Whereas Hecht's became synonymous with frequent promotions like its all-day shopping passes and the 15-hour sale, Federated began to rely less on what retail consultant Lois Huff called "the constant narcotic of [promotional] coupons" to lure shoppers. It focused more on national advertising campaigns and set itself apart with private labels such as INC, Charter Club and the Alfani shoes that Moore came to fancy.
Federated "became faster on fashion [trends], with more urban attitude in its big stores," said Huff, a senior vice president with the consulting firm Retail Forward.
Federated hopes its merger with May will boost sales of private-label clothing brands such as Charter Club and INC.
(David Kohl -- AP)
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New Owner for a Hometown Store Hecht's, a fixture in Washington retailing for more than a century, is owned by May Department Stores Co., which agreed Sunday to merge with Federated Department Stores.
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Lundgren said Monday that he would apply the same approach to May stores after the merger -- a signal retail analysts say points to an eventual conversion of May chains such as Hecht's and Lord & Taylor to Federated nameplates such as Macy's or Bloomingdale's.
But what of the loyal Hecht's shopper who may not be a Katherine or a Mike, an iPod-toting Erin or a hyper-trendy Josh?
About 5 million people shop at both Federated and May stores, according to a study by STS Market Research in Cambridge, Mass. By contrast, there are an estimated 25.3 million who shop just at May stores and must now be won over by Federated.
The differences between customers of Macy's and Hecht's may be the most subtle. Both offer much of the same merchandise, such as Jones New York suits and Nautica men's dress shirts. But there are a few key differences.
Hecht's customers, as a group, have a less flashy image, according to Philip Rist, vice president of the marketing firm BIGresearch, of Worthington, Ohio.
Whereas Hecht's was once known for its furniture and men's clothes, it is now known mostly for its coupons and complicated sale signs.
"Hecht's lost its point of view," said Arnold Bronfin, a former Hecht's company executive who went on to become president of the Complement Inc., a chain that sells luggage and leather goods.
Today's typical Hecht's customer, retail analysts said, tends to be an older, cost-conscious working woman with children at home. She's more likely to buy bed-in-a-bag sets than 600-thread-count Egyptian cotton pillow shams and fashionwise is the sort who prefers to wear her pants at the waist rather than slung low on the hips, said retail analysts and vendors who sell to both companies.
