Macy’s, Inc. Outlines Enhanced Focus to Drive Growth Among Millennial Customers
NEW YORK--(BUSINESS WIRE)-- Macy’s, Inc. (NYSE:M) today outlined a new initiative to grow and develop Macy’s business with customers in the Millennial generation (ages 13 to 30). This is now America’s largest and most diverse generation, spending an estimated $65 billion each year for the type of goods sold at Macy’s.
The plan, to be implemented in progressive stages over the next three years, includes a series of steps to significantly enhance Macy’s assortment and shopping experience in mstylelab (the merchandise area primarily serving customers ages 13 to 22) and Impulse (primarily serving customers ages 19 to 30).
“We believe we have great opportunity to accelerate sales growth among customers in this generation. Doing so requires us to think from the customer’s point of view about our assortments and store experience, and to align our internal resources so we can move quickly and with focus,” said Jeffrey Gennette, Macy’s chief merchandising officer. “The Millennial strategy is a natural extension of Macy’s very successful work over the past three years in developing My Macy’s localization, omnichannel integration and customer engagement through MAGIC Selling.”
Key elements of Macy’s Millennial strategy include:
Identifying Customer Lifestyles – Millennials comprise a highly diverse generation. Macy’s extensive research into Millennial customers, their shopping preferences and buying habits demonstrates significant variation in what Millennial customers want and expect from their favorite store. Recognizing this, Macy’s has developed four customer lifestyle profiles for both Millennial women and men. These lifestyles express how the customers see themselves, primarily along the spectrum of their interest in fashion and newness, and will be used internally by Macy’s buying, planning, private brands, marketing and visual merchandising teams to better understand the customer so they can make informed decisions going forward.
Enhancing and Localizing Merchandise Assortments – Based on the understanding that brands are very important to Millennial customers, as well as a hallmark of Macy’s, the company will be further developing its assortments of brands that appeal to each of the customer lifestyles for women and men in mstylelab and Impulse. Some of Macy’s anchor brands for Millennials will be familiar names. In addition, the buying and planning organization will be working with its private brands organization and market vendors to bring fresh and exciting new brands and lines to the Millennial customer at Macy’s in apparel, accessories, beauty and home. Through the deep experience of the My Macy’s stores, districts and field planning teams, the company is able to effectively mold the mstylelab and Impulse assortments in each and every store for the Millennial customer who shops that location.
Relevant Omnichannel Environments – Macy’s will continue to use new and emerging technologies, as well as enhanced in-store and online environments, to create a fun, interesting and convenient shopping experience for Millennial customers. Macy’s will engage Millennials through mobile and digital channels, including social media. The use of QR codes, tablets, texting, tap-and-go transaction processing and offers delivered via mobile will be refined. Local events will appeal to the sense of style and fast fashion that Millennial customers seek.
Consistent with Macy’s Omnichannel strategy, stores, online and mobile will come together to provide customers with a seamless shopping experience. Macy’s will continue to add functionality to its website. Microsites within macys.com will highlight key fashions, tips and events. Plans call for more expert bloggers on macys.com providing direction and advice to Millennials, as well as other customers.
In-Store Improvements – Macy’s stores will use adjacencies, signage and technology to make it easy for customers to find what they are looking for. Associates will be better trained to offer advice and direction to help customers accessorize from head to toe. Visual merchandising will be refreshed more often, with presentations and displays that emphasize brands and lifestyles. Value will continue to be an important part of the equation in mstylelab and Impulse.
Organizational Structure – Macy’s is adjusting its organizational structure to support the Millennial strategy with speed in decision-making and product development, and to ensure that all thinking and resources are aligned. These adjustments will allow central office buyers, planners, marketers, private brand developers, visual merchandisers and support teams to collaborate more closely across functions to execute strategies and drive the business.
“Our Millennial initiative will help Macy’s to build this fast-paced business and better serve a large and dynamic group of customers. This is an exciting time to be at Macy’s as we continue to break new ground and grow our market share,” Gennette said.
Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2011 sales of $26.4 billion. The company operates about 840 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy’s and Bloomingdale’s, as well as the macys.com and bloomingdales.com websites. The company also operates seven Bloomingdale’s Outlet stores.
All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates, changes in expected synergies, cost savings and non-recurring charges, competitive pressures from specialty stores, general merchandise stores, manufacturers' outlets, off-price and discount stores, new and established forms of home shopping (including the Internet, mail-order catalogs and television) and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.
(NOTE: Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom).
Jim Sluzewski, 513-579-7764
Matt Stautberg, 513-579-7780
Source: Macy’s, Inc.
Released March 21, 2012