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The Honolulu Advertiser
Posted on: Friday, August 24, 2007

The Donald, Stewart hired to reverse Macy's slide

By Lisa Cornwell
Associated Press

Hawaii news photo - The Honolulu Advertiser

Martha Stewart

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Hawaii news photo - The Honolulu Advertiser

Donald Trump

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CINCINNATI — Scenes featuring tycoon Donald Trump blow-drying his hair and domestic entrepreneur Martha Stewart constantly rearranging her products are part of a celebrity-studded advertising campaign that Macy's Inc. hopes will help build its image as a national brand.

The Cincinnati-based retailer, which this month reported a 77 percent drop in its second-quarter earnings, continues to struggle to create a national brand and integrate the stores gained in its $11 billion acquisition of former competitor May Department Stores Co. in 2005.

The television campaign beginning next month will feature celebrities, such as Trump and Stewart, who sell their own branded products at Macy's. They are seen in the ads primping their departments as if preparing for customers.

In addition to Trump and Stewart, other celebrities include singer and actress Jessica Simpson, designers Tommy Hilfiger and Kenneth Cole and music producer and rapper Sean "Diddy" Combs.

"This advertising campaign is really about showcasing all of these great celebrity name brands that fit under this one big roof," Martine Reardon, executive vice president of corporate marketing for Macy's, said yesterday.

Reardon said the commercials have a humorous, whimsical slant, focusing on each celebrity's personality and public image.

Martha Stewart's image as a perfectionist is captured in a scene where she can be seen folding and refolding her products, and Trump is seen in front of a mirror blow-drying his hair into his signature style.

A 90-second spot featuring the celebrities is scheduled to air during the Emmy Awards show on Sept. 16 and will be edited down to a 30-second spot and a 60-second spot to continue airing through the third quarter, Reardon said. Two, 30-second spots featuring Stewart are set to start Sept. 10 with the official launch of the Martha Stewart Collection at Macy's.

Macy's wouldn't comment on the cost of the new campaign. TNS Media Intelligence said Macy's total ad spending in 2006 was $1.09 billion, with $187.1 million for TV.

In the past, Macy's has focused more on promotions that included ads for sales and coupons.

"We believe we have come up with the right balance," Reardon said.

Customers of the former May stores haven't embraced the Macy's brand as quickly as the retailer had hoped. Chief Executive Terry Lundgren has attributed disappointing sales partly to strategic changes made too quickly.