Macy's "five-point" strategy
Oct 20, 2008
Download the AdweekMedia Macy's 150th Anniversary Salute here(PDF)
1. SERVICE AND PROFESSIONALISM
Exceptional, from in-store customer service to events and programs serving local communities to Macy's partnerships with media and merchandise brands.
"Their people give them a competitive advantage and is something that differentiates them from other major retailers," says Michael Labonia, senior vp of advertising for the San Francisco Chronicle, adding, "They have a very high level of integrity and professionalism."
2. BRAND EXCLUSIVITY
From Martha Stewart's home goods to Donald Trump's clothing line, Usher's cologne, Tommy Hilfiger's sportswear and Eva Mendez's bed and bath line, Macy's has made exclusive branding a significant part of the shopping experience. And while this has always been a key strategy, moving from a regional to a national retail chain two years ago with the acquisition of May Company gave Macy's the clout it needed to attract such high-profile brands.
"One reason people weren't engaging with our products was because they weren't available where they shopped," says Robin Marino, president of merchandising and co-
CEO of Martha Stewart Living Omnimedia, Inc. "When Macy's merged with May Company, becoming the largest department store in the country, that national reach and scale combined with their very seasoned and savvy group of merchants led us to believe that was the place to position our brand." Today, MSLO handles creative and design, and the Macy's Merchandising Group handles product development, production and sales, a "perfect collaboration," Marino says.
"Our true niche is that we are a house of brands that are either exclusive to us or in limited distribution and you can't find them in a lot of other places," says Martine Reardon, executive vp of marketing, Macy's Inc. "We're rolling out FAO Schwarz in 263 stores this fall and, by spring, we'll have over 400. So what we offer the customer is new, different and exclusive things you won't find anywhere else."
3. PRIVATE LABELS
Macy's creates uniqueness through a line of its own private labels, including Giani Bernini, Holiday Lane, I. Magnin, John Ashford and Karen Scott, and it's constantly experimenting in this area. Most recently, it added a new jewelry line, Luna. "Luna is a new, more modern, private-label jewelry line that we're very excited about," says Patti Lee, senior vp and general manager of Macy's Herald Square. "Our store has always been a reflection of what our customers ask for and there are customers looking for and responding to a more modern feel. Even in lines that we've carried for awhile, like Tommy Hilfiger, they are updating and making their products more modern."
4. EPIC PROPORTIONS
"We don't do anything in a small way," says Reardon. "When we do events, we do them really big. The Thanksgiving Day Parade [for example] is the largest running show on Broadway." This year, she says, Macy's annual Passport HIV/AIDS Fundraiser event was taped and aired on network television for the first time (on NBC on Oct. 11), and will be released to 29 movie theaters across the country.
5. ALL-INCLUSIVENESS
Providing everything a family could need in a single location at an affordable price. "Macy's has a reputation of having good value for higher-quality clothing," says Carol Orsborn, Ph.D., senior strategist with VibrantNation.com and a Baby Boomer behavioral expert. "The boomer woman tends to shop for a specific occasion; they may need a particular piece of clothing or like a particular brand, so the strength of Macy's is the breadth of what they offer."
For more Macy's 150th Anniversary Salute coverage:
Macy's: An American Icon
Macy's and the Media
The Local Angle
Macy's "five-point" strategy
Famously Macy's