Running Head: MERCHANDISING MODULE ONE
Danielle Perri
September 30, 2015
Merchandising Module One
MRCH 4350: Merchandising Planning, Buying, and Sourcing
College of Human Health and Performance
Department of Interior Design and Merchandising
East Carolina University
Running Head: MERCHANDISING MODULE ONE
Merchandising Module One Directions: MAP
Part One: Knowledge Is Power!
Resources
http://clients1.ibisworld.com/search/default.aspx?st=Retail
http://library.morningstar.com/
http://advantage.marketline.com/
http://search.proquest.com.jproxy.lib.ecu.edu/abicomplete/index?accountid=10639
Running Head: MERCHANDISING MODULE ONE
SEC Fillings
S-1
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-KAnnual Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934For the Fiscal Year Ended
January 31, 2015 Commission File Number:
1-13536
7 West Seventh StreetCincinnati, Ohio 45202
(513) 579-7000and
151 West 34th StreetNew York, New York 10001
(212) 494-1602Incorporated in Delaware
Securities Registered Pursuant to Section 12(b) of the Act:Title of Each Class
Common Stock, par value $.01 per share
Securities registered pursuant to Section 12(g) of the Act:None
Running Head: MERCHANDISING MODULE ONE
Q-10
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934
For the quarterly period ended August 1, 2015
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 1-13536
Incorporated in Delaware
7 West Seventh StreetCincinnati, Ohio 45202
(513) 579-7000and
151 West 34th StreetNew York, New York 10001
(212) 494-1602
Running Head: MERCHANDISING MODULE ONE
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934
For the quarterly period ended May 2, 2015
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 1-13536
Incorporated in Delaware
7 West Seventh StreetCincinnati, Ohio 45202
(513) 579-7000and
151 West 34th StreetNew York, New York 10001
(212) 494-1602
Running Head: MERCHANDISING MODULE ONE
Part Two: Getting Acquainted
The Company
Retailers Name – Macy’s Inc. Address Headquarters - 7 West Seventh Street, Cincinnati, OhioWebsite link - http://www1.macys.com/Corporate Owner – Macy’s IncOrganizational structure –
Name Job titleTerry J. Lundgren
Chairman and Chief Executive Officer
Timothy M. Adams
Chief Private Brand Officer
William S. Allen
Chief Human Resources Officer
Jeffrey Gennette
President and Chief Merchandising Officer
Julie Greiner Chief Merchandise Planning Officer
Robert B. Harrison
Chief Omnichannel Officer
Karen M. Hoguet
Chief Financial Officer
Jeffrey A. Kantor
Chairman, macys.com
Martine Reardon
Chief Marketing Officer
Peter R. Sachse Chief Stores Officer
Tony Spring Chairman and Chief Executive Officer, Bloomingdale's
Number of Stores - 885Store Locations – National and International – Macy’s in Dubai is operated by Al Tayer Group LLC under a license agreementLocation of nearest store - Macy’s Triangle Town Center
Running Head: MERCHANDISING MODULE ONE
3801 Sumner BlvdRaleigh, NC 27616
Company’s Mission Statement - Our goal is to be a retailer with the ability to see opportunity on the horizon and have a clear path for capitalizing on it. To do so, we are moving faster than ever before, employing more technology and concentrating our resources on those elements most important to our core customers.
(Macy’s, 2015)
The Merchandise and Services
Categories of merchandise
Home
$49.99 - $500.00
Bed and Bath
$3.97 - $250.00
Women
Running Head: MERCHANDISING MODULE ONE
$ 20.00 - $398.00
Men
$18.99 - $895.00
Juniors
$6.99 - $360.00
Kids
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$3.99 - $154.99
Active
$3.99 - $179.99
Beauty
$8.00 - $300.00
Shoes
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$34.99 - $398.00
Handbags
$29.99 - $695.00
Jewelry
$7.99 - $878.00
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Watches
$19.99 - $7,900.00
(2015, Macy’s)
Merchandise quality and price points
Quality products at reasonable prices
Buy more save more – Customers who spend more on their purchases will save more on weekly coupons or sales Macy’s frequently use
Friends and family coupons – Macy’s employees gives out 40% off coupons to their friends and families twice a year. Customers can also use additional coupons on top of the 40% off.
