Business Case Study: Macy's Business

Macy’s believes that going into this business will strengthen their associates’ selling skills, recruiting new talents, increased direct supervision, and offering higher quality products. It was such a success that Macy’s rolled out this concept to 300 other locations in fall of 2016, and planned on incorporating it to the rest of their stores by the end of 2017. In an attempt to reach out to new markets, Macy’s entered in a joint venture with a Hong Kong retailing company. Macy’s own 65%, while Fung Retailing Limited will own 35% in this online venture in China. This purpose of this venture is for Macy’s to penetrate a foreign market with the help of a host’s country company to avoid running into any problems while conducting business. It

Gennette’s number one concern is that there is not enough traffic in the store like it was years ago. The reasons behind the lack of traffic are mediocre customer service, lack of inspiration, poorly merchandised, and the lack of appeal for younger consumers. A second issue is that the stores are losing their high end positioning. Consumers do not want to pay premium price for a store that has mediocre in customer service with minimum high end products. Another issue is the excessive discount offered by the stores has created an image of Macy’s being a cheap department store, which could hurt the company in the long run. To resolve this issue, they created the Backstage stores. According to CNN money back in May 11, 2016, the company has been reporting a decline in sales, more than 7% from 2015. Macy’s stock dropped around 15% within a 52-week span. Earlier in 2016, Trump bashed Macy’s on Twitter after retailer dropped his line. Small fashion stores such as Zara and H&M are taking over Macy’s apparel market share due to their millennial consumers, lower prices, and faster shopping experience. Although there are many issues, it is important to approach it correctly because these issues have quick fixes that would be beneficial short-terms, but will end up hurting the company in the long