Essay On Macy's

643 Words2 Pages

Macy’s was started as a small fancy dry goods store in New York city in 1958, which developed into one of the largest clothing retailers with more than 700 locations around the country. However, Macy’s sales have gradually plummeted as the new competition in the market is rising. According to an article on Fortune.com, Macy’s is closing 100 stores as the result of competitions from retailers such as Amazon and T.J. Maxx. Nevertheless, Macy’s is not the only chain who is closing down stores, Sears and Kmart’s have closed many of their stores due to heavy decline in sales. In addition to that, article states that a Wall Street report suggest Amazon will take over Macy’s spot as the top clothing retailer in the United States. Nonetheless, there is still some hope for Macy’s comeback as Jeff Gennette takes over the position of CEO. He has laid out plan to change the entire operation from top to bottom, to revive Macy’s sales. Jeffs action plan includes …show more content…

In order to resolve this problem they need to look at how other retailers offer promotion. Macy’s should use strategic groups’ concept to understand all the competition plans for promotion. Instead of the current situation where offering discounts on certain brands, offer in-store credit, and let the customer choose where they want to spend their savings. Another move that is planned by the new CEO, is that to incorporate other brand stores with in Macy’s stores. This is a good strategic move on Macy’s part because it gives customer more choices in one place. It’s the best way to compete with a giant like Amazon, which has everything in their selection. According to an article on Forbes.com, Amazon is more successful because of the wide selection and change in buying habits. Therefore, adding more shops such as Apple store and Lens crafts will help Macys get people in the

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