime Davison’s/R.H.Macy & Co. properties in Lenox Square and
Perimeter Mall. In addition, after several years of struggling to understand the merchandise
needs of the California market, it has recently begun refocusing on the state with high-profile
openings in 2006 and 2007 in San Francisco,San Diego, and Costa Mesa. The San Francisco
and Costa Mesa units were among the most successful openings in the chain’s history.
On February 14, 2008, parent company Macy’s, Inc. announced plans to enter the Phoenix
market by 2009. Arizona will be the thirteenth state to have a Bloomingdale’s store location,
with this store being the tenth in the western U.S., and 41st throughout the chain.
On September 10, 2008, Bloomingdale’s announced plans to open a 3-level, 82,000 square
foot anchor store at The Shops at Georgetown Park in Washington D.C. by August 2011. The
store is reported to be modeled after the chain’s concept store in New York’s SoHo
neighborhood to carry select contemporary men’s and women’s apparel. With this
annoucement Western Development Corp., owner of the property, believes Georgetown Park
will become “the highest fashion and trend center in the whole Washington area.”
Twelve days later, the first proposed overseas locations for the chain were announced. A
September 22, 2008, press release from Macy’s, Inc. told of plans for two Bloomingdale’s
locations (a three-level 146,000 sq. ft. apparel and accessories store, as well as a separate
one-level 54,000 sq. ft. home store) to open in February 2010 in Dubai,United Arab Emirates.
As is the case for rival Saks Fifth Avenue, the international presence for Bloomingdale’s will
be operated under license by a local interest — in this case, Al Tayer Group LLC, a leading
UAE-based conglomerate.
The parent company of Bloomingdale’s (as well as Macy’s) —Macy’s,Inc. — is involved in
a labor dispute regarding maquila workers in Guatemala. Workers in the Sitracima union
allege intimidation and union-busting at their CimaTextiles factory. On 2 June 2007, a
student protest at the downtown Seattle Macy’s and Talbots caused disruptions for shoppers.
Because it is part of Macy’s, Inc., Bloomingdale’s has also been the subject of a consumer
boycott in response to the conversion of Marshall Field’s stores to Macy’s. The grassroots
group FieldsFansChicago.org says the boycott will remain in effect until Marshall Field’s is
restored as a unique store separate from Macy’s and Bloomingdale’s.

Home / Commentary / BNET Retail

Bloomingdale's Outlets Emerge as Reality

Providing Macy's Flexibility
By Mike Duff | January 25, 2010

•
• Comments
 • Votes

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By opening up Bloomingdale’s outlet stores, Macy’s (M) is providing itself with the
flexibility to satisfy the changing luxury consumer.
Macy’s interest in opening Bloomingdale outlet stores was noted by our Bnet colleague Ian
Ritter in a post last week. He pointed out that rumors of a new outlet operation aligned with
the luxury chain had swirled in the aftermath of success enjoyed by its competitors. Both
Saks (SKS) and Nordstrom (JWN) said in their last reported quarterly results that outlets did
better than their department stores. Nordstrom, for example, reported that comparable store
sales, those at locations open for at least a year, declined by more than four percent at
department stores but gained three percent at its Nordstrom Rack outlets. Nordstrom has
made expansion of outlets a priority, opening six in the third quarter. The company has
announced plans for three more Nordstrom Racks, its first in North Carolina, a 33,000 square
foot store, and one each in Peoria, Ariz., and Chicago, both of which are planned as 36,000
square foot stores. Nordstrom operates about 70 Rack outlets.
Macy’s plans summer openings for its first Bloomingdale’s Outlets, each in about 25,000
square feet of space, with one each in:
• Bergen Town Center, Paramus, N.J.
• Dolphin Mall, Miami, Fla.
• Potomac Mills, Woodbridge, Va.
• Sawgrass Mills, Sunrise, Fla.
Macy’s isn’t just sticking its toe into the water with its first four outlets. The company noted
that it expects to open more Bloomingdale’s Outlet locations in 2011 “and beyond,”
suggesting it envisions a major initiative.
Those stores will offer a range of apparel and accessories, including women’s ready-to-wear,
men’s, children’s, women’s shoes, fashion accessories, jewelry, handbags and intimate
apparel.
On the most basic level, the outlets provide Macy’s an option it can use to shed excess
inventory, something that can be particularly useful in the Bloomingdale’s case as its product
selection is on the front end of the fashion cycle. The styles it stocks are closer to
introduction, which means they’re a riskier proposition than those that trail fashion trends
further. As consumer purchasing establishes which fashion trends shoppers favor, retailers
can accumulate goods based on preferences expressed. Retailers that focus on better
established fashion - and in comparison with Bloomingdale’s, that includes Macy’s stores -
have less risk of getting stuck with looks that might have excited designers but left consumers
cold. On the other hand, Macy’s doesn’t get as many of those truly dedicated fashionistas
who are willing — and still are, in many cases — to shell out top dollar to be on the forefront
of style.
Beyond that consideration is the fact that not everything in an outlet is diverted from the
inventory of its parent store. Some merchandise is made especially for those outlets in a
deliberately less costly manner. Therefore, Macy’s has the chance to extend successful styles
through an outlet operation and get the more out of its investment in fashion.
“Bloomingdale’s Outlet stores are an opportunity to expand our presence in new and existing
markets, as well as to remove clearance from full-line Bloomingdale’s stores in a timely
manner,” Michael Gould, Bloomingdale’s chairman and CEO, said in announcing the outlet
initiative. “The customer experience in these stores will reflect the Bloomingdale’s brand
with a strong value message.”
Interestingly, in the holiday season, competitor Nordstrom turned in a comparable store sales
performance at its department stores, up five percent, that just about equaled that at its
outlets, which gained a tenth of a percent more. While expensive advertising and promotions
would have enhanced the department store performance, the holiday season demonstrates that
luxury consumers aren’t just abandoning their traditional haunts but will respond to options
offered them. By launching Bloomingdale’s outlets, Macys is acknowledging that consumer
frugality is likely to remain a trend even among luxury customers and that the company needs
to be flexible to pursue fashion-minded shoppers who are more reluctant to part with a buck
and may remain so indefinitely.
“We have been studying the opportunities for entering the off-the-mall outlet business for
some time, and the timing now is right given the consumer’s particular focus on value in
addition to fashion and quality,” said Terry Lundgren, Macy’s chairman and CEO.
comment-form-te

