Macy’s benefitted in 2013 from a number of significant actions to support our highly successful core business strategies – My Macy’s localization, Omnichannel integration and MAGIC Selling customer engagement – which are known by the acronym of M.O.M. Among them:
- We continued to refine and improve the My Macy’s process for localizing merchandise assortments by store location, as well as to maximize the effectiveness and efficiency of the extraordinary talent in our My Macy’s field and central organization. We have re-doubled the emphasis on precision in merchandise size, fit, fabric weight, style and color preferences by store, market and climate zone. In addition, we are better understanding and serving the specific needs of multicultural consumers who represent an increasingly large proportion of our customers.
- Store fulfillment – the process of shipping direct-to-customer orders that originate online and from other stores – was expanded to 500 Macy’s locations in 2013. Store fulfillment was piloted in 2010, rolled out to 23 stores in 2011, then to 292 stores in 2012. We will complete the rollout in spring 2014, when all of our approximately 650 full-line Macy’s stores will have shipping capability. With store fulfillment, we are able to leverage the inventory and customer relationships inherent in our bricks-and-mortar stores in support of an Omnichannel strategy that is being driven by emerging customer shopping preferences.
- Based on this store fulfillment capability, we successfully tested Buy Online Pickup In Store in 10 Macy’s locations in the Washington, D.C., market in fall 2013. This customer convenience was well-received and will be quickly rolled out to all Macy’s full-line stores by mid-year 2014.
- To complement store fulfillment, we continue to aggressively expand our capacity in dedicated direct- to-customer fulfillment centers. In 2014, we will complete the expansion of our fulfillment megacenter in Goodyear, AZ, by 360,000 square feet to a total of 960,000 square feet, and we announced a new 1.3 million-square-foot fulfillment center to be built in Tulsa, OK, and opened in spring 2015. It will be our fifth megacenter and one of the largest and most technologically-advanced fulfillment centers in America.