macys final

Consumer Behavior I Fall 2016

01Industry Trends

Size Of Retailers Based On Us Sales ( In Billions)

Industry Snapshot

Source: Statista

0

75

150

225

300

Walmart

Targe

t

Amazon

Macy's

Sears

Kohl's

Nordstr

om

J.C Pen

ny

Neiman

Marc

us

51314192527

6474

298

Traditional Retail Shopping is Declining

Industry Trends

Value Oriented Stores are becoming more popular

Malls are Seeing Declining Sales

Online shopping is growing

Percentage Of U.S Sales At General Merchandise Stores, By Type, 2000-16

0

17.5

35

52.5

70

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2012

2013

2014

2015

2016

Warehouse clubs and superstores Discount department stores Traditional Department stores All other general merchandise stores

Source: Mintel, Department Store Reteiling US, September 2016

By 100%

Online Shopping Market In The U.S. (In Billions)

0

100

200

300

400

2011 2012 2013 2014 2015 2016

Source: Mintel, Online and Mobile Shoppings, US, September 2016

02About Macy’s

• Largest retail brand of Macy's, Inc. (NYSE:M)

• Fashion & affordable luxury

• 734 locations in 45 states, the District of Columbia, Puerto Rico and Guam

• >100 international destinations @ macys.com

• Known for epic events--Macy's 4th of July Fireworks® and the Macy's Thanksgiving Day Parade®

• 4 flagship stores -- including Herald Square (NYC), Union Square (SF), State Street (CH), and Dadeland (MIA), South Coast Plaza (SoCal)

• Tourist Site for visitors

• 150-year tradition

• Strengthen communities--- supporting local and national charities giving more than $69 million each year to help make a difference

Macy's History

1858 1877

19201924

2007

2016

New York retailer Rowland Hussey Macy opens his first store on the corner of 14th Street and 6th Avenue with the iconic red star as the logo

The store expands

Moves to its current 34th street Herald Square location

Macy’s kept expanding and is promoted as “World’s Largest Store” Thanksgiving Day Parade debut

Federated changed its name to Macy’s inc

Expanding digital footprint: Online orders increased by 25% Closing 36 physical stores

732 stores Others 6.9%

Target 36.2%

Macy's 15.7%

Sears 13.2%

Nordstrom 8.8%

Walmart 11.6%J.CPenny

7.6%

Market share & Stores

-30%

-22.5%

-15%

-7.5%

0%

7.5%

15%

2011

-12

2012

-13

2013

-14

2014

-15

Nordstrom Kohl's JC Penney Macy's

Historical Sales Growth Of Major Department Stores (In Millions)

Business Snapshot Negative sales growth while other players' sales increased

Source: company 10K

Number Of People That Purchased In Macy’s Within The Last 30 Days (In Millions)

Business Situation Snapshot Customer traffic has seen a declining trend

44

46

48

50

52

2008 2009 2010 2011 2012 2013 2014 2015

Source:: Statista

Key Takeaways

IndustryConsumers are shifting towards value-oriented stores and online shopping

Macy’sWhile Other brands have seen a positive sales growth & increase foot traffic to store Macy’s has fallen behind.

03Macy’s Current

Messaging

#Old Friends A tribute to Macy’s

Thanksgiving Day Parade

Macy’s 2016 campaign

#Santaprojecthttp://social.macys.com/believe/

Macy’s 2016 campaign

# Celebrate Everything with Macy’s

“Love, holidays, family, friends, or just because…there are so many reasons to celebrate! And for generations, Macy’s has been lucky to be there with you every step of the way. So let’s keep

celebrating the big things, the little things and everything in between, together.” —Macy’s

Macy’s 2016 campaign

#BeFestive

Macy’s Public Events

#AmericanIcon

“This year, American Icons is all about the celebration of music and we’re offering a medley of different experiences for customers to get involved.” —Macy’s CMO, Business Wire

“Macy’s Summer Vibes”

Macy’s Public Events

Promotional Messages

Are people getting what Macy’s has been trying to communicate?

