Macy’s management is intent on leveraging every possible channel to maximize sales and gain market share. In its annual meeting, the department store chain which operates 800 namesake locations as well as 27 Bloomingdales stores announced an omnichannel strategy aimed to put all of Macy’s goods
The timing couldn’t be better. Macy’s is riding high on across the board increases in 2011. The retailer took in $26.4 billion in sales --top line growth was $1 billion along with a 4.6 percent boost in comps and a 40 percent increase in online sales. Net cash flow was up to $1.46 billion for the year before financing activities. The company also had significant increases for the first quarter of 2012. Earnings were up 43 percent and sales were up 4.3 percent to $6.143 billion.
With money in hand, the muscle is being applied to integrate Macy’s stores, it’s e-commerce site and customers’ mobile devices to make the company’s inventory available no matter where it’s racked. Part of the process has Macy’s taking a page from Nordstrom’s playbook in which the Seattle-based chain shipped goods directly from stores to accelerate inventory turn and prevent markdowns. Macy’s already got shipping stations in place at over 100 stores and plans to have as many as 292 ready to fulfill orders in addition to the company’s four primary online fulfillment centers. Customers will also get promotional texts via mobile to get in on the latest deals.
Beyond the $400 million investment to spruce up its flagship and its forward-thinking participation in NBC’s Fashion Star reality show, Macy’s is making strides in the brick-and-mortar space. Tactics 2.0 include price checkers that offer e-commerce-like additional sales suggestions, digital assortment displays in smaller spaces, giving sales associates tablets to facilitate sales and mannequins that change their outfits based on prevailing crowds or the weather.
Though JCPenney’s woes give Macy’s an opportunity to grab even more marketshare, Macy’s needs to play every digital card it possibly can. Amazon’s 800 pound e-commerce gorilla is determined to push into fashion retail and pull sales away.
Macy's has always been an out of the "big box" thinker on how they use digital. Unique social campaigns, breakthrough QR codes, and the harnessing of star power have been a few ways they have lead the industry via technology. With their newest digital solutions they continue to harness some of the key strengths that Amazon used to exclusively hold. By continuing to think outside the big box, Macy's is finding ways of turning what could be seen as a limitation of a bricks and mortar location into a strength that will continue to position them as a leader and first stop for shopping. It is a fact, consumers are flocking at record numbers to mobile devices to help with their shopping process from comparison shopping, finding locations and gaining last minute coupons/savings codes. Macy's is responding to these trends.
image courtesy Macy's
