Macy's 2005 Annual Report Download - page 9

page five
As with our total assortments, private brands at Macy’s
are positioned to appeal to the lifestyle needs of our
core customer. We’ve learned that lifestyle – not age,
demographics or income – is the key determining factor
in what customers buy, how they shop and the value
they expect.
Macy’s also works closely with market vendors to bring its
customers exclusive and limited distribution merchandise.
Status brands and strategic partnerships with successful
designers are part of the history and heritage of Macy’s
and Bloomingdale’s.
The company’s long-standing relationships with status
brands and designers such as Calvin Klein, Coach, Esteé
Lauder, Kenneth Cole, Michael Kors, Nautica, Sean John,
Ralph Lauren and Tommy Hilfiger are built on a deep,
mutual respect and a compelling desire to give customers
fashion and newness.
More Tailored Assortments
Each store is planned to reflect the lifestyle and preferences
of the customer who shops there.
In part, Macy’s and Bloomingdale’s are trading up their
businesses. On the scale of good-better-best, the proportion
of upscale “best” merchandise sold by Macy’s rose in 2005.
Concurrently, the proportion of opening-price-point “good”
merchandise declined.
Bloomingdale’s also continues to emphasize contemporary
fashions in an accessible upscale store environment. This
includes new in-store boutiques from some of today’s
hottest designers.
Our stores continue to emphasize increased inventory
velocity by editing out duplication and reducing the
clutter on the selling floor. Customers want us to be in
stock, but they don’t want to be overwhelmed by the
amount of choice, particularly in basic merchandise.
By reducing duplication in basic and promotional items,
we are able to invest inventory dollars in best-selling items
and newness, which makes our selling floors fresher and
more enticing to the customer.