NEW YORK(AP)
The chief marketing officer of Macy's department stores
delivered tough talk to the newspaper industry Tuesday, telling a
publishing conference why her company is moving ad dollars to other
media such as TV, magazines and the Internet.
Anne MacDonald, a self-proclaimed newspaper "junkie"
who keeps stacks of them around her home and reads several each
day, told publishers they need to do more to win back business from
Macy's, which is part of Federated Department Stores Inc.
With Macy's now a national brand following Federated's
acquisition of May Department Stores, the chain is turning
increasingly to media with a national reach such as fashion
magazines, television and Web sites, she said.
Newspapers are still effective at delivering local messages, she
said, but need to do more to engage Macy's shoppers _ primarily
women aged 18-54.
"In order for your newspapers to be winning our advertising
dollars, you need to be winning in the marketplace, and that's
not currently the case," MacDonald said in a keynote talk at
the conference held by the Newspaper Association of America.
Analysts and investors have long been concerned about the
decline in ad spending by department stores, and in particular
Macy's, as they become national brands and less likely to use
local media such as newspapers. Also, newspapers have been
struggling with declining circulation and ad dollars as more people
get their news online.
Among MacDonald's several suggestions for change was for
newspapers to collaborate more effectively across regions and with
each other in selling advertising, which would allow national
companies such as Macy's to reach a broader audience.
As it is, individual ad buyers for Macy's stores deal with
individual newspapers on advertising plans. "That's not
productive for either of us," MacDonald said.
She pointed to her own industry, department stores, which had to
undergo significant changes over the past several years to adapt to
competition from online stores, television shopping channels, big
box retailers and discounting clubs.
Macy's, she said, is seeking to establish itself as a more
upscale, fashionable brand and drive foot traffic even when there
aren't promotions, and is still trying to understand how
customers are changing the ways they shop. "Like us, you must
change the way you think," she said.
MacDonald pointed to the example of her two favorite sections of
her hometown newspaper, The New York Times. Every week she pulls
out the science and dining sections and reads them first.
If the Times were to somehow deliver those sections to her
wrapped on the outside, she would be impressed that the publisher
had learned something about her reading habits, she said.
She also issued a plea to publishers to collaborate with
advertisers on research to better understand the rapidly evolving
habits of their customers. The idea was immediately embraced by
Jack Sweeney, publisher of the Houston Chronicle, who asked
MacDonald how to find out what questions they needed answered.
Mark Contreras, senior vice president for newspapers at E.W.
Scripps Co., called MacDonald's remarks a "very thoughtful
call to action for newspapers to pay very close attention to. ...
We have the wherewithal to meet many of their needs."
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