Robinsons-May stuck between upscale stores and discounters.

As the overall Los Angeles economy keeps growing at a steady pace, Robinsons-May struggles with an old-fashioned business model and an inconsistent brand identity.

While parent May Department Stores Co. does not break out monthly sales for Robinsons-May, which has 57 stores in Southern California, Arizona and Nevada, economists and other retail watchers note that the chain is taking hits from high-end merchants such as Nordstrom Inc., discount chains such as Kohl's Corp. and speciality stores such as Williams-Sonoma Inc.

For all of 2003, Robinsons-May's net sales fell by about 1 percent, to $2.45 billion. Overall, May Department Stores net sales fell 2.7 percent in the month of May, to $978 million, while same-store sales tell 3.8 percent.

"Wal-Mart and Target know what their mantra is," said Ilse Metchek, executive director of the California Fashion Association. "The May Co. doesn't have one. What is its focus. its standard mission'? Who is May targeting? I have yet to find out. Robinsons-May has been, as far as Los Angeles is concerned, not quite a Wal-Mart or Target, and certainly not what Robinsons-May used to be."

Last month, the North Hollywood-based division cut 364 operators at its telephone collection center here. It also has visibly slashed advertising in the Los Angeles Times, according to Jack Kyser, chief economist for the Los Angeles County Economic Development Corp.

Robinsons-May spokeswoman Milinda Martin declined to comment on the specifics of the chain's ad spending, but said that "advertising continues to be a strong component of the business."

While low- and high-price retailers are faring well, stodgy mid-level department stores like Robinsons-May that traditionally prided themselves on the variety of their offerings have been deserted.

"The middle market is tough because you get squeezed by mass-market retailers like Wal-Mart (Stores Inc.) or Target and upscale retailers like Nordstrom, Saks and Nieman-Marcus," said Joe Bonnet, a securities analyst for Argus Research. "It's a tough place to operate."

The chain has a storied history in Southern California. The original Robinson's was a pioneer merchant in Los Angeles, opening its first store--then known as Boston Dry Goods--near City Hall. The retailer incorporated as J.W. Robinson Co. in 1891 and the number of store locations was expanded in the 1900s. May Department Stores founder David May opened his first store in Leadville, Colo., in 1877 and opened its first Los Angeles store in 1923.

In 1984, Robinson's--then considered a higher-end chain owned by Associated Dry Goods--was purchased by May Department Stores in a $2.47 billion deal.

During the height of a deep recession in California, the operations of California May Co. and Robinson's were merged and much of the corporate decision-making was moved to May's parent headquarters in St. Louis. This began a downscaling of the surviving department stores that some analysts refer to as May Department Stores' "mayonnaising"--turning its acquisitions into similar, bland department stores.

"Their whole perspective of what is the Southern California customer has changed dramatically," said Metchek. "It's a lesson many retailers have learned. It's virtually impossible to buy for Southern California if you're standing in snow drifts in St. Louis."

Robinsons-May is not the only mid-level department store to have struggled. J.C. Penney Co. and Sears Roebuck & Co. have reinvented themselves--Sears as a discounter and Penney by expanding private-label apparel.

Within stores, Robinsons-May has at times attempted to adjust its offerings, such as increasing its attention to menswear and juniors, but without much success, Metchek said. Martin said the chain is not currently focusing on specific areas.

Last week, May Department Stores took on yet another property in announcing the acquisition of Marshall Field's and nine Mervyn's stores from Target. May has said it intends to maintain Marshall Field's nameplate and operate it as a stand-alone department division under the May umbrella.

"If Marshall Field's doesn't perform as expected, they may go in there and perform unilateral surgery," Bonner said. "They've been willing to close stores down in the past."

Robinsons-May

Headquarters: North Hollywood

Founded: 1877, as May Co., by David May in Leadville, Colo.; 1883, as Robinsons, then known as Boston Dry Goods, in L.A.

Merged: 1993

Operations: 57 stores in Southern California, Nevada and Arizona

2002 Sales: $2.47 billion

2003 Sales: $2.45 billion

Parent: May Department Stores Co. (St. Louis)

Corporate Siblings: Lord & Taylor, (New York); Filene's, Kaufman's (Boston); Meier & Frank (Los Angeles); Hecht's, Strawbridge's (Washington, D.C.); Foley's (Houston)

Competitors: Macy's West, Bloomingdale's, J.C. Penney Co., Kohl's Corp., Nordstrom, Saks Inc., SearsRoebuck & Co.; Target Corp.