Omnichannel - Macy's case study
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Transcript of Omnichannel - Macy's case study
Omni-channel: Macy’s Case Study
Prepared by Kevin HuangFeb 5, 2016
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The retail industry is going through a tough period
Source: http://goo.gl/ig1na4
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Macy’s brand positioning• The “Great American Department Store” opened in 1858 and is now a global brand
• 887 total stores• 771 Macy’s in 46 states• 37 Bloomingdale’s• 13 Bloomingdale's outlet• 66 Blue Mercury
• 3 stores across Guam and Puerto Rico• New off-price format “Backstage” is being tested in 6 locations New Jersey and New York• Positioned in the market as a better department store between Kohl’s, JCPenney and Bloomingdale’s, Nordstrom, Saks, Neiman Marcus• Grew through combination of organic growth and acquisition• Aggressively expanding digital capabilities and services across channels while regularly refreshing their store portfolio
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Interbrand’s best retail brands 2014 – North America
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Macy’s has a long history of business innovation
Macy’s was the first American retail store with modern-day escalators. The first to post prices in plain sight. And in 1872, they were offering free, same-day home delivery – via horse and wagon.
Macy’s Chief Omni-channel Officer R.B. Harrison
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(click to play the video)
Macy’s goes omni-channel & digical
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Key strategy for growth: focus on omni initiatives
• Initiatives and technologies ranging from consumer-facing smart fitting rooms to RFIDpilot programs
Macy’s and Bloomingdales adopting Apple Pay Unveiling the Macy’s Wallet / Bloomindale’s Wallet through the mobile apps to easily store and access offers Integrating buy online/pick-up in store Order fulfillment across store portfolio and distribution centers Testing same-day delivery for items purchased online and through mobile app Developing new technologies at the Idea Lab Handheld POS devices to engage with customers and manage inventory ShopBeacon technology in stores to improve sales providing more personalized sales to Shopkick app users
Source: Macys, BusinessWire
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M.O.M. is Macy’s customer engagement strategy
Source: Macys, BusinessWire
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M.O.M is the blueprint for strategy refinement• M.O.M. remains the blueprint for the Macy’s brand today – with each element of the strategy coming closer together to work holistically
• Macy’s is no longer operating with a single view of the customer, inventory and business• Macy’s main focus now remains on integrating and refining M.O.M while elevating the in-store experience for customers
• Macy’s is now devoting more attention to localization by enhancing assortment and sales performance by climate zone and getting more granular on ethnic customers• Macy’s is expanding their omni-channel capabilities by delivering a higher level of shopping experience with Buy Online Pickup in store• Magic Selling is also a vital ingredient for tapping the full potential of Omni-channel. Macy’s has new tools and technology on the selling floor to engage customers. Magic Selling is focused new customer touch points to grow sales
Source: Macys, BusinessWire
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Macy’s is investing in the dressing room
• Using high-tech gadgets like tablets to upgrade fitting rooms as a weapon against Amazon• Revamped fitting rooms in women’s swim and athletic department at Manhattan Beach store
Macys Unveils Its 'Magic Mirror'
(click to play the video)
Source: Macys, BusinessWire
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Omni-channel payments moving in full force• Macy’s is already set up to accept Apple Pay at their stores. • Macy’s also adopted PayPal as a payment option and is rolling out to all stores – integration enables Macy’s customers to checkout online or on mobile using the PayPal button
• In-store customers can also checkout via payment code on the PayPal app, or on the Macy’s app using the mobile wallet, which enables consumers to scan a QR code on their mobile device to complete a purchase in-store• Macy’s has also Partnered with Plenti for customers to ear points at the store, and be able to transfer rewards to other stores
• Integration also enables One Touch, so customers who opt-in can check out online and on mobile without having to type in any payment credentials, usernames or passwords.
Source: Macys, BusinessWire
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And Macy’s is further optimizing omni-channel approach with consolidation & new formats
• Stores closed represent about 1% of Macy’s total annual sales of roughly $28B
• Store will offer a wide assortment of products including men’s, women’s and children’s apparel, shoes and accessories, housewares, home décor and textiles, toys and tech items.
Source: Macys, BusinessWire
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Macy’s omni-channel innovations
First retailer to sign on to use Apple Pay
Improving website and mobile app to make
shopping easier and faster.
