Wednesday, September 28, 2005

High Gas Prices Fuel L.A. Transit Ridership

I'd like to share an interesting article from today's Los Angeles Times:

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A Jump in Transit Ridership? Look to Cost of Gas, Gas, Gas

High prices have more commuters turning to buses and trains, but most still aren't willing to part with their cars.

By Amanda Covarrubias and David Pierson, Times Staff Writers

Local transit agencies Tuesday reported hikes in bus and rail use since gas prices began their precipitous rise. But a day after President Bush urged Americans to conserve energy, there were signs of a definite ceiling for the number of Southern California motorists willing — or able — to switch from cars to mass transportation.

Both the Metropolitan Transportation Authority, which operates buses and subways, and commuter-rail operator Metrolink recorded more than 5% increases in passengers in August over the same month last year.

Although officials said they were impressed by the increase, the rises are similar to those in April and March 2004, when gas prices jumped.

This suggests a relatively small percentage of motorists are willing and able to give up driving solo during times of rising gas prices, transportation experts said. And those who do switch tend to have the longest commutes. According to the 2000 census, about 15% of commuters in the Southland carpooled to work everyday and about 5% rode public transit.

Gerald Couch, a La Quinta real estate agent filling up at an Alhambra gas station Tuesday, said he would like to use mass transit more — but a job selling property across Southern California makes it impossible.

"It's pretty hard to use public transportation when you work in real estate," said Couch, 60. "You're at the beck and call of your customers."

He is far from alone.

"Left to their own devices, people will choose the mode that's cheapest to them — not just in out-of-pocket costs but in time costs," said Jim Moore, an engineering professor at the Center for Transportation Research at USC. "If they have a medium income, and the time cost of transit is high, the cost of gasoline has to go up quite a bit for it to wash out."

Genevieve Giuliano, another transportation professor at USC, said drivers are more likely to make other, less obtrusive changes in their lifestyle before trying mass transit. And Southern California is so spread out that many drivers would have to commute to bus stops or train stations to use mass transit.

"Time is very valuable to people," she said, "And they're asking themselves, 'Am I going to give up 30 minutes twice each day in order to save some gas money?' The answer's probably no."

Indeed, ridership on MTA's Rapid Bus routes has remained flat and ridership on its express buses, which drive longer distances with fewer stops, has risen only slightly.

For example, the express line that travels from Santa Monica to Union Station in downtown Los Angeles went from 3,039 boardings in July to 3,111 in August, said Rick Jager, an MTA spokesman.

MTA's overall ridership increased nearly 8% from 36.5 million boardings in August 2004 to 39.4 million last month.

Jager said MTA probably would not see a significant bump in ridership until gasoline prices stayed high for a while.

"Probably for shorter trips, people will not take the bus or rail until gas exceeds the $3 mark and stays there for a long period of time," he said. " … We realize that because of people's working hours and the type of work they do, it just won't fit for some of them."

Jager and others suspect that long-distance commuters are the most likely to try mass transit. And figures from Metrolink, which runs commuter trains between downtown Los Angeles and outlying counties, appears to bear that out.

Last month, Metrolink posted big ridership gains, with 39,057 boardings in August compared with 37,086 in the same month last year.

"We've actually seen in the last two months some unusual gains, and we can't really explain them, but we suspect they may be due to the jump at the pump," said Denise Tyrell, a spokeswoman for Metrolink.

Robert Peters was using an MTA Gold Line train for the first time Tuesday because his pickup truck was in the shop for repairs. But it may be a blessing in disguise, the 28-year-old contractor said.

"If it turns out the trains run on time, I might take the train all the time because of gas prices," said Peters, who was waiting at the Gold Line Lake station to head home to Corona.

Peters went online Monday night to study the train schedule and brought a pocket novel to pass the time. He said he was ready to try anything now that he pays $80 a week for gas.

"I remember when it was under a buck per gallon," Peters said.

On the same platform was Richard DeLeon, a truck driver who started taking the train every workday two months ago when he said gas prices got "ridiculous."

So instead of spending $50 to fill up his Ford Bronco, the Pasadena resident was leaning on a Metro bench waiting for the train to come and take him to downtown Los Angeles on his $3 day pass.

"I'd be driving right now if gas wasn't so expensive," said DeLeon, 46.

Ridership across the region posted mixed results as gas prices have increased.

The Orange County Transportation Authority reported notable increases in ridership on Metrolink, express buses, and bus routes linked to rail stations — forms of transit heavily used by commuters.

From January to August, as the average price of gas climbed from $1.98 a gallon to $2.77 in Southern California, boardings on express buses posted a 13.7% gain, while rail station-linked bus trips jumped 16.6% and transfers by Metrolink passengers to OCTA buses rose 23.1%. Overall bus ridership, however, only increased about 1%.

OCTA reported 4.9 million transit boardings in January and 5.8 million in August. Authority officials cautioned that it is difficult to determine how much new ridership is directly attributable to the high gas prices. Transit use is seasonal, dropping off with inclement winter weather and climbing during the warmer spring and summer months.

Ridership on the San Bernardino commuter rail line inched up 1% from July to August, with about 11,700 passenger trips a day. Weekend ridership soared from the previous month — 13% more on Saturdays and 19% more on Sundays — though weekends typically attract far fewer people, according to San Bernardino Associated Governments.

Officials at the Riverside Transit Agency, which provides bus service to most of urban Riverside County, are hoping for a continued upswing in passengers, as its ridership grew 6.5% from July to August. August numbers, however, were 8.2% lower than in 2004. The agency said ridership dipped because of higher bus fares that took effect in April.

Back in Pasadena, Gold Line rider Greg Huntoon proudly said he's no longer stressed by rising gas prices.

"I don't complain about gas prices," he said. "I have the [Gold Line]. I have a bike. I have my legs."

Times staff writers Ashley Powers and Dan Weikel contributed to this report.

Fight On!

Tommy TrojanMy prestigious alma mater, the University of Southern California, is celebrating its 125th birthday this year. Under the aegis of President Steven Sample, the school has begun to shed its reputation as the "University of Spoiled Children" and ascend to the upper echelon of major research universities in this country. USC continues to be an athletic powerhouse as well -- the Trojan football team is the current national champion. I am certainly a proud alumnus.

After the 1965 Watts Riots, USC was tempted to move its campus from South Los Angeles to Malibu. The university's decision to stay put has benefited students, faculty, and staff by giving them immediate access to one of the world's greatest cities and all its resources. Of course, USC brings many benefits to the entire city as well.

Last Friday was declared "USC Day" in the City of Los Angeles. The following is a news release from the USC Web Site:

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City Hall Proclaims USC Day

Mayor Villaraigosa lauds the university as a world-class institution that sees its destiny as an integral part of the city.

City Hall was filled with Trojan spirit – as well as the triumphant sounds of the Trojan Marching Band – as the Los Angeles City Council proclaimed Sept. 23 to be USC Day.

As the university’s 125th birthday draws near, the city honored USC for its dramatic growth – from a 53-student enrollment in 1880 to its current 32,000 students – and as one of the oldest continuing academic and cultural institutions in the region.

Mayor Antonio Villaraigosa and City Council District 8 representative Bernard Parks, whose district includes the area south of USC, described the university in glowing terms.

“What distinguishes USC is not just that it is a world-class institution, but that it is a world-class institution in Los Angeles, and one that sees its destiny as an integral part of the city,” Villaraigosa said.

