...External Analysis for Macy’s Departmental Stores Inc. Introduction Macy’s Department Stores Incorporated or Macy’s is an American based retail chain of departmental stores. It is currently operating under two brand names the Macy’s and Bloomingdale in over forty five states of America. The company specializes in the range of products including jewelry, furniture, house hold items, footwear, clothing and other related items.It also offers online shipping services to the clients in large numbers of countries. The company currently operates in four business segments including Macy’s, macy.com, Bloomingdale’s and Bloomingdales.com (one source, 2011). The company’s stocks are listed in the New York Stock Exchange under the symbol M (Macy’s Inc, 2011). The current market capital of the company is over thirteen billion US dollars and holds second position while Kohl’s Corporation has over sixteen billion US dollars market capital holding first position in the markets (NYSE:M, 2011). SWOT Analysis SWOT Matrix Strengths * Market position * Business operations * ecommerce | Weaknesses * Legal issues * Geographic concentration | Opportunities * Business expansion * Expanded product lines * mergers | Threats * Competition * Regulations * Economic conditions | Strengths Macy’s Inc. is among the largest retail outlets operating in the United States that deals in the diverse range of products like apparel, households, jewelry etc. The company earned...
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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 analysis...
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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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...External Analysis for Macy’s Departmental Stores Inc. Introduction Macy’s Department Stores Incorporated or Macy’s is an American based retail chain of departmental stores. It is currently operating under two brand names the Macy’s and Bloomingdale in over forty five states of America. The company specializes in the range of products including jewelry, furniture, house hold items, footwear, clothing and other related items.It also offers online shipping services to the clients in large numbers of countries. The company currently operates in four business segments including Macy’s, macy.com, Bloomingdale’s and Bloomingdales.com (one source, 2011). The company’s stocks are listed in the New York Stock Exchange under the symbol M (Macy’s Inc, 2011). The current market capital of the company is over thirteen billion US dollars and holds second position while Kohl’s Corporation has over sixteen billion US dollars market capital holding first position in the markets (NYSE:M, 2011). SWOT Analysis SWOT Matrix Strengths • Market position • Business operations • ecommerce Weaknesses • Legal issues • Geographic concentration Opportunities • Business expansion • Expanded product lines • mergers Threats • Competition • Regulations • Economic conditions Strengths Macy’s Inc. is among the largest retail outlets operating in the United States that deals in the diverse range of products like apparel, households, jewelry etc. The...
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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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...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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...------------------------------------------------- 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...
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...Decisions in Paradise, Part 1 Kava, a small island country in the South Pacific¸ has been plagued with disastrous circumstances that have brought about one disaster after another. Kava is a country that is in dire need of some help and aid in the situation of getting the country cleaned up and on its way to recovery. The job of the director of strategic planning is to see what the Macy’s, Inc. can do to help this country recover and continue on a path of growth and success. Macy’s, Inc. currently has a small presence over in the country of Kava. The goal of Macy’s, Inc. is to “be a retailer with the ability to see opportunity on the horizon and have a clear path for capitalizing on it” (Company Statements & Slogans, 2008). Macy’s, Inc. sees an opportunity in Kava and needs to make a clear path so that we can capitalize on it. Since Macy’s, Inc has a long standing tradition of believing that giving back is the right thing to do (Macy's Inc, 2011) , we would like to help Kava try to recover from all the disasters they have gone through, and help to overcome the challenges that they are now facing. Macy’s will do this by addressing the issues found in the business scenario, forces involved in the formulation of the problem, and organizational and environmental obstacles impacting key stakeholders. After looking at the business scenario and seeing what the director of strategic planning had to say, it was easy to see what issues are present. Challenges now facing the island of...
