- Macy's Inc. continues a 150 year-long tradition of providing quality retail goods to U.S. consumers
- Macy's is known for leading the U.S. retail industry through its extensive store presence and community engagement
- Macy's profitability has dropped in recent years in a retail marketplace that is progressively moving online
- To increase net income and effectively compete, Macy's must cut store costs and partner with a dominant online retail enterprise
We seek to be a leading retailer of American fashion and lifestyle goods that provides the most valuable shopping experience to be found both online and in-store.
- Our mission is to provide women, men, and children with exceptional quality in their lifestyle choices regarding apparel and accessories, cosmetics, home furnishings, and related products...
- To do so, we strive to lead the retail industry by offering the highest value in lifestyle goods in our U.S. locations and global online store to middle and upper-income groups, matching quality with affordable pricing...
- Macy’s provides a nurturing and transparent environment to our employees and, in turn, our customers. We are devoted to serving our customers and shareholders through social, fiscal, and environmental accountability...
- By updating our shopping model with the newest technological capabilities and directing resources to where customer’s needs are best met, we will profitably grow both our U.S. and international presence through our online platform.
RETRENCHMENT: selling off lowest-performing stores at Macy's current rate of closings (13%)
ACQUISITION: propose buy-out to Alibaba.com at $12 billion (25% markup over market cap)
- Total store closing cost over 5 years is 1.8B
- Revenue growth year over year is 8%
- Projected increase in COGS with new infrastructure is conservatively estimated at 10% year over year
- Macy's is seeing losses in traditional retail outlets
- High current debt levels vs. low cash influx
- Macy’s does not have the liquid capital to embark on new strategies on their own
- Operating margin is slowly declining, increasing difficulty to turn a profit