On Tuesday, Karen Hoguet, executive vice president and chief financial officer of Bloomingdale's parent Macy's Inc., said the chain still has plenty of room to grow in the U.S. The retailer will open a store in north Phoenix next year. The brand is noticeably absent from the Texas and Pacific Northwest markets. Hawaii is another possibility, and store executives have visited China with an eye for expansion there, as well. Overseas expansion isn't a new notion. Sixteen years ago, Bloomingdale's almost inked a deal for a store in Japan, licensed to Tokyu Department Stores, but a severe recession in the country killed the plan.
Renovations also have been stepped up, with major overhauls completed at the White Plains, N.Y., and Aventura, Fla., units in 2007, and set for this year, at the Roosevelt Field, N.Y., and Sherman Oaks, Calif., branches.
"As Bloomingdale's grows its presence nationally, the addition of an operating principal will provide the division with additional management resources and support," said Macy's Inc. vice chair Susan D. Kronick, to whom Bloomingdale's reports. "Tony Spring is an exceptional executive who has proven himself to be resourceful and creative in supporting growth of the Bloomingdale's brand. He and Mike Gould will represent a powerful principal team as Bloomingdale's continues to build its market presence serving the needs of fashion-forward, upscale customers coast-to-coast."
Bloomingdale's is on a path to crack $3 billion in sales within the next few years. It's estimated that 2007 volume is $2.6 billion. Of that, roughly $900 million, or just more than a third of the total store volume, is in rtw, according to market sources. Bloomingdale's rtw business includes designer sportswear, contemporary sportswear (known as Y.E.S.), New View (a mix of designer and bridge brands), classic sportswear, dresses, coats and special sizes.
"The ready-to-wear business is growing, though the rate of growth has slowed somewhat in this economy," Doroff said.