Macy’s overhauls its website and trains personal stylists
Macy’s Herald Square store is New York.
Scott Mlyn | CNBC
Macy’sIn an effort to increase sales and appeal to more fashion-oriented customers, department store chain said Tuesday it was preparing to revamp its website.
This retailer wants to provide a personalized shopping experience with personal attention in-store and easy navigation online. It’s an effort to better compete with other fashion retailers — from its sprawling department store rivals, to boutique clothing shops, to other online-only fashion players that specialize in offering style advice.
Macy’s was recently restructured by AlixPartners with the objective of determining whether or not it makes sense to sell its online business separately from its retail stores. Macy’s won’t be pursuing any such splitLast month, the company stated that it was satisfied with its results. The department store chain discovered that there were opportunities for improvement in both its online presence and the more than 500 stores it calls home.
Rich Lennox was Macy’s chief Customer Officer. Lennox stated in an interview, that Macy’s already made substantial investments in their digital presence and social strategy. However, Macy’s wanted to be able to clearly communicate to its customers what makes it different than competitors.
Macy’s will roll out new branding in its stores as well as online, under the new motto “Own You Style”.
He said, “What we wanted was a sort of unifying customer truth.” We want younger customers but also have to take care of our existing high-value customers as well as our established customers.
Macy’s employees will be trained to assist customers with their style decisions one-on-one. Macy’s Style Crew will include certain employees. They will earn commissions to help customers with style choices and sales.
Lennox stated that Macy’s will loosen its dress code for employees so they can wear what suits them best every day.
A spokeswoman for Macy’s stated that the current Macy’s dress code is business casual. The role an employee plays within the company will dictate what clothing they wear. A general sales employee might choose to wear a more casual style with jeans and sneakers. A jewelry staff member might choose a brightly colored blazer.
Macy’s in stores will offer digital screens to display style inspiration and tips for customers. They can find similar clothing and accessories near them.
Macy’s did not comment on the amount of money that it would spend on these projects. The spokesperson said that the retailer does not disclose this amount of detail in its financial statements.
These changes are folded into a broader three-year plan for Macy’s, announced in February 2020Named Polaris for its desire to accelerate digital growth and close underperforming stores while investing in the best shops, thus improving profitability.
Although some progress was stopped by the Covid pandemic in February, Jeff Gennette, chief executive of Macy’s said that Macy’s was more digitally-driven than in 2019. To that end, Macy’s is planning to open a digital marketplace to allow third-party companies to sell their goods. This will position it as a stronger competitor to the big department stores. AmazonOr Etsy.
Macy’s net sales in digital were 35% for the 12-months ended January 30, an increase 10 percent over 2019, levels. NordstromFor comparison, 42% of fiscal 2021’s net sales were made by the digital business. Although Kohl’sAccording to the company, its online business contributed 32% of total revenues last year.
Macy’s fiscal 2021 net sales were $24.46billion, a slight decrease from its reported $24.56billion in 2019. Macy’s forecasts that revenue will grow by 1% in fiscal 2022.
The Tuesday changes will see shoppers receive a customized landing page that is tailored to their shopping habits. The upgraded dashboard will display loyalty members’ rewards points, future orders, and style recommendations.
Lennox stated that there would be a better digital experience. Lennox stated that there will be simplified global navigation and a modernized search bar. [and] a personalized customer dashboard.”
Stephanie Wissink, a Jefferies analyst said that Macy’s focus is on its Polaris goals and not moving forward with an operational split. The department store chain must “prove it is sustainable” in 2022, she stated.
Macy’s may be able to position itself as an even bigger competitor to companies like Target by its focus on personal styling. Stitch FixThis company creates custom clothing boxes for customers based upon their brand preferences and tastes. Nordstrom department store chain is known for giving customers personalized fashion advice and extra care. Other high-end retailers like Saks Fifth Avenue, Bloomingdale’s and Macy’s go above and beyond to offer this service.
Macy’s faces a number of difficulties, such as inflation and continuous supply chain disruptions. Macy’s hopes this will make Macy’s a popular destination for those consumers looking for new looks for their return trips to office, weddings, or other events.
Lennox stated that “our business model relies on having great brands with which we can place ourselves in this style-help space.” Macy’s did this very well in the past, and Macy’s will continue to do it better.