Macy’s in Hot Seat for Fireworks Spending
CBS radio had a segment this morning about whether it was a good idea for Macy’s to be spending a boatload of money on its annual Fourth of July fireworks display this year. After all, Macys’ stock is not doing so hot, to put it kindly.
Robin Hall, the executive producer of the “pyrotechnic extravaganza,” said in the interview that the economy has never been a barrier to Macy’s putting on the show. The general merchant has been doing the fireworks display for more than 30 years, he noted, so it’s weathered its share of economic ups and downs.
The show must go on, he noted. The fireworks event is “too important to us and too important to our communities.”
Macy’s doesn’t reveal what it costs to put on the show, and Hall said it’s never done a return on investment for the fireworks—or for its Thanksgiving Day parade, for that matter.
How do the shareholders feel about it spending on these events? Hall said he thinks Macys’ stockholders “understand the value of these two big events to the brand itself,” and that most are sophisticated enough to know that “there’s a value to having people feel good about you and continuing in traditions.”
Even though I never watch the show, I have to agree that it would be strange and sad if Macy’s had announced it couldn’t afford to do the fireworks this year. But then I’m not a Macy’s shareholder.
Considering that several cities have had to forgo fireworks this year because their tax revenues have dried up, watching the Macy’s display on TV might be the only option for many consumers. Maybe it actually will pay off for the retailer.
July 2nd, 2009 at 9:51 am
Macy’s definitely should keep up the fireworks!!
To offset the costs (according to this article- several cities have had to forgo fireworks this year because their tax revenues have dried up) movie theaters throughout the country could simulcast the fireworks on their movie screens and IMAX screens with great sound and charge admission and give back a portion of that admission to Macy’s. Following the fireworks would be the latest summer blockbuster- That’s what I would do!
July 2nd, 2009 at 12:58 pm
Let’s set the record straight regarding “Macy’s in Hot Seat For Fireworks Spending
As a former RH Macy’s Senior Merchant (I don’t think they use that term anymore-those were the glory days), within our individual P&L statements which we as disciplined executives managed above the industry norm producing record consecutive corporate profits. The Thanksgiving Parade and July 4th Fireworks were defined as a sub category of company profits, used towards community service (Thanksgiving Parade and 4th of July Fireworks). I don’t know know if that standard has carried through to this day, but questions about an event that brings joy to millions of Americans annd Tourists in the great City of New York and viewers domestically and internationally, as an outlet of pride during this SEASON of economic inconsistency for all, touches me in a great way. Lesson taught from that great institution. We are our brothers keeper and if this is in a small way an opportunity to do so. I say…….YEA
February 22nd, 2010 at 9:33 pm
OK, so lets lay of or reduce employees hours to offset company figures. But sure as hell, we will let the show go on? What kind of nonsense brought us to this point. Employee loyalty is more important thna traditional ‘parties’. Ask the public this: Would you rather see a fireworks display once a year or have a friendly full time employess help you through your sopping experience!!