Macy’s store in New York’s Herald Square.
Scott Mlyn | CNBC
Macy’s is preparing to overhaul its website and train some of its workforce to become personal stylists, aiming to win more customers when searching for the latest fashion trends, the department store chain announced. on Tuesday.
The retailer hopes to offer a more customized shopping experience, with direct attention from employees in stores and easier online navigation. It’s an effort to better compete with other fashion retailers – from department store competitors, to boutique clothing stores, to other online-only fashion players that specialize in providing advice. about style.
Macy’s recently underwent a review of its business, with the help of external consulting firm AlixPartners, to determine if it made sense for the retailer to separate the e-commerce arm from the physical stores. your own or not. Macy’s will not pursue any such split, it said last month. But by the end of the review, the department store chain had found room for improvements both online and in its more than 500 namesake department stores.
Rich Lennox, Macy’s chief customer officer, said in an interview that although Macy’s has invested heavily in its social media strategy and digital presence, the retailer is finding a way. tell customers more clearly about its difference from competitors.
Macy’s will launch a new brand both in-store and online under the new motto: “Own your style.”
“What we are looking for is a unified truth about the customer,” he said. “Because we want to get younger customers, but we also need to take care of our older customers and our higher-value customers.”
Macy’s will also train its staff to help customers choose their own style. Certain employees will be included in Macy’s “Style Crew,” the company said, and they’ll be able to earn commissions to help drive sales for participating in the program and for social media posts. association leading to their transaction.
Additionally, for all store employees, Macy’s dress code will be relaxed so employees can incorporate their own personal style choices into what they wear every day, Lennox said. speak.
According to a spokesperson, Macy’s current dress code is described as casual at work. Clothing options will now vary, based on the employee’s role in the company. For example, an employee in the general sales area might opt for a more casual outfit, with their favorite jeans and sneakers. While an employee wearing jewelry might wear a blazer with flashy accessories.
In stores, Macy’s will introduce digital displays displaying rotating style tips and outfit inspiration to shoppers, who can then find clothing and accessories items. similar to buy nearby.
Macy’s declined to comment on how much money it will spend on these initiatives. A spokesman said the retailer did not disclose that level of detail in its financials.
Macy’s Website Changed
Fold changes to broader three-year plan for Macy’s, announced February 2020 and named it Polaris, called for accelerating digital growth, closing underperforming stores, and investing in its best stores, thus improving profitability.
Although some progress has stalled due to the Covid pandemic, CEO Jeff Gennette said in late February that Macy’s is now a more digitally-led business than it was in 2019. Accordingly, The department store is gearing up to launch into the digital marketplace where it will allow third-party brands to market their merchandise, positioning it as more of a competitor. Amazon or Etsy.
Macy’s digital sales accounted for 35% of net sales for the 12 months ended January 30, up 10 percentage points from 2019. NordstromIts digital business, by comparison, accounted for 42% of net revenue in fiscal year 2021. While Kohl’s said its online business accounted for 32% of total revenue last year.
Macy’s net sales for fiscal 2021 totaled $24.46 billion, down slightly from the $24.56 billion Macy’s reported in 2019. For fiscal 2022, the company forecasts growth turnover is not more than 1%.
As part of the changes announced Tuesday, shoppers will soon be presented with a personalized website landing page, based on each visitor’s past shopping history. The upgraded dashboard will show loyal members how many bonus points they’ve accumulated, upcoming orders, and unique style recommendations.
“There will be an enhanced digital experience,” says Lennox. “There will be simplified global navigation, a refreshed modern search bar [and] personalized customer dashboard. “
Jefferies analyst Stephanie Wissink said Macy’s strategy of focusing on accelerating its Polaris goals rather than moving forward with an operating division is “cautious”. 2022 is an important year for the department store chain to “prove that improved operations are sustainable,” she said.
With an emphasis on personal style, Macy’s can position itself as a bigger competitor to a company like Repairs, which manages clothing boxes based on customer and brand preferences. Department store chain Nordstrom is also known for its greater emphasis on customer service and in-person fashion advice. That’s what other high-end chains like Saks Fifth Avenue and Bloomingdale’s, which Macy’s own, have to go further.
Facing multiple challenges including inflation and ongoing supply chain disruptions, Macy’s hopes to be the go-to destination for consumers looking for a fresh look as they head back to the office, partying , weddings and more this year.
“Our business model is built on having a wide selection of brands so we can position ourselves in this style-supporting territory,” says Lennox. “That’s what Macy’s has always done so well, and we’ll do much better.”