Provost and Senior Vice President of Academic Affairs C. L. Max Nikias, standing in for USC President Steven B. Sample, said, “USC and Los Angeles have experienced a remarkable 125 years together.”

“We grew up together and as USC prospered, many people urged the Board of Trustees to relocate to the countryside. But USC reaffirmed its commitment to be an institution in the heart of the city,” he added.

The City Council’s proclamation, read by Councilwoman Jan Perry, who represents the 9th district north of USC, cited the university’s “exemplary public service through academic, service learning and community outreach contributions fostering a tradition of sharing with the neighborhoods immediately surrounding the two campuses.”

Parks and Perry are alumni of the USC School of Policy, Planning, and Development.

The proclamation also noted USC’s economic impact on the region with its 3,000 faculty, 14,400 staff members and 32,000 students, making it the largest private-sector employer in the city and a powerful economic engine with a budget of $1.5 billion.

Sample was lauded in the proclamation as the president who “has steered this great institution into an era of unprecedented national and international recognition in academics and athletics, has solidified its status as one of the nation’s leading research universities and has led its innovative community outreach and service-learning programs.”

Other Trojans also attracted their share of limelight. Athletes past and present were honored for their skill, commitment and teamwork, bringing fame to the university and the City of Los Angeles, including their gridiron success as two-time national champions and triumphs in producing 357 Olympians.

L to R: Councilwoman Jan Perry, Provost C. L. Max Nikias, Councilman Bernard Parks, Mayor Antonio Villaraigosa (photo by Lee Salem)

USC Festival 125 -- October 6-9, 2005

Sunday @ SCP

Last Sunday was wonderful, as I spent it with Chizi. After celebrating one of her friend's birthdays with a fine lunch at the Storytellers Lounge in Disney's Grand Californian Hotel, we headed over to South Coast Plaza, the largest mall in the country. As our love for malls is what brought us together, our trip to SCP was a big event.

After lunch, I demanded that Chizi and I browse the Lego Store at Downtown Disney. I was pleasantly suprised to find a life-size model of a Volvo made completely out of Legos once we arrived at SCP. It was displayed near the Robinsons-May store that will soon be a Bloomingdale's. Chizi was kind enough to allow me to take a couple of pictures of the Lego Volvo with her digital camera; click on them for larger images:

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Tuesday, September 27, 2005

Nike Run Hit Wonder 2005

Run Hit Wonder On Saturday I participated in the Nike Run Hit Wonder with about 16,000 other Angelenos. This was the third 5K race I've completed and it was a lot of fun.

It was great to run through my old 'hood, the University of Southern California campus and its environs. Those of us embarking on the 5K went down 28th Street, a.k.a. "The Row," and numerous fraternity and sorority types cheered us on -- I appreciated their support even though they were the type of people I eschewed in my college years. I loved the fact that we ended the race by running onto the field at the historic Los Angeles Coliseum in Exposition Park, home of the 1932 and 1984 Olympics. Here's a map of the course; click on it for a larger image:

Click for a larger imageThe main difference between Run Hit Wonder and other races is the bands that perform during the event. The sounds of The Donnas, Fountains of Wayne, and DJ Z-Trip greeted me along the way and encouraged me to complete the race. I would've heard Chingy, Nina Sky, and The Aquabats too if I'd ran the 10K. Joan Jett and the Blackhearts performed at the L.A. Coliseum after the race was over.

I'm proud to say that I completed the 5K in 27 minutes and 25 seconds...while hardly impressive for a 26-year-old male, my finish was better than that at the Samurai 5K last month and constitued a big improvement over my first race ever, Keep L.A. Running, in July. My main objective has always been to complete such races without stoppiong -- it feels great to push myself to the limit and accomplish things I didn't think I was capable of. I can only imagine how much better I could do if I merely "trained" by running in-between these races (which I haven't) or by cutting out my pack-a-day smoking habit (which I haven't...yet). I want to keep running a 5K each month; running has become a new hobby that I enjoy and can be proud of.

After the race, I took a self-portrait of myself sporting my race shirt and the "funky fresh medallion" I earned by participating in the Nike Run Hit Wonder:

Welcome to Los Angeles

Obligatory dashboard photo Blue skies, palm trees, and bad traffic

P.U. Blog of the Week: September 27-October 3, 2005

This week I'd like to feature blogging.la. This is a group blog with 22 contributors -- I enjoy the wide variety of topics and perspectives; always fresh, always interesting. A good read even for those who don't live in Los Angeles.

Monday, September 26, 2005

Shout Out: Keith Schofield

In my "Adventures in Hollywoodland" post from last week, I wrote about Keith, a friend of mine who happens to be a very talented director specializing in music videos. Keith recently completed his latest masterpiece, a video for the song "Pi" by Hard 'n Phirm. He's posted the video to his Web Site -- click on the "action" shot below to check it out:

Genius at work I'd also like to share that Keith knows how to use Photoshop to hilarious effect. To wit:

Last week Keith embarked on some Photoshop fun using some of the pictures I have posted on my MySpace profile. His inspiration was the following "fake" Newsweek cover featuring me as a child that was made at Sea World in 1989:

Keith used a photo of me dressed up for a "hip-hop" theme party back in 2002 to create a new Newsweek cover that I could use:

I admire the man's creativity and sense of humor.


WATCH KEITH'S VIDEOS

Friday, September 23, 2005

Donald Does Phoenix

Trump is a Pimp Since I hope to be a real estate developer someday, I have mad love for Donald Trump. As I shared earlier this week, I nearly soiled myself when I saw him at the NBC Pre-Emmy Party last Saturday night.

It turns out that this has been a very good week for "The Donald," not only because the fourth season of his hit show, "The Apprentice," premiered last night. On Wednesday the Phoenix City Council approved a controversial plan by Mr. Trump and partner Bayrock Group to erect a massive condominium-hotel on East Camelback Road in the city's posh Biltmore district. Props to Momz for keeping me informed of the doings in my hometown.

Link to article here (text follows below)

I'm not surprised that fast-growing Phoenix has attracted Mr. Trump's attention, and there's no better location for his "International Hotel and Residences" than East Camelback Road, the city's answer to L.A.'s Wilshire Boulevard. I'm also not surprised that his towering ambitions were unevenly recieved in a young metropolis known for its low-density character, wide open spaces, and expansive desert views. However, the reality is that Phoenix will continue to "grow up" (figuratively and literally) regardless of whether Mr. Trump gets a piece of the action.

I understand the arguments made by some on the City Council that their "yes" vote on the project was a "no" vote on urban sprawl. Phoenix is Sprawl City, U.S.A. -- considering that the metro area's population is expected to double to 6 million people in only 20 years, it makes sense to increase density in the existing urban core in order to slow the city's rapid consumption of the surrounding desert. I can also appreciate the arguments made by the residents of nearby single-family neighborhoods that the ongoing densification along the "Camelback Corridor" is a threat to their quality of life. Furthermore, it's distressing for professional planners like myself to see land use plans and regulations favored by the community easily subverted by politicians.

