Macy's 2003 Annual Report Download - page 11

SEVEN
marketing of home-related categories of
business – including textiles, tabletop,
housewares and furniture – in all stores
that carry the Macy’s nameplate.
Our customer already looks to us as a
favored place to shop for her home needs.
Our national and international vendor
base, combined with our high-quality
private brands for the home, provides a
strong foundation on which to build this
part of our business with newness and
value, making it bigger and better than
ever before.
SIMPLIFIED PRICING
Recognizing that while customers
continue to respond to value-oriented
events, many have become confused by
the complex system of sales, clearances,
markdowns and promotions at department
stores and other retailers. Macy’s is
developing a better approach.
Shoppers are beginning to find simplified
pricing that is more credible, clear and
easy to understand. Over the past two
years, promotional coupons have been
reduced by a total of 20 percent. True to
its value proposition, Macy’s is expanding
its strategic program of Everyday Value –
highly attractive prices for some of our
best-selling items that a customer will
always find at this same great value price,
every day, in our stores. These are items
that never go on sale so a customer doesn’t
need to wait to buy them.
IMPROVING THE
SHOPPING EXPERIENCE
Federated is entering its third year of
rolling out key improvements as part of
its drive to reinvent the department store.
This includes listening to the voice of the
customer, then taking action to make
shopping simpler, more convenient and
more interesting.
More than $170 million has been invested
in the past two years in reinventing
more than 100 Macy’s-branded stores,
particularly as the Macy’s name has been
added to regional department store
nameplates. Included are new fitting
rooms, electronic price checkers,
wayfinding signage and shopping buggies.
MARKETING
Macy’s is employing a more compelling
approach to communicate with its targeted
customer and strengthen its unique brand
image. Macy’s new advertising theme –
“Way to Shop” – will communicate with
this customer in words and images she
recognizes and understands. And with
425 stores nationwide now part of the
brand, Macy’s can advertise consistently
coast to coast for greater efficiency and
impact – supported by a national
e-commerce presence through macys.com.
“Way to Shop” celebrates the experience
of shopping, reflecting the way customers
think of a trip to a Macy’s-branded store.
More advertising dollars are being allocated
to high-energy broadcast spots that reach
our core customers more consistently in
key markets.
FEDERATED IS A RETAIL INDUSTRY LEADER IN THE DEVELOPMENT OF EXCLUSIVE PRIVATE
BRANDS OF MERCHANDISE. AS A GROWING PROPORTION OF TOTAL SALES, PRIVATE BRANDS
DIFFERENTIATE MACY'S ASSORTMENTS AND DELIVER VALUE TO THE CUSTOMER.