My Macy's

In: Business and Management

Submitted By mcggarc
Words 397
Pages 2
The regional director of Macy's New York-area stores, Michael Dervos, In 2007, was visiting Flushing, Queens store shoe department and he noticed that sizes available were size 9 and above. A question came to his mind, why these sizes if many of the store's customers are Asian Americans? This customer segment tends to have smaller feet.
This event triggered a new strategy called My Macy's. Over the past three years, the strategy has enabled the department stores retailer to double earnings. It is a good moment to highlight that it is a period during which most retailers serving the middle class have struggled. Exhibit 1 shows My Macy’s website customized for Carlos Garcia.

Exhibit 1: My Macys website (retrieved from http://www1.macys.com/index.ognc?cm_sp=navigation-_-top_nav-_-macys_icon)

At Kohl's, for instance, earnings plunged 13% for the period, and at J.C. Penney earnings rose just 32%. Talking about the same three years, Macy's stock climbed more than fivefold, to $38.07 (prices and related data are as of Dec 14, 4:00PM EST). Exhibit 2 shows Macy’s stock performance in the last five years.

Exhibit 2: Macy’s Stock Price (retrieved from http://finance.yahoo.com/echarts?s=M+Interactive#symbol=m;range=5y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;)

According to May (2012), the Cincinnati-based department store chain (NYSE: M) has grown sales by more than $1 billion in each of the last two years and saw same-store sales increase by another 4.4 percent for the first quarter of this year.
“In building Macy’s culture of growth,” Lundgren said, “we have outperformed just about every one of our major competitors.”
Lundgren attributed that success to the strategy that the company calls M.O.M. The acronym stands for:

My Macy’s localization,
Omnichannel and
MAGIC selling.

My Macy’s refers…...

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