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...apparel, including graphic t-shirts, tops, bottoms, sweaters, jeans, outerwear and accessories” (Mergent, 2012). Mergent’s Online Business Summary of Aeropostale Inc., reports that, “as of Jan 29 2011, [Aeropostale Inc.] Co. operated 965 Aeropostale stores, consisting of 906 stores in 49 states and Puerto Rico, 59 stores in Canada, as well as 47 P.S. from Aeropostale stores in 13 states (Mergent, 2012). Aeropostale was started for Macy’s department store under a private label in 1982 (Shop Aeropostale, n.d.). The name Aeropostale, according to Aeropostale corporate website, dates back to the 1920’s: “Compagnie Generale Aéropostale, a pioneer airmail company, was the first ever to fly between France, South Africa, and South America”, this is who the beginning Aeropostale stores were honoring in the “store designs” and “aviation styled leather bomber jackets” (Aeropostale Inc. Corporate, n.d.). In 1987, the “first [Aeropostale] store opens” (Shop Aeropostale, n.d.). With the help of Federated Department Stores Inc., Macy’s was able to open “over 100 Aeropostale stores” (NASDAQ, 2002, p.1). In 1996 Aeropostale expanded from a brand...
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...from established brands, as well as unique products from rising young designers. Supporting these fashion brands are exceptional customer amenities – international visitors centers, personal shoppers, outstanding fitting rooms and lounges – elegant events and personalized, attentive service that strengthen customer relationships and build loyalty. In fiscal 2011, Bloomingdale’s opened three outlet stores and closed three full-line stores and one home store. New Bloomingdale’s Outlet stores were opened in Estero, FL; Schaumburg, IL; and Wrentham, MA. Closed were Bloomingdale’s stores in Atlanta, GA; North Bethesda, MD; and Bloomington, MN; as well as a Bloomingdale’s Home and Furniture store in Oak Brook, IL. Macy's, Inc. Executives 667 executives listed for Macy's, Inc.'s Cincinnati, OH location. Title | Name & Bio | Contact |...
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... High The period from the end of the 20th century up until now has been marked by the consolidation trend in the department store industry, characterized by major acquisitions by a few larger, powerful competitors, greatly intensifying the rivalry among them.9, 13 Since there are only a few of them in the industry, they tend to match each other’s steps in some way or another. After JC Penny introduced itself to Manhattan just a block away from Macy’s, it is only a matter of short time before Kohl’s will finally announce its move into Manhattan as well.10 Slowdown in the industry growth coupled with reduced consumer spending and low switching costs intensifies rivalry even further prompting the market players to differentiate their products by introducing exclusive brands and increasing innovation.3, 15, 17, 19, JC Penny contracted Cindy Crawford to extend her jewelry brand exclusively at their stores, while Macy’s has signed a strategic alliance agreement to become an exclusive retailer of Ellen Tracy branded women’s sportswear in spring 2010.18, 21 Yet there is another effect of the economic downturn on the rivalry among existing firms. As some retailers are closing stores, others take advantage of high vacancies in the real estate market and bargain for lower prices trying to increase their capacity in order to get market share and be at the lead when the market picks up.5, 6, 20 The Bargaining Power of Buyers...
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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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...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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...Bloomingdales “The Most Famous Store in the World” Brief History: Who would have thought that the origins of this grand retailer, was the hoop skirt? The history of Bloomingdales dates back to hoop skirt being the first item that was carried by Joseph and Lyman Bloomingdale in their Ladies Notions Shop in New York City. Why the hoop skirt? At the time, in the late 1800’s many retailers focused on just one garment, this was their specialization, however the Bloomingdale brothers where different, they would eventually open an East Side Bazaar, and begin to sell a wide variety of European Fashions. This eventually would be the beginning of that what we know as Bloomingdales today. The Bloomingdale bothers pioneered themselves to make just about every mature change in the evolution of department stores. It is this same philosophy that it followed throughout the merchandising and marketing of the store today. In 1886, the East Side Bazaar moved to the current flagship location that is today (on 59th and Lexington) and become “Bloomingdales” as we know it. Lastly by the 1920’s the Bloomingdale brothers had made the department store the entire block. During the completion of this project, a glamorous art-deco edifice to cover the entire block was built, and still stands today. Today, Bloomingdales is America’s only nationwide, fill-line, upscale department store. Not only is it noted as “a store like no other,” it is considered to be the leading attraction for tourists...
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