Analysis Of Macy 's Inc.

Macy’s Inc. competes with other major players in the Department Store Retail Industry as well as with discounter, luxury stores, specialty stores, mail order and pure play internet retailers. Key competitors include Sears, J. C. Penny, Kohl’s, Nordstrom,

A business model is an important and integral part of the business a strategy of any firm whether big or small. The way a business model is developed determines and indicates the values, ethics and principles on the lines of which the business at large will be operating. It also indicates how the business is going to function and covers various internal and external dimensions of a business and the organization as a whole.

Macy’s Inc. is one of the oldest enterprises in the United States, belonging to the department stores industry. (Hoovers.com) It is a national brand, owning 850 department stores. During the development of the company, there had several key decisions that were beneficial for the company. However, in recent years, the competitions in department stores industry become more and more serious.

Unlike Starbucks, Macy’s is not doing very well, as evidenced by the fact they announced last month the impeding closure of 68 stores (Peterson, 2017). The company has been struggling for a few years with the growth of the internet and online businesses such as Amazon making their brick and mortar stores impractical in modern times. While the number of stores may not seem like as much of a problem as it is, as other companies have had to close down more in recent years or go out of business in general, this is a symptom of larger problems in both the company and the industry.

In 1858, R.H. Macy founded R.H. Macy and Co. in New York City. From a dry goods store, he expanded his store occupy a total of 11 buildings which all offered different categories of merchandise. Here, R.H. Macy created what we now know as the department store (The History). Macy’s Inc. has grown and currently operates over 700 department stores under its various names (About Us). JC Penny Co. Inc. was founded in 1902 by James Cash Penny. JC Penny Co. Inc. was alike Macy’s Inc., however, they offered a catalog to better compete against department store like Montgomery Ward and Co. They currently operate around 1,100 stores worldwide (The Editors). The traditional department store format that Macy’s Inc. and JC Penny Co Inc. utilize has become

The companies that were chosen for a company analysis include Macy’s, Kohl’s, and Burlington. Since the retail industry has been lagging behind lately, these companies will help determine the prospective financial investment in the retail industry. As Macy’s as our primary company, we chose Kohl’s and Burlington to be the two comparative companies. These companies are comparable due to the same SIC code of 5311 in the subgroup of department stores. These companies offer similar products and services with little differentiation between the three.

Robert J. Samuelson in, “Why are Macy’s and Sears in Distress,” exhibits a very dedicated and thoughtful tone. He begins the article explaining what Macy’s and Sear planned to so to regain profits in their time of economic struggle but that so far there has been no success. When he states “What is puzzling about this,” the audience is able to infer that Samuelson is aware of the details of the situation and acknowledging that the information is not adding up. Samuelson states that he’s written on this subject before due to his belief that “though obscure - it [ creative destruction ] is vital to our economic future,” and continually poses questions about the topic throughout the text showing that he dedicated to find answers about this “siege

Given the market sentiments prevailing in the market, I believe the stock price of Macy's Inc. will be extremely higher than it is today. This notion hinges primarily on the low valuation placed on Macy's stock. Currently, the stock is trading at a P/E ratio of 12 with the market historically trading at a ratio of 13-16. With the significant growth prospects of Macy in regards to its retail franchise, I believe the stock in undervalued relative to the market. Furthermore, the company just released first quarter earnings that were 38% higher than those of a year earlier. This indicates increased consumer sentiments in regards to both shopping and purchasing goods at Macys Inc.

The stock I chose was Macy’s Inc., since during the month of July they were doing great and each stock was worth $24.20, highest it’s been for the past 3 months. While having to look at the changes on the stock for almost a month, I noticed that the price per stock was lowered each day after I chose to “buy” part of the stocks. The lows aren’t too low while the highs were always above 1%.

Macy’s, Inc. is a retail organization incorporated in Delaware and has Executive offices in Ohio. As of January 2014, Macy’s has 840 department stores located in urban and suburban area across the United States. Macy’s, Inc. is in 45 states and the District of Columbia, Guam and Puerto Rico (SEC Filing, 2014).

The annual report and 10-K filings were obtained from macys.com. The financial statements included in the annual report are as follows: consolidated statements of operations, consolidated balance sheets, consolidated statements of changes in shareholders’ equity, consolidated statement of cash flows, and notes to consolidated financial statements. In the report, Macy’s Inc. recognizes several competitors which are Bed Bath & Beyond, Belk, Bon Ton, Burlington Coat Factory, Dillard’s, Gap, J.C. Penney, Kohl’s, Limited, Lord & Taylor, Neiman Marcus, Nordstrom, Saks, Sears, Target, TJ Maxx and Wal-Mart. The top three

Nordstrom today is known as one of the most innovative department stores because they are always coming out with new ways to improve their stores and delivery system to make it easier for employees and customers. One way Nordstrom is doing this is by implementing their program “Buy Online, Pickup in Store”. When shopping online you can find an item you would like to buy and if you need it in the upcoming days instead of between three to eight business day, which is the usual shipping time, you can see if it is in a store near you and then purchase it online and then the “Buy Online, Pickup in Store” team will go around the store to find your items and then you pick it up in the store at the service bar so you do not even have to go to the department that it was purchased from. I have as a customer used this program numerous times, one time I used it to pick up a last minute dress for an upcoming dance so I picked it up the same day I bought it online and it was a quick and easy process.

Critically analyze the organization from the systems approach. You should consider the inputs, transformation and output elements of the operation and consider how the system creates value.

it is important to identify key strengths of the company over upcoming threats and weak points. Macy’s differentiate itself from competition with upscale “Celebrity” brand exclusivity, merchandise based on local preferences, and unique store design atmosphere. Based on analysis performed the company weighted strategy is to move towards the online and technology advances with maintaining Macy’s upscale storefront culture, integrating new product offerings with revising promotions to satisfy its target market and expanding operations to a new markets with present demand. From opportunities analysis strategy can be divided in three fragments

Macy's Inc. is one of the nation's largest and well known department store chains. Started over 150 years ago, Macy's has continually generated excellent returns for its shareholders and employees. Currently, in the midst of a global recession, Macy's has generated huge profits with same store sales increasing 5.3% year to date. In 2012 same store sales increased 4.6% in the month of February alone (Macy's Inc., 2012). In fact, throughout the duration of 2012, Macy's is projecting even larger profits for its underlying business operations. Even though Macy's has experienced success with both its assortments and brand, its competitors haven't faired so well. Sears, due in part to part to a lackluster holiday season, has been forced to close nearly 120 locations to generate excess liquidity in an effort to shore up its balance sheet (Isidore, 2011).Other competitors who cater specifically to the middle class consumer have also lost significant amounts of market share as consumers trade down due to the economy. This performance is primarily due to the core functions and operations of the business. Planning, organizing, leading, and controlling. Macy's excels at these forms of management, which has allowed the company to perform at a higher level relative to its peers in the industry.