Macy's Business Model

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,

Macy Inc. (M) has a cost structure that can best be viewed using SWOT analysis, which is a way of evaluating the strengths, weaknesses, opportunities, and threats to the corporation. Macy’s strengths include customer loyalty, a recognizable store name, use of technology, a substantial supply chain, its comprehensive size, and the locations of its stores. In total, these strengths enable Macy Inc. to provide a unique service that offers a characteristic their competitors do not have: merchandise tailored to the customer by store and climate zone. Macy’s main weakness is its cost structure: costs are high compared to their competitors due to a complete operational transformation that includes localizing merchandise by

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

* Knowing this about my daughter is going to give you the most information about her actual shopping behavior:

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.

We all know that both Walmart and Macys are two of the most popular stores, they both have different concepts of the customer experience have manage to divide the public right down the middle. Macy’s stores serves high-end clientele, Walmart has more relaxed and price friendly appeal to those of who are in the middle or even low income. Many middle income Americans shop at Walmart primarily because of their low prices, there are shoppers that gathers shop for the quality of Macys. Is just a matter of asking shoppers a question: Why Walmart vs Macys? What is more important quality or quantity for the shopper’s money? Depending at their answer could change the future of each store, and maybe each store could change their perspective towers their shoppers.

Macy’s Department store in New York is facing a problem during this year’s holiday season. They have a seasonal shortage of temporary workers, in particular, a need for actors to play the role as Santa in his workshop in the north pole. Due to the Santa Claus shortage, Macy’s is hiring women. This is causing numerous parents to complain that their kids are getting upset when they see a female Santa at the store. Some of those parents are threatening that they would never shop at Macy’s again. Even though I feel women would do a great job playing Santa, there are a few reasons why I think Macy’s should only have male Santa’s.

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

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 big store appeared in the mid-1960s, it had both sales volume and physical size, were Macy’s, Hudson’s, and Marshall Field. Between 1946 and 1966 over forty large- scale construction programs appeared. A lot of chain brand department stores created the new lighting, dropped ceiling, air conditioning, new escalators, the new department, and multiple floors in the whole aprtment building. The greatest example with the lively interior is Macy's which is designed by two of the nation’s leading retail architects, Daniel Schwartzman (New York) and Gruen & Krummenck (Los Angeles). They designed the veritable showcase to show a theater selling way in the department store. The circular patio and diagonal layour illuminated the displays dramatically.

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

In order to analyze Macy’s competitive characteristics we performed a SWOT Analysis to understand its internal and external environments. One of Macy’s strengths is that they are different from other major retailers because they not only sells popular brands; they also have special events that are considered to add a magical experience to its customers. As stated in their 2014 annual report, some of these events include, the Macy’s Thanksgiving Day Parade in New York City, Fourth of July Fireworks, flower shows, fashion extravaganzas, celebrity appearances, cooking demonstrations and holiday traditions ranging from the arrival of Santa Claus to tree lightings and animated window displays. One further strength Macy’s posses is the fact that they have continued to improve their MOM initiatives. “MOM is an acronym for My Macy’s localization, Omnichannel, and MAGIC selling” (Loeb, 2013). Initially these initiatives have been introduced in 2009 and they seem to have