This weekend the entire USA will meet Macy's. The parent company, Federated Department Stores (FD) is starting a nationwide television advertising campaign. Federated bought May Department Stores and more than 400 stores are being converted to the Macy's name.
As the department store industry consolidated the parent companies mostly kept the names of the local chains they bought. Advertising was local and was mostly in print in local newspapers. The shift to a national television contract may have a dramatic impact on the revenues of local newspapers.
One of the companies that may be affected is Tribune Company (TRB). They own 11 daily newspapers. Local advertising dollars may shrink for them. However, Tribune also owns 26 television stations and a 24-hour cable news channel. They will undoubtedly pick up some of the national add revenue.
Which way do you think it will go? Is TRB a buy, hold or sell and why? Take a minute and leave your opinion. We'd like to hear from you.
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