While the Trump proposal has garnered most of the attention, it's important to note that Wednesday's vote also allowed Westcor to add condominium towers to the company's Biltmore Fashion Park mall. The addition of residential uses to existing shopping centers is an innovative and logical idea and has become a hot trend in recent years as mall owners seek ways to derive more value from their "mature" properties. Even if the raging housing market in Phoenix and other cities subsidies, I expect this trend to continue. The Federated-May merger will lead to some store closings at several of Westcor's Phoenix malls and the company has publicly floated the idea of replacing the shuttered anchors with housing. (More to come in a future post)

Momz also forwarded another article concerning questionable tactics that Trump and Bayrock may have employed in their two-year-long battle to get the project approved. (begin sarcasm) What? No developer is capable of using underhanded techniques in such a manner...certainly not "The Donald"! (end sarcasm)

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Phoenix OKs high-rises for Trump, Biltmore

Monica Alonzo-Dunsmoor and Glen Creno
The Arizona Republic
Sept. 22, 2005 12:00 AM

Saying they had the city's overall economic interests in mind, Phoenix leaders sided with high-profile developers who want to build high-rises in the posh Camelback Corridor despite intense protest from nearby neighborhoods.

After a three-hour meeting Wednesday that included testimony for and against the towers, the city council did little more than chop a few a feet off a proposal by Donald Trump and development partner Bayrock Group to build a 140-foot $200 million condominium-hotel near the 24th Street and Camelback Road intersection. The developer was asking for 150 feet.

The 5-4 vote also granted zoning changes to allow mall developer Westcor to put 140-foot towers at Biltmore Fashion Park.

"If we don't start looking at the big picture and taking advantage of the developers . . . we'll find ourselves in a situation where retail is moving out, our residents are following that retail out and we're facing more sprawl," Councilman Claude Mattox said.

Added Councilwoman Peggy Bilsten: "We continue to cut police, fire and library services . . . we have to do something to encourage our city to grow, to have good development."

The decision angered many in the crowd who packed council chambers. City officials had to set up TV screens and chairs outside City Hall and in the basement to accommodate the hundreds of people who showed up.

Despite the divisive vote, it likely won't be the end of the protracted two-year battle, which has pit developers against residents and neighbor against neighbor. Resident groups say they will consider other options, such as forcing a public vote on the issue. It would take nearly 10,000 signatures to get the matter on a ballot, which could be as soon as March 14 when the city plans to ask voters to approve $850 million in bonds for citywide capital improvements. They would have 30 days to collect enough signatures.

Councilman Greg Stanton, who represents the area and voted against the zoning change, said the vote set a bad precedent. Mayor Phil Gordon, Vice Mayor Mike Johnson and Councilman Tom Simplot also voted against the change.

"The corridor is a special place to the city of Phoenix," he said. "It's unique because there's a delicate balance between retail, restaurants, office and residential."

Wednesday's vote will upset that balance, he said, adding that he fears the "high-rise creep" will spread to other areas.

Many area residents oppose the projects, saying they will bring more traffic, mar mountain views in their upscale neighborhoods and tax the area's already overburdened water system.

Other residents and developers from across the city spoke in favor of the projects because of the economic benefits they would bring.

Jason Morris, a Phoenix zoning attorney for Trump/Bayrock, called the vote, which came after 10 p.m., a victory.

"Five years from now, we'll be reaping the economic benefits and we'll see the vitality of the urban core and the truth that Phoenix can build up and not just out," Morris said.

Dana Johnson, a member of the Central City Village Planning Committee, said the council essentially disregarded all the work done by the Camelback East Village Planning Committee.

"Show us the respect that we deserve," he said angrily as he held up planning documents related to his village. "Show us that these documents are worth the paper they are printed on."

Throughout the day Wednesday, both sides worked to hammer out a last-minute compromise, reportedly at the urging of city officials.

Residents said negotiations failed after Trump and Bayrock refused to accept the neighborhoods' proposal for an 86-foot limit on their project. The attempted compromise also reportedly included a complex set of rules for planning in the area.

Morris said that they couldn't live with those restrictions.

"At the end of the day, we couldn't agree to their design," he said.

Alex Tauber, another Camelback resident, presented the council with more than 1,500 signatures opposing the projects Wednesday. His voice cracking at times, he told officials that their vote would not be about city procedures or planning.

"This is about good versus bad," he said, adding that the neighborhoods waged an honest, grass-roots campaign, alluding to allegations that Trump-paid petition circulators misrepresented their cause when gathering 10,000 signatures also presented to council. The Trump camp denied that charge.

After the vote, Tauber's wife, Suzette Tauber, said: "They didn't listen to the community and that's a shame. They listened to money, and the developers won out over the voices of the community."

Morris said his group did its best to work with neighborhoods, noting that some residents support their plans.

He said the site they want to build on is under-utilized and practically vacant. "It represents a black hole in the center of the city's urban core."

The Trump project would be the area's "flagship," he said.

With their decision Wednesday, city leaders reconciled conflicting recommendations from the city's Planning Commission and the Camelback East Village Planning Committee. The commission voted in favor of developers last week. The village committee, tasked with updating the area's growth plan, essentially sided with residents and decided to maintain the 56-foot limit in that area while granting more height farther west along Camelback, closer to Arizona 51.

Westcor was essentially caught in the middle of the fight.

Dave Scholl, Westcor's development chief, said they could have asked to pack the mall site with buildings right up against Camelback Road. Instead, they proposed tearing down buildings on the east and west ends of Biltmore Fashion Park and replacing them with 165-foot condominium towers that would have retail on the ground floor.

The City Council gave them 140 feet Wednesday but said they could ask for up to 165 feet later.

"I'm sad about what happened tonight. I'm scared I'm going to get pushed out of my home," said Camelback resident Fran Baumgartner. "But everyone was treated so much better than at the Planning Commission last week."

Coming soon to Camelback Road...

Thursday, September 22, 2005

Pink Slips Galore

Those who read this blog on a regular basis know that I'm somewhat obsessed with the recent acquisition of May Department Stores by Federated Department Stores. While my interest in this story is largely due to my fascination with retailing and shopping malls, I'm also curious about the merger's ramifications for Southern California, the largest market in the country in which both conglomerates had a significant presence.

Federated has announced that May's Robinsons-May division, which operates stores in Southern California, Nevada, and Arizona, will be absorbed by Macy's West. In Southern California, 24 department stores will close over the next year, as will May's "regional headquarters" in North Hollywood. May's Los Angeles offices are responsible for Robinsons-May stores as well as Meier & Frank stores in the Pacific Northwest.

The closure of May's offices in North Hollywood will eliminate over 1,000 jobs in Southern California. The loss of the high-paying "headquarters" jobs is a bigger blow to the region than the potential layoffs that may result from the closure of two dozen department stores, as retailers are notorious for their rate of employee turnover at the "staff" level. I doubt Federated's claims that a "good number" of these May employees will be offered new positions at the combined company; after all, the dismissal of "redundant" staff was one of the selling points of the merger in the first place.

Overall, it appears that the Federated-May merger will prove to be "bad" for Southern California. It means fewer shopping choices and fewer jobs; it also serves as yet another reminder that the economic destiny of the nation's second largest metropolis is increasingly in the hands of corporations headquartered outside the region. Those of us in Los Angeles should be especially incensed that May's regional offices are being sacrificed in favor of Federated's existing regional offices in San Francisco; our rivalry with the Bay Area is no secret.

The Los Angeles Times featured an informative article on this topic yesterday -- allow me to point out that the Times itself was recently acquired by an out-of-state conglomerate, Chicago-based Tribune Company. Like most Angelenos, I'm hard-pressed to think of a single major corporation that's based here today.

