Macy’s, Inc

Product Development

Gabriella Colasuonno, Landen Lopez,

Victoria Scudder, Anika Daley, Joshua Hedstrom
 Part One: Overview
● Macy’s, Inc is one of America’s largest retailer and department stores.
● Operates under public ownership.
● Headquarters are located in the United States in Cincinnati, Ohio; however,
they have numerous facilities around the world, including, but not limited to,
Guam, Puerto Rico, and Washington, DC.
● Macy's, Inc. operates approximately 840 stores in 45 states.
● This gives Macy’s a competitive advantage by reaching a large majority of
the population, reaching consumers nationwide.
 Overview (Cont.)
“A Premier Omnichannel Retailer with Iconic Brands Macy’s, Inc. is one of the nation’s premier retailers
with fiscal 2018 sales of $24.971 billion and approximately 130,000 employees. The company operates
approximately 680 department stores under the nameplates Macy’s and Bloomingdale’s, and nearly 190
specialty stores that include Bloomingdale’s The Outlet, Bluemercury, Macy’s Backstage and STORY.
Macy’s, Inc. operates stores in 43 states, the District of Columbia, Guam and Puerto Rico, as well as
macys.com, bloomingdales.com and bluemercury.com. Bloomingdale’s stores in Dubai and Kuwait are
operated by Al Tayer Group LLC under license agreements. Macy’s, Inc. has corporate offices in
Cincinnati, Ohio, and New York, New York.”
https://www.macysinc.com/about
 Mission Statement, Goals & Objectives
Macy'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."

http://www.makingafortune.biz/list-of-companies-m/macys.htm
 SWOT Analysis
● Strengths -- promotional and marketing activities, support services (admired
business practice -- people appreciate Macy’s customer service & support,
makes the consumer’s feel appreciated/ of importance), omni-channel
selling
● Weaknesses -- inventory turnover ratio, concentrated geographic base,
financial performance
● Opportunities -- private label gaining momentum, expanding retail market in
the US, new product launches
● Threats -- changing fashion preferences, expansion initiatives by
competitors, increase in manpower costs in the US
 Omni-Channel Selling
● The sale of merchandise through multiple channels increases the company’s
direct-to-consumer business.
● Macy’s is available in-store, as well as online & mobile.
● Their website’s quality and functionality are continually upgraded by the company.
● The company advertises and markets through direct mail, in-store marketing,
catalogs and television shopping.
● Their products are offered through department stores, specialty stores, general
merchandise stores, off-price and discount stores and manufacturers’ outlets.
● These initiatives made the company as the ‘Omni-channel retail organization’.
Such, diverse retail and marketing channels helps to increase brand
awareness, store traffic and sales.”
 Product Categories, Profits, Target Markets
Macy’s owns Bluemercury's and Bloomingdale’s, which combined generates more
than $25 billion in annual sales. They generate a profit by both, importing and
exporting goods.
● Product Categories including: men's, women's, and children's apparel and
accessories, cosmetics, and home furnishings, and so on.
● They target a large scale of the market, providing goods for people of all
ages, reaching Baby Boomers to Gen Z, they have something for everyone.
● “Women's Accessories, Intimate Apparel, Shoes and Cosmetics accounts for
nearly 40% of group revenue, followed by Women's Apparel at about 25%;
Men's and Children's also brings in almost 25%; and Home/Miscellaneous
with more than 15%.”
 International Connections & Cultural Diversity
● Macy’s has connections internationally, which allows them to reach a large demographic and a huge
portion of the population. This reveals how culturally diverse the company is and the large amount
of segments they reach.
● It’s numerous locations across the world, make the department store easily accessible to most.
● The company has operations in China, United Arab Emirates, and Kuwait through joint venture and
licensing agreements.
● “Macy's Northeast region of the US accounts for 30% of the stores, followed by South (more than
20%), North Central (more than 15%), Northwest (more than 15%), and Southwest accounting the
rest.”
 Advertising & Promotion
● Macy’s has a well developed marketing team, that promotes and advertises
the company on multiple media platforms, including: print, television, direct
mail, and more.
● This increases their sales and promotes online engagement, encouraging
people to visit their website often through the incentive of a sales promotion.
● Macy’s spent $1.1 billion on advertising and promotion in fiscal 2016.
 Competition
● Even though Macy’s is such a well known, reputable company, their sales has
been falling year-over-year. This is due to competition in the market, especially
from other department stores and discount retailers.
● The negative impact of the strong US Dollar on tourists also plays a role in the
decrease in revenue.
● Some of Macy’s competitors include Amazon, Walmart, Nordstrom, and the
TJX Companies.
● “Macy's revenue for 2016 decreased $1.3 billion or 4.8% compared to 2015. The
company experienced an overall weakness in sales, but geographically sales in
2016 were strongest in the Southwest, particularly southern California. Digital
sales continued to be strong in 2016 and experienced double digit growth.”
 Combating Competition, Joint Ventures,
Merger & Acquisition Initiatives
● A way in which Macy’s is trying to combat their decrease in sales is by experimenting with an
off-price store format, Macy's Backstage.
● Macy's Backstage stocks women's, men's and children's apparel, shoes, fashion
accessories, housewares, home textiles, intimate apparel, and jewelry, and averages around
30,000 sq ft.
● Their goal is promote “Off price. On trend. Arriving daily,” in order to meet consumers
needs and provide a better value.
● The company is also investing in its omnichannel strategy for Macy's and Bloomingdale's
and began selling in China in 2015 via a joint venture with Fung Retailing, in which Macy's
has a 65% stake. It operates an online store on Alibaba.
● Macy’s is also expanding in the Middle East. It opened a Bloomingdale’s in Kuwait in 2017,
and has plans to open Macy’s and Bloomingdale’s stores in the UAE in 2018.
 Part Two: Financial Performance
● Macy's stocks have decreased in the past 5 years, in 2015 you could purchase a stock for $65, and
it decreased to $23 (current date).
● In the past four years the best year they had for total revenue was 2015, with a total of 28 billion
105 million dollars.
● In 2018, the total revenue was 24 billion 837 million dollars, which leaves them with a decrease of
approximately 3 billion 268 million dollars.
● Overall, the company is decreasing in sales and consumer engagement.
● In the beginning of 2019, Macy’s closed down 8 stores across the United States, and in summer of
2016, they stated that they were planning to close 100 stores over the country.
● Their sales growth is at a negative 3.65%.
● In conclusion, Macy's is a well known company with significant customer loyalty, but the company
has been decreasing over the past 4 years and they need to figure out why this is happening to keep
there company in a stable financial position.
 Part Three: Product Development
Product Development Entry level employees are taught the basis of designing,
conceptualizing, sourcing, producing, selling, and marketing through an 8 week
training program called the “Product Development Executive Development
Program.”
Growth Opportunities
Product Management EDP (Electronic Data Processor) → Associate Product
Manager → Product Manager → Senior Product Manager → Manager, Product
Management → Director, Product Management
Careers in Product Development
Product Development Is
Product Development deals with:
1) Developing new products
2) Improving existing products
Responsibilities
1)Conceptualizing
2)Designing
3)Sourcing
4)Producing
5)Selling
6) Marketing
Product Assistant
Product Assistants help with the development of brands and learn the line development process working
with the Product Development Team. This position will work directly with the Product Manager in creating and
implementing a vision that’s customer oriented to meet sales and profit objectives, as well as how to operate a
successful business. This position prepares you for the Associate level.
Average Base Pay: $48,057 - $58,927.

