Macy's 1999 Annual Report Download - page 13

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Divisional merchants have begun using a proprietary system to download lists of vendor
products and write purchase orders directly from their laptop computers in one seamless
process – whether they are in a vendor’s
showroom, on an airplane or in their offices.
Once merchandise is bought, another
proprietary tool provides merchants and
distribution teams real-time access to
the status of orders through the entire
chain of supply. This system is being
used to ensure optimal delivery of
merchandise to the selling floor –
and thus, to customers.
As a company rich
in detailed data on
customer needs
and preferences,
Federated is
beginning to
tap Fingerhut’s
expertise in data collection and management to find
better ways to target merchandise offerings and
marketing to department store customers. The Fingerhut
database alone holds up to 1,400 data elements –
including demographics, product preferences, birthdays
and anniversaries – on more than 30 million customer house-
holds. Together with Federated’s department store customer
files, they comprise one of the most potent data warehouses
in American retailing.
The world-class order fulfillment, logistics and distribution
organization of Fingerhut will be used increasingly in the coming
years to improve back-of-the-house functions of Federated’s direct-to-
customer business. Moreover, through Fingerhut Business Services,
Inc., Federated is generating revenue by providing fulfillment services
to third parties, such as Wal-Mart, for Internet order fulfillment.
W ith plenty of sunlight, the remodeled furniture floor of Macy’s Union Square in San Francisco
underscores fresh approaches to the department store business.