Macy's Company Analysis

1622 Words Sep 28th, 2012 7 Pages
Macy’s IS Strategic Planning

Brief History
Macy’s was founded by Rowland Hussey Macy in 1858 in New York City. Macy's stores target the middle-to-higher-priced market, offering women's, men's, and children's clothing and accessories, housewares, home furnishings, and furniture. After its merger with Federated Department Stores, the company became the largest department store company, operating more than 850 department stores across the US. The company primarily operates in the US. Macy's is headquartered in Cincinnati, Ohio, and employs 166,000 people, including part-time employees.
The company recorded revenues of $25,003 million during the financial year ended January 2011, an increase of 6.4% over Fiscal Year 2010. The operating
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Weaknesses

Since the implementation of MyMacy’s, brand repositioning has been challenging. Macy's new strategy will be 'affordable luxury' which will won’t compete in either high-end segment like Nordstrom and Saks or budget segment markets like Wal-Mart and Target.

Threats

With the economic downtown, this may affect sales for the company as consumers’ discretionary spending become less and less. Macy’s also faces intense competition which is inherent to the retail and department stores industry.

Industry Analysis
Macy operates in department store retail industry. The U.S. Department Store industry includes over 3500 stores with combined annual revenue of $70 billion representing 20% of the global industry. Department stores in the US increased at a compounded annual growth rate (CAGR) of 3.4% between 2004 and 2009. The US Department store product mix includes a variety of products such as women, men, and children apparel, shoes, cosmetics, and home and furniture. Clothing and footwear market sales accounted for a 53% share of the department stores retail format in 2009 (DataMonitor).
Competitor Analysis
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,