Why I want to write about Macy's

I worked with Macy’s this past summer as a Store Management Intern. I got to manage a team of associates, learn all about how Macy’s operates, practice analyzing store reports, and network with a lot of awesome people.  It was a fantastic experience.

Here is my store! I worked in Austin, and my little 2 story Macy’s is right next to California Pizza Kitchen (delicious).

I only say it is little because of my trip to Chicago for the Intern Summit. This is their 11 story tourist attraction store.

Why do I want to write about Macy’s?

Macy’s is such a solid retailer, and has been so since 1929 (then called Federated Department Stores).  In 2013, they were ranked number 14 on the top 100 retailers list, bringing in $27.6 mil in 2012 (source: www.stores.org/2013/Top-100-Retailers).

Macy’s sells everything from clothes and fragrances, to furniture and housewares.  They have an “omnichannel” strategy, serving customers both within the brick and mortar stores, but also online. They have recently developed a back of house system to deliver merchandise to customers via large fulfillment warehouses or from other store locations through their “more choices” system. I loved learning about Macy’s, and I already have a basic knowledge of how they operate and who they cater to, as well as in store experience with their associates and customer base. So here are some insights I already gained about Macy’s target segments:

Macy’s Customer Segments

As of about 2009, Macy’s has been developing a localization strategy. At our intern summit, I watched a video Macy’s made that described their movement towards diversity at the store level, with the purpose of catering to the needs of the specific city.

For example, we learned that the stores in San Antonio carry long sleeves and jeans year round, colorful “fiesta” wear, and sparkles (ha) for the wants of their Hispanic market.

Another example is the “street wear” that is primarily advertised in the Detroit market – which includes the “Miss me” jeans, and matching tops.

A third example is the DC market, where they focus on professional looks, and dark colors, for their high concentration of business people.

The market is defined at the district level, but planners and buyers are encouraged to get even more specific to the store level.

What I think I am going to write about…

This localization strategy just proves to me that Macy’s is a company that is focused on individualizing their offerings based on customer needs. That being said, I don’t think I want to write about 3 or 4 specific locations, but instead, markets that are seen nationwide. I divided these based on departments that interested me:

Moms:

Macy’s has brands that are more mature for their shopping moms. For example, they carry Style&Co, a store with simple and classic looks at a reasonable price. They also carry a brand called “Not Your Daughter’s Jeans”… self-explanatory, but here's a picture! 

Teen girls:

Macy’s has connected themselves with designers that appeal to this market, like Jessica Simpson. They have also developed in store brands like MaterialGirl, which offers bright colors, edgy styles, and mix and match options.

Businessmen:

Macy’s offers a unique store experience for its professional customers. The suits and dress shirts department has a much more clean feel than the rest of the store, and they offer associates with expertise for fittings to add to the overall prestige of the department.

I hope to look at these three market segments, and get some insight as to how they differ from location to location. Right now all of my insights come from Austin, so I am really interested to do further research.