Link to article here (text follows)

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Federated to Cut 1,110 Workers in L.A. Area

Nationally, 6,200 jobs will be trimmed as the company phases out its Robinsons-May stores

By Leslie Earnest
Times Staff Writer

Federated Department Stores Inc. said Tuesday that it would cut more than 1,100 positions in North Hollywood as it phases out the Robinsons-May division, ending an era when Los Angeles County was a retail headquarters hub.

The job cuts were among 6,200 announced by Federated, the first since it completed its $11-billion purchase of May Department Stores Co. on Aug. 30.

A "good number" of the affected employees, who work in regional division offices and May's former St. Louis headquarters, are expected to take other jobs within the company, spokeswoman Carol Sanger said.

Cincinnati-based Federated also operates the Macy's and Bloomingdale's chains.

No employees will lose their jobs before March 1, and stores will continue operating as usual through the holiday shopping season, the company said.

Federated also said Tuesday that it would sell the bridal group division it acquired from May, which in California operates 25 David's Bridal stores and 62 After Hours Formalwear sites.

The bridal group is profitable and has "significant growth opportunities," Federated Chief Executive Terry J. Lundgren said in a statement. But it does not "fit with Federated's strategy of focusing on department stores and building the Macy's and Bloomingdale's brands."

The company further announced that it would convert all 62 of its Marshall Field's stores to the Macy's nameplate in fall 2006. Ultimately, Federated will operate 850 Macy's stores and 40 Bloomingdale's locations.

Locally, Federated said, it will replace Robinsons-May sites with Bloomingdale's stores at South Coast Plaza in Costa Mesa and Fashion Valley Center in San Diego.

Although Southern California's economy is growing, the job losses are a blow, said Jack Kyser, chief economist for the Los Angeles County Economic Development Corp.

"It's always a disappointment when you have any number of jobs leaving, and 1,136 is a sizable chunk," he said.

Further, the loss of the Robinsons-May/Meier & Frank division marks the end of an era when the Los Angeles area was home to some of the biggest names in retail, Kyser said.

Large companies that once had area headquarters included J.W. Robinsons, May Co., Broadway and Bullocks, he said. Smaller players included Buffums in Long Beach, Henshey's in Santa Monica, Ivars in Highland Park and Hinshaws in Whittier.

"You had the big department stores and the smaller chains, but they were all headquartered here," Kyser said. "It's the further homogenization, the loss of local character and, of course, the loss of local jobs."

The shift runs counter to the region's ascendance as a fashion trendsetter, Kyser said.

"Everybody is looking at Southern California as sort of a style leader in apparel and home furnishings," he said. "And yet you have no local department store chain."

Northern California, however, will get a boost. Federated's Macy's West division in San Francisco will expand to operate about 187 stores in seven states, compared with the 146 it currently runs.

Federated said that after the realignments in February, it will gradually phase out other operations, such as the one in North Hollywood. That process could take one to four months or longer, spokesman Jim Sluzewski said.

The shifts announced Tuesday will allow Federated to enhance future sales, increase profit and "concentrate on our best national brands," CEO Lundgren said in the statement.

"By announcing these decisions now," he said, "we can begin more specific planning for the future," including getting new merchandise into stores acquired from May as quickly as possible.

The changes are part of a broader plan to cut $175 million from next year's costs and $450 million annually thereafter. One-time expenses associated with the corporate and divisional consolidation and the nameplate changes will total $1 billion, spread over three years, Federated said.

The company said earlier that it would close 26 stores in California as it erased the Robinsons-May brand. Federated plans to shift workers in those stores to other jobs within the company, spokesman Sluzewski said.

Federated shares fell 94 cents Tuesday to $64.76.

Oprah Winfrey vs. Bob Barker

No contest...

Yesterday Chizi wrote this post about Bon Jovi's appearance on the "Oprah Winfrey Show." I am confronted by a common dilemma: my girlfriend likes Oprah. While I'm sure that Oprah's show is informative and uplifting and all that jazz, my heart belongs to another daytime idol: Bob Barker, the distinguished host of the greatest game show mankind will ever know, "The Price is Right."

This morning I began to ruminate over the question of which of these two daytime TV powerhouses has done more for the people of this great nation. I have come to the conclusion that Bob runs the superior show and I offer the following as proof:

1) When Oprah gave away cars to everyone in her entire audience during a show last year, everyone thought it was a big deal. Bob has given away far more cars to far more people -- hell, he gives away a car to someone in his audience almost every single day. Why doesn't he get any props for that?

2) Oprah's been on the air for only 19 years; Bob's been on the air for 40! (Note: Bob began hosting "TPIR" in 1972, but he hosted a few other game shows before that)

3) While I've never watched a single episode of Oprah's show, to my knowledge it does not include Plinko, The Big Wheel, or two fabulous Showcases! Bob's show has all those things and so much more.

4) Oprah feels compelled to continually update her show's set to look "contemporary" whereas Bob has insisted that the set remain virtually unchanged since his show began in 1972. Bob knows how to keep it real!

5) Oprah features a lot of celebrities on her show but Bob is content to let "regular" men and women take the spotlight.

6) Oprah has a Book Club -- Bob is smart enough to recognize that TV and literacy are antithetical concepts! Come to think of it, I don't know if I've ever seen a book given away on "TPIR" but I sure have seen a lot of high-definition plasma TVs given away lately!

7) Bob has stayed thin consistently over the years, unlike Oprah. It's a real shame that he won't share his "diet secrets" with his loyal viewers.

8) If Bob were denied access into Hermes 15 minutes after closing, he wouldn't bitch about it on-air like Oprah did. He has nothing but positive things to share.

9) Bob has $100 bills in his pocket! I doubt Oprah does.

10) Barkers' Beauties -- 'nuff said.

I think I've made a compelling case. I could go on about why I love "TPIR" and how it can be viewed as a metaphor for consumerism and America itself, but I'll save all that for another post. I will concede that Oprah's show garners more viewers...we all know a game show that comes on at 10:00 a.m. on weekdays must be enjoyed exclusively by retirees, college students, and the unemployed. However, CBS has been running "TPIR Million Dollar Spectaculars" in primetime for a reason. America just can't get enough of Bob and the 60 minutes of pure ecstacy that is "TPIR."

Speaking of the "Million Dollar Spectaculars," those shows feature Bob giving away three cars to a single person. If Oprah does something like that, I might reconsider my position.

COME ON DOWN!!!

Wednesday, September 21, 2005

The South Coast Plaza Story

Yesterday Federated Department Stores announced the impending demise of Marshall Field's. With all the controversy surrounding that decision, it was easy to overlook the other aspects of the news release that the company issued yesterday concerning its ongoing effort to digest May Department Stores. One of the other decisions Federated announced yesterday was that four stores formerly controlled by May would be converted into Bloomingdale's units, two of which are located in Southern California.

The Robinsons-May stores at Fashion Valley in San Diego and South Coast Plaza in Costa Mesa (Orange County) will be closed and extensively remodeled and remerchandised before reopening as Bloomingdale's. The upscale retailer already has four locations in the region: Beverly Center and Westfield Century City (both in L.A.'s Westside), Westfield Fashion Square (in L.A.'s San Fernando Valley), and Fashion Island (in Orange County's Newport Beach).

