...Memo of Macy’s Department store repositioning Case Synopsis The traditional department store was the dominant player in the American retail industry in the first half of the 20th century, which was designed to provide a unique shopping experience for consumers. However, only 50 years later, this mainstay of retail world was experiencing declining sales and serious questions were being raised as to whether its demise was imminent. Firstly, this case gives us a brief introduction of Macy’s, which is consolidated by 15 regional department stores with 810 store locations across the country. The company repositioned the consolidated Macy’s in the overall retail landscape in an attempt to differentiate the new company from its competitors. Secondly, the case provides a situation analysis of the factors Macy’s is facing, which includes the general economic environment, industry (product and services and segments), competition and consumers. Last but not the least, the case details not only Macy’s 2005-2006 consolidation and repositioning strategy but also Macy’s 2006-2011 post-consolidation. Questions 1. Complete a situation analysis of the traditional department store industry and of Macy’s as of 2005. Which factors in the external environment could (positively or negatively) affect the success of Macy’s new strategy? Which internal factors could affect the success of the company’s strategy? I think the following external environment factors could affect the success...
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...------------------------------------------------- Group assignment 2: Macy’s Case ------------------------------------------------- Strategic Marketing 2013-2014 Macy’s Department store repositioning Guidelines You are asked to prepare a report, answering the questions below (max 10 pages). In solving the case and answering the questions, you could use not only the information given in this case and attached articles, but can seek further information about the market and consumers if necessary. * The case can be found on the Pointcarre webpage * Deadline for submission is: 27/03/2014 * Professional text and layout; no writing or grammar errors * Refer in a correct manner (e.g. APA-style) * Mention names and enrollment numbers of all the team members on the first page * Hard copy Questions regarding the Macy’s case 1) Make a situational analysis of the traditional department store industry and of Macy’s as of 2005. Which factors in the external environment could (positively or negatively) affect the success of Macy’s new strategy? Which internal factors could affect the success of the company’s strategy? (don’t forget to look at the exhibits!) 2) Evaluate Macy’s 2005 consolidation and repositioning strategy: what are its strengths? What could be the benefit of each strength? Evaluate Macy’s 2005 consolidation and repositioning strategy: what are its weaknesses? What could be the possible outcome of each weakness? 3) Porter argues that the goal of strategy, and a key to achieving...
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...The Magic CRM of Macy's, Inc. Natalia Lawson University of Phoenix Information Systems Fundamentals CIS/207 Byron L. Kizzie February 4, 2013 The Magic CRM of Macy's, Inc. "Be everywhere, do everything, and never fail to astonish the customer." Macy’s motto. The history of Macy’s, Inc., one of the largest department store retailers in the world, has began with an opening of a small dry goods store in New York in 1858 ("Macy’s: A History," 2013, p.1). ‘First-day sales of the newly born store totaled $11.06 and reached $90,000 by the end of the first year.” Macy’s, Inc. conducted its business in 11 adjacent buildings by the end of the 19th century ("Macy’s: A History," 2013, p. 1). In the 21st century, “the store’s fiscal sales in 2011 reached $26.4 billion. Approximately 171,000 employees work at Macy’s, Inc., formerly known as Federated Department Stores, Inc. The giant retailer has two corporate offices in Cincinnati, 800 department stores in 45 states, the District of Columbia, Guam and Puerto Rico” ("Macy’s Fact Sheet," 2013, p. 1). In addition, the corporation conducts e-business on macys.com website. What has made and continues to make Macy’s, Inc. so successful and respectful? As a former employee of Macy’s, Inc., I can attest from my own experience that the corporation’s success is due to its highly organized and well-developed Customer Relationship Management (CRM) system. How the business requirements drove the system’s initial development...
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...as styling salons, optical, portrait photography, and custom decorating. The company offers various products and services online via its website, a platform that has been the nursery for industry giants like Amazon (AMZN) and eBay (EBAY). Its direct rivals include Kohl's (KSS) and Macy's (M), among others. J.C Penney's most recent quarter results least impressive among peers The company announced December quarter results on Wednesday, February 27, an event that sent the company's shares down the charts at Wall Street. The company's sales and revenues declined shamefully by huge margins. Revenues were down 25 percent for the quarter while Internet sales dipped 34 percent. On the other hand, Macy's online business soared 48 percent and looks set to take over what J.C Penney leaves behind. Last year, J.C Penney sent home 19,000 staff, and recently trimmed its workforce by 2,200 employees as it sought to cut fixed costs following a tough campaign. Customers are losing trust in the Texas-based company despite the massive experience garnered over the years. The company did not impress in terms of market share, with fewer than 17 percent approaching the retailer's stores. Contrary to J.C Penney, Macy's Q4 results tramped analyst expectations with sales increasing by 7.2 percent year-over-year to $9.35 billion. This included the extra weeks in the 2012 calendar. However, the management noted that, comparing the same number of weeks as 2011 sales grew by 3.9 percent. Operating income...
