This paper explores how Macy's has become a technological leader in the retail industry through various innovations. Through social media promotion, mobile app partnerships like iBeacon, expanding e-commerce capabilities, and renovating stores with digital features, Macy's has adapted to changing consumer preferences and maintained its competitive edge. The author argues that Macy's early adoption of new technologies and focus on enhancing the customer experience online and in-stores demonstrates why it will continue to thrive as retail becomes more digital.

1. Macy’s: The Technological Leader 1
Macy’s: The Technological Leader of the Century
Mercadies L. Cochran
Kent State University

2. Macy’s: The Technological Leader 2
Abstract
This paper explores the Macy’s department store corporation and their technological
innovations over the century. It includes evidence as to how Macy’s is the leading retailer
in technological advancements and will continue to stay a threat to the rest. The article
touches on Macy’s social media promotion, mobile app partnerships, in-store experiences
and e-commerce expansion; in regards to how each of these contributes to an overall
shopping phenomenon for each customer. By the research conducted for this paper it is
clear the magic of Macy’s lives in the technology.
Keywords: Macy’s, technology, e-commerce, social media, mobile apps

3. Macy’s: The Technological Leader 3
Macy’s: The Technological Leader of the Century
“I fear the day that technology will surpass our human interaction. The world will
have a generation of idiots.” Unfortunately, part of Albert Einstein’s fear is becoming a
reality. Technology has begun to surpass our human interaction but it has not necessarily
made a generation of idiot. In turn, technology has made a
generation of amazing advancements within retail. Macy’s, the
company that has become the technological leader of the century is
doing better than ever before. What was once known as the fancy dry
goods store located on the corner of 14th street and 6th avenue in New
York City, 1858, is now known as a technological innovator (Macy’s, 2014). But with
every retailer in the world constantly trying to advance before the other, how has Macy’s
remained on top? According to an article by the Business Report, “Macy’s has turned
into a digital hybrid nearly as familiar with GPS signals and online advertising as it is
with clothes racks and perfume counters” (Regalado, 2014). Between the social media
promotion, mobile app partnerships, e-commerce expansion and in-store renovations
Macy’s has most certainly earned the title of the technological leader of the century.
Social Media Promotion
Social media has grown to play a huge part in technology and the retail business.
What better way to build customer loyalty than to connect with the public on a personal
level? Macy’s nails this right off the bat by offering customers the opportunity to follow
them on three of the most popular social media accounts; Facebook, Instagram and
Twitter. The Facebook account is aimed towards receiving customer feedback and
connecting people from all over the world. With around 14 million likes and an average

4. Macy’s: The Technological Leader 4
of 1.5 million visits, the Macy’s Facebook account has allowed customers to feel a
friendship type connection with the store as opposed to a business deal with their wallets.
The Instagram account serves as an inspiration board for the average customer. The
pictures capture the essence of Macy’s mission statement without saying a word. Each
photo is vibrant, trendy and magical, three characteristics the everyday Macy’s customer
possesses. The Twitter account is geared towards the community aspect of Macy’s. The
tweets focus on what Macy’s is doing for the community such as promotion for the
Macy’s Thanksgiving Day Parade, the NextStyleStar episodes or their give back
program. Seeing as it is nearly impossible for the Macy’s corporation to meet face to face
with every customer, they use all three of these technological creations to keep a
connection and build brand loyalty. With over millions of followers on each account, it is
clear Macy’s took a step in the right direction by adapting the social media promotion
strategy.
Mobile App Partnerships
With social media on the rise, it is no wonder Macy’s was among one of the first
retailers to jump on the chance to incorporate m-branding into its technological hierarchy.
M-branding, also known as mobile branding is the use of mobile technologies and
devices [in reference to product branding] (Hameide, 238). One of the most exciting
innovations that have recently put Macy’s high above other retailers is their
experimentation with the new Apple Software, iBeacon. According to a recent article in
the Business Insider, iBeacons are tiny Bluetooth communicators for very short-range
signals. You can switch on an app in your iPhone that will detect an iBeacon if you’re
near it (Edwards, 2014). Basically, Macy’s will put iBeacon trackers on merchandise or

