Cangnan County Qimeng Clothing Co.,Ltd

macy\'s and the department store genre are not too big to fail

by:QiMeng     2019-09-03
Macy\'s recently announced its tenth consecutive quarterly decline in comparable store sales.
10 negative quarters are not a small episode.
This is not an exception.
This is not just a trend.
In fact, this shows the possibility of catastrophic failure of the business.
More than a year ago, I assessed the company\'s troubles and what it had to do to turn things around.
In response, one of the Macy\'s department store executives I worked for Lazarus/Federated thought I was too picky about my previous company.
A Messi consultant didn\'t invite me to an industry event because he was too picky about his clients.
At least someone is looking at what I wrote.
But what\'s interesting is that most of my peers think I\'m punching.
I don\'t punch any right now.
Macy\'s continues to cycle losses, and the company\'s new CEO has not said anything that the company\'s decline will soon weaken.
The dinosaurs eventually disappeared. In the past 30 years, the types of department stores have survived simply because of a series of integrations.
The decline in department store market share is definitely not driven by the emergence of the Internet, as many have said.
Poor, limited and uncoordinated classification, over-reliance on meaningless celebrity brands, resulting in losses in oversold and reckless promotional prices.
In addition, the display and maintenance of the store are very poor.
Stores with highly inconsistent customer service levels.
You can easily see why the text on the wall is getting bigger and bigger now.
The type of department store is not too big to fail.
Macy\'s performed well in the \"last man standing\" game and is now at a crossroads.
As the road to success, no competitors can buy.
The idea of a new success strategy recently articulated by their new CEO is at best a patch.
Openwear footwear and openwear cosmetics are neither new nor inconsistent with the rest of the store.
Worst of all, the company decided to expand its export business, which is likely to weaken the positive brand assets and pricing integrity it left behind.
Restart the reward program for 10% of customers who drive 50% of the business-this is to cater rather than position.
In the past and present of Macy\'s, Macy\'s must decide what it intends to represent in the market.
Who is its main audience, and how does it think it can be distinguished from the rest of the retail industry?
For decades, the mental divisions it has shown between the main street and the Main Street shops need to be addressed.
Actually this select more and more self-evident.
Macy\'s has been deceiving itself that it can \"milk\" hundreds of B-and C-class mall stores with little or no investment in cash, and now needs to close each of them.
There are about 250 defensible places-so-called hyperregional shopping centers, and some of the city\'s most heavily traffic and high-profile spaces.
By default, these are the ways in which Macy\'s has to find a defense.
Macy\'s relies on the face value and promotional support of many brands that now exit the department store channel as the main retail channel.
Ralph Lauren, Coach and Michael Coles are some of them.
Well known poster children, they are out of demand for themselves
Their distribution of goods has begun to decrease.
The channel filling that these brands are engaged in almost kills them.
In fact, it\'s like it killed brands like Liz Clay and Tommy Hilfiger in the past.
The ongoing layoffs will now kill Macy\'s.
As for Macy\'s-
Celebrity brand worship-half-
Most of this life
Called brands continue to shrink.
Oddly enough, the vast portfolio of Macy\'s own brands has never been fully developed.
Maybe it\'s because you can\'t cancel your order easily because of advertising subsidies, price cuts, and gross margin subsidies, you have to charge yourself.
It has been said that Macy\'s would not have been profitable without these compensation.
Many years ago, Macy\'s was almost all on clothing and accessories, either eliminated or eliminated.
A broad category of other commodities was highlighted.
Electronics, appliances and hardware are gone.
Household items and furniture were cut off.
Concepts like carpet cleaning, stationery and home services are all gone.
A few years ago, I, along with many other department store executives, tried to oppose this short-lived
Pursue fashion-driven sales and profitability.
We lost the debate, and now Macy\'s is paying a high price for these decisions.
It certainly makes sense to put an Apple store on Pioneer Square, but the decision should have been made 25 years ago.
Real positioning problem
Of course, the company will have to decide how to shape its image and positioning in the market.
For a long time, the store has been sticking to \"empty promises\" such as the magic of Macy\'s, endless repetition and creative ineffective promotions, and unpaid fashion ads paid by various vendors.
The only memorable ad is the ubiquitous coupon \"one day sale \".
\"You know, the day sales that started the day before usually last until the next day.
What is the cost of success?
Like many high/low-driven promotional retailers, Macy\'s is also competing for events and discounts.
With only 52 weeks in most years, a discount of more than 50% is neither credible nor profitable.
Almost everything at Macy\'s is on sale and almost all the time is on sale.
Regular price sales, once the lifeblood of department store profits, have basically disappeared.
Macy\'s now relies on constant discounts and clearance sales to expand its \"back office\" sales division to be successful.
Does this mean that Messi\'s high/low pricing strategy is getting higher/lower now?
How does this compare to Amazon\'s lowest price?
Customer service, or no customer service?
This is the question of customer engagement promised by \"magic of Macy\'s.
So this has self-
Footwear and cosmetic services? It doesn’t.
Consistency is another lifeblood of retailer success.
How Macy\'s will coordinate all-round customer service with self-serviceService sales?
Will they compete with Nordstrom or Cole?
Interestingly, today\'s most successful retailers, whether they are internet-driven Amazon or entity-based Costco, offer excellent customer service.
Like almost all retailers, Macy\'s said they offer great customer service but didn\'t actually.
So, what will Macy\'s be?
Good service, no service, or what?
The Internet is either a great promoter today, or the lights have gone out of the traditional retailers of Macy\'s in the past, and they are proud to address the operation of its macys. com business.
The company earlier boasted about how much more it has worked with new Internet customers in stores.
Unfortunately, today\'s macys are becoming more and more clear.
Customers have avoided Macy\'s and the shopping malls they live in.
It doesn\'t use their website as a billboard for the Macy\'s brand, but just as an agent for the company to promote newspaper inserts or news ads every week. Macy’s Future?
Can Macy\'s keep aggressive investors? So far so good.
They have too much debt on their balance sheets, and there is no viable plan to monetize the company\'s large portfolio of real estate without killing the business.
But what if the company\'s stock does not rebound?
Can Macy\'s restore sales growth?
This is not an opportunity as passenger traffic in hundreds of stores continues to decline.
It is impossible when it loses control over the brand that drives its sales.
This is not an opportunity as it further weakens its remaining price integrity by expanding its export operations.
If the company\'s new leadership does not face the urgent need to develop a new curriculum for the company, there is no chance.
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