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Macy's Discussion Questions And Executive Summary A SWOT

Macy's Discussion Questions And Executive Summary A detailed description of the environment Macy's clothing store will face.

It appears that the department stores of the previous century are dwindling in size and popularity. The environment that was once the department store's territory has been consistently infiltrated by competition from every side. There are the up and coming specialty stores, the Internet, luxury chains, wholesalers and the shopping mall. Back in the early 1980s the number of department stores that spanned the country as national chains were 33. In the 21st century that number has declined to less than 15. The environment that Macy faces today is truly a challenge as the need for personal service has to some degree been replaced by convenience. For example with online stores, why go out to shop amidst a sea of traffic and shoppers to wait for services, when it is easier and much less time consuming to visit a store online, select, and purchase the product. Products can even be compared among different stores to find the best price or most desired color, and style, among competitors from around the world.

How many times has the average American visited a department store in the last month. According to the latest market research, only 1-2% of householders patronize department stores today (Andersen, 2006). Compare this with 2-3% at the turn of the century and it is easy to see that the market environment for department stores is rapidly declining.

The challenge for the department stores is to find new ways to compete or face closing down.

2. A list of up to five competitors with their strengths and weaknesses.

JcPenny

Strengths

Similar to Macy's JcPenny is a well-known and respected department store. It has been around for many decades.

The brand is well-known for quality and fashionable merchandise.

The stores have moved into Shopping Malls and away from single standing storefronts allowing for equal access along with other retailers.

Nationwide presence allows...

But rather the baby boomers.
In the shopping malls, the stores do not own their 'space' but rent.

Because of location within a mall there is competition all around.

Nordstrom's

Strengths

Multiple retail channels such as outlet stores, boutiques, online stores in addition to the department store chains.

Nordstrom bank issues its own credit card which ties customers through its loyalty programs that offer incentives for purchases.

Global market with stores in many other countries such as France, Belgium and Portugal (Datamonitor, 2011).

Weaknesses

Nordstrom's is still much smaller than many of its competitors and does not reap benefits of economies of scale.

Most of the product comes from the same pool of suppliers which limits opportunities for pricing strategies that allow higher revenue margins (Datamonitor, 2011).

Sears

Strengths

Merger with Lands End allows for leverage of excellent product quality. Elevating the quality of the clothing along with brand name recognition.

Sears has a longstanding history as the top department store chain for 40 years.

Sears has several well recognized brands that loyal customers repurchase such as Kenmore, Craftsman, and others.

Sears as recognized as offering superior customer service for many years.

Weaknesses

The stores layout are outdated and do not reflect the current market trends of lifestyle marketing targets.

The costs to make changes will be extensive at a time when retailers are not experiencing higher profits or a robust economy.

Risks partnerships with Kmart and other retailers that have not worked out well.…

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