Macy's Group 7: Tyler brautigam, sara golden, mikaela raymond, grace rigney, joe shepherd, and tim steffens

Introduction

Vision and Mission

Internal Analysis

External Analysis

Matrices Discussion

Strategy Recommendation

Vision

Macy’s vision is to be the most well-known and trusted premium department store in the country, with a consistent focus on fashion, value and convenience.

Desire to be the most well know and trusted

Forward focus on fashion and value

Mission

Macy’s mission is to provide high-quality products across multiple departments as an omnichannel retailer, demonstrating excellent customer service with a knowledgeable and diverse staff, which will provide a leisurely and engaging shopping experience for all consumers.

Drive to provide quality

Use of multiple channels

Create a leisurely and engaging shopping experience

Internal Analysis

Strengths

Premier omnichannel retailer

80% of stores in A and B malls

17 private brands

Limited supplier dependency

Weaknesses

Net sales decreased 5.2%

7% fewer transactions

Net Promoter Score decreased 8%

External Analysis

Opportunities

Per capita income and consumer spending expected to increase

Housing start rate expected to continue increasing

Women's clothing/footwear secured as most popular segment

Threats

Industry growth declining by 3.5% annually

Online services growing at 8.7% annually

Home goods and appliances segment stagnant at 18.7%

Matrices Discussion

SPACE

Develop conservative strategy, but continue defensive strategies already in place

BCG

Women's Accessories: Cash Cow

Women's Apparel: Cash Cow/Rising Star

Men and Children: Cash Cow/Rising Star

Home/Miscellaneous: Question Mark

SWOT Matrix

SO: Capitalize on creating shopping as a leisure activity to create a more experiential customer centered Macy's

ST: Use omnichannel retail to capitalize on potential growth in home goods

WO: Focus on online retail to recapture customers lost to Amazon

WT: Focus on customer experience to grow profit per customer

QSPM

1. Creating experiential sports section in Macy's: 2.21

2. Focusing on luxury, experiential home goods and store wide renovations: 2.72

Strategy Implementation

2 Stages for Strategy Implementation

Stage 1: Strategy Test – 30 Stores

Stage 2: Full Scale Implementation – 600 Stores

Areas of Strategy Implementation

Remodel of Stores Including Flooring, Paint, and Advertising

Store Wide Comprehensive Customer Service Training

Specialty Home Goods Service Training

Research and Development of Interior Design Database

Purchase of iPads for In-Store ID Database and Wedding Registry

Moving 25% of Home Goods Inventory to Last Call Area/Backstage stores

Financial Implications

Income Statement
Financial Ratios

Conclusion

Vision and Mission

Internal Analysis

External Analysis

Matrices Discussion

Strategy Recommendation

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