Rollout expanded to all women’s shoes. Next luggage and
men’s shoes
For products purchased online to customers in
eight major U.S. markets
Grouping together small gains made of a local level that combined
add up to a big number. Ex. Initiatives achieved strong
performance: Latina, small-footprint stores, millennial shoppers
Omni-channel fulfillment Goods can be fulfilled from warehouses and inventory at stores, with an ultimate goal of faster, and even
same-day delivery.
Launched 13 new millennial brands and expanded 10 existing
ones. Aimed at ages 13 to 22 and 19 to 30
Macy’s links with Google to show mobile users what’s in stock nearby
Adapting digital marketing technologies that leverage a
360-degree view of customer shopping behavior
Connect@Macy’s Centers in-store destinations for online
order pickup being tested. Increased associate staffing
to help customers with styling, product adviceImage Search App responds to
any digitally submitted photo with a similar available at Macy’s
Smart Fitting Rooms equipped with wall-mounted tablets. Selling associates and customers can scan merchandise to
view other colors, sizes, see product info, product ratings/reviews, recommendations on complementary items to
“complete the look.” Customers can tap a button to call for assistance from a sales associate without leaving the room
“Magic Selling”Training, coaching sales
associates to think in omni-channel terms:
selling customers merchandise that may only be available online
Collaborating on merchandising
strategies across all channels
New mobile wallets that enable shoppers to easily store and access offers and coupons virtually, creating seamless,
omni-channel checkout experience for customers in loyalty rewards programs
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Shopkick will prompt customers about current promotions and discounts once
they enter a Macy store.
Macy’s omni-channel innovations (continued)
Macy’s has a new app that provides a better way to manage gift registry.
Macy’s new loyalty program, Plenti, is the first U.S. loyalty coalition involving major U.S. brands. Plenti offers opportunities to both incent Macy's current customers to buy more and also to bring new customers into Macy's who enter the Plenti program through the other participating brands
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Macy’s millennial strategy
Identify Customer LifestylesEnhance & LocalizeMerchandise AssortmentsRelevant Omni-channelEnvironmentsIn-store ImprovementsOrganizational Structure
EXPERIENTIAL ACTIVATIONS, PARTNERSHIPS
Dorm decorating inspirations,tips & checklists.
Special shopping events. Macy’s brand ambassadors spreading
savings news on campus.
NEW OPENCONCEPT OFFICE
Better collaboration between Merchants, Marketing, Planning
and Private Brands
MARKETINGNew ways to reach, attract
Millennials. Social media focus: Facebook ∙ Twitter ∙ Pinterest
∙ MBlog
CEO-MILLENNIAL BRAINSTORMING
BREAKFASTSCEO Terry Lundgren has monthly breakfasts with Millennials to brainstorm
ways to reach them.
4 LIFESTYLE PROFILESAfter analyzing Millennials’
buying and shopping habits. Profiles are used to develop
Brand assortments.
FASHION MERCHANDISE13 new Millennial brands including
Marilyn Monroe, MADE Fashion Week, Blossom & Clover, Truth or Dare, G-
Star Raw, Maison Jules, QMack
OMNI-CHANNEL INNOVATIONApple Pay, New Mobile Wallet,
Google Partnership, Mobile Users See Nearby Stock,
Website, App Improvement, Image Search App
IN-STORENew Millennial
Departments – Mystylelab (younger), Impulse (older),
Floor moves to create New Destination Zones
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Macy’s will host 300-square-foot shops from Best Buy in 10 of its stores in quest for millennials
Macy’s millennial strategy (continued)
Macy’s Digital Edition will leverage the functionality of the tablet experience to introduce customers to an enhanced catalog featuring exclusive editorial content, fashion advice, closer looks at the product and curated product suggestions.
(targeting to customers between 13 and 22)
(targeting to customers between 19 and 30)
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Macy’s millennial strategy (continued)
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Macy’s marketing – from offline
One tactic the Tourism marketing team uses is by giving a 10% discount to individuals who do not live in one of the five boroughs of New York City. This entices tourists to stop by Macy’s and pick up a treat (with a discount!) to commemorate their visit to the Big Apple.
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Macy’s marketing – window displays
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(click to play the video)
Digital catalog TV commercial
Macy’s marketing – to online
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Macy’s & Make A Wish
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Macy’s & Pink Pony
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Macy’s special events