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
What is it? It’s when a customer walks into a location that does business or services customers. What do they feel and think? This experience isn’t limited to a physical location, but it also can be applied to an online site. The shopping experience is extremely vital to the growth and survival of any business. Macy’s once had a great shopping experience because of innovative technology. They have failed to evolve over the years and with the changing customer base and demographics. The younger generation is flocking to online retailers because it offers a shopping experience that is unique and that represents their style. Macy’s needs to tap into this way of thinking by customizing locations for the “Ultimate Shopping Experience.” Meaning a shopping experience that reduces fear and biases; that promotes comfort and ultimate savings (In A Hostile Environment, Macy's Is Taking Some Important Steps, 2017). This can be achieved thru the six sigma process and standards, which is defined and measure: what is working and what is not. Then analyze and design: why and what can we make better? Then verify: how well does this work and can it be
Harvey Nichols is a UK based up-market department store with several chains. The business handles the sales of international clothing brands for men and women, beauty products, fashion accessories, food and wine. The business has managed to maintain the attraction of younger shoppers compared to its market competitors such as Harrods. In order to improve its revenues and profits at the end of each financial year, the organization should focus on adoption and implementation of a new marketing communication plan. This is vital towards enhancement of the reputation and image of the organization as well as increasing the market coverage and consumer base.
In this stage, we need to examine the historical data to have the knowledge about what happened in the past. The descriptive analysis makes data more understandable, helpful and useful.
As a widely-recognized retailer across North America, Macy’s sells a range of men’s, women’s and children’s apparel and accessories, as well as a wide assortment of cosmetics, fragrances, and home furnishings (IBISWorld, 2017). With a 14.6% share of the market for US-based department stores, Macy’s faces intense competition from JCPenney, Nordstrom, Walmart, Sears and Target (See Exhibit X) (IBISWorld, 2017). In August 2016, Macy’s announced that it would close 100 stores, citing that they had too many storefronts during this digitally-oriented era. The closures are in effort to reduce expenses, improve the company’s ability to organize and focus on other key priorities (IBISWorld, 2017). Thus, to remain competitive in the current retail environment, Macy’s is faced with the challenges of reinventing in existing brick-and-mortar locations to create innovative in-store customer experiences, which is the focus of our research.
Macy’s believes that going into this business will strengthen their associates’ selling skills, recruiting new talents, increased direct supervision, and offering higher quality products. It was such a success that Macy’s rolled out this concept to 300 other locations in fall of 2016, and planned on incorporating it to the rest of their stores by the end of 2017. In an attempt to reach out to new markets, Macy’s entered in a joint venture with a Hong Kong retailing company. Macy’s own 65%, while Fung Retailing Limited will own 35% in this online venture in China. This purpose of this venture is for Macy’s to penetrate a foreign market with the help of a host’s country company to avoid running into any problems while conducting business. It
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
Therefore, all other avenues to more adequately meet consumer expectations and demands would need to be explored. In this scenario, first, advertising efforts would need to be evaluated to determine if they adequately met the needs of the United Kingdom’s culture and Nordstrom’s target market. Then, inventory would need to be examined to determine if what was bought, met consumer expectations, and largely, if any fashion trends were missed (“Top Issues in Retail in 2017,” n.d.). Secondly, logistics of having the right product at the right time would need to be examined. This information can be gathered by utilizing available data, including consumer feedback. Furthermore, an analysis of the offered value added services would need to be conducted to determine if they met cultural expectations, and if they did not, determine how to enhance or eliminate them. Specifically, these services include Nordstrom’s return policy, price matching, and overall, customer service staffing. Lastly, fixed costs would need to be examined to determine if overhead could be reduced in any way, specifically from the line item of Selling, General, and Administrative (SG&A). This should be
Nordstrom retail stores have large hallways, and everything is presented in a very classy manner. The color scheme includes pale yellows, whites, and gold, to provide a more elegant appearance in the store in order to make the shopped feel special. The design is also seen through product organization. Compared to stores like Macy’s, which organize their products based on brand, Nordstrom organizes their products based on lifestyle. Because of this, it is easier for shoppers to find clothes similar to their style as opposed to by brand. In effect, shoppers will purchase more products. This also is a type of experiential retailing, where Nordstrom customers are able to experience the elements of their lifestyle within one section. More so, the product presentation will draw people’s eyes to products, even if they are not looking for it. This gives Nordstrom a competitive advantage in relation to other similar retail stores because it makes their store look more glamorous and high-end. While other stores may focus on value, Nordstrom utilizes the retail positioning strategy to make a customer feel more high-end and
Goodwill’s recognized the consumer behavior principles affect its marketing mix by keeping up with the latest trends and rotate the items throughout their stores to maximize customer penetration. Goodwill adapt to changes by allowing technology to intervene with their business to target ecommerce on a global market. Despite of some negative customers’ perception on thrift store that will never change, Goodwill proved to overcome that obstacles and continue to prosper.