This evening I'd like to highlight South Coast Plaza, currently the largest mall in the country with an astounding 2,800,000 square feet of gross leasable area. When Orange County native Chizi first contacted me after reading P.U. she wrote that South Coast Plaza "is the mall of malls in Southern California." I have to agree with her statement, although in retrospect I realize she was simply trying to hit on me.

Like King of Prussia outside Philadelphia, South Coast Plaza began as a humble, "middle-market" mall serving a local clientle and slowly but surely grew to become one of the country's largest, most fashionable, and most productive malls (over $1 billion in sales each year). Indeed, South Coast Plaza rivals nearby Disneyland as an international attraction. The addition of Bloomingdale's is only the latest chapter in the story of this mall's evolution.

The Segerstrom family owned an impressive spread of Orange County farmland for generations. After World War II, the region began to urbanize and the San Diego Freeway (Interstate 405) was to be constructed through Costa Mesa alongside the Segerstroms' property. In the mid-1960's, the family wisely decided to begin developing their land and South Coast Plaza was born.

It's interesting that the future Bloomingdale's store was the first building constructed at the mall. Here's a photo of South Coast Plaza under construction in 1966; the recently completed May Company store is at left, adjacent to the (then) proposed San Diego Freeway:

Click for a larger image

(Click photo for a larger image)

The mall was intended to serve the growing middle-class suburbs nearby; the original anchors, May Company and Sears, were decidedly "middle market," reflecting the mall's target audience. Here's a photo of the mall soon after it was completed in March 1967, when it was still surrounded by farmland:

Click for a larger image

(Click photo for a larger image)

The Segerstrom family was wise to keep some of its adjacent landholdings vacant so that the mall could expand in the future. The first major addition came in 1973 and was anchored by Bullock's, a department store more upscale than May Company and Sears.

As the 1970's wore on, Orange County became one of the most affluent areas in Southern California. The growing population in South Coast Plaza's trade area could support more retailers, especially those specializing in "luxury" goods that the existing mall didn't provide. The Segerstrom family decided to further expand the mall and tilt it towards wealthier customers, beginning with the 1978 opening of the first Nordstrom department store in Southern California. The following year, prestigious department store chains I. Magnin and Saks Fifth Avenue also opened branches at South Coast Plaza.

Having grown to more than triple its original size, South Coast Plaza became one of the country's most successful malls. Like King of Prussia, it was able to serve both middle-class and wealthy shoppers with a wide range of quality retailers all under one roof. Indeed, the mall was so successful that even more retailers wanted to get in on the action...unfortunately, there wasn't any more room to expand. Luckily, the Segerstroms found a solution: Crystal Court.

Costa Mesa's dominance in the Orange County retail scene was secured when Crystal Court, a "mini" mall comprising of only 588,000 square feet, opened just across Bear Street from South Coast Plaza in 1986. The new mall was anchored by department stores The Broadway and Robinson's and provided space for other stores that couldn't fit into the existing South Coast Plaza.

Obviously, the bifurcated shopping environment provided by two malls across the street from each other was less than ideal. The Segerstrom family had always intended to connect the malls in some way but the six department stores at South Coast Plaza were loathe to give their customers easy access to the two competing department stores across the street at Crystal Court. The rivalry between May Company and The Broadway, in particular, is something of a Southern California legend...the malls would remain seperate as long as May Company felt it necessary to protect its "turf" in Costa Mesa.

The department store industry entered an unprecedented era of mergers and consolidations soon after Crystal Court opened, leading to numerous changes in the anchor line-up at both malls. I have appended the following image of the mall today from Google Earth to show the names and locations of the department stores at South Coast Plaza and Crystal Court prior to 1993:

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(Click photo for a larger image)

The first big change in the anchor line-up at the malls occurred in 1993, when May Department Stores merged its Los Angeles-based May Company chain with Robinson's, another venerable Southern California retailer acquired in 1986 when the company merged with Associated Dry Goods. Both the May Company at South Coast Plaza and the Robinson's at Crystal Court were rebranded Robinsons-May. A full line of merchandise continued to be offered at both stores, as the existence of Bear Street between them made it unlikely shoppers would visit both malls during the same trip.

Federated Department Stores acquired both Bullock's and I. Magnin, two other legendary Southern California chains, when it merged with R.H. Macy in 1994. The following year, Bullock's stores were rebranded as Macy's and the entire I. Magnin chain was shut down. Rather than see the I. Magnin space at South Coast Plaza taken by a competitor, Federated converted it into a Macy's Men's Store.

In 1996, Federated acquired The Broadway and consolidated it with Macy's. The Broadway's store at Crystal Court became a Macy's; like the Robinsons-May in the "mini" mall, it offered the same full range of merchandise as the store across the street at South Coast Plaza. With the anchors at the two malls no longer in competition and somewhat redundant, the Segerstrom family was finally able to proceed with plans to link them through a pedestrian bridge.

With the imminent marriage of South Coast Plaza and Crystal Court into one massive shoppers' paradise, the Segerstroms worked with both May Department Stores and Federated Department Stores to make their ample real estate in Costa Mesa more productive. Robinsons-May elected to close its store at Crystal Court, allowing the Segerstroms to divide it into space for more smaller stores; the Robinsons-May at South Coast Plaza, in turn, would be completely renovated and expanded by 50,000 square feet. The Macy's store at Crystal Court would be converted into a Macy's Home and Furniture Store, the first in Southern California.

The Crystal Court name was dropped; the Segerstroms simply labeled it as a portion of South Coast Plaza and began to market the two malls as a single entity. The former Crystal Court, though, was repositioned to focus on home furnishings and other "lifestyle" merchandise in order to complement the new Macy's Home and Furniture Store. Much of the space in the former Robinsons-May was occupied by a large Crate & Barrel and a Borders Books and Music.

In September 2000, the 600-foot-long covered pedestrian bridge linking South Coast Plaza to the former Crystal Court was completed. The design of the bridge complemented the upscale feel of the shopping complex; among its novel features are a half-acre garden and outdoor cafe at its base near the Macy's store in the original mall. Here's a photo of it:

Click for a larger image(Click photo for a larger image)

When the Federated-May merger was announced earlier this year, observers of the Southern California retail scene wondered what would happen to South Coast Plaza. Federated already had three department stores at the mall: a Macy's, a Macy's Men's Store, and a Macy's Home and Furniture Store. The Robinsons-May store was also an attractive property occupying a key spot in the mall. It was in Federated's best interest to have as much real estate as it could inside the nation's largest mall and to not create an opening for a competing retailer, so yesterday's decision to convert the Robinsons-May into a Bloomingdale's seems like a logical move.

As I mentioned, Orange County already has a Bloomingdale's at Fashion Island, another posh mall that is less than ten miles away from South Coast Plaza. Federated must feel that there are enough customers for both stores; after all, the existing Bloomingdale's at Beverly Center and Westfield Century City are even closer to each other. Bloomingdale's is a great fit for South Coast Plaza, as Henry Segerstrom has noted its "only real competitors are the Beverly Hills retail district and Union Square in San Francisco" when it comes to luxury shopping on the West Coast. I predict that the new Bloomingdale's will be very successful and make South Coast Plaza even more of a destination.

