Lord & Taylor
 | |
| Company type | Division |
|---|---|
| Industry | Retail |
| Founded | 1826 |
| Headquarters | New York, New York |
| Products | Clothing, footwear, jewelry, beauty products, fragrances, electronics, bedding and housewares |
| Parent | NRDC Equity Partners, via Hudson's Bay Trading Company |
| Website | http://www.lordandtaylor.com/ |
Lord & Taylor, colloquially known as L&T, or LT, based in New York, New York, is the oldest upscale-luxury, specialty-retail department store chain in the United States. Concentrated in the eastern United States, the retailer operated independently for nearly a century prior to joining American Dry Goods (later renamed Associated Dry Goods Corp.). Today, the chain is the sole surviving department store nameplate from Associated, as well as from May Department Stores. Lord & Taylor is wholly owned and operated by NRDC Equity Partners, LLC. NRDC bought the chain from Federated Department Stores in October 2006 as Federated sought to concentrate on the Macy's chain after their purchase of May Department Stores (with all other former May department store nameplates having been converted to Macy's), and because the Lord & Taylor brand conflicted with Federated's Macy's and Bloomingdale's brands.[1]
Following its acquisition of Lord & Taylor, NRDC Equity Partners has since added Hudson's Bay Company in Canada and the Fortunoff chain in the New York metropolitan area (Fortunoff closed in spring 2009). In 2008, NRDC's portfolio of retail companies, together with the firm's private label brand developer Creative Design Studios, became components of a new multinational limited partnership, Hudson's Bay Trading Company, L.P.
Lord & Taylor consists of 48 stores and lordandtaylor.com.[2]
History
Origins
Samuel Lord and George Washington Taylor founded the company in 1826; it was the first major store on Fifth Avenue. Among other firsts, it was the first store to present innovative Christmas windows filled with holiday displays rather than merchandise, and the first to open a branch store (1941 in Manhasset). Lord & Taylor is also known for playing the national anthem before the start of each business day.
In 1916 Lord & Taylor became a founding member of the American Dry Goods Co., soon after renamed Associated Dry Goods Corp. It was a long-time fashion leader and considered the “crown jewel” of Associated; when the May Company acquired ADG in 1986, it was assumed that May bought ADG just for the upscale Lord & Taylor division.
Lord & Taylor opened its Starrett & van Vleck designed flagship store and headquarters on Fifth Avenue between 38th and 39th streets on February 24, 1914. In December 2007, it was named a New York City landmark [3]
Dorothy Shaver
In 1946, Lord & Taylor became the first major store on Fifth Avenue to name a woman, Dorothy Shaver, as president.
Shaver's association with Lord & Taylor began in 1921 when then-President Samuel Reyburn encouraged her to promote and market "Five Little Shavers," a family of dolls created by her sister, Elsie. Dorothy Shaver's challenges grew when she officially joined Lord & Taylor in 1924 as head of the Comparative Shopping Bureau. It didn't take long for Shaver to re-channel the department's focus from the competition to Lord & Taylor's own customers, putting them first by providing one on one help as they made their selections. With that, the concept of the Personal Shopper was born, flourishing today at Lord & Taylor as Red Rose Personal Shopping Service. During her first few months with the store, she submitted an entirely unsolicited report to the president, analyzing what was wrong with the company and how to correct it.
Shaver was given more responsibility, sales increased and, in 1927, her innovations earned her membership on Lord & Taylor's Board of Directors. In 1931, she was appointed Vice President, and became First Vice President in 1937. In 1941 Ms. Shaver, working with the well-known design firm of Raymond Loewy Associates, opened in Manhasset what is credited as the first true branch store in America. Unlike earlier forays into the suburbs that consisted of smaller boutique-style shops, this was a merchandising effort that became the model for modern suburban shopping. The store consisted of 66 individual shops. Lord & Taylor's relationship with Raymond Loewy Associates continued until 1969, following the construction of the Stamford, Connecticut store (designed by Loewy Vice President Andrew Geller). Shaver was elected president in 1945, the first woman to head a major retail establishment in the United States.
Many of the Lord & Taylor's special services were introduced while Shaver presided, and it was during this period that she introduced both the distinctive hand written logo (The Signature of American Style), and the American Beauty Rose as a symbol of the store. In 1953, Lord & Taylor presented an award for independent thinking, which Albert Einstein won for his "nonconformity" in scientific matters. In the late 50's and early 60's the inovation of having female, uniformed elevator operators with red heads operating on one side and brunettes operating on the other were the talk of the town. As a perk and to maintian their impeccable appearance, the operator's would have their makeup and hair done at the upscale Lord & Taylor salon each day before starting. Shaver's era ended officially upon her death in 1959, but her legacy and innovative retailing concepts continue at Lord & Taylor to this day.
