Macy's case Essay Example | Topics and Well Written Essays - 1500 words

Macys case - Essay ExampleMacys has for some period has been one of the most influential and innovative players in departmental store sector, modify to adoption of numerous managerial and technological innovations that include data processing, store merchandising, inventory control, among others. By the 50s, almost every state, in America, had its own departmental store. However, 50 years later, this had changed drastically with a decline in sales. Macys decided on converting regional departmental stores into one brand while also move the store in order to differentiate it from its competitors. musical composition the move was derided in some quarters as futile due to the demise of the departmental store as a whole, some analysts were of the idea that the stores strategy was vital in revitalizing the declining industry. Which factors in the external environment could affect (positively and negatively) the mastery of Macys new strategy? Which internal factors could affect the su ccess of the companys strategy? Departmental stores are currently in danger of extinction. While there were thirty-five major chains of departmental stores in the 80s, there are only thirteen left in operation today. Conventional departmental stores in the 90s accounted for two and a half share of total income for American households, which have dropped to 1.6%, forcing departmental stores to reinvent their business strategies or suffer the risk of beingness run out of business. This results in the emergence of two models in for the departmental store sector in search for a profitable return. One has been the steadfast retail brand. The approach has been successful for departmental stores in the promotion and creation of in-house merchandise brands. Departmental stores are, therefore, able to promote their brands and name, assuming that the brands will reach a significant level of popularity, as opposed to relying on individual third party brands. Another model involves the showc ase approach that involves leveraging vendors of brands that are responsible for a substantial share of the retail process. The key, in this model, is the promotion of the shopping experience attraction, although this model leads to lower margins of profit. One factor that affects retail sales is the sparing environment that dictates the consumers expendable income. At Macys 2005 consolidation, the retail business operated under positive economic conditions. This changed in 2008 with the advent of the economic recession that stretched passim 2010. Some improvement was noted in 2011, although this was tempered by the increased oil prices and an increase in cotton prices. Another factor was industry products and service with the new departmental store model of the 90s utilizing decreased space and coming to resemble specialty-clothing stores. Womens products, such as cosmetics and apparel wear accounted for sixty percent of floor space, men, and children accessories accounted for 2 0%, and household goods accounted for 20%. The new model did away with traditional departmental store wares. Departmental stores placed increased emphasis on fashion, differentiating them from low-end competitors and responding to complaints of blandness from customers. Departmental stores also began attempts at developing unique positions from a selection of five categories including low end, lower middle, upper-middle, high-end