Proposed Mission Statement
Macy’s aspires to offer high quality apparel, accessories, cosmetics, and home goods at an affordable cost to our valued customers through physical locations in the United States and online ventures worldwide. Our employees share a passion for not only the goods we proudly offer, but also in helping the people we gladly serve. We are adapting to today’s retail industry through technological changes with our customers’ desires in mind. We are committed to provide healthy financial benefits to our stakeholders with integrity. We are proud to be involved in American traditions throughout the community and are always looking for ways to improve the world around us through sustainability strategies. We desire to be the best multiline retailer with omnichannel strategies in the world. We strive to continually further our goal of being the model image of the American retail industry while we look to expand our products and services going forward.
Internal Assessment
Strengths:
- Real Estate - $21B
- Macy's Backstage
- Direct-to-consumer fulfillment mega center
- Bluemercury
- Strong focus on omnichannel strategies
Weaknesses:
- Continual store closures due to high costs
- Fallen sales (2.1% Winter 2016 - including e-commerce)
- Approximately $7.5B in debt
- Low inventory turnover ratio
- Low sales in Home Goods/Misc. (16%)
External Assessment
Opportunities:
- Consumer spending and per capital disposable income to increase +2%
- Beauty-specialty stores are the 2nd-fastest growing industry in retail
- Percentage of services conducted online increasing
- Investment in retail real estate will remain strong in 2017
- Millennial spending - $1.3 trillion annually
- Social media influences
Threats:
- Department store life cycle declining - 11% decrease in revenue in past 5 years
- Rise of e-commerce
- Expansion of Ulta
Alternative Strategies
SO
- Increase online sales globally
WO
- Larger in-store presence of Bluemercury
- Sell 90% of real estate from closing stores
- Using e-commerce, reduce amount of inventory in-store and increase online sales
ST
- Use online shipping and international markets to gain traction overseas, especially China
WT
- Use closed store locations as online fulfillment centers
- Discontinue Home Goods in-stores, only sell online
- Divest Home Goods
- Open brick-and-mortar stores overseas
Credits:
Created with images by Conal Gallagher - "Macys" • JeepersMedia - "Macy's" • Kofi_MT - "Macy's Thanksgiving parade II" • hepp - "Rulltrappor på Macy's"