daniellecarmelaperri.files.wordpress.com€¦ · Web viewRunning Head: MERCHANDISING MODULE ONE....

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


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

http://advantage.marketline.com/

http://library.morningstar.com/

http://clients1.ibisworld.com/search/default.aspx?st=Retail


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


Q-10



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


(513) 579-7000and


(212) 494-1602




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


(513) 579-7000and


(212) 494-1602


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


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


$ 20.00 - $398.00

Men

$18.99 - $895.00

Juniors

$6.99 - $360.00

Kids


$3.99 - $154.99

Active

$3.99 - $179.99

Beauty

$8.00 - $300.00

Shoes


$34.99 - $398.00

Handbags

$29.99 - $695.00

Jewelry

$7.99 - $878.00


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


(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


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


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


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


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


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


(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


Stores – find stores in your area Customer service

(2015, Macy’s)


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.


(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


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)


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)

http://www.thefashionspot.com/

http://www.thefashionspot.com/style-trends/381513-fashion-trends-spring-2014-sports-inspired/


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)

http://www.popsugar.com/


Red Holiday season trend Bold with a bright dress or toned down with separates Classic trend and incredibly chic


(www.sydnestyle.com, 2015) (www.eonline.com, 2015)

http://www.eonline.com/

http://www.sydnestyle.com/


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/>.

http://www.eonline.com/photos/16997/biggest-trends-at-new-york-fashion-week-spring-2016

http://www.eonline.com/photos/16997/biggest-trends-at-new-york-fashion-week-spring-2016

http://advantage.marketline.com.jproxy.lib.ecu.edu/Product?pid=3AFD598E-6F71-4D0C-82C9-A88EA867D0C5

http://advantage.marketline.com.jproxy.lib.ecu.edu/Product?pid=3AFD598E-6F71-4D0C-82C9-A88EA867D0C5

http://www1.macys.com/

http://www.sec.gov/Archives/edgar/data/794367/000079436715000073/m-0131201510k.htm

http://www.sec.gov/Archives/edgar/data/794367/000079436715000073/m-0131201510k.htm

http://www.sec.gov/Archives/edgar/data/794367/000079436715000123/m-0502201510q.htm




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