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...national brand—Macy’s. This decision was in response to the decline in sales and profits that had hit the traditional department store industry, which was in a maturing stage and moving towards a downward trend for some time. Just three years later, in 2008, U.S. economy was hit with a recession that threatened the livelihood of many successful retail giants. While Macy’s did experience a significant drop in revenue in 2008 with a net loss of $4,803 million, compared to other department stores such as Mervyn’s that went bankrupt when the recession hit, Macy’s managed to stay in the game. Macy’s ability to not become obsolete was in part due to the consolidation and repositioning tactics that provided the company an avenue in creating a national brand and reducing the unit cost of advertising and promotional budgets considerably due to having one central hub for all of the company’s administrative functions and bulk purchasing. The success of the consolidation strategy is attributed to several factors. For instance, Macy’s brand already had nationwide recognition as “America’s department store” through aggressive national advertising activities, Fourth of July Celebrations and Thanksgiving Day Parade. In addition, when Federated had consolidated its regionally established department stores, these stores had a well-established customer base, were regionally well known, and were in prime locations close to business districts or large shopping centers, which meant that Macy’s did not...
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...The regional director of Macy's New York-area stores, Michael Dervos, In 2007, was visiting Flushing, Queens store shoe department and he noticed that sizes available were size 9 and above. A question came to his mind, why these sizes if many of the store's customers are Asian Americans? This customer segment tends to have smaller feet. This event triggered a new strategy called My Macy's. Over the past three years, the strategy has enabled the department stores retailer to double earnings. It is a good moment to highlight that it is a period during which most retailers serving the middle class have struggled. Exhibit 1 shows My Macy’s website customized for Carlos Garcia. Exhibit 1: My Macys website (retrieved from http://www1.macys.com/index.ognc?cm_sp=navigation-_-top_nav-_-macys_icon) At Kohl's, for instance, earnings plunged 13% for the period, and at J.C. Penney earnings rose just 32%. Talking about the same three years, Macy's stock climbed more than fivefold, to $38.07 (prices and related data are as of Dec 14, 4:00PM EST). Exhibit 2 shows Macy’s stock performance in the last five years. Exhibit 2: Macy’s Stock Price (retrieved from http://finance.yahoo.com/echarts?s=M+Interactive#symbol=m;range=5y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;) According to May (2012), the Cincinnati-based department store chain (NYSE: M) has grown sales by more than $1 billion in each of the last two years and saw...
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...TEAM assignment. Organizational Culture: Macy’s Team Member: A, B, & C PSY/450 June 8, 2015 Dr. Rachael Dilts Organizational Culture: Macy’s Organizational culture is defined as an organization’s values, behaviors, expectations, experiences, and philosophy. The main idea of organizational culture is what behavior and values contribute to the organization’s social and psychological environment. Organizational culture is also known as corporate culture and is shown by how the organization treats its employees, customers, and the community. It also is shown through the way the company conducts business. Organizational culture success can be measured by a company’s productivity and performance. Successful organizational culture provides guidelines for service, product quality, and safety. Success can also be seen through attendance and punctuality of employees. Every organization has a unique culture, and if that culture is not successful, it is hard to change ("Organizational Culture", 2015). Macy’s: The Company Macy’s was founded by Rowland Hussey Macy in 1859 and was nothing but a single dry goods store in New York City. Over the years, Macy’s has grown to be one of the nation’s top retailers in fashion and affordable luxury. Macy’s attributes its success to its employees. Macy’s has many successes including; being the first retail store to promote a female into an executive position and starting the Macy’s Thanksgiving Day Parade. The parade was organized...
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...Introduction: Macy’s Inc. Quality Management Related Problem: Customer Service over the phone and within the store front. Employees need to be visible and provide more customer service. Customer service is very vital and it goes a long way. Macy’s has great vendors and partnerships and there is quality within those 2 important factors. However, the customer service factor overall is lacking and it falls short. Great customer service brings customers back for more. Recommended Direction to Implement/Quality Management: The recommended direction is to revamp their customer service techniques and strategies. Starting with upper management and working the system all the way down, keeps everything in perspective with the support of upper management. Macy’s employees will also need to see this change being supported by upper management. We perceive change by seeing in order to support and believing. Changing with the times keeps organizations above water; with changes new approaches and strategies must be evaluated and implemented. In the retail industry, organizations who are consistent and lead take risks however they set a forecast report. This report gives them a heads up on planning for the next season and what decision needs to be made to keep their organization relevant. This course paper will show you how Macy’s is a steady leader within the retail industry, how they are consistent as a company, how they build their partnership, quality in their venders, along with a SWOT...
