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UsingOmnichannelGrowthStrategiestoImproveCustomerExperience
October,2015
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Macy’sBrandPositioning• The“GreatAmericanDepartmentStore”
openedin1858andisnowaglobalbrand• 887totalstores
• 771Macy’sin46states• 37Bloomingdale’s• 13Bloomingdale'soutlet• 66BlueMercury
• 3 storesacrossGuamandPuertoRico• Newoff-price format“Backstage”isbeing
testedin6locationsNewJerseyandNewYork
• PositionedinthemarketasabetterdepartmentstorebetweenKohl’s,JCPenneyandBloomingdale’s,Nordstrom,Saks,NeimanMarcus
• Grewthroughcombinationoforganicgrowthandacquisition
• Aggressivelyexpandingdigitalcapabilitiesandservicesacrosschannelswhileregularlyrefreshingtheirstoreportfolio
R.H.MacyandCoLaSalle&KochDavison-Paxon-StokesO'ConnorMoffat&CompanyJohnTaylorDryGoodsCo.BurdinesBamberger's,Bullock'sAbraham&StrausJordanMarshMayDepartmentStoresStern'sDavison'sRich's
LazarusTheBonMarché.MarshallField's
Kaufmann'sFamous-Barr
Filene'sFoley'sHecht's
TheJonesStoreL.S.Ayres
Meier&FrankRobinsons-MayStrawbridge's
Source:Forbes
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Macy’sRanks+383%ofInterbrand’s 2014“BestRetailBrands
Interbrand criteria forinclusion:• Atleast30percentofrevenuesmustcome
fromoutsidethebrand’shomeregion• Itmusthaveapresence inatleastthree
majorcontinents,aswellasbroadgeographiccoverage inemergingmarkets
• Theremustbesufficientpubliclyavailabledataonthebrand’sfinancialperformance
• Economicprofitmustbeexpected tobepositiveoverthelongerterm,delivering areturnabovethebrand’soperatingandfinancingcosts
• Thebrandmusthaveapublicprofileandawarenessaboveandbeyonditsownmarketplace.
Methodologyforcalculating“BestRetailBrands”evaluates:• FinancialAnalysis• DemandAnalysis• CompetitiveAnalysis
Source:Forbes,Interbrand
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KeyStrategyforGrowth:FocusonOmniInitiativesMacy’sisrefiningtheMyMacy’scampaignorganizedafewyearsagofocusedonguidingpurchasebehaviorinlocalmarkets• Initiativesandtechnologiesrangingfrom
consumer-facingsmartfittingroomstoRFIDpilotprogramsü Macy’sandBloomingdales adopting Apple
Payü Unveiling theMacy’sWallet/Bloomindale’s
Walletthrough themobileappstoeasilystoreandaccessoffers
ü Integratingbuyonline/pick-up instoreü Orderfulfillment acrossstoreportfolio and
distribution centersü Testingsame-daydelivery foritems
purchasedonlineandthroughmobileappü Developing newtechnologies attheIdeaLabü HandheldPOSdevicestoengagewith
customersandmanage inventoryü ShopBeacon technology instorestoimprove
salesprovidingmorepersonalizedsalestoShopkick appusers
“Omnichannelisbecomingabiggerandbigger partofourbusiness…WeknowcustomersareonlineshoppingandlookingatspecificitemsandweknowthatsamecustomerusedhisorherMacy’scardtopurchasetheiteminastore.”
--TerryLundgren,CEOMacy’s
“Ninetypercentofourcustomersresearchonlineatleastoccasionallybeforepurchasingin-store.”
--BrianLeinbech,SeniorVPSystemsDevelopment&FieldServices
Source:Macys,BusinessWire
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M.O.M.isMacy’sCustomerEngagementStrategy
M.O.M
MyMacy’s
MAGICSelling
Omni-channel
• M:MyMacy’slocalization– deliveramerchandiseassortmentandshoppingexperienceineachlocationthatmeetstheneedsofthelocalcustomer
• O:Omnichannelintegration–createaseamlessexperienceforthecustomer
• M:MagicSelling– selectproductstomeetneedsofspecificconsumers
Goingforward,Macy’sandBloomingdale’swillbebetterabletomovemorequicklyandnimblytoselectmerchandise,assortinventoriesandservetotalcustomerdemand,nomatterhow,whenorwherethecustomershops."
