Macy's 2002 Annual Report Download - page 9

5
What are your customers telling you
they want most in your stores?
Convenience... Stores that are simple to shop… Focused,
edited and differentiated assortments... Quality... Value…
Service. That’s what our customers want, and that’s where
we are channeling our energy and our efforts.
We’re more focused than ever on the one-third of consumers
who are responsible for driving three-quarters of our
business. These are primarily fashion-conscious women, ages
25 and older, who also work outside the home. Our research
shows that this segment represents our best opportunities for
incremental growth in apparel and home merchandise as we
improve our fashion/value equation.
Excitement, newness and value top the list of expectations
among these targeted customers. They want to see the latest
fashions in apparel and home merchandise and more than any
other consumer segment they look to the department store to
meet those needs. Our goal is to monitor closely what our
customers want, and to have those brands and items available
in their size and color at the store location where they shop.
Newness is a fundamental part of the equation. Department
stores have a well-deserved reputation for providing
consumers with “wear-now” fashion – fresh and interesting
designs and styles that incorporate some of the aspirational
trends they see in the fashion magazines and the media. Our
goal is to bring to customers merchandise they won’t find
elsewhere, and Federated’s private brands are an important
vehicle for doing so. Our best customers trust us to provide
them with fashion advice and to offer a variety of solutions,
from modern to classic, which transcend seasonal trends and
remain in their closets.
Of course, value is paramount today as consumers pursue the
right balance between high-quality and fair prices. Shoppers
are determined to
save money and the
"thrill of the hunt"
can be satisfied in a
department store that
offers great prices
along with current
fashion and fresh
merchandise.
What are you doing to make shopping
more convenient and inviting?
Federated has been working over the past several years to
"reinvent" the department store by experimenting with new
merchandising, improved visual presentation and signage,
and additional conveniences such as upscale shopping carts,
price-check scanners, enhanced fitting rooms and customer
lounges. We recognize and understand the compelling
mandate to enhance our product, pricing and in-store
shopping experience, and that is our goal.
These
concepts were
included in a
reinvent store
opened in the
fall of 2001 at
Easton Town
Center in
Columbus, OH.
Based on
customer
evaluation and
feedback,
elements of the strategy were incorporated into 40 more
Federated stores nationwide by the end of 2002, with the
reinvent rollout continuing in 2003.
Customers who shop many of these reinvented stores today
find more exciting and compelling junior’s and young men’s
departments, stronger fashion viewpoints in women’s and
men’s areas, open-sell cosmetics, and more space to pause
and relax within the store.
Our research tells us customers value these improvements,
and Federated is committed to continued innovation and
experimentation in our quest to make the shopping
experience as interesting and inviting as possible.