Business: Look Out, Now!

Rich, mass-selling R. H. Macy & Co., Inc. has long yearned for a West Coast anchor for its department-store chain (eight stores in seven U.S. cities). Last week it got one: San Francisco's sedate, pioneer O'Connor, Moffatt & Co.

In a quiet exchange of stock (three shares of Macy common for four of O'C.M.'s class B), Macy's acquired a reasonably new (1929), eight-story-and-basement building at Stockton and O'Farrell streets, just a block off San Francisco's well-beaten shopping triangle, plus valuable adjoining frontage on nearby Union Square. It also acquired a reputation for stodgy merchandising.

Catering to San Francisco's upper middle class, paternalistic, 79-year-old...