Essay on Macy's Business Plan

4464 Words Nov 13th, 2009 18 Pages
Situational Analysis

Reaching its 150th birthday in 2008, Macy’s Inc. has emerged as an American household icon over the past few decades. Macy’s sells a range of merchandise, including men’s, women’s, and children’s apparel, accessories, cosmetics, home furnishings, and other consumer goods. Since its merger with Federated Department Stores in 1994 and May Department stores in 1995, Macy’s has been pursuing ways to be more creative and distinctive in meeting customer needs and in delivering exceptional values. In order to maintain its share of the department store market, Macy’s has been aggressively investing in a distinguished shopping experience with unique merchandise, exclusive fashion brands, online sites, and breakthrough
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In a fast-paced retail environment, Macy’s can offer the latest "needs" that everyone has to own, while simultaneously providing goods that very few can

Immense changes in consumer spending will remain subdued for the next few quarters, and that will lead to retailers’ earnings estimates declining for the next several months. Several retail chains will be forced out of business in 2009 by their own debt structure and the global credit crunch. There are also many retail stores that will close storefronts in 2009 because a recessed economy demands a recessed retail industry. There were 200,000 store closings that have occurred in the first quarter of 2009. The post-holiday season fallout was substantial for retailing, but not completely devastating. Retailers have become forced to tighten their budgets and cut down on expenses until the economy improves. In 2008, Macy’s enlisted Dunnhumby, the consumer insight company, to analyze its sales data with a view to increasing turnover and customer loyalty, develop customer segmentation models to accelerate future sales growth at the department store chain. The tie-up could enhance the existing loyalty scheme at Macy's.

Targeted Segments

Demographic. Macy’s initial target market consisted of middle to upper class working women and men aged 25 to 54. This segment is consumption oriented,
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