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...Stacy Bradford Management Fundamentals MGM255-1202B-05 Phase 3 – Task 2-IP Macy’s Strategic Plan Richard Hilliard June 18, 2012 Executive Summary Macy’s is the nationally recognized brand of the Federated Department Store Cooperation. The organization consists of over 850 departments stores from coast to coast and online throughout the United States. In this paper we will look at the company’s strategic plan for success, its mission, its vision, its organizational structure, and what’s working and what’s not. In addition, we will examine the strategies and initiatives that have helped Macy’s to continuously grow and remain competitive over the past 150 years. Mission Statement "Our goal is to be a retailer with the ability to see opportunity on the horizon and have a clear path for capitalizing on it. To do so, we are moving faster than ever before, employing more technology and concentrating our resources on those elements most important to our core customers. " Vision Statement "Our vision is to operate Macy's and Bloomingdale's as dynamic national brands while focusing on the customer offering in each store location." In just a few words, the above referenced statements convey Macy’s purpose and why it exists. Macy’s commitment to sharing the company’s mission and vision with the employees has kept the entire company moving forward in the face of difficulties, enabling and inspiring leaders and employees alike. Moving toward...
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...Implementation, Strategic Controls and Contingency Plan Macy's, Inc., “prior to June 1, 2007, Macy's, Inc. was known as Federated Department Stores, Inc. was born through the combination of Abraham & Straus of Brooklyn, Filene's of Boston, F&R Lazarus & Co. of Columbus, OH, and Bloomingdale's of New York. Each of these retailers was an established, prominent presence with a rich history of its own. In joining together, they agreed to maintain their separate identities while linking their financial interests. These pioneers recognized the immense opportunity that lay before them and on November 25, 1929, Federated Department Stores was incorporated as a revolutionary new company in American retail. Today Macys, Inc. has corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2010 sales of $25 billion. The Macy's brand includes about 810 Macy's department stores and furniture galleries in 45 states, the District of Columbia, Guam and Puerto Rico, as well as macys.com. Macy's, Inc.'s diverse workforce includes approximately 166,000 employees.” (Macys, Inc., 2011) Implementation and Objective Leadership make decisions every day to the business operations of how a business is to function or be ran, Macy’s Inc. is no exception to this. Macy’s Inc.’s vision is to be a premier national Omni channel retailer with iconic brands that each operates outstanding stores and dynamic online sites. Both Macy's and Bloomingdale's are known worldwide, and each...
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...|Macy’s Inc. | Macy’s is considered a store; where there are actual brick and motors stores across the United Sates, online website, app, catalog, direct sales, and a kiosk. At first, Macy’s wasn’t my retailer. I originally wanted to do Michael Kors at The Grove, but I had no transportation to the location. I had changed it to Michael Kors in Macy’s Plaza, but there was a misunderstanding to what I was requesting to the teacher. Little did I know that I would learn so much from Macy’s? Everything happens for a reason and this was a sign from God. I’ve learned how Macy’s was founded to their philosophies. I was so shocked about the information I was reading. Even though Macy’s wasn’t my original choice, it taught me so much and I’m very grateful that it ended up like this! |Background | Federated Department Stores, Inc (renamed Macy’s Inc.) was born through the combination of Abraham & Straus of Brooklyn, Filene’s of Boston, F&R Lazarus & Co. of Columbus, OH, and Bloomingdale’s of New York. As Federated emerged in the years of the Great Depression and World War II, it became apparent that the corporation was equipped with both resilience and flexibility. It adapted to the times by implementing innovative retail firsts, such...
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...INTRODUCTION: In 1858 a small, but adequate dry goods store opened on the corner of 14th street and 6th Avenue in New York City, which is known today as Macy and is one of the largest retailers in the world. Rowland Hussey Macy had been through a lot of trial and errors until 1877 that R.H. Macy Co had become a full pledged department store. (macysinc.com) Macys is also well-known for several firsts that changed in the trade industry like the first to introduce such products as the tea bag, the Idaho baked potato and colored bath towels. Also it was the first retailer to hold a New York City liquor license. In 1924, Macys Herald Square became the “Worlds Largest store.” Then by 1918 RH Macy Co was generating $36 million in annual sales. Then in 1922 they went public and began to open regional stores and take over competing retailers. In 1929, Macys Inc. was founded as a holding company for various department operations. As of September 2006, with the conversion of stores acquired from the Macy Department Stores Company. It serves now customers through approximately 800 stores in virtually every major geographic market in the United States, as well as the macys.com website. MARKETING MIX Missing appropriate terminology in this section. User terminology we are currently covering. PRODUCT: Terminology? * provide a wide array of apparel for men, women and kids * provide goods for the home * provides beauty, hair, fragrances and cosmetics for men and...
