My gut feeling is that history will record this as a marketing disaster along the lines of New Coke. But I don’t know if that’s my true marketing judgment or an emotional response. My uncle ran Marshall Field’s in its glory years. But clearly it has been mis-managed subsequently, going through a number of owners who had no appreciation of the qualities that made Marshall Field’s great – starting with Dayton-Hudson’s takeover, moving the buying operation from Chicago to Minneapolis. (Remember one of their early bungles? Getting rid of the trademark green bags … it didn’t take them long to realize what a mistake that was.) But it’s not surprising that Field’s has been under-performing, as out-of-town owners have taken it further away from what made it what it was. And then as performance declined, these carpetbaggers tried to cut costs, cut service, and get as much profit out of the operation through reducing expenses, rather than by improving service in a way that could boost volume.
I understand the economies of national/international branding. In the advertising world, the venerable, revered Chicago agency Needham, Harper & Steers was re-named DDB – DDB didn’t have much of a reputation in Chicago, but it was a “world brand.” And the name change’s impact on their business was negligible at best. But that’s an industrial, relationship-based business, unlike Field’s, which is a business that relies on its image with consumers. It can be much more vulnerable to changes to its image. And a name change, especially away from a well-loved one, cannot help but change its image. (When I lived in Manhattan, I always thought of Macy’s as a half step above Sears.)
I think, ideally, Federated should spin off Marshall Field’s to some investor group, who would be willing to let it get back to its proven roots.
And I believe the Frango mint thing – “considering” bringing production back to State Street – is little more than a sop to the city to lessen the sting – it’ll never happen.