| Show Industry Sees Shake-U- p MS as a Blessing and a Curse The Salt Late Tribune Sunday Jannary 18 1987 F5 Merger Mania Leaves Retailers Wondering What’s in Store By Isadore Barmash New York Times Writer NEW YORK — The recent wave of mergers and divestitures in the retail industry is forcing many merchants l'i their strategies both of business and personnel opportunities and to defend themselves in a tough new arena Interviews last week at the annual invention of the National Retail Merchants Association in New York some 13000 executives ended our days of meetings found wide- pread interest in the effects of the industry churning Among other t) take advantage ’ the opportunities This is obviously an overstored country and it’s being changed because we have a things the retailers said they were shuffling suppliers taking a look at stores being divested interviewing "surplus” executives sharpening customer service and adding profitable new departments "The mergers spinoffs and closings mean more competition but new opportunities as well” said Stanley J Bluestone president of the PA chain based in Bergner Co a Milwaukee Noting that the chain is about to open two former Gimbels stores in Milwaukee Bluestone said: “We’re in the acquisition game too because of system” Throughout the convention at both the New York Hilton and the Sheraton Centre hotels the leading topic of conversation was the spate of recent mergers and the accompanying management turnover Greatest interest centered on the merger of the Allied Stores Corp into the Campeau Corp the Canadian developer that pulled off the deal by forging a partnership with the Edward J DeBartolo Corp the largest ortune Seekers’ New Call: Don’t Go West Continued From F-- l The Pentagon has poured billions dollars into the Western economy California’s aerospace plants :nd their bombers missiles spacecraft and other hardware to the dozens of military bases that dot the Vestern plains like sagebrush If as inany members of Congress predict nlitary spending begins to decline i’ho effects on the Western economy onld be devastating The new realities facing much of Mi? West can be seen in Utah Largely (cause of the influence of the Mor-- ’ m Church whose members tend to large families Utah is still gain-in population hut as in most of its ghboring states thousands of jobs Utah mining and agriculture have 'vanished in the past five years ! State officials say Utah’s oil pro-- ! motion last year was only about 25 J creent of its 1980 output causing a oss of thousands of jobs and millions f dollars in oil severance taxes f i ! i ) min- main-- ' level in 35 Employment in Utah’s copper ng industry once an economic ay reached its lowest ’'cars in 1986 And in the state’s fledg- iug electronics industry once consid-- ’ e cd the best hope of reducing depen-- ' cce on agriculture and mining mndreds of jobs have been lost ‘ i rate in Responding to what his staff debudscribed as Utah’s most-serioget crisis since it achieved statehood in 1896 Gov Norm Bangerter urged legislators last month to approve a record $200 million state tax increase In the past he has strongly resisted tax increases New Mexico officials say that the state’s oil and gas production fell 46 percent last year causing a $241 million drop in state oil taxes and fees In Montana where the mining industry has lost thousands of jobs in recent years leaders in the state Legislature say cutbacks in state government spending are necessary In Colorado oil and mining businesses are troubled and overbuilding by speculators has produced a 29 percent vacancy rate in Denver office buildings Business leaders recently surveyed by the United Banks of Colorado said their confidence in the state’s economy was at its lowest level since 1982 There are bright spots in the picture Some farmers say prices for crops and farmland may be stabilizing after five years of decline Lower mortgage rates for new homes are helping the Northwest’s battered logging industry sell more lumber California’s 67 percent unemployment 1986 was the lowest in several American of builder-operat- "They’re disruptive but mergers do seem to put companies in better hands” said Kenneth A Macke chairman of the Dayton Hudson "More Corp based in Minneapolis bigness creates more competition” The growing number of retailers lt in going private could “better merchandise and improved services” for consumers added Donald Fisher chairman of The Gap Inc San Bruno Calif "because the company doesn’t have to worry about shop- ping centers The announcement Monday the second day of the convention of the resignation of Thomas M Macioce as Allied’s chairman — following the earlier disclosure that Allied would sell 16 of its 24 store divisions — only well-resu- added to the talk Other recent deals drawing attention included the takeover by May Department Stores of the Associated Dry Goods Corp and the leveraged buy-ou- t by management and other investors of RH Macy & Co The latest abortive effort by The Limited to acquire Carter Hawley Hale Stores was also cited Reactions to the mergers and other deals were mixed among top executives of major chains short-ter- results” William R Howell chairman of the JC Penney Co was not so sure however “Big mergers will succeed” he said “only to the extent that they do things to please the customers Those overburdened with debt can hardly do that because they can’t function well” And man of the ham Mass turbing and divisions” Sumner Feldberg chairZayre Corp of Framingcalled the mergers "disdisruptive on people and “We see in all the flux a great chance for us to expand our plan of serving more working women and we have a blueprint to open 46 more stores in the next three years” said John Lee II executive vice president of Charles A Stevens Inc of Chicago which already operates 25 stores Having recently been spun off from its parent the Hartmarx Corp Stevens has attracted interest from unhappy executives of larger companies "who tell us that as these companies take over others so many new guidelines are being handed down from ‘Big Daddy’ that confusion reigns” Lee said years But experts say that throughout the West people are losing relatively g skilled jobs in manufacturing minerals processing finance and professional fields The new jobs are in lower-payin- g service industries a shift that many economists say will sap the regioh of 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