20% off – Macy’s gives out 20% coupons in the weekly circular and you can also find these coupons online
(2015, Macy’s)
Private brand
Macy’s is recognized as a retail industry leader in developing private brand merchandise that differentiates the assortments in our stores and delivers exceptional value to the customer
Merchandise for each private brand, available “Only at Macy’s,” is developed to appeal to a certain customer lifestyle and is supported with marketing programs that create a precisely defined image
Macy’s also develops private label goods to meet specific customer needs and to fill gaps in the assortment
(2015, Macy’s)
Customer service
Free returns – Macy’s will pay for the shipping to return your order Call us – Macy’s customer service line is available 24/7 Macy’s Credit Card – you can manage your Macy’s credit card online Tell Us What You Think – you can leave your customer service feedback online International – additional information on your international order
Running Head: MERCHANDISING MODULE ONE
(2015, Macy’s)
Omnichanel
Omnichanel connects to merchandise quality and price points because Macy’s wants its customers to find the best quality for the best price by searching its different stores and on its online store
Omnichanel is the way Macy’s gets its products to the customer, for example if a product is not in store that a customer wants Macy’s can find other store that has the product and send it to them
Allows for extraordinary service to customers Online shopping community Website attractiveness and efficiency Search and send for merchandise that is not available in the store the customer is currently in,
mail to the customer directly from other store In addition to warehouse fulfillment of purchases from in store, online, or mail orders Macy’s
now has 292 stores that participate in the fulfillment of orders, to insure that the customer receives better service as purchases are delivered quicker than ever before
By the end of the year management expects to have about 500 stores participating in this program.
(Forbes.com, 2013)
Magic Selling
Magic Selling connects to merchandise quality and price points because Macy’s employees want to find the customer products that best fit their quality and price preferences
Macy’s helps local customers understand that the products at their Macy’s were selected to meet their needs
These needs include size, color, style, fabric weight or brand Magic Selling:
Make a connection Ask questions Give options and advice Inspire to buy Celebrate the purchase
(2015, Macy’s)
Services
Shipping Customers can place an order in the store, online, or through the mobile app to delivery it straight
to them
Tailoring Alterations on Men’s suits
Personal Shopper
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Can book an appointment online for a specific store for an M Stylist (personal shopper) Free
Bridal services The bridal salon, picking out your wedding dress and the bridesmaid’s dresses
Razor and watch repair Repair razors and watches
Custom Shop at Home Services Customers access an interior design consultant on macys.com
Travel Services Customers looking to book a vacation
Visitor Services Customers traveling from other countries
Corporate Sales Services Companies that want to buy gifts in bulk for their employees can go through Macy’s and they
will put together gifts for you
Wedding Registry Customers put items they would like for their wedding on a registry
Hair/Nail Salon Get your hair cut, colored, styled Get a manicure, pedicure
Cosmology Services Makeup application for prom, weddings Makeup consulting
(2015, Macy’s)
The Market
Target Market Profile
Demographics
Age - 18 – 40 years old Sex – Female Income (range) – Middle class income - $30,000 to $90,000 Occupation(s) – Teachers, Managers, Nurses Highest level of Education – High school – College degree Marital Status – Married
(2015, Macy’s)
Psychographic/Lifestyle Variables
Running Head: MERCHANDISING MODULE ONE
Health and appearance preferences Macy’s customers are fashion trendsetters, they are willing to pay more for a new trend My Macy’s – localization, caters products to a specific location by age, gender, and ethnicity Customer cares about being up to date on the latest fashion styles and beauty trends Macy’s female customers value the aspect of looking thin, their makeup looking flawless,
their nails painted, their hair always done, and their outfits always trendy
Online habits Customers shops online three to four times a week Increased customers online since Macy’s ships to over one hundred countries worldwide Macy’s has e-commerce partnership with Fung Retailing in China Opening a Macy’s store in Abu Dhabi, United Arab Emirates – will increase online shopping
for international customers Same-day delivery of products purchased online BOPS – buy online pick up in store Macy’s shopping app – app on smart phones that allows you to access the same merchandise
online Shopkick – customers receive points for coming into Macy’s stores and rewarded with a gift
card once they get a certain amount of points Smart fitting rooms – customers can virtually try on merchandise iPads in stores, order products online in stores – Macy’s has iPads in stores so that customers
can purchase merchandise online if the store doesn’t have their size.. etc Macy’s image search – customers can search for merchandise by uploading or taking a
picture of a style they like on the mobile app Apple Pay – Pay directly from your iPhone Macy’s / Bloomingdales’ Wallet – Mobile app RFID – Track your online order
Quality/Value balance Customer wants good quality and good value Macy’s uses bridge brands which are lower-priced lines by luxury designers using lower-
priced fabrics Macy’s puts merchandise in certain stores based upon demographics and what will fulfill
customer’s needs
Career importance Customers have a career where the dress code is business casual or business professional Have a career that allows them to afford Macy’s prices, for themselves and their family Have a career that allows them off for vacations, holidays, weekends, nights, etc.. so that they