Jane Elfers served as Lord & Taylor's second female CEO since June, 2000, and is largely the architect of its turnaround strategy. She has been replaced, due to the restructuring of the brand in October, 2008 by former Neiman Marcus executive, Brendan Hoffman. According to Richard Baker, her contract had expired.[4]
Expansion & Retreat
While a part of Associated, William J. Lippincott was promoted to president in 1968, succeeding Melvin E. Dawley (who succeeded Dorothy Shaver), and was elected chairman and chief executive in 1972. His The New York Times obituary read: "In his years as president and chairman, Lord & Taylor moved beyond its traditional territory in the Northeast to open stores in Atlanta, Houston and Dallas and four stores in Illinois."[5] A management shakeup ousted him in 1976.
Under the leadership of CEO Joseph E. Brooks during the 1970s, the company aggressively expanded into Texas, Illinois and Michigan and in the early 1980s South Florida saw 11 stores opened in quick succession. The chain partially withdrew from the oil-shocked Texas and southern Florida markets in 1989-1990 after its 1986 acquisition by May.
Under May, the majority of ADG's Hahne & Co. division (six New Jersey locations) and several former John Wanamaker's and Woodward & Lothrop locations were assumed by Lord & Taylor. From 1997 to 2006, Lord & Taylor occupied the former Wanamaker's flagship store in downtown Philadelphia, Pennsylvania.
During the 1990s and early 2000s, May attempted to expand the chain nationally. Under the leadership of CEO Marshall Hillsberg, Lord & Taylor once again entered the expansion mode in the 1990s, opening stores as far west as Denver, with plans to enter the Las Vegas, Nevada market. At one time, Lord & Taylor had as many as 86 stores across the country.
After continuing tepid results and repeated tinkering with its merchandising, May gave up its national ambitions for the division. Newly appointed President and CEO Jane Elfers announced the shuttering of 32 stores in 2003 (representing 38% of the division's store base and 35% of its total square footage, but only 19% of total sales). Many of the closed locations were only a few years old and most were in a market where most people were not willing to pay Lord & Taylor's prices. The company's strategy for the move was to concentrate on its "core" East Coast Corridor markets (New York City, Boston, Philadelphia, Washington, D.C., metro) as well its midwest locations in Chicago, Detroit, and St. Louis.[6] [7]
Amidst these changes, Lord & Taylor ceded its postwar position as a fashion leader in the 1980s and 1990s to Saks Fifth Avenue, Bloomingdale's, Neiman Marcus, and Nordstrom.[8] [9]
Restructuring circa 2003
Following its dramatic restructuring in 2003, Lord & Taylor's leadership sought a return to the store's upscale roots. Renewed focus was placed on creating and maintaining an upscale shopping experience in the remaining 54 locations, with determination to leave behind perception of a bland May Co. middle-of-the-road merchandising strategy. Alterations such as conversion of remaining Lord & Taylor Cafés into Larry Forgione's Signature Cafés (since rebranded as Lord & Taylor Signature) were evidence of the chain's intent to have a more clearly defined signature style. Eight L&T Signature Cafés are currently in operation. In the fall of 2008, Sarabeth's, opened within the 5 Avenue store. On the fifth floor, occupies the full-service restaurant while the sixth floor is a coffee bar. Plans are to rebrand existing restaurants company-wide that are Lord & Taylor Signature into Sarabeth's by the first quarter of 2009. This did not happen, and the Lord & Taylor Café in Washington, D.C. closed in the summer of 2009.
Federated
Just three years later, the continuation of this effort came into doubt when May Department Stores was acquired by Federated Department Stores on August 30, 2005. Lord & Taylor served the market between Federated's Macy's and Bloomingdale's chains, and on January 12, 2006, Federated chairman, president, and CEO Terry Lundgren announced that Lord & Taylor would be sold by the end of the year.In early March 2006, prepping the company for sale, Federated announced that 5 underperforming Lord & Taylor stores would close (Christiana Mall, Delaware; Northshore Mall, Massachusetts; Fairlane Town Center, Michigan; West County Center and St. Louis Galleria, Missouri).[10] The Center City, Philadelphia store, the former flagship of the John Wanamaker chain, was converted to Macy's on August 1, 2006. On June 22, 2006, it announced that NRDC Equity Partners, LLC would purchase Lord & Taylor for $1.2 billion,[11] a sale that was completed in October 2006. Federated continued to service Lord & Taylor consumer credit accounts in an agreement with NRDC under the terms of its sale until mid-2007. In March 2007, General Growth Properties declined to renew the lease to the Water Tower Place store shuttering a prominent downtown Chicago location which had opened in 1975.
New Look & Acquisition of Fortunoff
In September 2007, the department store unveiled a new look to the public. The new image was the work of advertising guru David Lipman, who created a branding campaign, new advertising, shopping bags and boxes, a decrease in distributing savings passes and a new credit card. [12] Changes in merchandise were also highlighted. It is expected that Lord & Taylor will be on par with Saks Fifth Avenue and Neiman Marcus, and slightly above Bloomingdale's and Nordstrom, in an attempt to return to its fashionable roots.
In addition to the rebranding campaign, NRDC Equity Partners, the parent company of Lord & Taylor, committed to spending $250 million to renovate current stores and look for new locations in the Chicago area. Lord & Taylor reported a jump in sales after many of May's stores took on the Macy's nameplate in 2006. The Fifth Avenue flagship store is undergoing a $150 million renovation, and several suburban locations are slated for renovation as well.