04Macy’s Brand

Perception

Quality

SalesParade

Top-of-mind about Macy’s

Expensive

Prices

Nothing

Macy’s Brand Attributes

Is where women like to shop

Is where men like to shop

Is a store where I can easily find what I need

Is a store people like to be seen shopping in

Has a good selection of children’s products

Has good value for moneyHas everything for my family

Is a store where I can easily find what I need

Has current fashions

Is clean and neat

I like clothes which allow me to express my personal style

Macy’s Brand Personality

Acts more like a woman

Someone I would like to have a beer with.

If I were lost in the woods, I'd want him/her with me

Is one of those people who can really make you laugh

Is someone I would take fashion advice from

I’d want them to help landscape my yardIs someone who treats themselves very well

Would have a well-organized closet

Someone who likes to go to parades on the 4th of July

Someone who bakes apple pie

Someone who is uncomplicated

What Do We Know?

Macy’s is linked to a feminine image, with

good fashion sense, and is known for its holiday

events. But is still somewhat remote and

not inclusive.

Key Takeaways

IndustryConsumers are shifting towards value-oriented stores and online shopping

Macy’sWhile Other brands have seen a positive sales growth & increased customer traffic, Macy's has declined

Message & Brand PerceptionThe messages do not tie together and makes Macy’s feel remote and non inclusive.

05Competitive Analysis

The Shopper’s Destination

Brand Personality

Top Competitors

Get your Penny’s worth

"JCPenny focuses on building private brands and revenue per customer to create sustainable loyalty. If JCPenney can help her discover the things she loves more easily,

innovatively and consistently than anyone else, we know she'll come back for more."

Reinvent Yourself

"We want to provide our outstanding service every day, one customer at a time. "

Expect great things

"We not only offer the best merchandise at the best prices, but we're always working to make your shopping

experience enjoyable. "

Like no other store in the world

"We are still finding various ways to show that we are no ordinary store by trying to have our own unique ways and

being able to give everyone the best in fashion and designing, all in a mind-blowing way. "

06The Challenges…

Key Takeaways

IndustryConsumers are shifting towards value-oriented stores and online shopping

Macy’sWhile Other brands have seen a positive sales growth & increase foot traffic to store Macy’s has fallen behind.

Message & Brand PerceptionThe messages do not tie together and makes Macy’s feel remote and non inclusive.

CompetitionMacy’s needs a unique communication plan to make it stand out amongst the competition

07The SolutionAs marketers what should we do to fix this?

Hone In on These Things

New ConceptOur new concept includes these 4 things

Department stores come and department stores go, but few have been around as long as Macy’s. Why? Because Macy’s has always been a part of the fabric of your life; from special sales, to the annual Thanksgiving Day Parade.”

Age 18-34

Age 35-49

Age 50+

HH with children under 18

HH w/o children under 18 26%

60%

29%

44%

47%

Degree of reception of the concept

People like to think of Macy’s as a fabric of their lives

Age Group: 18-50 With Children Under 18 In Household

Feel that the relationship with Macy's has become closer

Age 18-34

Age 35-49

Age 50+

HH with children under 18

HH w/o children under 18 44%

66%

39%

64%

62%

21%

40%

20%

31%

37%

Feel positive emotions towards Macy’s

People Think about Macy's as America &

Families consider Macy's "Comfortable" and "Safe & Secure"

America

Welcomed

Home

Safe & secure

Comfortable

The American mall

Cluttered

Sales

Black Friday

Poor serviceAge 18-34

Age 35-49

Children under 18 in HH

18-34

35-49

Children under 18 in HH

Macy's' wide variety has

Macy's

Bloomingdale's

Kohl's

Nordstrom

JC Penney 4

2

6

0

8

The Number of Items People Think of Each Department Store First

it shows that the fact that Macy's is in people's life from the behavioral dimension

New Communication 08

#bringing _____ together

bringing __________ together

bringing __________ together

bringing __________ together

bringing __________ together

Thank You !