Here's the same Google Earth image of the mall today that I shared earlier, appended to show the names and location of its current (and future) anchors:

Click for a larger image(Click photo for a larger image)

It's important to note that Orange County has grown along with South Coast Plaza to become a vibrant part of the greater Los Angeles metropolis. In fact, the region now contains more jobs than residents and has its own "bedroom communities" in Riverside County (but few, if any, orange groves). The area surrounding South Coast Plaza no longer consists of farmland but several other shopping centers along with hotels, office towers, and the Orange County Performing Arts Center. The mall anchors an impressive "Edge City" that continues south along the San Diego Freeway into Irvine, surrounding nearby John Wayne Airport.

South Coast Plaza will continue to evolve in order to remain relevant to today's consumers and retain its title as one of the largest and most successful shopping complexes in the world. I'd like to be one of the first to welcome Bloomingdale's into the mall and I wish the Segerstrom family continued success in their stewardship of this retailing mecca.

Links of Interest

South Coast Plaza (official Web Site)

A Work In Progress (an excellent article written by Debra Hazel for the International Council of Shopping Centers that provided many of the facts in this post)

A time of change (an excellent article written by Kathy Mulady for the Seattle Post-Intelligencer about Henry Segerstrom's push to have Nordstrom make its Southern California debut at South Coast Plaza)

All the Malls of Southern California (my Web Site documenting my quest to visit and photograph every mall in the region during spring 1999)

Big Changes in Store for Southern California's Malls (previous P.U. post about the effect of the Federated-May merger on our retail scene)

Remembering Robinsons-May (previous P.U. post about the history of this chain, soon to be extinct)

My Pilgrimage to King of Prussia (previous P.U. post about my trip to another mega-mall and its history)

My Pilgrimage to Woodfield (previous P.U. post about my trip to another mega-mall and its history)

Hit Parade

Time for some more "Internet crap" -- today I stumbled upon thisdayinmusic.com, a Web Site that can tell you what song was at the top of the pop charts in the U.S. and in the U.K. on the day you were born (or any other day, for that matter).

Here's the song that was #1 on the day I was born (March 12, 1979):

At first I was afraid, I was petrified
Kept thinking I could never live without you by my side
But then I spent so many nights thinking how you did me wrong
And I grew strong, and I learned how to get along

And so you're back, from outer space
I just walked in to find you here, with that sad look upon your face
I should've changed that stupid lock, I should've made you leave your key
If I'd have known for just one second you'd be back to bother me

Go on now go, walk out the door
Just turn around now, cause you're not welcome anymore
Weren't you the one who tried to hurt me with good-bye
You think I'd crumble, you think I'd lay down and die

Oh, no not I, I will survive
Oh as long as I know how to love, I know I'll stay alive
I've got all my life to live, I've got all my love to give
And I, I will survive, I will survive....Hey, hey

It took all the strength I had not to fall apart

Just trying hard to mend the pieces of my broken heart
And I spent oh so many nights just feeling sorry for myself
I used to cry, but now I hold my head up high

And you see me, somebody new
I'm not that chained up little person still in love with you
And so you felt like dropping in and just expect me to be free
But now I'm saving all my loving for someone who's loving me

Go on now go, walk out the door
Just turn around now, 'cause you're not welcome anymore
Weren't you the one who tried to break me with good-bye
You think I'd crumble, you think I'd lay down and die

Oh no not I, I will survive
Oh as long as I now how to love, I know I'll stay alive
I've got all my life to live, I've got all my love to give
I will survive, I will survive

For the record, "I Will Survive" was also at the top of the U.K. charts. Ah yes, the spring of 1979 contained the waning days of disco.

The Web Site claims that my "life's theme song" is the song that was #1 on my 18th birthday. I suppose that this is my life's theme song, then:

Yo, I'll tell you what I want, what I really really want
So tell me what you want, what you really really want
I'll tell you what I want, what I really really want
So tell me what you want, what you really really want
I wanna, I wanna, I wanna, I wanna,
I wanna really really really wanna zigazig ha

If you want my future forget my past
If you wanna get with me better make it fast
Now don't go wasting my precious time
Get your act together we could be just fine

I'll tell you what I want, what I really really want
So tell me what you want, what you really really want
I wanna, I wanna, I wanna, I wanna,
I wanna really really really wanna zigazig ha

If you wanna be my lover, you gotta get with my friends
Make it last forever, friendship never ends
If you wanna be my lover, you have got to give
Taking is too easy, but that's the way it is

What do you think about that, now you know how I feel
Say you can handle my love are you for real
I won't be hasty, I'll give you a try
I f you really bug me then I'll say goodbye

Yo I'll tell you what I want, what I really really want
So tell me what you want, what you really really want
I wanna, I wanna, I wanna, I wanna
I wanna really really really wanna zigazig ha

If you wanna be my lover, you gotta get with my friends
Make it last forever, friendship never ends
If you wanna be my lover, you have got to give
Taking is too easy, but that's the way it is

So here's a story from A to Z
You wanna get with me you gotta listen carefully
We got Em in the place who likes it in your face
We got G like MC who likes it on an
Easy V doesn't come for free, she's a real lady
And as for me you'll see

Slam your body down and wind it all around
Slam your body down and wind it all around

If you wanna be my lover, you gotta get with my friends
Make it last forever, friendship never ends
If you wanna be my lover, you have got to give
Taking is too easy, but that's the way it is
If you wanna be my lover, you gotta, you gotta, you gotta
You gotta, you gotta, slam, slam, slam, slam

Slam your body down and wind it all around
Slam your body down and wind it all around
Slam your body down and wind it all around
Slam your body down zigazig ah

If you wanna be my lover.

"Wannabe" was not #1 in the U.K. -- however another Spice Girls jam, "Who Do You Think You Are / Mama," was. I'm sure we all remember that in the spring of 1997, Planet Earth was better known as "Spiceworld."

What Song was #1 on YOUR Birthday?

You Gotta Fight For Your Right to Blog!

Keep on Blogging!

Props (again) to Thurman for alterting me to the existence of the Electronic Frontier Foundation. It's good to know that there are people out there working to protect the rights of bloggers.

The Foundation's "Legal Guide For Bloggers" is a must-read for everyone in the blogosphere. Not surprisingly, it recommends maintaining a high level of anonymity...a position yours truly did not take! No matter how you decide to blog, it's important to remember that you're exercising your First Amendment rights. None of us can take the Bill of Rights for granted and we must fight every attempt to dilute it or take it away. Click on the following image to read the "Legal Guide":

Read EFF's Legal Guide for Bloggers

Space Age Parking Meters

Props to Thurman for referring me to a Los Angeles Times article about a new generation of "high tech" parking meters that may soon be a common sight in Southern California.

Link to article here (text follows below)

Parking can be just as big a hassle as driving in this town. It's not unusual to incur the wrath of Parking Enforcement Officers by being ticketed or even having your car towed. Of course, I view the pratfalls of parking as a compelling reason to use public transit.

Since I don't spend a lot of time in West Hollywood or Pasadena, I haven't encountered any of these new meters. I really like them, though, especially the fact that they take plastic -- nothing's worse than finding a great parking space and not having any change to feed the meter!

The article indicates that the City of Los Angeles is considering installing these "space age" parking meters but I doubt they will be deployed on a large scale. They seem more appropriate in smaller, more tourist-oriented cities like West Hollywood and Pasadena.

While the provision of City services is lacking in many regards, no one can doubt the effectiveness of our Parking Enforcement Bureau. It's more common to see Parking Enforcement patrolling the streets than the LAPD! It's obvious that parking violations are a major revenue stream for the City. I don't see what incentive the City has to have parking meters call people to warn them that time is running out -- the nominal charge it could levy for such a service pales in comparison to the money a parking ticket brings in (around $50). Where's the "return on investment?"