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...FOCUSED ON THE CUSTOMER MACY’S, INC. • 20 09 ANNUAL REPORT MACY’S Macy’s, established in 1858, is the Great American Department Store – an iconic retailing brand with about 810 stores operating coast-to-coast and online at macys.com. Macy’s offers powerful assortments and the best brands, tailored to each and every customer with obvious value, engaging service and unforgettable moments. MACY’S, INC. IS ONE OF THE NATION’S PREMIER RETAILERS, WITH FISCAL 2009 SALES OF $23.5 BILLION. THE COMPANY OPERATES THE MACY’S AND BLOOMINGDALE’S BRANDS, WITH ABOUT 850 DEPARTMENT STORES IN 45 STATES, THE DISTRICT OF COLUMBIA, GUAM AND PUERTO RICO AND THE MACYS.COM AND BLOOMINGDALES.COM ONLINE SITES. Celebrating the Magic of Macy’s Clearly, Macy’s is distinctly different from other major retailers. Macy’s embraces customers and provides an experience that transcends ordinary shopping. Our heritage includes magical special events – the Macy’s Thanksgiving Day Parade, Fourth of July Fireworks, flower shows, fashion extravaganzas, celebrity appearances, cooking demonstrations and holiday traditions ranging from the arrival of Santa Claus to tree lightings and animated window displays. But beyond these signature events, Macy’s delivers magical moments every day with our merchandise, a great deal of which is sold exclusively through our stores, as well as our shopping environment and service. You’ll see our newest looks in fashion magazines. Our associates take the extra step to...
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...Implementation, Strategic Controls and Contingency Plan Macy's, Inc., “prior to June 1, 2007, Macy's, Inc. was known as Federated Department Stores, Inc. was born through the combination of Abraham & Straus of Brooklyn, Filene's of Boston, F&R Lazarus & Co. of Columbus, OH, and Bloomingdale's of New York. Each of these retailers was an established, prominent presence with a rich history of its own. In joining together, they agreed to maintain their separate identities while linking their financial interests. These pioneers recognized the immense opportunity that lay before them and on November 25, 1929, Federated Department Stores was incorporated as a revolutionary new company in American retail. Today Macys, Inc. has corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2010 sales of $25 billion. The Macy's brand includes about 810 Macy's department stores and furniture galleries in 45 states, the District of Columbia, Guam and Puerto Rico, as well as macys.com. Macy's, Inc.'s diverse workforce includes approximately 166,000 employees.” (Macys, Inc., 2011) Implementation and Objective Leadership make decisions every day to the business operations of how a business is to function or be ran, Macy’s Inc. is no exception to this. Macy’s Inc.’s vision is to be a premier national Omni channel retailer with iconic brands that each operates outstanding stores and dynamic online sites. Both Macy's and Bloomingdale's are known worldwide, and each...
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...Management & Leadership: Macy’s Shaniece Roberts MGT/330 June 18, 2012 Jo Hogg Management & Leadership: Macy’s Before beginning, a little introduction to the company is in order. In 1858, Macy’s was born, meaning 153 years of running. Macy’s is one of America’s iconic retailing brand and department stores. The department store has about 800 stores open throughout the United States as well as a website. Macy’s management states, “Macy’s offers powerful assortments and the best brands, tailored to each and every customer with obvious value, engaging service and unforgettable moments,”(Macy’s Inc, n.d.). Macy’s is sure to embrace the consumers and do the utmost to let the consumer have an extraordinary shopping experience. The department store constructs events such as the Macy’s Thanksgiving Day Parade, Fourth of July Fireworks, flower shows, fashion extravaganzas, celebrity appearances, cooking demonstrations, and decorations and traditions for holidays. The events held create a better relationship between the consumer and Macy’s. Macy’s provides the consumer with exclusive brands. The brands are unique and interesting with the possibility of not finding elsewhere. The staff interacts with the consumers personally in the department stores, the website, and even on mobile devices providing advice and options in fashion and home. The façade of Macy’s is revealed through television shows and advertisements, style magazines, movies, blogs, and more...
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