Bloomingdale's: A History
Bloomingdale’s began with a 19th century fad, and the extraordinary vision of two brothers.
Lyman and Joseph Bloomingdale pioneered nearly every major change in the evolution of
department stores – if they weren’t the first with an idea, they simply did it bigger and better
than anyone else. Their innovative retailing philosophy guided Bloomingdale’s in its
beginning and that strategy continues today, justifiably earning Bloomingdale’s the reference
“Like No Other Store in the World.”
The first retail endeavor of the Bloomingdale brothers was a Ladies’ Notion Shop in New
York. In 1872, Bloomingdale’s expanded and opened their East Side Bazaar, selling a variety
of women’s fashions. This was a bold move in the era of specialty shops; the Bazaar became
a harbinger of the true “department store.” By 1929, Bloomingdale’s covered an entire city
block.
Two years later, the glamorous Art Deco edifice that still graces Lexington Avenue was
completed. In 1949, Bloomingdale’s began its real expansion, opening its first satellite store
in Fresh Meadows, Queens and by 1959, Bloomingdale’s had created a complete circle of
stores around the flagship in New Jersey, Westchester County and Long Island. This dramatic
growth continued in the ‘70s and ‘80s with the opening of stores in the Northeast, Florida and
Chicago. Bloomingdale’s was on its way to becoming a true national entity. That vision
culminated in 1996 with the addition of its first four stores in California, the most ambitious
expansion in the company’s history, followed by two new stores in the Atlanta market in
2003.
From the beginning, the Bloomingdale brothers catered to America’s love of international
goods, and by the 1880s, their European selection was dazzling. A buying office in Paris in
1886 was the beginning of a network that now spans the globe. The 1960s brought
promotions resulting from Bloomingdale’s fascination with the foreign market: the first was a
small affair called “Casa Bella” featuring merchandise for the home from Italy.
Over the next 30 years, the promotions took on a grand scale – including unique merchandise
and cultural exhibits that would touch every department in Bloomingdale’s. Major
transformation of the Bloomingdale’s image came in the 1960s and 1970s. The promotions
were so exciting that the term “Retailing as Theater” was coined to describe Bloomingdale’s
“happenings.” It was the era of pet rocks and glacial ice cubes, of visits by movie stars and
royalty, from Elizabeth Taylor to Queen Elizabeth II.
The new direction in merchandising was both to seek and to create. Buyers covered the world
to find exclusive, one-of-a-kind items. When they couldn’t find what they wanted, they had it
made. In fashion, Bloomingdale’s launched new designers and created boutiques for already-
famous names. Among the discoveries: Ralph Lauren, Perry Ellis and Norma Kamali – and
for the first time in America: Sonia Rykiel, Kenzo and Fendi ready-to-wear. Designers
opening their first in-store boutiques at Bloomingdale’s include Yves St. Laurent, Calvin
Klein, Claude Montana and Thierry Mugler.
In 1961, Bloomingdale’s made retail history in yet another area by introducing the first
designer shopping bag. Artist Joseph Kinigstein was commissioned to create a bag for the
“Esprit de France” promotion. Rather than doing the obvious – ladylike flowers in pastel
colors – he reproduced antique French tarot cards in bold red, black and white. Most daring
of all, the bag omitted the store name. Even so, it was unmistakably Bloomingdale’s, and the
collector’s shopping bag was launched. Since then, both famous and fledgling artists,
architects and ad designers have created Bloomingdale’s bags. Their designs have been
featured in art museums all over the world. In 1971 “model rooms,” a highlight of
Bloomingdale’s since 1947, gained worldwide attention. “The Cave,” an intricate multi-level
frame sprayed entirely in white polyurethane, was a spectacular example of the lengths to
which Bloomingdale’s would go to make a statement of style. Over the years, the model
rooms have been showcases for the talents of everyone from architect Frank Gehry to
filmmaker Federico Fellini.
During the 1970s, Bloomingdale’s was a favorite stop of the international avant-garde,
epitomized locally by the “Young East Sider” who lived right in the neighborhood. In 1973,
the store wanted to stamp the Bloomingdale’s name on panties to launch an intimate apparel
promotion; they chose the company nickname as a nod to the young, trendy crowd, and the
“Bloomie’s” logo was born. Soon, New Yorkers were affectionately referring to the city’s
second most popular tourist attraction after the Statue of Liberty as “Bloomie’s” and the
hottest souvenir in town was anything emblazoned with “Bloomie’s.” From the late ’80s to
the present, the economy and retailing has changed – thus changing the buying habits of
consumers. As usual, Bloomingdale’s kept up with the times and prepared for the future.
Today, there is an increased emphasis on building customer services and relationships, while
continuing the unique and exclusive aspects that made Bloomingdale’s world famous.
With a reputation for quality, creativity and uniqueness, Bloomingdale’s has remained at the
forefront of retailing world-wide. Bloomingdale’s speaks to its customers in a language they
understand: service, selection and fashion, making Bloomingdale’s “Like No Other Store in
the World.”
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