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High-Tech Systems Feed Change in Parking Meters

You can pay by credit or ATM card. If time is about to expire, you can call in for extra minutes.

By Bob Pool
Times Staff Writer

Time is running out on traditional parking meters lining curbs around Southern California. And many motorists couldn't be happier.

Those pesky coin-gobblers that have tormented motorists since the first one popped up on an Oklahoma street 70 years ago are getting a makeover.

Soon, drivers with no change in their pocket may be able to pay to park by credit or ATM card. Those whose meter is about to expire may be able to get a text message on their cellphone warning that they face a ticket if they don't move their car or feed the meter. That same cellphone can be used to electronically deposit more money in the meter without the motorist having to return to the street.

In a trial run in West Hollywood, the fanciest of the new meters have been installed in front of hip restaurants and boutiques along a stretch of the Sunset Strip.

The test is scheduled to last six months. But halfway through, city transportation planners were already so encouraged by the solar-powered computerized devices that they were considering asking the City Council this fall to begin permanently installing them around town.

In Pasadena, transportation managers have completed their own pilot program, in which motorists evaluated four types of high-tech parking meters. Officials are now determining which system to begin using citywide.

Los Angeles officials are planning their own evaluation of the meters in January. It will be a large-scale test, with about 200 multi-space "pay stations" from various vendors.

Many motorists are embracing the new machines with credit cards in outstretched hands. Others, however, aren't — saying that they're too confusing.

"I like them. They're very easy to use, and it's nice to be able to use a credit card," said Axana Leonova of Valencia as she parked in the 8600 block of Sunset Boulevard to shop in West Hollywood's Sunset Plaza area.

Leonova pressed the pay station's keypad and expertly followed the card-swipe instructions on the small liquid crystal display screen. A printed receipt emerged a few seconds later.

The receipt told Leonova which spot her car was parked in, how much she had paid and the exact time when the meter would expire. It also had information about adding time and a phone number to call to pay for parking.

"I've seen these in Europe. I'm surprised it's taken so long for them to get here," said the Russian-born Leonova.

Leading the Way

Even though the parking meter was invented by American Carl Magee and introduced in Oklahoma City in 1935, other countries have led the way with high-tech meters.

Most of the estimated 5 million meters in use today in the United States are still single-space models mounted on posts next to individual parking spots.

Until battery-operated electronic models became common in the 1990s, most meters had spring-operated arrows that pointed to the time remaining. Motorists wound the timing device when they turned a knob to deposit coins and make the meter's "violation" flag drop.

Congested streets and a shortage of curbside parking prompted European cities such as London and Helsinki to adopt more sophisticated meters, beginning about a decade ago.

Most parking kiosks offer instructions in multiple languages and accept prepaid passes as well as credit cards and cash. Some promote vehicle turnover by sensing when cars have been parked longer than allowed. In 2001, cellphone payment was introduced in Finnish meters.

"It's a technology that's been over there many, many years. We've been kind of slow to pick it up," said Amir Sedadi, Pasadena's parking manager.

As part of his own evaluation of high-tech meters, Sedadi surveyed meter use across the United States. He found that some cities have taken baby steps toward "smart" meters — and others big strides.

Boston experimented with 13 pay stations two years ago but held back on replacing its 7,000 single-space meters. Portland, Ore., converted 6,800 of its 8,000 parking spaces to pay stations in 2002. There have been problems with smart meters closer to home. In 2000, Newport Beach experimented with meters that used sensors to prevent motorists from continually feeding meters to hog beach-area parking spaces. The system was eventually disconnected because of repeated technical glitches, said city transportation engineer Tony Brine. Beverly Hills temporarily installed parking stations on Beverly Drive but decided to bring back traditional meters because motorists complained that the new machines were hard to use and looked unattractive.

In Pasadena, Sedadi tested four multi-space parking payment systems between October and January.

The trial run in Old Pasadena involved two metering systems: "pay and display" and "pay by space." The first requires motorists to pay at a kiosk and then return to their cars to place a parking receipt on the dashboard. The other electronically records payments on kiosk readouts that are accessible to parking enforcement officers, obviating the need for a receipt.

Sedadi said the "pay by space" system was popular with motorists and officers alike.

About three out of every 10 motorists used credit cards to pay for their parking, he said. Cellphone capability was not included in the Pasadena test, although Sedadi thinks it is a worthwhile feature.

"You have to be signed up and you have to pay a service fee," he said. "But once you're established, you can pay for a certain amount of time — say, for one hour in a two-hour zone. The meter will send out a text message to your cellphone notifying you your one-hour time is about to expire in five minutes. You have an option to call back and add more time, up to the two-hour total."

The new meters cost between $4,000 and $9,000 each, depending on the options they offer, Sedadi said. Conventional single-space meters cost about $600.

"But you have to remember that these new multi-space pay stations can handle up to 99 spaces, or even more," he said. "That leads to another advantage: aesthetics. You have more pedestrian walkway area. You don't have a sea of meter heads."

In Los Angeles, transportation planners predict that about half of the city's 41,000 metered spaces will eventually be controlled by pay stations. Each kiosk will handle from seven to 10 spaces.

Alan Willis, principal engineer with the city's Department of Transportation, said there would always be a place in Los Angeles for the individual meter. Some streets have relatively low meter usage; others have parking spaces that are far apart.

The city recently tested programming upgrades in parts of Westwood Village that used sensors to detect when cars pulled in and out of spaces.

In the six-week test, the meters were programmed to reset to "zero time left" when cars pulled out. In a test of enforcement effectiveness in the area, they also recorded the amount of time cars were parked in relation to the amount of time purchased. Additionally, meters in commercial loading zones were set up for deliverymen who would pre-purchase "cash keys" that could be inserted into the meters, Willis said.

Los Angeles is closely watching West Hollywood's test, he said. Oscar Delgado, West Hollywood's parking manager, said his 30-space test covers an area where two-hour parking is allowed. Meters charge $1 per hour.

Early on, more than half of those parking in the test area are paying by credit card, he said. But few people were signing up for the pay-by-phone cellular option, which carries a 40-cent service charge.

The West Hollywood machines are multilingual and have display screens that can be programmed to advise motorists of those times when parking is prohibited because of special events.

Adjustment Period

They take some getting used to, as Larry Guli of Thousand Oaks discovered.

"I think it's great, but it's confusing. Do you take your receipt ticket with you, or put it in your car? How do they know you've really paid?" he asked as he stopped for lunch with his wife, Margo.

Inside a nearby boutique, sales associate Valerie Lewis had a clear view of the pay station outside the front window.

"People go crazy trying to figure it out," she said. "They don't know how to do it, and they come in and ask me how it works. I don't know because I walk to work."

Across Sunset Boulevard, UCLA student Shunit Yaacobi popped in her credit card, quickly punched in the information and scooted off for lunch at Le Petit Four with classmate Katherine Neifeld.

"We're savvy," said Neifeld with a laugh.

But at the next kiosk over, Pablo Lazaro of San Clemente was struggling. "How do you do it? What's the secret? I give up. It's very confusing," he said.

Waiting his turn behind Lazaro was Guy Botham of Hollywood. He finally coached Lazaro on how to buy an extra half hour.

