...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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...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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...copy and paste my paper. This was a 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...
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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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...is it needs to collect certain amount of data to better help the organizations also to learn more about what is going in the organization. Information flows in different directions and have different meanings which is formally and informally, downward, upward, even horizontally through various levels. Information is also used through knowledge and data they can be derived. We all know if you don’t have any information in a workplace or organization it will collapse. Companies cannot operate without a proper and concise information flow which is accessible through company’s different departments. My current place of employment is Macys. Macy’s Inc. is one of the nation’s premier retailers, we have over 800 stores. The company operates the Macy’s and Bloomingdale’s brands. In Macy’s, information flows all over the company, from the employees payroll, records, and emails. As Macy’s is a nationwide company that have stores all over even in Puerto Rico, Guam and Columbia. To keep all the employees on the same page we have a system to control the flow of our information, I just know so much of the spectrum of the Information Technology aspect of the company. We have a database it’s called insite connection website, only employees have access, and where all the employees information is organized and secure. Also this website lets employees check on their benefits, check and make changes to their medical, and dental care. The employees also can view their W2 and other information...
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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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...EXECUTIVE SUMMARY Macy’s Department Stores, Inc. is a large organization with many stores, departments, and employees. They have a quick employee turnover rate and high goal setting. They expect their employees to reach sales goals in set periods of time which causes stress amongst the ranks. Each department in a store is accountable to one or more managers, those managers have a floor manager and so on. Although it is tough to work for Macy’s, the goals they set have allowed them to thrive in the competitive department store world. There are three levels to the makeup of a company. Each level has many independent variables; we will be focusing on one for each level. The first level is the individuals with their skills and abilities. By using a questionnaire and sales results, we found how employees use their skills and abilities to meet their day-to-day goals. The next level is group processes. At Macy’s, departments are expected to meet goals from all their employees together. The independent variable that we chose to analyze is group characteristics. This also uses the questionnaire and sales results used for the individuals. The last independent variable that will be discussed is the organizational goals. When employees meet their goals, this allows the group to perform well and the whole store is better off. Each store competes to help Macy’s be a great organization. In our analyses we found that workers at Macy’s are stressed to meet their goals. This stress factor...
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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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...Can Macy’s Survive a Rebranding? Leadership & Org Behavior Keller University Dr. Jacqueline Lang February 5, 2016 TABLE OF CONTENTS Title Page………………………………………………………………………………….... Page 1 Introduction…………………………………………………………………………………. Page 3 Problem Statement…………………………………………………………………………... Pages 3-5 Literature Review……………………………………………………………………………. Pages 5-7 Analysis………………………………………………………………………………………. Page 8 Solutions………………………………………………………………………………………Page Reflections ……………………………………………………………………………………Page References …………………………………………………………………………………….Page Is this the End of Macy’s? Introduction I will be researching and reviewing the department store Macy’s. They have been in the news a lot lately, reporting over 40 store closings and being down 5% in the marketplace. Macy’s has attributed their decline in sales to greater online competition arising, like Amazon and EBay. They’ve stated that there has been a large shift to online operations and away from the traditional mall locations. (Isidore, 2015) This past winter Macy’s sales were down 5.2% with the quarter being its third declining sales quarter. Other problems are said to be a shift away from spending on apparel and housing goods, a drop in international tourism, increasing competition, and a lethargic economy. Can a once department store powerhouse recover, and keep up with the ever-changing technological age or will they become the shadows of online retailers like Amazon? Macy’s plan to come out of the slump...
