Wharton Journal

Issue date: 11/16/09 Section: News

As the opportunity cost for private equity and investment banking tumbles, the creative and tangible lure of the fashion and retail world has gained a fighting chance of tempting Wharton grads. Fortunately, over the last six weeks, Wharton students interested in fashion and retail have been exposed to some of the highest-profile leaders from the industry, both on campus and off. Three executives that spoke to students as part of the Jay H. Baker Retailing Initiative Speaker Series this fall were Macy's Inc. top executive Terry Lundgren, J. Crew chief executive Millard Drexler, and Martha Stewart.

In addition to the speaker series, students have been able to meet with executives during various Fashion & Luxury Club treks that have visited firms across the industry, including J. Crew, Gilt Group, Li & Fung, and Bonobos. If you missed these treks, some upcoming treks include Polo Ralph Lauren, and a week-long European trek over spring break.

In the meetings we have had thus far, executives emphasized the importance of creativity, and highlighted a need for talent in the industry. "We're the largest non-Wall Street recruiting company on campus [for undergrads], and we may be the largest over time," joked Lundgren, chairman, president and chief executive officer of Macy's Inc. "We have a lot of need for talent, even in challenging times." The $25-billion retailer is hiring about 200 students this year, said Lundgren, adding that University of Pennsylvania is "a very important school for us."

During his speech, Lundgren, who said he dedicates 30 minutes a week to talking with Macy's young talent, played a video of interviews with such employees, including a 25-year-old woman who was a $180 million business. He also shared his advice on choosing an employer with the hundred-plus students in the audience. "I don't love the idea of testing a company and leaving it," he said. "If you want to build a career, you should join a company that you understand and where you like the people."

Lundgren presented a retail landscape chart with Wal-Mart at the bottom, escalating up to Kohl's and J.C. Penney, up to Macy's, and with "Neiman Marcus, Saks and Barneys off the chart - as you get into that top corner there are fewer customers," said Lundgren, who was the CEO of Neiman Marcus before Macy's. "That is why there are only 40 Neiman Marcus stores, 50 Saks stores, and 40 Bloomingdale stores," the latter of which Macy's Inc. owns. On the other hand, after years of consolidation, there are 810 Macy's stores. The average income of a Macy's customer is $75,000 to $200,000, added Lundgren.

Continued...

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