1. Introduction My company of choice for this report is Macy 's. 'The Magic of Macy 's ', as the company advertises it, has inspired me to shop there, take advantage of their incomparable discounts and great online shopping experience. Macy 's, Inc. is one of the largest department store chains in the United States of America. Macy 's manages stores under the Macy 's and Bloomingdale 's brands. I enjoy shopping at both of the company 's store brands, Macy 's and Bloomingdales. Bloomingdales provides a more personalized experience 2. Explaining the business Macy 's strategy is to provide a "localized merchandise offering and shopping experience to targeted consumers" (Macy 's Inc., n.d.). Macy 's generates primary revenue through the sale …show more content…
The company 's stores under the Bloomingdale 's brand offer high-end customers an assortment of established brands such as Armani, Burberry, Christian Dior..." (Bailey, 2015). "Macy 's target consumers include Millennials (and) the company has launched several collections aimed at Millenials" (Bailey, 2015). Macy 's plans to shape its products according to customer 's ethnicity and race. The company plans to enter the Hispanic fashion market, as "Hispanics account for about 17% of the US population" (Bailey, 2015). Macy 's launched a strategy known as the My Macy 's strategy. Through the My Macy 's strategy the company styles products at each of its current stores to the needs of its customers. The My Macy’s localization strategy is a focus strategy used by Macy’s, Inc. Through this strategy the company targets specific consumers by tailoring its products and inventory to the customer’s needs. "It is a localization tactic which accelerates the sales of its stores" (Schoneberger, 2012). Analysts at Boston Consulting Group have advised that Millennials, individuals between the ages of 16 and 34, will account for $1.3 trillion in annual …show more content…
These companies are direct competitors of Macy 's and sell similar items as Macy 's. There are many indirect competitors of Macy 's. The company faces fierce competition from emerging apparel companies such as Forever 21, H&M, Zara. The company also faces major competition worries from Amazon.com and other online retailers which provide convenience to customers and avoid the costs of having a brick and mortar presence (Bailey,
Macy’s intended to deliver enhanced shopping experiences to its consumers through dynamic department stores and online sites. In this regard, the company developed a North Star strategy that allows it to improve its sales growth and to develop its existing core activities. The company’s consumer research monitors, analyze and anticipate their needs and wants based on the changing market trends. This allows it to strengthen its customer base and also helps it in identifying new markets and customers. Macy’s also identifies different styles and designs based on various occasions and events that allow it to capture the changing preferences of its customers. The company also celebrates various iconic events to interact with its customers which
Present day Federated consists of both Bloomingdale’s and Macy’s stores and operates in 34 states as well as Guam and Puerto Rico. While Bloomingdale’s and Macy’s provide both private and national brands and are similar in merchandising categories (men’s, women’s and children’s apparel, home décor, shoes, beauty, and accessories), they differ greatly in culture. Bloomingdale’s, being more upscale, targets consumers that are more concerned with trend and quality than they are price. Macy’s targets the more value oriented consumer and represents a broader Federated clientele. Macy’s represents 423 of the 459 Federated locations while Bloomingdale’s represents only 36 locations. Because I can better relate to the value conscious consumer of the Macy’s division and because they represent such a large portion of Federated, I will further explore their current characteristics and behaviors that suggest that they possess qualities of both monopolistic competition and oligopolies.
The company that I chose to research for my company profile paper is on the clothing store Francesca’s. Francesca’s is a boutique like store that contains different women’s fashion trends that range from clothing, jewelry, and shoes. Francesca’s also offers specialty items and gifts that include candles, wall art, and gag gifts (Coltrin, 2010). The reason I chose Francesca’s for this project is because this store interests me. I first started shopping at this store when I was about sixteen years old. The store quickly became very popular for my friends and I as the store offered something that we had never seen before; boutique items for reasonable prices. Francesca’s is becoming increasingly popular among women of all ages that are looking for fashionable one-of-a-kind items without breaking the bank.
Innovations are all over this world. Everything from the cash register, to the credit card that we use to buy the things that we desire the most. In this paper it will show how the innovation used can make one company were successful, then on the other hand how the other company chose not to keep up with innovation, which caused a decrease in sales.
In general merchandise retailing, Wal-Mart’s primary competitors are Target and Kmart. Retail superstores such as Circuit City and Bed, Bath, and Beyond, also provide retail competition. A survey found that the majority of respondents favored Wal-Mart over stores like Target and Kmart. Respondents claimed Wal-Mart offered lower prices, better variety and selection, and good quality. The needs of consumers is an important economic feature in all competitive environments. What attributes (price, variety, quality, etc.) prompt buyers to choose one retailer over another is very important in the competitive landscape.
What core competencies do you think the company has and what is needed to exploit opportunity and counter threats.
