Macy 's is one of the largest retailers in the United States. Macy 's was founded by Rowland Hussey Macy in October 28, 1858. Macy 's is an oldest brand in USA with 158 years old. Talking about Macy 's. Macy’s is a mid-range to
Macy’s enjoys economies of scale giving them purchasing power with their suppliers and the ability to reduce operating costs by spreading fixed costs over a larger base; due to this process Macy’s buys in bulk which locks in larger discounts they can pass on to the consumer creating a win/win situation. This purchasing power allows them to control a larger section of the market and protects them from smaller retailers purchasing the same product. Macy’s sales equal $27.82B with a gross profit of $11.21B. Most analysts recommended buying Macy’s stock last month with 6 analysts predicting a strong performance. Dillard’s revenue is $6.69B and J.C. Penny Corporation revenue is reported at $12.98B for the same time period. (Macy’s (M), 2014). Macy’s, Inc. is currently trading at $57.11 (Macy’s (M), 2014) with a 52-week high of
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.
Macy’s, Inc. is known as the Great American Department Store was established in 1858 and now has 810 stores operating in the United States, coast-to-coast. Macy’s stores nationwide are grouped into 69 geographic districts that average ten to twelve stores each. Most stores are located at urban or suburban areas. As of January 30, 2010, the Company’s operations were conducted through four retail operating divisions – Macy’s, macys.com, Bloomingdale’s, and bloomingdales.com. The Company is a retail organization operating retail stores and Internet websites under two brands (Macy’s and Bloomingdale’s) that sell a wide range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other
The industry we have chosen is the department store-retail industry. Within this industry, we have chosen the department stores of JCPenney and Macy’s. We find this industry, as well as these two companies, interesting from a strategic perspective. JCPenney has recently undergone a massive strategic restructuring in regards to its pricing, brand offerings, and store layout, pushing it away from the typical department store strategy of discounts and coupons. Its new strategy has become much closer to Wal-Mart’s strategy of every day low prices. Macy’s, on the other hand, has restructured with a push from the economic
This report presents data describing the differences amongst the two department stores, their fundamental visions, and comparative statistics. Macy’s or Dillard’s: Differences amongst these competitors There are several aspects you can analyze from each department store. Major pieces do set each one apart from the other. Brand names carried by Macy’s and Dillard’s from an average shoppers point of view can go completely unnoticed unless price is involved. For trend shoppers brand names can either make or break a retail store. It can easily determine if he or she will walk to Macy’s or Dillard’s because they already know the store does or does not carry that brand. This is consistent with each department throughout both stores and
The Macy’s Corporation was founded in October 1858, and they are headquartered in Cincinnati, Ohio. The corporation focuses on internet sales in the United States, and they employ 166,900 full-time employees. Macy’s sells a range of merchandise, everything from apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. Similar to Kohl’s, Macy’s sells a special range of clothing, accessories, handbags, jewelry and footwear. As of January 20, 2016, it operated approximately 900 locations in 45 states, the District of Columbia, Guam, and Puerto Rico under the Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage, and Blue Mercury names; as well as Websites, including macys.com, bloomingdales.com, and bluemercury.com (M Profile | Macy 's Inc. Common Stock - Yahoo! Finance). In addition, Macy’s operates as a
Macy’s Inc. is a well-established, historic and profitable company that is known as a quality yet affordable department store. Macy’s is an American icon; therefore our objective is not to change this image, but to modify it to appeal to a more youthful market.
Department stores are not easy to manage, and take a whole team of individuals to run daily operations smoothly. Dillard’s success at the turn of the century came from balancing finances properly, incorporating a friendly atmosphere, and building its reputation as a welcoming upscale department store. In recent years, however, Dillard’s Inc. has surfaced in headlines for being listed as one of the worst companies in the nation to work for. With stiff competition and acquisition factors, the department store industry is not one to lag behind in and
In this segment, the retailer J.C. Penney will be analyzed against the department store retail industry, with particular emphasis placed upon their competitors, Macy’s and Kohl’s. The major components to be discussed will include the general external environment (i.e. demographics, economics, politics, legal requirements, technologies and global expansion), the industry environment, the competitive environment, the driving forces and the key factors for success within the industry. In terms of the general external environment, the retail industry is a multi-trillion dollar business in the United States alone and maintains operations primarily due to consumer spending. Such purchases rely upon the disposable income of
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
Macy’s Inc. has a very strong network all over in the United States under its two main brand names but the company has very weak geographic presence. All of its business functions are in the United States. Any changes in the economic, political, legal, and social framework of the country will have direct impact on the business operations of Macy’s Inc. and its profitability will suffer many folds.
Macy’s has been around for 100 years, currently operating over 700 stores nationwide, and exploring the idea of expanding globally. A company that has that much experience, assets, and capitals are not likely to be bankrupted. With that being said, the current path and strategy that Macy’s is taking now is slowly killing the company. Their revenue stream has been decreasing to be multiple reasons, controllable and non-controllable. Macy’s should redesign their strategy to reach new markets because their current one is not responding to them as much. As many selections as there are in Macy’s, I think that they should try and carry more at a cheaper rate to encourage the loyal customers for that brand to go to Macy’s. I think the lead time for
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.
The financial data will support the strategy as the ratios and numbers show that Macy’s has resources and capital available for the implementation. Evaluation of external and internal factors positively presenting an opportunity for Macy’s to use designed strategy to and keep competitiveness in the industry. Summarizing Macy’s is a well-established organization with over 150 successful years in business that still has an ability to compete with leaders in the industry if the right