Every aspect of Macy’s is affected by the different environments of marketing. Different factors of the world shape Macy’s into the store it is today. Macy’s relies on the economy everyday where they may be. They also have to shape the way they do business due to the culture and society. Technology is becoming a big part of how people shop and Macy’s becoming adjusted to it. Macy’s has also been expanding globally to over 100 countries online. As well as their competitors and regualtions impact they way Macy’s does buisness and whom they do buisness with. Each factor including economical, socio-cultural, technological, globaly, with their competitors, and government regulations have impacted and changed they way Macy’s does buisness and it;s customers.
Economic Environment
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Macy’s has experienced many financial ups and downs and this includes their newest strategy of closing down more than 100 stores and selling a portion of their Chicago store.
Why is this? Over the end of 2016 holiday season, Macy’s was not satisfied with their profit which was less than the years before. Unfortunately, this was due to the inflaion during the time of the holidays which included the ‘U.S. inflation jumped 2.1% in 2016 for the quickest rate of inflation for a full calendar year since gaining 3% in 2011.’ (US Inflation Climbs 2.1% in 2016; Quickest Annual Rate Since 2011, 2017) With this jump in the econmy, Macy’s was impacted causing them to do budget cuts like shutting down stores and selling parts of their stores to gain back profit and meeting quotous. This plan is set to take place soon before the end of the year which will cause many people employment opportunities at these stores. After a 2016 holiday season marked by disappointing sales, Macy's announced the closing of 68 of its stores nationwide. The closings will result in the loss of 10,000 jobs (Farfan, 2017) It will affect it’s customers as well causing them to shop more online or travling farther to different
Macy’s. Socio-Cultural Enviroment A socio-culture impact on Macy’s would be the new brand that has introduced plus-sizes and plus-size models. “Models who actually LOOK like your average woman are starting to make an appearance on the runway! Our host for the Macy’s Fall Fashion event last week was Emme, the world’s first plus-size supermodel! For more than two decades, Emme has been a leading voice and face in the fashion industry and a globally recognized advocate for positive body image and self esteem.” (Full figured fashion styles hit the runway at Macy’s #MacysEvents, Para.2, 2014) Back in 2014, Macy’s fall fashion event introdued a new designer, Emme. She was one of the first plus-size models to be in Peoples Magazines and advocates postive body image. This is a good message for Macy’s to show their brands are relatable for people of all sizes and really adapts to customers needs here in America. This really impact both the store and the customer through their ability to expand to more of the demographics.This will cause more profits for the company and allow more customer to shop at Macy’s. Technological Environment Technology today has beome one of the most efficent ways to buy from a company. “The growing popularity of consumer electronic devices and services, such as Netflix, as well as the millennial propensity to use mobile phones to shop, are also weighing on luxury brick-and-mortar, Hoguet said. “ (Booton, 2015) Macy’s had to alter with the electronical age constructing a website and a mobile app. Making the transition from in-stores to online has made it easier for customers to shop. “Macy’s, Inc. continued to see double-digit growth in our digital business, reflecting the success of our investments in this space. We have created one of the best omnichannel experiences in the retail industry and are excited about our plans to continue to improve our digital platforms.” (Macy's Inc., Para. 5, n.d.) Technolog will keep progressing as will Macy’s ability to connect to the customers. Global Environment Globally, Macy’s sells to more than 100 countries worldwide including China. The way Macy’s markets to China is new and is a learning process for the company. The Chinese and U.S. markets are very different, Dustin Jones, Macy’s managing director for China, said at the news conference. “Chinese consumers want to know many details, while U.S consumers only want to check out quickly,” Jones said. “We are still learning in China and we will speed up our expansion next year.” (Tong, 2016) China has no actual Macy’s store in their countries nor does Macy’s plan to do so. Instead, Macy’s will be online and availabe for China which will cost less than building stores there. This is because China’s 500 web sales grew 59.6% in 2015” (2016 China 500 Report, 2017). China’s ability to purchase online benifits Macy’s because it brings in more business in without additional costs of building or buying stores in China. This benifits the customer because of efficent and easy buying and shipping process. Competitive Environment Macy competiton has unfortunalty outdone themselves this year. Macy’s has been underproductive than say J.C Penny’s or Dillards. “Comparing the results to its competitors, Macys Inc reported Total Revenue decrease in the 2 quarter 2017 year on year by -5.35 %, despite revenue increase by most of its competitors of 2.44 %, recorded in the same quarter.” (Macys Inc's , 2017). Due to the lower total revenue than it’s competitors, Macy’s has therefore been trying to gain back their lost revenue in other aspects of buinsess like their closings. For customers this is more likley to make them shop at more well known stores with the money to market their stores throught advertisment or in magazines. Although Macy’s has been through some financial trouble they are still in the game as well as their competitors. Government Regulations Macy’s government regulations are there for protection and financial purposes. This includes their vendor code of conduct which protects said workers and salaries from international suppliers and manufactorers. One example of this is the proper and careful conduct of human traficking and slavery. “Over the past 3 years, more than 20,000 Macy’s, Inc. employees have received this training each year. Employees responsible for supply chain-related decisions for private brands at Macy’s and certain private brands at Bloomingdale’s receive more detailed training on identifying and addressing human trafficking and slavery in our supply chain.” (Macy's Inc. , n.d.)With the proper training and knowledge for each employee has been regulation for the past 3 years. The vendor code of conduct also indicates written statments from international vendors. “Suppliers that produce these private brands agree to comply with the Vendor Code through confirmation and acknowledgement in writing.” (Macy's Inc. , n.d.) Keeping Macy’s worker safe and protected through their company’s regulations. This also assures customers Macy’s takes care of their own keeping customers loyal to Macy’s. Overall, each environment of marketing has a sense of purpose to Macy’s and their customers. Economically, closing of stores and selling portions of their stores has become a strategy to rebuild revenue and profit. Socio-culturally, we can see how positive body imaging is becoming more popular today and Macy’s bringing different sizes into their stores. Technologically, we can see that since everything today is online Macy’s constructed its websites and mobile app. Globaly, Macy’s has traveled to many different countires including China through their website. With Competitors, Macy’s has unfortunatly fell in their total revenure and has been trying to gain it back. Macy’s vendor code of conduct has made regualtions for international suppliers and manufactors to write a statment for protect of their employees. Altogether, Macy’s and its customers have been affected throught each aspect of the marketing enviornments including economical, socio-cultural, technological, globaly, with competitors, and government regulations.
Macy’s intended to deliver enhanced shopping experiences to its consumers through dynamic department stores and online sites. In this regard, the company developed a North Star strategy that allows it to improve its sales growth and to develop its existing core activities. The company’s consumer research monitors, analyze and anticipate their needs and wants based on the changing market trends. This allows it to strengthen its customer base and also helps it in identifying new markets and customers. Macy’s also identifies different styles and designs based on various occasions and events that allow it to capture the changing preferences of its customers. The company also celebrates various iconic events to interact with its customers which
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