Macy’s Store Project


How long have they been in business?

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· Since October 28, 1858.

Background information:

· Macy’s Store started as a small dry goods store in New York City in the year 1858. It was founded by Rowland Hussey Macy.

How has their business changed over the years?

· Over the years, the business at Macy’s Inc. has changed from just selling clothing to even acquiring a liquor license in the New York City. The Company has grown worldwide such that it allows for the shipment of goods to over 100 countries worldwide. This has also included online shopping for easy purchases to be made.

What is their mission statement?

· “Our goal is to be a retailer with the ability to see opportunity on the horizon and have a clear path for capitalizing on it. To do so, we are moving faster than ever before, employing more technology and concentrating our resources on those elements most important to our core customers. ”

Do they plan to expand, penetrate, diversify, or change their retail format in the near future?

· In the near future, Macy’s Inc. plans to expand, penetrate, and diversify their retail format to include more online shopping because the demands of their customers keep changing, and this can be easily addressed in an online marketing format.

Target Market

1. Who is their target market:

Macy’s stores sell consumer discretionary products such as apparel, accessories, cosmetics, and home furnishings. So, their target market are males and females all age from children under 1 years old to seniors. Macy’s target middle class adults incomes of between $30,000 and $100,000.

2. Define their customer according to demographics (age, gender, income level, education etc.).

Age, in this scenario Macy’s company will be targeting all customers for each and every age in the clothing category

Gender, in this scenario Macy’s company will be targeting male and female.

Income level, Macy’s company will be targeting mostly the middle-class income.

Education level, Macy company will be targeting customers who have an education level of at least able to have internet access.

3. Trade area – Primary, secondary, tertiary (refer to chapter. 8) From the book chapter 8 note.

Additional Notes:

It is a natural instinct for business a business to target many people. However, the company should know that promotional strategy will not be directed to one group. By doing this it will allow a highly focused campaign that will meet the needs.

Merchandise Assortment:

1.What are the major brands they carry?

The major brands are like Adidas, Lauren Ralph Lauren

and Calvin Klein and Tommy Hilfiger.

2.Do they have private brands?

Yes, they have private brands, according to the CEO Jeff Gennete Macy’s aims to grow its private –label and Private brands.

3.Where does this retailer’s merchandise fit on the category life cycle?

This retailer’s merchandise fit on the product category of life cycle. Here new trendy product can gain the highest price.

4.Why do you think they chose this stage of the life cycle? Does this retailer carry convenience goods, shopping goods or specialty goods?

They choose this stage of the cycle because the retailer is convenient in specialty goods.

5.Additional Notes: The retail market today has become more of a ‘sea of sameness’ therefore making Macy’s aims to grow its own brands, it is also planning to have an inventory to the chain and it should be different from what has been there already.

Store Location:

1. Where is this retail store located?

Macy’s located at Easton Town Center in located in Ohio Columbus.

2. Why do you think they chose this location?

Macy’s is located in a very strategic area according to the median income in the area and around is between $35,000 – $79,187 which is higher than state median income. Also, Macy’s located in a mixed area between youth and family which serves the two segments.

3. Is this accessible for the customer?


4. What type of lease do they have?

Macy’s own their stores.


What is this stores pricing policy? (Everyday Low Pricing. High/Low Pricing etc.)

The company has High/Low pricing

What other practices do they use to compete with price? (Coupons, Rebates, Price Bundling)

The company is able to compete with others through the following; coupons, Rebates and price Bundling. This is able to attract customers who are able to purchase its product compared to other companies

Does this retailer use the cost-oriented method of pricing or demand-oriented pricing?

From the policies of the company, it encourages its retailer to use cost-oriented method of pricing. This allow the retailers to purchase as many goods and give room for easy supplies to the customers.

Is there frequent shopper program?

The company uses program to facilitate online purchase to its customers.

Communication Mix

What type of paid advertisements does this business use?

The y uses paid advertisement such as Television, and social media to sensations its customers.

What type of unpaid communication does this business use? (Publicity)

The use social media for instance Facebook, Twitter among others.

Does this retailer use cooperative advertising? With whom?

It uses cooperative advertisement to facilitate its promotion for instance with other companies such as goggle which help the company to facilitate online selling.

What type of sales promotions does this retailer use? (Sales, Sampling, Demos, Contests etc.)

The company uses sales and sampling in facilitating its sale promotion among the customers.

Store Layout

What type of design layout des this store use? (Grid, Racetrack, Free Form etc.)

Provide graphics and photos for this one.

Image result for Store Layout of macy’s

Is it effective for customer flow?

Yes, the layout of the company provides smooth for customer’s flow in and out of the premises

What type of fixtures do they use?

What type of lighting are they using?

They use A gondola lightening

In music constantly playing? What type?

Not really constant but at times music plays

What type of scent is in the store? Does it detract or attract?

The company has attractive smell for its customers

Customer Service

What type of services does this store offer? (Alterations, gift wrapping etc.)

The company provides alteration and gift wrapping services to its customers. This is to enable customer and attract more customers.

How does this store handle customer complaints?

They hear from customer any complain which they forward to the management and refund to the customers in a case where the product was not genuine delivered to the customer.

Does this store have – mystery shoppers to check level of service?

Yes, the store has mystery the check the level of the services.

Is the salesperson – empowered to make decisions or is it up to management?

The salesperson has no power to make decision but the store opens for any recommendation and suggestion from the salesperson but the decision is made by the management of the store.

Retail strategy:

competitive advantage:

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