-TerryJ.Lundgren,ChairmanandCEO
“
”Source:Macys,BusinessWire
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M.O.MistheBlueprintforStrategyRefinement• M.O.M.remainstheblueprintfortheMacy’sbrand
today– witheachelementofthestrategycomingclosertogethertoworkholistically• Macy’sisnowdevotingmoreattentionto localization
byenhancingassortmentandsalesperformancebyclimatezoneandgettingmoregranularonethniccustomers
• Macy’sisexpanding theiromnichannelcapabilitiesbydeliveringahigherlevelofshoppingexperience withBuyOnlinePickupinstore
• MagicSellingisalsoavitalingredient fortappingthefullpotentialofOmnichannel.Macy’shasnewtoolsandtechnologyontheselling floortoengagecustomers.MagicSelling isfocusednewcustomertouchpointstogrowsales
• Macy’sisnolongeroperatingwithasingleviewofthecustomer,inventoryandbusiness
• Macy’smainfocusnowremainsonintegratingandrefiningM.O.Mwhile elevatingthein-storeexperience forcustomers
Source:Macys,BusinessWire
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Macy’sisInvestingintheDressingRoom• Inefforts tobettercompetewithAmazon,
Macy’siscapitalizingontheideathatmanyconsumers stillprefer totryonapparelbeforemakingapurchase• Usinghigh-techgadgets liketablets to
upgradefittingroomsasaweaponagainstAmazon
• Revampedfittingroomsinwomen’sswimandathletic department atManhattanBeachstore• Usingtechnologysmartphonesandcompany
providedtabletstomakeiteasierforcustomertotryonitemswithouthavingtoleavedressingroom
• Theresult isthatshoppers spendmoretimebrowsingandless timeundressing,redressing andrummaging throughracks,increasing thelikelihoodthey’llfindsomething tobuy.
Source:Macys,BusinessWire
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OmnichannelPaymentsMovingInFullForce• Macy’shasadoptedPayPalasanoptionand
isrollingouttoallstores– integrationenablesMacy’scustomerstocheckoutonlineoronmobile usingthePayPalbutton• IntegrationalsoenablesOneTouch,so
customerswhoopt-incancheckoutonlineandonmobilewithouthavingtotypeinanypaymentcredentials,usernamesorpasswords.
• In-storecustomerscanalsocheckoutviapaymentcodeonthePayPalapp,orontheMacy’sappusingthemobilewallet,whichenables consumerstoscanaQRcodeontheirmobiledevicetocomplete apurchasein-store
• Macy’shasalsoPartneredwithPlenti forcustomerstoearpointsatthestore,andbeabletotransferrewardstootherstores
Source:Macys,BusinessWire
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AndMacy’sisFurtherOptimizingOmnichannelApproachwithConsolidation&NewFormats• Consolidatingstorebase– closingbetween35and40department storesin
early2016whilemovingaheadwithexpansionofoffprice format• Storesclosed representabout1%ofMacy’stotalannualsalesofroughly$28B
• UnveiledMacy’snewformatin6locations,Macy’sBackstagetooffer anupgraded,off-price customerexperience.• Storewillofferawideassortment ofproductsincludingmen’s,women’sand
children’sapparel,shoesandaccessories, housewares,homedécorandtextiles,toysandtechitems.
Physicalstoresremainabsolutelyvitaltoouromnichannelstrategy,whichprovideslocaltouchpointsandtailoredmerchandiseassortmentsforshoppersinnearlyeverymajormarket."
-TerryJ.Lundgren,ChairmanandCEO
“
”Source:Macys,BusinessWire
Formoreinformationcontact:
MaraDevitt,Sr.PartnerDwightD.Hill,PartnerMcMillanDoolittle,LLPTheRetailExperts350W.HubbardSt.,Ste.240|Chicago,[email protected]@mdretail.com+1-312-784-2525
www.mcmillandoolittle.com