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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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...Lydina J. Howie Developing Good Business Sense /BUS 210 William Price Jr. March 7, 2010 The three companies that I choose for this project are Procter & Gamble, Macy’s, and Red Lobster. I will make notations of how employees do their tasks. I will discuss the main kinds of OMM costs companies have and how does this affect their OMM operations. Also will be discussing how companies design their operating systems to give them a competitive advantage. I will point out the five main sources of operating costs affected by OMM. The primary goal of the operations manager is creating cheerful and devoted customers. By evaluating and supervising their business's operations, they can create products for the right cost. The below three companies are: 1. Procter & Gamble (P&G)is a global company that provides consumer products in the areas of pharmaceuticals, cleaning supplies, personal care, and pet supplies. P&G is known for hiring the person - not the position, and have a strong history of operating with integrity throughout the Company at all levels, in all countries, both internally and externally. A few of the task provided by employees are to: Impact P&G business from start to finish. As an SNO/logistics coordinator, you will support external trade customers as well as internal sales personnel through order processing, shipping, invoicing, financial reconciliation, and data analysis. Administrative/Non –...
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...Macy’s Inc. is one of the nation’s largest and well known department store chains. Started over 150 years ago, Macy’s has continually generated excellent returns for its shareholders and employees. After, the global recession, Macy’s has generated huge profits with same store sales increasing 5.3% year to date in 2011. In 2012 same store sales increased 4.6% in (Macy’s Inc., 2012). Both 2013 and 2014 have also created large profits for the retailer. A primary component of this increases profitability is the overall shopping environment. Consumers now demand instant gratification and quick transactions. Therefore, lines, and there subsequent wait times are very important. Lines are very important as they can deter from the consumer experience, and the overall purchasing activity of the consumer. Retailers, must be cognizant of lines and congestion to help increase sales while also increasing the overall customer experience. While observing a local Macys location, consumer traffic was particularly heavy due to the holiday season. Typically,...
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...Jacqueline Supman Merchandise Strategies Case Study: Macy’s Private Label Macy’s current hodgepodge of brands, products and spokespeople is no coincidence. The backbone of the retail giant has always been bringing together the best selection of goods and services through partnerships and collaborations, starting in 1929 with Fred Lazarus, the puppeteer behind F&R Lazarus and the John Shillito Company (which was the oldest department store at the time). Fred famously arranged a meeting with Walter Rothschild (of Brooklyn-based Abraham & Straus), Louis Kirstein (of Filene’s) and Samuel Bloomingdale (head of namesake company Manhattan's Bloomingdale's) and decided to merge their stores into one. Rothschild, and Kirstein quickly agreed on the spot, and Bloomingdale joined the next year. 1 The company’s headquarter location was set up in Cincinnati in 1945 and over the next thirty years additional locations popped up in major cities across the U.S. The Federated company continued to purchase department stores over time, but it was not until the 90’s that the company bought 50% of the existing Macy’s debt, setting the company up for acquisition within the next two years. The first Macy’s store opened in Manhattan in 1858 by a gentleman named Rowland Macy. Forty years later after the death of Rowland, Macy’s was bought by the Strauses, who expanded the retail empire across the U.S. Unfortunately after taking the company private in the late eighties, the...
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...SWOT Analysis Strengths * Very strong brand equity with exclusive merchandise * Includes 15 private brands in portfolio including Alfani and American Rag * Bloomingdale’s (Macy’s subsidiary) focused on niche markets involving upscale customers * Purchasing power to secure better prices * Mixing new and old channels for the benefit of the brand as a whole by being able to advertise online and back it up with brick and mortar stores * Large contributor to charitable organizations such as Go Red for Women and United Way * Very large store sizes * Ability to register wedding gifts/baby shower gifts online * Use of social media such as Facebook * “My Macy’s” program rolled out nationally to enhance efficiency in a sunken economy by forming a unified operating structure, which has been estimated to save $500M annually Weaknesses * Decline in comparable retail sales from economic downturn * Litigation leading to bad press regarding merger with May Department Stores Company, where board of directors were allegedly fiduciary duties of loyalty and good faith to May shareholders * Impersonality of a national brand where one size does not fit all * Finding a middle ground between Wal-Mart bargain customers and higher-end Neiman Marcus and Nordstrom customers; Bloomingdale’s is more for higher-end customers, but persuading shoppers from Wal-Mart is difficult * Adjusting to evolving customers who do research online and are well-informed...
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