5. Macy’s: The Technological Leader 5
around the store and when the app is turned on, you will receive a notification with a
discount or special deal regarding particular products. It will combine satellite GPS with
in-store merchandise trackers that will make the shopping experience more valuable. For
more information about this new software click here (Shopkick, 2014), YouTube worked
with Shopkick to produce a video with a live trial using the iBeacon at the NYC Macy’s
store. With a mobile app partnership such as iBeacon, customers are more likely to
impulse buy if presented with a simple notification making them aware of a deal or
discount on a product they were not too sure about. This will lead to an increase in
Macy’s marginal revenue allowing them to remain a leader with sales and profits.
E-Commerce Expansion
That however, is not the only way Macy’s has learned to bring in higher marginal
revenue. Corporate has recently invested more time into expanding their e-commerce.
Macy’s has been working on their webpage to increase the online inventory. To do so,
they have been keeping an eye on the store to door strategy. As of last year, 300 out of
840 Macy’s locations were equipped to handle direct-to-consumer order fulfillment
(Giannopoulos, 2012). This means that if the distribution center connected with online
orders is out of the product, the computer will generate a way to find out where the
product is located in-store and send it to the customer. This in itself is a technological
advancement seeing as the computer will generate such intricate information in a timely
manner. Aside from increasing inventory, Macy’s has also been investing time into
changing their website to make it more user friendly. They want the website to be
convenient so more customers wish to order online if they do not have time to come into

6. Macy’s: The Technological Leader 6
the store. With this type of e-commerce expansion, no other retailer can compare to
Macy’s.
In-Store Renovations
With online shopping becoming more popular, it is getting harder for retailers to
keep customers coming in-store to make most purchases. Most retailers would panic
trying to find new ways to renovate the in-store shopping experience, but of course,
Macy’s is two steps ahead and already knows exactly how to bring customers back. The
idea of digital mannequins seems out there, but technological advancements have allowed
this to become something futuristic for our generation. The idea behind digital
mannequins is to better target different types of customers at different times of day
(Giannopoulos, 2012). This will allow employees to change the garments on holographic
mannequins throughout the day without having to physically take time away from serving
the customer to change an outfit. Eventually, customers will be able to change the size of
the mannequin to imitate their own body. They can then choose what clothes go on the

7. Macy’s: The Technological Leader 7
mannequin to see what the garment would look like on them. Another technological
advancement that will be used in the store is a modification to the everyday kiosks.
According to an article in the Retail Information Systems News, the cosmetic department
will feature a “beauty spot” touchscreen that will provide a blend of physical inventory
with a virtual interactive display of product information (Giannopoulos, 2012). This
allows customers to help themselves but still receive the same information as they would
with an employee. This would be ideal for a customer who does not have time to wait on
a sales associate if they are shopping during a busy time. Both the digital mannequins and
the advanced kiosks are technological advancements geared towards customer fulfillment
within the in-store experience when shopping at Macy’s.
So, yes, Albert Einstein’s biggest fear did come true, we have lost most means of
human interaction because everything is becoming a virtual experience. But, with that,
we have gained some of the most intriguing technological advancements that Mr.
Einstein could have only dreamt about. The idea of retailing is forever changed due to
these technological developments. The Macy’s corporation has proved they are willing to
adapt to the new ideas and do it better than the 21st century, up and coming, online
retailer. With the constant social media promotion, mobile app partnerships, e-commerce
expansion and in-store experience recreations, Macy’s will continue to stay a few steps
ahead of the rest with the most up-to-date technological innovations.

8. Macy’s: The Technological Leader 8
References
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Giannopoulos, N. (2012, May 15). Macy's Takes the Lead in Tech-Enhanced Shopping |
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Hameide, K. K. (2011). The Age of Interactive, Wireless, and Virtual Brands. Fashion
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Regalado, A. (2014). It's All E-Commerce Now. Technology Review, 117(1), 61-62.

9. Macy’s: The Technological Leader 9
Shopkick's shopBeacon (iBeacon/BLE) Trial Live at Macy's in SF. (2013, November 21).
YouTube. Retrieved April 25, 2014, from
http://www.youtube.com/watch?v=c3h0eKGfUfI