Macy’s

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Macy’s
Macy’s Inc. was formerly known as R.H. Macy’s & Co. and was established in 1858 in New York by Rowland H. Macy. It later came to be called Federated Department Stores Inc. before merging with Bloomingdales Inc. in 2007. Macy’s is a chain of retail stores under the names of Bluemercury, Macy’s, Bloomingdale’s Outlet, Macy’s Backstage, and Bloomingdale’s with over 167,000 employees in 45 states and over 885 stores (Zentes et al. 330). Macy’s is an organization that aims to offer their customers with the best probable product and excellent merchandise it can provide. This is according to the company’s values which postulates that “the consumer is paramount and that all actions and strategies must be directed towards providing a localized merchandise offering and shopping experience to targeted consumers through dynamic department stores and online sites”. Macy’s strategic plans are compelling marketing, unique merchandise assortments, low pricing and enhancing the shopping experience for their consumers.
Through key agreements, products like Tommy Hilfiger have become a unique merchandise assortment. The organization continues to prosper by enhancing the shopping experience by creating a distinct image and adding private brands to realize their customers’ shopping needs and wants. Macy’s has a record of private labels and brands that distinguish them from their competitors in the retail industries. The company ensures that each brand is formed to magnetize the various lifestyles of their consumers and holds a distinctive position that no other retailer can offer their customers.

Examples of such brands are Charter Club, Alfani, American Rag and First Impression. In the year 2008, Macy’s private brands and labels formed 19% of the company’s branded sales (Vahie &Paswan 70). Additionally, they as well offer decreased pricing by conveying reasonably priced high-quality products and putting the clients first.
The comparison of the financial performance in the year 2005, 2008, and 2009 is crucial as it shows the period before the downfall of the economy, the economic depression and the comeback period. Macy’s and competitors like Saks Fifth Avenue, JC Penney and Dillard’s over the years have seen a downturn in profit. In 2008, the only organization that saw growth throughout the year was JC Penney while all the other companies finished the year in losses (Baud & Durand 250). Macy’s took the biggest hit out of the three firms with losing $4.8 Billion and however in 2009, Macy’s had the utmost come back with an expansion of $350 million. The projected developments for this business can be depicted as a slow innovative phase and slow economic advancement as the US fortifies their buying power.
Decentralization was one of the company’s chief restructuring after the economic depression in that merchandise decisions were made at the district level. The district managers now had the power to make merchandising decisions especially working with local stores. Moreover, the organization grouped their stores into small geographic districts called My Macy’s, and they were able to create new jobs at the local level as well as enhance their decision-making process that saw an improvement in their overall performance. The grouping of stores was also able to eliminate any dual labor or communication barriers in the company. Decentralization enabled Macy’s to focus on stores and regions to target their consumer’s tastes and preferences as well as stay ahead of their competitors so as to ensure that their employees are meeting their goals and work efficiently.
Works Cited
Baud, Céline, and Cédric Durand. “Financialization, globalization and the making of profits by leading retailers.” Socio-Economic Review 10.2 (2012): 241-266.
Vahie, Archna, and Audhesh Paswan. “Private label brand image: its relationship with store image and national brand.” International Journal of Retail & Distribution Management 34.1 (2006): 67-84.
Zentes, Joachim, Dirk Morschett, and Hanna Schramm-Klein. “In-store Marketing.” Strategic Retail Management. Springer Gabler, Wiesbaden, 2017. 327-350.