The document provides an overview of industry and company trends for Macy's. Regarding industry trends, it notes that traditional retail shopping is declining while value-oriented stores and online shopping are growing in popularity. For Macy's specifically, it states that while other brands have seen positive sales growth and increased customer traffic, Macy's has experienced declining sales and foot traffic. It also summarizes that Macy's current marketing messages do not tie together well and make the brand feel remote and non-inclusive. Competitive analysis shows that Macy's needs a unique communication strategy to distinguish itself from competitors. The solution proposed focuses a new concept on highlighting Macy's long history and role in consumers' lives from events to sales,
3. Size of retailers based on US sales ( in Billions)
Industry Snapshot
Source: Statista
298
74
64
27 25 19 14 13 5
0
75
150
225
300
375
4. Traditional Retail
Shopping is Declining
Industry Trends
Value Oriented Stores are
becoming more popular
Malls are Seeing Declining
Sales
Online shopping is
growing
5. Percentage of U.S sales at general merchandise stores, by type, 2000-16
0%
1,750%
3,500%
5,250%
7,000%
8,750%
Warehouse clubs and superstores Discount department stores Traditional Department stores All other general merchandise
stores
Source: Mintel, Department Store Reteiling US, September 2016
6. Online Shopping Market in the U.S. (in billions)
0
100
200
300
400
500
2011 2012 2013 2014 2015 2016
Source: Mintel, Online and Mobile Shoppings, US, September 2016
7. 02
About Macy’s
• Largest retail brand of Macy's, Inc. (NYSE:M)
• Fashion & affordable luxury
• 734 locations in 45 states, the District of Columbia, Puerto Rico and
Guam
• >100 international destinations @ macys.com
• Known for epic events--Macy's 4th of July Fireworks® and the
Macy's Thanksgiving Day Parade®
• 4 flagship stores -- including Herald Square (NYC), Union Square
(SF), State Street (CH), and Dadeland (MIA), South Coast Plaza
(SoCal)
• Tourist Site for visitors
• 150-year tradition
• Strengthen communities--- supporting local and national charities
giving more than $69 million each year to help make a difference
8. Macy's History
New York retailer Rowland Hussey Macy opens
his first store on the corner of 14th Street and
6th Avenue with the iconic red star as the logo
The store expands
Moves to its current 34th street
Herald Square location
Macy’s kept expanding and is promoted as “World’s Largest Store”
Thanksgiving Day Parade debut
Federated changed its
name to Macy’s inc
Expanding digital footprint: Online
orders increased by 25%
Closing 36 physical stores
10. -34%
-23%
-11%
0%
11%
23%
Nordstrom Kohl's JC Penney Macy's
historical sales growth of major department stores
(in millions)
Business Snapshot
Negative sales growth while other players' sales
increased
Source: company 10K
11. Number of people that purchased in Macy’s within the last 30 days
(in millions)
Business Situation Snapshot
Customer traffic has seen a declining
trend
40
42
44
46
48
50
52
54
2008 2009 2010 2011 2012 2013 2014 2015
Source:: Statista
12. Key Takeaways
Industry
Consumers are shifting
towards value-oriented
stores and online shopping
Macy’s
While Other brands have
seen a positive sales growth
& increase foot traffic to
store Macy’s has fallen
behind.
16. # Celebrate
Everything with
Macy’s
“Love, holidays, family, friends, or just because…there are so many reasons to celebrate! And for
generations, Macy’s has been lucky to be there with you every step of the way. So let’s keep
celebrating the big things, the little things and everything in between, together.”
—Macy’s
Macy’s 2016 campaign
18. #AmericanIcon
“This year, American Icons is all about
the celebration of music and we’re
offering a medley of different experiences
for customers to get involved.”
—Macy’s CMO, Business Wire
“Macy’s Summer Vibes”
Macy’s Public
Events
25. What do we know?
Macy’s is linked to a
feminine image, with
good fashion sense,
and is known for its
holiday events. But is
still somewhat remote
and not inclusive.
26. Key Takeaways
Industry
Consumers are shifting
towards value-oriented
stores and online shopping
Macy’s
While Other brands have
seen a positive sales growth
& increased customer traffic,
Macy's has declined
Message & Brand
Perception
The messages do not tie
together and makes Macy’s feel
remote and non inclusive.
31. Get your Penny’s worth
"JCPenny focuses on building private brands and revenue
per customer to create sustainable loyalty. If JCPenney
can help her discover the things she loves more easily,
innovatively and consistently than anyone else, we know
she'll come back for more."
33. Expect great things
"We not only offer the best merchandise at the best
prices, but we're always working to make your shopping
experience enjoyable. "
34. Like no other store in the world
"We are still finding various ways to show that we are no
ordinary store by trying to have our own unique ways and
being able to give everyone the best in fashion and
designing, all in a mind-blowing way. "
36. Key Takeaways
Industry
Consumers are shifting
towards value-oriented
stores and online shopping
Macy’s
While Other brands have
seen a positive sales growth
& increase foot traffic to
store Macy’s has fallen
behind.
Message & Brand
Perception
The messages do not tie
together and makes Macy’s feel
remote and non inclusive.
Competition
Macy’s needs a unique
communication plan to make it
stand out amongst the
competition
40. Department stores come and department stores go, but few have been around as long as
Macy’s. Why? Because Macy’s has always been a part of the fabric of your life; from
special sales, to the annual Thanksgiving Day Parade.”
47%
44%
29%
60%
26%
Age 18-34
Age 35-49
Age 50+
HH with children under
18
HH w/o children under 18
Degree of reception of the concept
People like to think of Macy’s as a fabric of their lives
41. age group: 18-50
With children under 18 in household
Feel that the relationship with Macy's has become closer
37%
31%
20%
40%
21%
62%
64%
39%
66%
44%
Age 18-34
Age 35-49
Age 50+
HH with children under
18
HH w/o children under 18
Feel positive emotions towards Macy’s
42. People Think about Macy's as America
&
Families consider Macy's "Comfortable" and "Safe & Secure"
18-34
35-49
Children under
18 in HH
43. Macy's' wide variety has
8
0
6
2
4
Macy's
Bloomingdale'
s
Kohl's
Nordstrom
JC Penney
The Number of Items People Think of Each Department Store First
ws that the fact that Macy's is in people's life from the behavioral dime