Macy's Company Analysis

Topics: Macy's, Department store, Strategic management Pages: 8 (1614 words) Published: September 20, 2012
Macy’s IS Strategic Planning

Brief History
Macy’s was founded by Rowland Hussey Macy in 1858 in New York City. Macy's stores target the middle-to-higher-priced market, offering women's, men's, and children's clothing and accessories, housewares, home furnishings, and furniture. After its merger with Federated Department Stores, the company became the largest department store company, operating more than 850 department stores across the US. The company primarily operates in the US. Macy's is headquartered in Cincinnati, Ohio, and employs 166,000 people, including part-time employees. The company recorded revenues of $25,003 million during the financial year ended January 2011, an increase of 6.4% over Fiscal Year 2010. The operating profit of the company was $1,894 million in FY2011, an increase of 78.2% over Fiscal Year 2010. The net profit was $847 million in Fiscal Year 2011 compared with $329 million in Fiscal Year 2010. ( According to the 2011 10-K, in 2010, 2009 and 2008, the following merchandise constituted the following percentages of sales:

2010 2009 2008
Feminine Accessories, Intimate Apparel, Shoes and Cosmetics36% 36% 36% Feminine Apparel26%26% 27%
Men’s and Children’s23% 22% 22%
Home/Miscellaneous15% 16% 15%
100% 100% 100%

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.

Strategic Direction

In 2008, Macy’s launched a new campaign called My Macy’s. With the implementation of this campaign, the organizational structure shifted from an operating division model to a more centralized organization nationwide. The new structure has been successful in helping Macy’s to streamline operations and management into more efficient processes, eliminating waste and redundancies. This program allows Macy’s to adapt to the needs of local communities across the nation through targeted geographic markets. This has resulted in substantial savings for the company.

Another strategic objective focuses on diversity within the workplace. This plan of diversity and inclusion strategy is two-fold: growing sales and profits and enhancing the Macy’s, Inc. reputation in the marketplace. This approach helps Macy’s to better understand and satisfy the needs of their increasingly diverse customer base, and create deep customer loyalties. With stores located in the most diverse markets in the nation, Macy’s strategic plan outlines specific objectives which include serving and connecting with diverse customers, creating a diverse workforce, fostering an inclusive work environment where different perspectives are valued, communicating values, and growing sales and profit by capturing the buying power of a diverse market. To support these strategic objectives, Macy’s CEO developed an Executive Diversity Council in 2009 to guide the organization through implementation. Macy’s believes in investing in its employees to create improved morale and greater productivity.


Macy’s Inc. strengths give the company a competitive advantage over its competitors. These strengths include:

Macy’s Brand: The Macy’s brand is one its strongest assets. Macy’s name is attached to the annual Thanksgiving Day Parade, making it one of the most recognizable department stores in the United States. The company has found a strategic way to integrate itself into the heart of American culture. The company is also the owner of the Bloomingdale brand.

Purchasing Power: With the consolidation of its brands and the implementation of MyMacy’s, Macy's can more effectively partner with vendors and business partners as centralized unit, and can form stronger relationships with their vendors.

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