Macy's Inventory Management
Macy’s Inventory Management
Summery:
Tying up too much capital in products that are not in demand could be a fatal mistake for struggling small businesses. Moreover, Inventory management can mean the difference between success and failure for some companies. According to the New York Times article, Macy’s was able to post a profit last quarter thanks in large part to improvements it made to its inventory management system. In spite of the unstable economic conditions and the huge competition in the market such as J.C Penny and Kohl’s, Macy’s was able to get market share and raise their profit. In this paper, I will be briefly discussing the inventory management history at Macy’s and how the changes in inventory management helped the firm to maximize value, sales and minimize costs.
Macy’s Inventory Management
Introduction:
(A) Description:
Formerly known as Federated Department Stores, Macy 's, Inc., is one of the largest department store operators in the United States. Its stores, under the Macy 's and Bloomingdale 's names, are generally located in large shopping malls and offer men 's and women 's clothing, accessories, home furnishings, and other consumer goods. At the end of 2007, the company was operating 866 Macy 's and Bloomingdale 's stores in 45 states, the District of Columbia, Guam, and Puerto Rico. In a time when most stores routinely sold on credit, Macy was unique in that he instituted a cash-only policy not only for customers but for himself as well. No Macy 's inventory was purchased on credit, and no Macy 's credit account was issued until the 1950s.
(B) New Partnership:
Under the new partnership, Macy 's matched and out priced its rivals. Macy 's sales rose to $5 million within a year and subsequently continued to grow by 10 percent annually. The Straus brothers introduced their odd-price policy, now used virtually everywhere in U.S. retailing. By charging $4.98 instead of $5.00, for example, the store sought to
Summery:
Tying up too much capital in products that are not in demand could be a fatal mistake for struggling small businesses. Moreover, Inventory management can mean the difference between success and failure for some companies. According to the New York Times article, Macy’s was able to post a profit last quarter thanks in large part to improvements it made to its inventory management system. In spite of the unstable economic conditions and the huge competition in the market such as J.C Penny and Kohl’s, Macy’s was able to get market share and raise their profit. In this paper, I will be briefly discussing the inventory management history at Macy’s and how the changes in inventory management helped the firm to maximize value, sales and minimize costs.
Macy’s Inventory Management
Introduction:
(A) Description:
Formerly known as Federated Department Stores, Macy 's, Inc., is one of the largest department store operators in the United States. Its stores, under the Macy 's and Bloomingdale 's names, are generally located in large shopping malls and offer men 's and women 's clothing, accessories, home furnishings, and other consumer goods. At the end of 2007, the company was operating 866 Macy 's and Bloomingdale 's stores in 45 states, the District of Columbia, Guam, and Puerto Rico. In a time when most stores routinely sold on credit, Macy was unique in that he instituted a cash-only policy not only for customers but for himself as well. No Macy 's inventory was purchased on credit, and no Macy 's credit account was issued until the 1950s.
(B) New Partnership:
Under the new partnership, Macy 's matched and out priced its rivals. Macy 's sales rose to $5 million within a year and subsequently continued to grow by 10 percent annually. The Straus brothers introduced their odd-price policy, now used virtually everywhere in U.S. retailing. By charging $4.98 instead of $5.00, for example, the store sought to