Macy's 2012 Annual Report Download - page 4

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Today’s best customers are those who shop our stores … and
online from home ... and from their tablet or mobile device.
These are customers who browse online, then come to Macy’s or
Bloomingdale’s to lay on the mattress or try on the shoes before
buying them in the store. These are customers who visit a store
on their lunch hour, then make the purchase later at home or from
their office, after they’ve thought about it for a while. They find
that the macys.com and bloomingdales.com websites are as
exciting, engaging, efficient and technologically effective as any
in retailing.
Omnichannel means our stores, websites and mobile devices
are all working in unison – and seamlessly behind the scenes –
to the benefit of the customer. We are driving store customers
online and online customers into the stores. We are using mobile
to feed both stores and online. We at Macy’s have the best of
all worlds.
We made a big leap in 2012 when we equipped 292 Macy’s
stores to fulfill orders placed online or at other stores that may
have been sold out of a particular item. This was up from just
23 fulfillment stores in 2011. We will be adding another 208
stores with fulfillment capability in 2013, which will bring us
to a total of 500 by the end of the year. By making all of our
assortment available to every customer, we can drive incremental
sales, increase inventory turns and improve gross margins.
We will continue to test and roll out new technology of all sorts
so that we can continue to connect with customers as their
shopping habits and preferences change. You’ll be seeing
more tablets used in selling in the stores. You will see some
very interesting new uses of mobile. You will see us testing
and learning as we find ways to get merchandise to customers
faster and easier when they want an item shipped.
We are part of an exciting new world. As America’s Omnichannel
Store, you can expect that we will be an innovator on multiple
fronts. This is what the customer expects from us, and it is what
we will deliver.
MAGIC SELLING
MAGIC Selling will continue to be the basis for how we engage
customers in Macy’s stores and how we coach our associates for
success. MAGIC is an acronym we use to drive home to our
associates the process to Meet and make a connection … Ask
questions and listen … Give options, give advice … Inspire to
buy … and Celebrate the purchase.
Bringing Magic to our customers is about treating people right,
taking the extra step with each customer, and bringing a new
measure of joy to shopping.
All of this has helped us to improve selling service in our stores
over the past couple of years, as reflected in the scores calculated
for each store based on direct customer feedback after a
shopping trip.
In 2013, we will be redoubling our efforts to encourage our
associates to sell from the heart and to take the extra step to
make every customer feel special. Our mantra is “Be the magic.”
And we’ll be providing new tools that our associates can use to
brighten the day of every customer.
POSITIONED FOR THE MILLENNIAL CUSTOMER
Macy’s in 2012 launched a new strategic approach to
customers in the Millennial generation. This new approach
is part My Macy’s … part Omnichannel … and part Magic.
Millennials are the segment of our customers who are ages 13 to
30. They are now America’s largest generation. Millennials, who
spendmorethan$65billiononthekindofmerchandisesoldby
Macy’s, represent a major opportunity for our company today and
down the road.
In 2012, we brought together the Millennial teams from various
disciplines – including Merchandising, Planning, Marketing and
Private Brands – into new open-concept office space in New York
City so they could work more collaboratively, create new ideas
and move quickly on key projects.
Their first order of business was to bring some new and fresh
merchandise into the Impulse (for older Millennials) and Mstylelab
(for younger Millennials) areas of Macy’s stores and dotcom.
In October, we announced that 13 new Millennial brands would
be coming to Macy’s by the end of 2013 and that we would be
expanding 11 existing Millennial brands.
Beyond the new and expanded merchandise assortments in
2013, we are now working on a new Home strategy for
Millennials. And we are experimenting with floor moves and
adjacencies within the stores to create new destination zones
for our Millennial consumer.
Marketing is focused on new ways to reach out and attract these
younger customers. Social media obviously plays a big role, and
we have aimed a number of Facebook, Twitter, Pinterest and
Instagram programs toward this audience. MBlog, our own
blogging site, is becoming more informative and will offer unique
perspectives for our 13- to 30-year-old users.
CONFIDENT AND DETERMINED
“Confident” and “determined” are two words we have used to
describe Macy’s, Inc. today. We already have proven that our
strategies – and our people – are winners and that we at Macy’s
are definitely on the right track.
And as America’s Omnichannel Store, we have as many assets
and competitive weapons at our disposal as anyone in the
retailing business.
Winning in the marketplace in 2013 and beyond means we
must dig down deep for ideas and brilliant execution that will
allow us to continuously improve at Macy’s and Bloomingdale’s.
We have an outstanding team in place at every level in our
company, and they are energized to continue to bring
outstanding fashion and newness to our customers at a
great value.
We believe that Macy’s, Inc. has distinguished itself as a
frontrunner and a company to watch.
We are very proud of what we have accomplished to date, and
we cannot wait to show you what we are capable of
accomplishing in the future.
Terry J. Lundgren
Chairman, President and Chief Executive Officer