For Macy’s, this analysis provides the information of the future of the company. Macy’s strengths include the brand equity of their stores. “Bloomingdale's offers upscale merchandise from fashion labels such as Armani, Burberry, Chanel, Christian Dior, Jimmy Choo, and Prada. Its positioning as a store for the newest looks and hottest styles from fashion trendsetters attracts high-net-worth consumers who are brand-loyal and can spend more.” (Singh, 2012)
A1: Dollar General's main business strategy is to focus on being the leading distributors of consumable basics, with 30% of the merchandise at $1.00 or less. Dollar General believes in maintaining an assortment of consumable merchandise and making shopping for everyday items hassle free and simplistic.
As a result, they are able to cater to and target a larger demographic market. While their standard Nordstrom products provide a higher-end quality, focusing on upscale shoppers who are high class, Nordstrom Rack targets the middle-class, mid-scale shoppers who may not be able to afford Nordstrom products on a regular day. This price decision allows them to target a completely different market segment of customers who are typically younger and focus on value. Much of their target market is also the young millennial generation. Many other similar retail stores, like Macy’s or Sears, have difficulty attracting this market. Because millenials are younger, Nordstrom aims to build strong relationships with these individuals, as then they will continue shopping at Nordstrom as they get older, increasing the customer lifetime value. Through being able to target two major market segments, Nordstrom holds a competitive advantage over store like Target, who target one market of middle-class
The case study we analyzed was the North American clothing company Abercrombie & Fitch (A&F), which was founded in Manhattan, New York over 100 years ago, currently with over 1000 stores worldwide. A study conducted in 2015 from a man by the name of Samuel V. Bruton was completed to examine the morality of looks-based hiring. Abercrombie & Fitch is notorious for hiring those who fit the “all-American image,” while subjugating those who do not fit into this look by sending them to the stockroom, where these people are isolated from intermingling with customers; A&F admitted to hiring based on physical appearance. Our society is built upon a certain standardized beauty, where we have certain standards for aspects such as skin colour, height,
Case Study: Victoria's Secret OVERVIEW Victoria's Secret, one of the world's most recognizable fashion brands, established itself in the Bay Area in the early 1970s. Originally owned by an ambitious Stanford graduate looking for a comfortable and high-end retailer to buy his wife lingerie, Roy Raymond opened the first store at Stanford Shopping Center. Styled after a Victorian boudoir, Raymond's success prompted him to open three other locations, a catalog business, and a corporate headquarters within a few years. His inability to balance finances with his creative vision, Roy Raymond fell into trouble and was forced to sell his company for the small sum of $1 million dollars to The Limited, an Ohio-based conglomerate owned by Les Wexner.
Macy’s is an international brand store that retails clothes for women, children and men, accessories and furniture as well as cosmetics. The company operates under the renowned brand of Macy’s Inc and Bloomingdales. It is broken into four main areas with Macy’s.com being the headquarters, Bloomingdale and bloomingdale.com. The four spread across 800 departmental stores in over 45 states with most of them being strategically located in urban that enable it to reach to its segment of customers. Macy’s Inc has an employee base of 167,000 who serve their annual clients totaling to 50 million annually.
In addition, Macy’s Inc. owns the Bloomingdale’s brand, which includes 40 stores in 12 states as well as bloomingdales.com. Macy’s Inc. parallels their company’s business strategies to represent the diversity of the nation’s communities.
JCPenney is a chain of American mid-range department stores that is based out of Texas that started over 100 years ago. JCPenny has been successful for most of its time up until the last three to four years. The company is trying relentlessly to overcome the lingering effects of the makeover that former CEO, Ron Johnson, had implemented in order for the company to take a new direction in hopes of increasing sales. The new CEO, Myron Ullman, has taken a close look into the markets demographic segmentation along with the income segmentation in order to attempt to return the retailer back to its old self, which is to appeal to middle-market customers. A couple issues of major concern for the company are the dissolving of Johnson’s Boutiques, the price of their products, and overall revenue.
H&M is the world’s second largest retailer, only behind its main rival Zara of Inditex (Petro, 2012). The company currently has 3006 stores in 53 countries. The company does not own any factories. H&M outsources production to network of 800 independent suppliers; 75% in Asia and 25% in Europe. In order to increase the efficiency and productivity of its supply chain, the company strategically locates its network of 20 to 30 production offices close to its suppliers. According to Stockholm Newsroom, the pretax profit of the company for the month of June to August of 2013 is $907 million, which indicates an 11 rise in turnover (Pollard, 2013). The company continuous development plan facilitates its goal for both brick and mortar, and online stores expansion worldwide. The target segments for H&M, a category specialist store, are trendsetters and fashion/money conscious males and females ranging from 16 to 40 years old with income ranging $15,000 to $60,000 annually.