Associate Product Manager

Associates are assigned to a specific category in the team’s product line. They will also be responsible for
managing and coaching assistants.
Average Base Pay: $78,269 - $84,188.

Product Manager
Product Managers at Macy’s, focuses on the core business achievements: improving customer service
satisfaction, analyzing market data, and strengthening operations. They ensure that their employees are working
towards meeting the project’s goals as well as fulfilling the strategic mission.

Average Base Pay: $81,648 - $142,141

 Director, Product Management
Job Overview: “-- to define a product vision that allows Macy’s customers to shop seamlessly and easily across channels and for our
colleagues and vendor partners to work efficiently and effectively to maximize the business KPIs (Key Performance Indicator).

The Director of Product Management’s responsibilities include, but are not limited to:
● Product Capability Oversight (20%)
● People Leadership (40%)
● Executive Stakeholder Management (20%)
● Functional/Organizational Development (20%)

Qualifications
Education/Experience:
● Bachelors required, MBA a plus.
● 8 -10 years of experience in product management and/or one or more of the following areas: product marketing, program
management, business development, management consulting.
● Experience in the Retail space working with Pricing, Promotions and Offers.
Other Skills:
● Communication, Mathematical, Reasoning Ability, Physical Demands, etc

Average Base Pay: $192,853-$212,551

“This job description is not all inclusive. Macy’s Inc. reserves the right to amend this job description at any time. Macy's Inc. is an Equal
Opportunity Employer, committed to a diverse and inclusive work environment.”
 Macy’s Inside Information (Glassdoor)
Macy’s has a 3.2 out of 5 star rating from employers, 51% of reviewers say they would recommend to a
friend, and 67% approve of CEO, Jeff Gennette.

Pros: support from upper management, opportunity to grow/advance in the company, diversity, benefits,
401k, discounts

Statements from previous/current employees:

● “Great company for longevity. Lots of benefits. Managers are nice and helpful. 401k. Very diverse
company.”
● “Great place to work with flexible schedules.”
● “Great place to work and grow.”
● “Overall great place to work.”
● “Very productive and fun place to work. Excellent staff. Everyone worked as a team and was very
friendly too. I worked in various different department doing different things.”
 Inside Information (Cont.)
Cons: long hours, working nights, weekends, and holidays, compensation, short breaks, low flexibility,
unfair management

Statements from previous/current employees:

● “Standing for long period of hours.”

● “Manager don't care for their employees all they want is numbers result, nothing else.”
● “Racist environment.’
● “Negative and ill run operation.”
● “Few lead/seasonal supervisors were actually instructive and positive. But overall filled with horrible
attitudes and negativity.”
● “Rotten apples spoil the barrel.”