Tuesday, September 20, 2005

Another One Bites the Dust

This morning Federated Department Stores announced that Marshall Field's, one of the most venerable and respected names in American department store retailing, will soon be history. All 62 Marshall Field's stores will be converted into Macy's units in the fall of 2006.

Link to article on the Chicago Tribune Web Site (text follows below)

Field's is one of 12 department store chains formerly owned by May Department Stores, a national retailing conglomerate that was recently acquired by Federated. All but one of these chains (Lord & Taylor) will be rebranded as Macy's in the coming year.

I happen to be somewhat obsessed with retailing, especially the shopping malls that are home to most department stores, so I've posted extensively about the Federated-May merger and its ramifications for shopping malls and cities across the country. I've also posted about the controversy over dumping the Field's name. Please click these links if you'd like to find out more abut this story:

Saving Marshall Field's
(posted 7/27/2005) -- A report on the Keep it Field's Web Site, a "grass-roots" effort to pressure Federated to keep the Marshall Field's name.

Macy's: Coming Soon to a Mall Near You
(posted 7/31/2005) -- A report on Federated's announcement to drop 10 of May's regional department store nameplates in favor of its Macy's brand. At that time, Federated had not made a decision about the Field's name.

Remembering Robinsons-May
(posted 7/31/2005) -- A detailed history of the Robinsons-May chain, the regional nameplate that May Department Stores operated in Southern California, Nevada, and Arizona.

Whither Marshall Field's? The Debate Rages On
(posted 8/8/2005) -- I share a post and e-mail from blogger Michael Meckler concerning his ideas for the future of Marshall Field's as well as my response to it.

Meckler on Federated
(posted 8/9/2005) -- I share Michael Meckler's response to my response.

Steven's Two Cents
(posted 8/9/2005) -- I share blogger (and fellow retail and mall enthusiast) Steven Swain's response to the thoughts of both Michael Meckler and myself.

Big Changes in Store for Southern California's Malls
(posted 9/3/2005) -- I speculate on the changes that will occur at the 24 malls in the greater Los Angeles and San Diego areas in which Federated will be closing stores as a result of Macy's absorbtion of Robinsons-May.

These posts may also be of interest:

My Pilgrimage to Woodfield
(posted 8/6/2005) -- I share my trip to Woodfield, the largest mall in greater Chicago, including photos of its Field's store.

My Pilgrimage to King of Prussia
(posted 8/7/2005) -- I share my trip to King of Prussia, a large mall in greater Philadelphia that will experience some changes as a result of the Federated-May merger.

Salute to Chicago
(posted 8/20/2005) -- I share my trip to the Windy City, including photos of Field's flagship State Street store as well as its Water Tower Place store.

I had anticipated that Federated would decide to drop the Marshall Field's moniker, but even I'm surprised at how quickly the decision was made. While I'm something of a retail nostalgist, I realize that consolidating Field's with Macy's makes a lot of sense from a business standpoint. I happen to think operating a "national" department store brand is a wise strategy, as it will allow Federated to better compete with Sears, JCPenney, Wal-Mart, Target, and Kohl's by using national advertising. It wouldn't have been cost-effective for Federated to continue spending money to advertise Field's in its local markets while promoting Macy's on a national scale.

The impending demise of Marshall Field's is a big blow to Chicago's civic pride. Marshall Field's is Chicago to many people. Alas, no city is immune from losing the storied merchants its citizens patronized for generations -- the retail business has changed. Whether you live in New York City, Chicago, Los Angeles, Phoenix, or Columbus, your "hometown" department store is no more.

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No miracle on State Street: Marshall Field's to Change to Macy's

Daley says return of Frango production to Chicago possible

Tribune staff reports
Published September 20, 2005, 3:15 PM CDT

Marshall Field & Co., a name long venerated in the history of Chicago retailing, will disappear in the fall of 2006, to be replaced by Macy's.

All 62 Field's in Illinois and seven other states will be converted to Macy's, according to today's announcement by Federated Department Stores Inc., Field's new owner.

"The business has to grow, and that just hasn't been happening," Terry J. Lundgren, Federated's chairman, president and chief executive, said as he explained the decision to turn Field's into Macy's.

"Clearly this is an emotional day, and it's an emotional decision, and for people who live in Chicago, we have total and complete respect for this brand name of Marshall Field. But you have to grow the business today," Lundgren told CLTV after meeting today with the Chicago Tribune Editorial Board.

The decision to drop the Field's name was made after Federated "carefully researched customer preferences and studied alternatives," Lundgren said in a news release released by Federated this morning.

Lundgren promised Field's traditions and its "outstanding record of community and charitable giving" would continue.

"From a shopping standpoint, customers will have the best of both worlds in major markets like Chicago, Minneapolis and Detroit," Lundgren said. "They will continue to benefit from regional buying that remains attuned to local preferences and lifestyles plus enjoy the distinctive merchandise and shopping experience that's part of the Macy's brand."

The stores will be operated under a Minneapolis-based division, Macy's North, the Cincinnati-based Federated said.

Among the first people in Chicago to learn of the name change was Mayor Richard Daley. The mayor has had several conversations with Lundgren recently before being personally informed by the Federated chairman of the decision this morning, said Daley spokeswoman Jacquelyn Heard.

Daley "was not very thrilled" to hear the news, Heard said. But the promise of no layoffs and the possibility of bringing Frango mint production back to Chicago from Pennsylvania, where it was outsourced in 1999, were "a huge part of (becoming) amenable" to the change in nameplates, she said.

Speaking to reporters later in the morning, Daley took a philosophical view of the loss of the Field's name.

"Things change in life," he said. "If you are not willing to accept change, you stay in the past."

The mayor called Federated a "very good corporate citizen." Regarding the State Street store, Federated plans to "reinforce that store," making it even more a "destination" than Field's has been.

Federated, parent of Macy's and Bloomingdale's, doubled its size Aug. 30 by completing its $11 billion acquisition of Field's owner, May Department Stores Co.

The acquisition gave rise to immediate misgivings among Chicagoans familiar with Federated's history of changing the names of regional department store chains it acquired to Macy's.

Most other May chains, including Famous-Barr, with seven Illinois stores, are to be renamed Macy's by fall 2006. One exception is Lord & Taylor, which Federated has ruled out changing.

The deal between Federated and May marked the second time in less than two years that Field's has changed hands. In July 2004, May bought Field's from Minneapolis-based Target Corp., which dumped its department store holdings to focus on its more vigorous discount chain.

The Federated-May deal created a $28 billion retailer with about 950 department stores.

Despite changing the name to Macy's, Field's may remain a fixture on State Street for some time to come. Two days after Federated closed its acquisition of May, the Commission on Chicago Landmarks formally recommended that the City Council bestow landmark status to the retailer's flagship store at State and Washington Streets.

If approved by the City Council, the landmark designation would give the city legal power to restrict building changes, including tinkering with the large nameplates on its exterior.

Preservationists and politicians have said changing the State Street store from Field's to Macy's would strip away a piece of the city's identity. Many also hoped a landmark designation would preserve the name of the State Street shopping icon.

"It's like changing the name of the Eiffel Tower, honestly," Preservation Chicago president Jonathan Fine said earlier this month. "I don't think Chicagoans will ever accept it as a Macy's. To us, that's somebody who sponsors a parade in New York."

Tribune staff reporter Gary Washburn contributed to this story.