can shop for clothing besides work outfits
Family Values Strong family values that ties to the community Giving back to the community Diversity Volunteering Examples of ways Macy’s gives back: Reading Is Fundamental - provided more than 10 million books to children in need Got Your Six - its mission to honor and empower American veterans through top veteran-
focused nonprofit organizations
Running Head: MERCHANDISING MODULE ONE
Macy’s Thanksgiving Day Parade, 4th of July Fireworks
Shopping habits Customers shops in store once a week Customer shops frequently, spends more time shopping, and spends less money Two-thirds of all shopping trips start online, then customers come into the store to try on
merchandise and then buy in store
Fashion Forwardness (fashion innovator, fashion laggard, fashion leader, etc.) Fashion innovator Customers have the ‘it item’ first Customers are the first to adopt new fashion within their social group Customers who wear new styles are willing to pay a much larger price
(2015, Macy’s)
Persona One
Anne 50 years old Has her Associate’s Degree in Fashion Marketing from Berkley College and then went
back to school in order to move in up in the company and received her Bachelor’s Degree in Accounting from Montclair State University
Married to her husband for 25 years Mom of a 21 year old out of state college senior - female and a 12 year old 7th grade boy Lives in northern New Jersey Director of Facilities Call Center for Macy’s Been with the company for over 25 years and has worked her way up Middle class income Shops for her husband, her children, and her family – higher priced staple products at
higher quality Enjoys watching her son play middle school football and having her family and friends
over for dinner and drink wine
Persona Two
Running Head: MERCHANDISING MODULE ONE
Mary 22 years old Single Recent college graduate from East Carolina University, received her Bachelor’s Degree in
Fashion Merchandising and Business Lives in Raleigh, North Carolina Works for Michael Kors as a Store Manager in Crabtree Valley Mall Has her own apartment, paying off college loans Shops for fair priced trendy products at lower quality Likes to go downtown on the weekends with friends and co-workers
Competition
Direct
Belk Belk offers very similar merchandise to Macy’s but it is only concentrated in the Southeast of
the US while Macy’s is nationwide
Dillards Dillards has a great selection of products and offers great prices similar to Macy’s
JCPenny JCPenny offers similar merchandise as Macy’s but at a lower price point and lower quality.
But with JCPenny’s new company turnaround it could increase its market share
Indirect
Amazon Online market where customers can get similar items for a lower price, possibly opening a
brick and mortar store
TJ Maxx Discount stores which carry the same brands at a discounted price. The merchandise sold at
these discount stores will be a previous seasons style.
Michael Kors - Specialty Store Specialty store which carries the same brand but different assortment of merchandise
Merchandising
Running Head: MERCHANDISING MODULE ONE
Merchandising Channels
Multi-channel
Brick and mortar
Racetrack layout Separated by departments Multiple floors Gondola Four way racks Straight arm racks
(2015, Macy’s)
Online
Merchandise separated by department tabs Departments tabs separated by shops & guides, brands, sizes, accessories, trends, the must
haves, impulse contemporary brands Product details Reviews Product Q&A Shipping and returns Customers who also bought this also bought Recently viewed items
Running Head: MERCHANDISING MODULE ONE
(2015, Macy’s)Mobile App
Image search Barcode and QR code scanner Locates the closest store to you based on where you are Shop online, purchase online Offers – deals and promotions Account - access your account, shopping bag Lists – view your wish list Registry – view your wedding registry, find a wedding registry
Running Head: MERCHANDISING MODULE ONE
Stores – find stores in your area Customer service
(2015, Macy’s)
Running Head: MERCHANDISING MODULE ONE
Part Three: Forecasting the Future
Social Factors
Current
Green Living Today for a Sustainable Tomorrow
Macy’s stores and private brands partner to reduce men’s shirts packaging New York City offices are happy to announce the launch the NYC Go Green Employee
Resource Group – demonstrates to Macy’s employees throughout the nation on how to go green
Macy’s stores are recycling fixtures Macy’s systems and technology are saving energy in their data centers Macy’s is using solar power
Donald Trump
Donald Trump is running for President for the 2016 election Macy’s dropped his men’s suites line after calling Mexicans killers and rapists The statements made by Trump were inconsistent with Macy’s values, and they value their
Hispanic customers Macy’s will be launching a new line with a Mexican pop star
Macy’s Heart of Haiti
Macy’s is selling decorative pieces made by Haitians helping them after the tragic earthquake Purchasing one of these pieces directly supports the Haitians Offers new opportunities for Haitian artists to collaborate with U.S. designers
(2015, Macy’s)
Future
Worldwide Diversity
Support the LGBTQ community in the Pride parade and in Gift & Wedding registry Celebrate the Chinese New Year with pop up shops, activities, and events Support Hispanic communities with the Puerto Rican Parade and creating a new line
featuring a Mexican pop star
Macy’s Backstage
Macy’s will launch discounted stores to target its younger customers Macy’s Backstage presents a store where bargain hunters will love to shop at Fun shopping environment with brands Macy’s is famous for at discounted prices Including a café and the thrill of the style hunt at great deals Macy’s will incorporate the Backstage theme to real life concerts and have an actual stage in
their Backstage stores with famous artists preforming, catering to teens - young adults. Including an open, airy environment just like the consumers were at a concert.
