Memo of Macy's Department Stores Repositioning

In: Business and Management

Submitted By Laurieyan
Words 568
Pages 3
Memo of Macy’s Department store repositioning

Case Synopsis
The traditional department store was the dominant player in the American retail industry in the first half of the 20th century, which was designed to provide a unique shopping experience for consumers. However, only 50 years later, this mainstay of retail world was experiencing declining sales and serious questions were being raised as to whether its demise was imminent.
Firstly, this case gives us a brief introduction of Macy’s, which is consolidated by 15 regional department stores with 810 store locations across the country. The company repositioned the consolidated Macy’s in the overall retail landscape in an attempt to differentiate the new company from its competitors.
Secondly, the case provides a situation analysis of the factors Macy’s is facing, which includes the general economic environment, industry (product and services and segments), competition and consumers.
Last but not the least, the case details not only Macy’s 2005-2006 consolidation and repositioning strategy but also Macy’s 2006-2011 post-consolidation.

Questions 1. Complete a situation analysis of the traditional department store industry and of Macy’s as of 2005. Which factors in the external environment could (positively or negatively) affect the success of Macy’s new strategy? Which internal factors could affect the success of the company’s strategy?

I think the following external environment factors could affect the success of Macy’s new strategy: a. General economic environment: the country was entering a significant recession. (Negative) b. Industry life cycle model: traditional department store industry is in the “mature” phase or even “decline” phase. (Negative) c. Intense competition between the existing companies and the rise of online shopping. (Negative)
Here are the internal factors I believe…...

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