Facing the Realities (smelly and business)....

Well, I went over to Macy's today. While chatting with the SAs about smelly stuff, the Claiborne rep told me about Graphite Blue by Realities. I sniffed it, and it was surprisingly good... sorta like Bulgari BLV Pour Homme, but less powdery.

But, come this fall, this particular Macy's will be facing a different kind of Realities. As I walked up to greet the ladies in the women's smellies (who were bragging over the Bears versus the Colts in the Super Bowl), I asked them "Have you heard about new competitive threats?". The two said yes. Turns out that Sephora will be entering Fort Wayne by the end of the year. And not one of the "Sephora inside JCPenney" store-within-a-stores, either... LVMH somehow decided that we need a full-size Sephora in its own dedicated space at Glenbrook Square, the same mall that has this particular Macy's. And they said to expect it by the time the new Barnes & Noble bookstore opens in the mall (read: this fall). I'll be keeping an eye out for the space... I just might apply for a job there.

Why is this a big deal for Macy's? This Macy's hasn't had true in-mall cosmetics/fragrances/skincare competition since mid-2005, when the May Co. decided to close the Marshall Field's store in the mall due to rapidly declining sales. The May Co. did keep the L.S. Ayres store open, but it quickly became Macy's after Federated bought out May (just like every other May Co. brand). The Field's space remains vacant, but General Growth Properties (the mall's owner) is still looking for a new anchor.

My advice to the Macy's folks: As soon as you see that construction barrier that says "Fort Wayne is about to get more beauty-full... better get a bigger makeup bag", you'd "better start taking Prilosec OTC". This ain't no Perfumania... this is fierce competition.

You've got a valid point there.

Though prices probably will remain stable, both Sephora and Macy's will, in all probability, peacefully coexist. Both have brands that the other does carry, but both also have brands that the other doesn't. For example, Macy's offers Thierry Mugler fragrances that Sephora doesn't have, while Sephora has Smashbox cosmentics that Macy's doesn't have. Of course, there's also product overlap, mainly in fragrances and with some cosmetic brands (namely Clinique).

And, of course there's competition elsewhere in the city. On the southwest side of town at Jefferson Pointe, there's both Von Maur (a Midwestern department store chain similar in concept to Nordstrom) and Ulta. They've both been doing quite well against each other... in fact, Von Maur just expanded their cosmetics and fragrances area.

Finally, Federated Dept. Stores (the parent company of Macy's) is not dumb... they are some of the smartest people in the business. When they see a threat to their business, they take it very seriously. They're known for gutsy moves (a la the May Co. merger and the subsequent Macy's national relaunch), and they execute those moves very well.