Macy's Believes It Can Boost Holidays with Santa and Queen Latifah

Macy’s clearly believes in Believe, so the department store chain is bringing the promotion back so large that it requires characters more potent than Donald Trump and Martha Stewart as its representatives.

So, this year, Santa Claus will lead the Believe effort along with a Queen, in this case, Queen Latifah.

Queen Latifah’s participation is particularly interesting, but more on that later. What Macy’s has done with Believe is a topic that begs some attention, in part because what was a webcentric promotion last year now is the department store operator’s main holiday marketing vehicle. Yes, Virginia there was a television commercial last year that promoted the store as well as the Web-based promotion, but it’s still unusual to see a retailer build so vast a marketing campaign on an effort that was so much an Internet creation.

Macy’s ties a lot together in its campaign. Thematically, it organizes Believe around the Yes, Virginia There is a Santa Claus essay and a charitable program. Starting November 6, folks can drop off letters addressed to Santa at the North poll and stamped – Macy’s isn’t picking up the postage – at specially  designated in-store letterboxes. For each letter posted, Macy’s will donate $1 to the Make-A-Wish Foundation, up to $1 million.

Of course, Santa’s arrival at the Herald Square flagship store is the last part of the Macy’s Thanksgiving Day Parade in New York, and the company is leveraging that association. On Nov. 28, Macy’s kicks off what it calls the National Santa Tour, which will provide kids in 25 cities what Macy’s describes as a “once-in-a-lifetime opportunity to meet the man himself.” Unless the tour is very successful, one might observe, and is repeated annually.

Macy’s will deliver a Santa schedule when the Believe microsite – the interactive heart of last year’s campaign – goes live on Nov. 6. Also on that date, the Believe advertising campaign will break with a new national television spot featuring Queen Latifah. A Spanish-language version features actor, musician and TV personality Carlos Ponce. The Believe campaign reaches is crescendo with a Dec. 11 Macy’s sponsored Yes, Virginia animated television special on CBS.

The Believe campaign still includes a web component. An online Tell Us Why You Believe contest invites visitors to submit either a short essay or video for trips to Macy’s 2010 Thanksgiving parade.

When it ends on Dec. 24, Believe will have been Macy’s effort to hold that share of the holiday that wasn’t taken by Walmart – which is grabbing more core holiday shopping – or Toys“R”Us. Any loss of business to Toys“R”Us will be particularly galling. Last year, Macy’s developed FAO Schwarz shops for its stores, filled with the stuffed animals and other gifts for which the iconic specialty store has been renown. Then, early this year, Toys“R”Us purchased FAO and severed the deal to supply the expanding network of in-Macy’s shops.

In the aftermath, Macy’s developed the Believe campaign to establish its holiday position. Give those circumstances, it makes sense the promotion would encompass more than the website. Still, as an Internet-based campaign, Believe was a success. While the retailer’s overall sales fell as the recession gained momentum, its online revenues advanced by 24 percent in holiday 2008. With less Internet focus this year, Macy’s online sales may not enjoy as much of a bump, but the retailer is looking at a wider range of opportunities in 2009.

Back to Queen Latifah: A current television ad running to support Macy’s Come Together charity promotion gives her as big a roll as Martha Stewart. She is joined by Usher, who has a Macy’s collection, and Mariah Carey in lesser roles. Queen Latifah and Carey both sell their perfumes through the department store.

Which has led some to remark that Macy’s is raising its profile to urban stylists. Supporting the observation, Macy’s recently debuted an urban-oriented fashion line from designer Rachel Roy, who once was associated with Rocawear but now is on her own.

Department store retailers are pulling out all the stops to hold their own in a recession that has pushed a lot of folks toward the mass-market part of retailing. They’ve used the occasion to prospect, too, and while Macy’s is featuring Santa to make a point about its traditional role in the American holiday, its association with Queen Latifah — and her starring role in the department store’s holiday advertising — signals its aspiration to win over consumers who celebrate the season in urban style.