Macy’s, Inc. is known as the Great American Department Store was established in 1858 and now has 810 stores operating in the United States, coast-to-coast. Macy’s stores nationwide are grouped into 69 geographic districts that average ten to twelve stores each. Most stores are located at urban or suburban areas. As of January 30, 2010, the Company’s operations were conducted through four retail operating divisions – Macy’s, macys.com, Bloomingdale’s, and bloomingdales.com. The Company is a retail organization operating retail stores and Internet websites under two brands (Macy’s and Bloomingdale’s) that sell a wide range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods. Macy’s and Bloomingdale’s branded operations are located primarily in New York which involve central buying, merchandising planning, stores senior management and marketing functions. The business functions, such as finance, human resources, law, property development and supply purchasing are located primarily in Cincinnati. However, for the purpose of this paper, I will specifically analyze Macys’ inc and utilize the SWOT analysis for Macy’s only, as well as the financial worksheets. The Company’s retail stores and Internet websites sell a variety of different merchandise which includes men’s, women’s and children’s apparel, accessories, cosmetics, home furnishings and other goods. The merchandise varies by size of store, known as “merchandising character” and “character of customers in the trade areas”. Macy’s is not your average department store. It is distinctly different from other major retailers of it’s kind. Aside from the department store sales, Macy’s heritage includes special events – the Macy’s Thanksgiving Day Parade, Fourth of July Fireworks, flower shows, fashion extravaganzas, celebrity appearances, cooking demonstrations and holiday traditions such as the arrival of Santa Claus to tree lightings and detailed animated window displays. Overall, department stores are in a period of decline and consolidation. Competition has increased as department stored are forced to compete with discounters, luxury chains, specialty stores and the internet. As a result, in today’s age, you could look at department stores as an endangered species. For example, in 1980 there were 35 major department store chains, leaving only 13 left today. Due to the changes in department stores, Macy’s has found its self with strengths and weaknesses. Utilizing the SWOT model, the following analyzes the strengths and weaknesses of the company, Macy’s: Strengths:
1.) The MACY’S brand is one of it’s strongest assets and is the most recognizable names in the retail department store industry. 2.) Macy’s has a unique marketing channel. The marketing efficiencies allow a better focus on it’s core assets and implement marketing efficiencies through national marketing campaigns. As opposed to splitting resources for regional campaigns, Macy’s is able to buy more national advertising. 3.) Macy’s continues to be focused on four key priorities for improving the business. These include: differentiating merchandise assortments and tailoring them to local tastes, delivering obvious value, improving the overall shopping environment, and enhancing customer engagement, loyalty and traffic through more brand focused and effective marketing (macysinc.com, pg.14). 4.) Through a newly developed unified organization and utilizing these actions, and with investment in local markets through “My Macy’s” in 2008 and 2009, they have been able to reduce expenses by more than $500 million per year going forward. 5.) In 2009, online sales (macys.com and bloomingdales.com combined) were up 20 percent. 6.) Macy’s continues to grow by learning from the process of analyzing customer behavior by data collection which leads to new marketing approaches. 7.) Macy’s has made large strides...
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