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
For the Fiscal Year Ended
January 31, 2015
SEC Fillings
S-1
WASHINGTON, D.C. 20549
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission File Number:
1-13536
7 West Seventh Street
Cincinnati, Ohio 45202
(513) 579-7000 and
151 West 34th Street
New York, New York 10001
(212) 494-1602
Incorporated 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
I.R.S. No. 13-3324058
Name of Each Exchange on Which Registered
New York Stock Exchange

Running Head: MERCHANDISING MODULE ONE
WASHINGTON, D.C. 20549

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE 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 Street
Cincinnati, Ohio 45202
(513) 579-7000 and
151 West 34th Street
New York, New York 10001
(212) 494-1602
I.R.S. Employer Identification No.
13-3324058

Running Head: MERCHANDISING MODULE ONE
WASHINGTON, D.C. 20549

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE 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 Street
Cincinnati, Ohio 45202
(513) 579-7000 and
151 West 34th Street
New York, New York 10001
(212) 494-1602
I.R.S. Employer Identification No.
13-3324058

Running Head: MERCHANDISING MODULE ONE
Part Two: Getting Acquainted
The Company
Retailers Name – Macy’s Inc.
Address Headquarters - 7 West Seventh Street, Cincinnati, Ohio
Website link - http://www1.macys.com/
Corporate Owner – Macy’s Inc
Organizational structure –
Name Job title
Terry J.
Lundgren
Chairman and
Chief Executive
Officer
Timothy M.
Adams
William S.
Allen
Jeffrey
Gennette
Julie Greiner
Robert B.
Harrison
Chief Private
Brand Officer
Chief Human
Resources
Officer
President and
Chief
Merchandising
Officer
Chief
Merchandise
Planning Officer
Chief
Omnichannel
Officer
Karen M.
Hoguet
Jeffrey A.
Kantor
Chief Financial
Officer
Chairman, macys.com
Martine
Reardon
Peter R. Sachse
Chief Marketing
Officer
Chief Stores
Officer
Tony Spring Chairman and
Chief Executive
Officer,
Bloomingdale's
Number of Stores - 885
Store Locations – National and International – Macy’s in Dubai is operated by Al Tayer Group
LLC under a license agreement
Location of nearest store - Macy’s Triangle Town Center

Running Head: MERCHANDISING MODULE ONE
3801 Sumner Blvd
Raleigh, 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

Running Head: MERCHANDISING MODULE ONE
$3.99 - $154.99
Active
$3.99 - $179.99
Beauty
$8.00 - $300.00
Shoes

Running Head: MERCHANDISING MODULE ONE
$34.99 - $398.00
Handbags
$29.99 - $695.00
Jewelry
$7.99 - $878.00

Running Head: MERCHANDISING MODULE ONE
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:
M ake a connection
A sk questions
G ive options and advice
I nspire to buy
C elebrate 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

Running Head: MERCHANDISING MODULE ONE


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)

Running Head: MERCHANDISING MODULE ONE
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 lowerpriced 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

Running Head: MERCHANDISING MODULE ONE
 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 veteranfocused nonprofit organizations
 Macy’s Thanksgiving Day Parade, 4 th 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 7 th 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

Running Head: MERCHANDISING MODULE ONE

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

Running Head: MERCHANDISING MODULE ONE

Lists – view your wish list

Registry – view your wedding registry, find a wedding registry

Stores – find stores in your area

Customer service

Running Head: MERCHANDISING MODULE ONE
(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

Running Head: MERCHANDISING MODULE ONE
 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

Running Head: MERCHANDISING MODULE ONE
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)

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)

Running Head: MERCHANDISING MODULE ONE
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)

Running Head: MERCHANDISING MODULE ONE
Red

Holiday season trend

Bold with a bright dress or toned down with separates

Classic trend and incredibly chic

Running Head: MERCHANDISING MODULE ONE
(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-consumersdo-too/
Biggest Trends at New York Fashion Week Spring 2016. (2015, September 18).
Retrieved September 27, 2015. from http://www.eonline.com/photos/16997/biggesttrends-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/>.