Macy’s Marketing Strategy 2018

In the midst of the e-commerce era, the traditional shopping centers are slowly dying out as an inevitable price for change. But as a miracle, Macy's still held and reported profit for the fourth quarter in a row. So where is the secret to survival of the US retail giant? Nacy's marketing strategy 2018?

Macy's marketing strategy 2018

The US retail industry is witnessing the demise of shopping malls: once-famous giants like Sears or Bon-Ton collapsed, another "big-eyed" retailer was JC Penny is in a dying situation because of constant losses. It is easy to see the cause for these tragedies stems from the rise of e-commerce businesses, such as Amazon or T.J.Maxx.

As a miracle, Macy's still stood firm and posted a fourth straight quarterly profit. Although the retail giant suffered losses three years earlier, the retail giant still confidently increased its return on shares in 2019 and was extremely optimistic about the last quarter of 2018's revenue.

Survival strategy

US malls lost $ 20 billion between 2012 and 2017, down an average of 4.6% per year, to 81% in 2017, according to Euromonitor. Macy's is still the market share leader in the mall segment of the retail industry. However, this company also suffered from a shrinking market share, from 22.3% to 18.2% in 2017.

Since 2015, Macy's has closed at least 124 stores, although So this number is still quite optimistic compared to other competitors in the same industry. In 2017, the company recorded nearly $ 25 billion in revenue from 690 stores, not including 180 stores of Bloomingdales, Bluemercury, Macy's Backstage and Story.

"Our store is very different from the others," Jeff Gennette, president and CEO of Macy's, told a meeting with experts shortly after the sales announcement. "We have created a long-term strategy to increase the store's ability to attract customers."

When asked about the recent downsizing of stores, the president said that they are "ancillary" stores, still profitable but the main role is as a venue for customers to receive. Return purchased online.

 

In prime stores located in prime locations, Macy's is trying to offer more items for consumers to choose from. In 2016, the company launched the Backstage booth, located in the heart of the commercial centers of Macy's.

These stalls specialize in selling discounted items in order to lure customers and prevent them from stepping into the stores of other competitors such as Marshalls and T.J.Maxx. As expected, Macy's shared that Macy's shopping centers with Backstage booths were more profitable and had more visitors.

Another move that helped Macy's increase visitor arrivals is to increase the presence of restaurants and other types of entertainment such as movie theaters and games.

"We are really changing what malls can offer," Gennette said, "shrinking the number of fashion stores, replacing restaurants and entertainment services." .

Macy's is also doubling its resources on mobile apps and technology solutions. The giant claims that its online sales are continuing to grow exponentially and predicts that sales from mobile phones will hit $ 1 billion this year.

In stores, Macy's offers instant code scanning and payment on mobile phones to save time in queue for purchases. The company also equips "magic mirrors", which help buyers to try out fashion products without having to put them on themselves by creating a hypothetical image in the mirror.

In Macy's furniture stores, customers can use devices with virtual reality technology (Virtual Reality) to "sample" of furniture to buy in their home image. The application of this technology has helped furniture stores increase sales and reduce the rate of returned items, Macy's said.

And yet, Macy's also applies data analysis to the stock sorting process, thereby distributing the stock more reasonably, helping to reduce the rate of decline in discharge prices. This business also offers a reward program for loyal customers. A special feature is that all buyers, regardless of the order's value, large or small, can participate. This has attracted a large number of curious new customers.

One of the current trends in the retail industry is to symbiotic or devour startups. Macy's has bought a stake in a tech startup called b8ta to expand its pop-up stores. The company also acquired Story, a store famous for displaying and selling products from many different brands, so the background of decorative themes was extremely unique and different. Story's founder, Rachel Shechtman, became the brand experience director at Macy's to integrate and replicate Story's uniqueness into Macy's.

"We are extremely focused on experience. This is the foundation for creating new innovations," Gennette said.

Say and do. During the Christmas season of this year, Macy's main store in New York opened a 25 square meter experience area at the ground floor cosmetics store, to bMacy's Marketing Strategy 2018ring unique photos worth capturing and posting on Instagram.

The remaining issue is how long Macy's will extend these experiences to its entire giant system, and how much it will cost.

Blebees.com

(Source: forbesvietnam)

source https://blebees.com/macys-marketing-strategy-2018/