Macy & Co. went public, opened many stores, as well as taking over many competing retail outlets and in 1994 it was taken over by Federated Department Stores. Federated Department Stores had hundreds of stores across the nation, and with the purchase of Macy’s became the largest department store retailer in America. In 2007, Federated Department Stores changed its corporate name to Macy’s, Inc., and currently has over 800 stores nationwide (Hanson). 1997 Macy.com was launched broadening the company’s reach. Some of Macy’s latest ingenuities include same-day delivery in eight markets, in store pickup for online purchases and apple pay (Hanson). My Macy’s was launched in 2009, it was an industry leading strategy to customize each store based on the local community’s needs ("Macy 's History Highlights Innovations,
...optimize shoppability of the store. One day, we will have cameras in every store, and the shopping experience will be tracked and customized to the consumers’ needs. Just like we get accustomed to other things in life that change around us, we will all soon agree that these options that retailers are taking without our permission will soon be invaluable and we will thank them for such ease. Although, it may not easy for some people to agree; if they were to take the time to be able to fully understand the retailer’s idea behind such techniques, it would change their mind. And if they are able to accept such change, at least they would not feel so betrayed. Under these circumstances, the observation of consumers is a provision to help boost the market with its sales and development. In addition, it creates the preeminent aftermath for both the retailer and customer.
Today in the Retail Stores value, variety and facilities are not the one and only purchase triggers. The Visual Merchandising of the store and the way the discount promotion Signage presented also act as facilitators. Effective retailers have showing that they can completely increase their sales by suitable and updated Visual Merchandising at the point of purchase. Retail store atmospherics may impact buyer behavior.
121). Since there are many retailers customers can choose from, the need of sharing value and reason of choosing one store over the other is highly conveyed (Engel, Blackwell, and Miniard, 2015, p. 325). Failing to enforce these crucial procedures may lead to severe repercussions on the retailer, including lost business opportunities and also weak brand perception. Majority of the retailers are distinguishing themselves by promoting in-store experience. Dover Street Market in London, for instance, has an improved overall interior with all its new brand located in dedicated spaces. In fact, ReiKawakubo, the mind behind this invention, was keen to ‘embrace and promote’ the structure’s original features, thus the exterior, ceiling and window are unchanged. Other unique aspects in Dover Street Market that enhances consumers’ experience include ‘Bird Next Perfume Tower’ that is utilized in displaying all forms of fragrances in this retail store; garments and accessories hanging from children’s open space in the first floor; and leather painted goods on the Delvaux’s space. Other components occupying permanent spaces in this store include the Craig Green and Gosha Rubchinskiy. According to the vice president of this store, “each floor is unique and gives the consumers own sort of feeling. The purpose is to embrace and transpose all the feeling and personalities across the retail store, there for injection newness and quality to its users.” For many years, psychologists have maintained that people have emotions to the physical environment. Therefore, the shopping experience is directly impacted by the environment. Also, the shopping environment may greatly impact customers’ feeling and emotional responses toward a store, evidently impacting the patronage and commitment decisions clients
... layouts. Friendly employees who occasionally engage consumers give the patron a sense of importance, being ignored can hurt the retail-consumer relationship. When clerks are too pushy, or assistive it can also be harmful as shown by example with my neighbor. Females have many more clothing options than men, and are less expensive. This I believe, reflects the focus of intimacy with the customer, and appeals to the more intuitive nature of females. Consumers hold the ultimate power to make or break retailers, it is imperative that they continue to serve the consumer. Small stores moved from a strong social center for gathering of people. It was more of transfer of social centers to more of an intimate shopping experience. In a way, it has allowed the romance of shopping, appearing that a secondary outcome was the love affair between person and product.
In a simple way, the retailer needs to create a warm, friendly and an approachable retail space to attract consumers.The visual displays is an imperative element of branding of any store. If the stock is presentable, it is bound to appeal to the shoppers. If the shoppers appreciate the store layout and product, they are likely to spend more time in the store, and in return reward the store with sales. Along with the products for sales, the staff, the décor, the store interiors, the trial rooms arrangement, the lightings and music also form an inclusive elements boosting store sales. (fibre2fashion, 2008)