In February 2008, NRDC announced plans to buy the upscale Fortunoff home-furnishings and jewelry retailer based in nearby Westbury (Long Island), New York. It was announced that the Lord & Taylor Fifth Avenue flagship store would see a 100,000-square-foot (9,300 m2) home-furnishings department featuring Fortunoff merchandise with plans to open early 2009. In addition, all Lord & Taylor stores' fine jewelry departments were to become Fortunoff implants. Fortunoff was also to operate a bridal registry in all Lord & Taylor stores. Plans changed during the 2008 holiday season, when Fortunoff's figures were dismal. As of February, 2009, the brand filed for Chapter 11 bankruptcy. Fortunoff's eventual successful sale at auction led to cancelling plans to sell its merchandise at any Lord & Taylor locations.
Upgraded merchandise
A branding campaign aimed at highlighting upgraded merchandise was presented in the fall. New and upscale clothing brands were added to the assortment, such as Kate Spade, La Prairie, Juicy Couture, Diesel and Coach. Lord & Taylor had also introduced five private label product lines developed by its corporate sibling Creative Design Studios. The brands include "Kate Hill," "Kate Hill Casual," "Identity," and "Context" for women, and "Black Brown 1826" for men.
Noted designer Joseph Abboud has partnered with Lord & Taylor to oversee the creative direction for the men's department. Abboud will assume design responsibility for all classifications of Lord & Taylor's proprietary men's product, named Black Brown 1826, including tailored clothing, sportswear, and accessories. Black Brown 1826 debuted for the fall 2008 season with deliveries beginning in August.[13]
In May 2008, celebrity fashion stylist Robert Verdi created a series of online video clips on the Lord & Taylor website with fashion tips and sound bites of shoppers telling Verdi why they love Lord & Taylor.
Hudson's Bay Company
On July 16, 2008, NRDC Equity Partners announced that it had purchased the 338-year-old Canadian department store retailer Hudson's Bay Company (HBC) for an undisclosed price, with the intention of rebuilding the brand, and expanding Lord & Taylor internationally. HBC operates nearly 600 stores under 4 banners from coast to coast, including several large Bay department stores in the downtown cores of several Canadian cities. NRDC has stated that it plans to open 10-15 Lord & Taylor stores across Canada, by utilizing excess HBC real estate. Richard Baker, head of NRDC cited the Bay's flagship Queen Street store in Toronto as an example, which covers nearly 1,000,000 square feet (93,000 m2) over several floors. Under the proposed expansion plan, the building could be divided up, and contain both the Bay and Lord & Taylor department stores within the same complex, with HBC's mass merchandise division, Zellers, opening a store on the lower level. NRDC has stressed that although it intends to open new Lord & Taylor stores alongside Bay stores, its focus will be to improve HBC, and will not discontinue any divisions or close stores. The Canadian Lord & Taylor stores will fit a retailing void above the Bay division, but below the upmarket Holt Renfrew department store chain. The combined company will consist of Lord & Taylor, Creative Design Studios, and HBC's store banners: The Bay, Zellers, Home Outfitters, and Fields stores, and operate as Hudson's Bay Trading Company. Fortunoff, which is also under the banner, is currently being liquidated.[14]
References
- "A History of Lord & Taylor," 175th Anniversary publication
Notes
- ^ Federated To Sell 55-Store Lord & Taylor Chain, The CoStar Group, 17 Jan 2006.
- ^ http://money.cnn.com/2006/06/22/news/companies/federated/index.htm
- ^ "A Landmark Department Store," by Francis Morrone, The Sun, December 27, 2007.
- ^ http://money.cnn.com/2008/09/26/news/companies/lord_taylor.fortune/
- ^ Obituaries, The New York Times, p. B17, May 7, 1992.
- ^ Who'll Take Lord & Taylor's Vacant Stores?; Retail Traffic Jul 31, 2003; retrieved December 19, 2006
- ^ Yeomans, Michael; Lord & Taylor leaving Downtown; Pittsburgh Tribune-Review July 31, 2003; retrieved on December 19, 2006
- ^ Lord & Taylor to Leave Troubled Mall; Washington Post May 30, 2009
- ^ Lord & Taylor; New York Magazine
- ^ Lord & Taylor closing at Galleria, West County malls, St. Louis Business Journal, March 10, 2006.
- ^ Federated Agrees to Sell Lord & Taylor to NRDC Equity Partners; Transaction Expected to Close in Third Quarter of 2006, Federated Department Stores, Inc., June 22, 2006.
- ^ Never Mind What’s in Them, Bags Are the Fashion - New York Times
- ^ Retail Merchandiser Magazine Online - Lord and Taylor Confirms Creation of Proprietary Menswear Line With Designer Joseph Abboud
- ^ [1], National Post, retrieved on July 17, 2008.
External links
- Lord & Taylor official website
- Hudson Bay Company official website
- Setting the Precedent: Four Women who Excelled in Business
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