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Macy’s Entry Into Hawaii Market
Background:
Macy’s entered Hawaii and Guam in 2001 when its parent company,
Federated Department Stores, acquired Liberty House, Hawaii’s
largest and oldest retail company. The acquisition came shortly
after Liberty House emerged from a three-year bankruptcy that had
taxed the loyalty and morale of employees, customers and vendors.
As a 152-year-old Island institution, Liberty House’s name
and logo were ingrained in the Hawaii psyche, and Macy’s realized
that the change would be difficult. Macy’s wanted to introduce
new retailing concepts and merchandising, while reassuring local
audiences that they would respect and celebrate Island tastes and
sensitivities.
Approach:
Communications Pacific developed a communications program to manage
the messages surrounding the purchase of Liberty House and the launch
of the Macy’s brand in the Islands. Strategies included media
relations, government relations, employee communications, community
outreach, vendor communications and customer relations.
Phase One, the acquisition announcement, addressed
employee concerns regarding layoffs and potential conflicting corporate
cultures; reassured customers that Macy’s would remain sensitive
to the local culture and lifestyle and offer island-appropriate
merchandise; instilled confidence among local vendors of Macy’s
intent to support Hawaii businesses; and positioned the sale as
a positive cooperative agreement that would ensure the continued
viability of the local retail industry and the state’s economy.
Phase Two, the transition and conversion to Macy’s,
included educating audiences about the Macy’s brand; creating
excitement about Macy’s entry into the market by previewing
what customers could expect in terms of new merchandising, value
and "retail theater"; demonstrating Macy’s respect
for the Island lifestyle and traditions; highlighting Macy’s
investments in new technologies, capital improvements, merchandise
and employee training; and demonstrating Macy’s commitment
to supporting the local community.
Results:
Communication Pacific’s efforts resulted in the following
benefits to Macy’s:
- Controlled, positive media coverage that positioned
the acquisition as a benefit to Hawaii’s retail industry,
economy and community.
- Strong positioning of Macy’s as a company
that recognizes Hawaii’s and Guam’s unique lifestyles
and the needs of local shoppers.
- Confidence among employees that Macy’s
is an employer that cares about its associates and treats them
with respect as individuals and professionals.
- Sustained interest in Macy’s in the weeks
and months leading up to the official conversion from Liberty
House to Macy’s.
- Ongoing, positive media coverage about Macy’s,
including its business philosophy, brand and the people behind
the name.
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