Running Head: MERCHANDISING MODULE ONE
(Macy’s, 2015)
Economic Factors
Current
Macy’s reliance on foreign sources of production
Including risks related to the disruption of imports by labor disputes Regional health pandemics Regional political and economic conditions
Macy’s consumer spending levels
The huge impact of economic conditions Consumers low disposable income levels Consumers low confidence levels Low economic availability Cost and level of consumer debt is increasing Increasing costs of basic necessities and other goods and the effects of the weather or natural
disasters
(2015, Macy’s)
Future
Macy’s to close 40 stores and to make current stores smaller, build stores smaller in the future
Customers can try on clothes virtually in stores using Smart Fitting Rooms Customers can check out using their smartphones Macy’s will be using new tech tools to analyze shoppers buying patterns and behaviors inside
stores
Popularity of online shopping
The popularity of online shopping has made Macy’s convert some stores into distribution centers
These distribution centers need to fulfill online orders and ship them out to consumers as quickly as possible
Macy’s is installing more in store kiosks so that customers can compare prices and place orders online for delivery to that store or to their house
(2015, Macy’s)
Fashion Trends
Fringe Trend
70’s renaissance style
Running Head: MERCHANDISING MODULE ONE
Flapper dresses Bohemian rhapsody flared pants
Pleating Trend
Takes on a sophistication that goes beyond the private school girl uniform look Feminine details generates sexiness with a hint of reserve Used in lightweight fabric, pleats add volume without bulk
(www.instyle.com , 2015)
Running Head: MERCHANDISING MODULE ONE
Netting and Mesh Inspiration from the uniform of professional athletes Using high tech open webbing weave Sports luxe trend - using netted, perforated and fishnet fabrics on baggy
tees, loose-fitting tanks, ab-baring crop tops and peek-a-boo skirts and hemlines
(www.thefashionspot.com, 2015)
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Layered Sequins Trend Holds a special place in every girls heart High shine details to everything from shorts to dresses Giving wardrobes shimmer
(www.popsugar.com, 2015)
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Red Holiday season trend Bold with a bright dress or toned down with separates Classic trend and incredibly chic
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(www.sydnestyle.com, 2015) (www.eonline.com, 2015)
Running Head: MERCHANDISING MODULE ONE
References
10-Q. (2015, August 28). Retrieved September 16, 2015, from http://www.sec.gov/Archives/edgar/data/794367/000079436715000142/m-0801201510q.htm
M-05.02.2015 10Q. (2015, June 4). Retrieved September 16, 2015, from http://www.sec.gov/Archives/edgar/data/794367/000079436715000123/m-0502201510q.htm
M-01.31.2015 10K. (2015, April 1). Retrieved September 16, 2015, from http://www.sec.gov/Archives/edgar/data/794367/000079436715000073/m-0131201510k.htm
Macy's - Shop Fashion Clothing & Accessories - Official Site - Macys.com. (n.d.). Retrieved September 16, 2015, from http://www1.macys.com/
(2015, January 8). Retrieved September 23, 2015, from http://advantage.marketline.com.jproxy.lib.ecu.edu/Product?pid=3AFD598E-6F71-4D0C-82C9-A88EA867D0C5
(2013, February 27). Retrieved September 27, 2015, from http://www.forbes.com/sites/walterloeb/2013/02/27/macys-loves-mom-and-consumers-do-too/
Biggest Trends at New York Fashion Week Spring 2016. (2015, September 18). Retrieved September 27, 2015. from http://www.eonline.com/photos/16997/biggest-trends-at-new-york-fashion-week-spring-2016
"Pleats." InStyle.com. 20 Oct. 2015. Web. 28 Sept. 2015. <http://www.instyle.com/fashion/pleats>.
"Spring 2016 Trend: Sports Luxe Mesh - TheFashionSpot." RSS 20. 20 Sept. 2015. Web. 28 Sept. 2015. <http://www.thefashionspot.com/style-trends/395313- spring-2014-trend-sports-luxe-mesh/#/slide/1>.
"The 9 Biggest Trends From New York Fashion Week." RSS. 19 Sept. 2015. Web. 28 Sept. 2015. <http://www.popsugar.com/fashion/New-York-Fashion- Week-Trends-Spring-2016-38475776/#photo-38476256>.
"Red | Fall-Winter Fashion Trends." Sydne Style. 10 Sept. 2015. Web. 28 Sept. 2015. <http://www.sydnestyle.com/2015/09/top-fall-trends-red/>.