Macy’s has been a top retailer store for many decades, up until technology changed the way shopping would be done for many years to come. This has put them in a place where they must innovate themselves to back at the front line of consumer shopping. With that being said, there is a reason why Macy’s has been so successful and branded themselves off their resources and capabilities. Macy’s has over 800 stores with 150,000 employees that manage their brand. Macy’s as also created their brand logo of the iconic red star that is recognized almost anywhere. Specifically the Macy’s Thanksgiving day parade that has created such positive brand awareness for them throughout their existence. Those emotional ties and brand loyal customers have been intangible …show more content…
After closer inspection we found that Macy’s original business strategy, that of Department/Specialty Retail Stores, put them in competition with stores such as Dillard’s, JC Penney, Kohl’s, and Target (Nasdaq). All of these stores sell a variety of products including clothing, shoes, kitchenware, bedding, and bathware. All of these stores also market to the Baby Boomer and Generation X generations which make up people who are willing to pay a little bit extra for good quality products. Although these are still the competitors that Nasdaq identifies as some of Macy’s primary competition, the retail market has been shifting to focus more on the online presence of retailers. This means that Macy’s traditional competition has now changed from Department/Specialty Retail Stores to online more price conscious retailers such as Amazon. An article from Seeking Alpha comparing the businesses of Macy’s and Amazon shows that “consumers are now more likely to compare item prices online, and buy from the cheapest vendor.” This suggests that because Macy’s is unable to provide the lowest cost to their customers, their customers will begin to look elsewhere for the same products at a lower price, i.e. Amazon. Seeking Alpha also found that consumers have “very little loyalty to the Macy’s and Bloomingdale’s brands, but rather the brands that they stock” …show more content…
At the beginning of this year Macy’s planned to close 100 stores of their 675 locations “to focus capital and talent on better-performing locations in prime markets” (The Motley Fool). To offset this change for their customers they want to focus on keeping their business via the Macy’s app and website. These store closings though are not enough to keep Macy’s a viable competitor in the current retail world. Because of the issues that we have identified, we have collaborated to provide recommendations for Macy’s to help improve their business in relation to their
With minimal aid from interviews with managers and no exposure to the marketing entity of the company, I was able to accomplish much of my findings related to the macro environment of Kohl’s through diligent online research. One of the major changes occurring in the retail industry is online shopping. Substitutes such as Amazon, eBay, and other online retailers are replacing the technically savvy shoppers from ever having to enter a store. Kohl’s competes with these outlets by remaining on the cutting edge of integrated technology to enhance the customer experience shopping their brand. They are currently testing multi-function tablets in jewelry and beauty departments that can be used to demonstrate
After co-branding the Macy’s name with local Federated stores in 2003, the Macy’s division became the central focus for revamping. Federated descri...
Bed Bath & Beyond (BBBY) is a publicly traded company that trades on the NASDAQ, (Bed Bath...Common, 2016), and an “interesting proposition for investors these days because its stock price is right around half of its March 2014 closing peak of $80.48 per share - but the company has been engaging in stock buybacks and has started to pay a quarterly dividend” (Lara, 2016). A small annual dividend for this slow growth company (BBBY, 2016) of a mere $.50 with a current yield of 1.12%, plus a special dividend of $0.125 (Bed Bath...Common, 2016) yet, well below the
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
In the robust business industry today, rivalries are prominent. Each company tailors themselves to be the best. Shaping their products, their stores, all to be better. To beat the rest. Department stores often get overlooked for rivalries. They are not as broadcasted as Nike and Adidas, or McDonalds and Burger King. But J.C. Penney’s and Sears, are both as vicious.
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
Macy’s is an American department store that started in 1858 in New York City; Macy’s first year was a record of $85,000. Macy’s innovative spirit was shown by being one of the pioneers in the department store business to start a one-price system, sold the first colored bath towels, heavy use of advertisement, and the first to promote a woman to be in an executive position. The first Macy’s Christmas Parade was organized by their immigrant employees in 1924, wanting to celebrate their new American heritage. Today, Macy’s has over 700 stores in the U.S. and recently started looking overseas. I decided to pick Macy’s because as big as they are as a corporation, they are just as involved in social responsibilities.
Macy’s is a large, diverse retail corporation. Diversity is one of the business cores of the company; their diversity strategy is based on their international and multicultural advertising and marketing. I choose this organization because their business core values are based on diversity and inclusion. This particular company values diversity and inclusion at the same time. Having a diverse corporate culture is part of being a successful and well-known business around the world. The company is also known for its commitment and demonstrations of a diverse culture. They have a very large and diverse customers and suppliers group.
Although sales have been fluctuating, they are able to keep up their sales enough to keep all stores in business. They are growing every year with domestic and international stores which is very reputable for the company. I would be excited to work with this company to help grow sales and create memories for the
The management team was also experienced in converting regional brands to Macy's brand and understood that complexity of brand conversion. Another crucial factor is the fact that the company had strong ties with major suppliers, which were already on contract, hence management understood the logistics that applied to these suppliers, and as such, the advantage of having distribution networks already in place made an enormous difference for the success of the strategy. The standardization of prices across the chains of stores is another internal factor that affected success since some of the stores acquired had lower prices before the transition to the Macys brand. In your opinion,
One of the main strengths for Macy’s is that fact that they have 800 operating stores in the United States this makes them one of the largest chains. Along with Macy’s wonderful brand recognition they have a very diverse merchandise in there stores. Macy’s knows how to treat customers. Their outstanding customer service and modern day style stores puts them above the competition . Macy’s is always updating their stores and inventory.
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.
Consumers with brand loyalty are indifferent with too many choices in shopping as they tend to ignore other brands and chooses product from their preferred brand.
Department stores do not manufacture products nor create their own brands of merchandise, their products are not differentiated. As a result, consumers have low switching costs, customer loyalty is low, as they can easily purchase similar products elsewhere. These lower the barriers to entry, allowing new entrants a chance to gain customers.