5. The Business Model
• Business to customer model
• Highly consumer driven
• Retails several brands Alfani, Anne Klein, Bar
III, DKNYC, Ellen Tracy, Tommy
Hilfigure, Armani, Calvin Klein…
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8. SWOT Analysis
Strengths Weaknesses
• Strong brand equity • Macy as a declining net profit
• Strong advertising • Downturn in economy for in store
• Economies of scale shopping
• Ethical, socially responsible, and • Lack of diversification in the
sustainable company with strong merchandise
value • Not being able to find the middle
• Bloomingdales a subsidiary of Macy’s ground between Wal-Mart’s low
appeals to upscale customers while prices, and Bloomingdales high prices
Macy’s offers “affordable luxury” while maintaining reputation.
items. • Macy’s has to overcome the client’s
• Large piece of the market share perception of the impersonality of
national brand
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9. SWOT Analysis contd
Opportunities Threats
• Open new stores to boost revenues in • The economic recession in the United
the medium term States
• There is a growth trough overseas • The increase of the minimum wages in
operation the United States
• There is a growth of sales in the online • Intense competition in the retail
retail spending stores such as Dillard’s, JC Penney, and
• Many smaller stores are looking to be Saks
bought out because of the recession • Lower price competition
• Merchandise such as • Numerous employee layoff
apparel, cosmetics, and children’s • A change in customers has occurred
clothing are experiencing fastest over the past year, but Macy’s has not
growth changes to satisfy customers.
• Robotic machines to help sales such as
IPods and IPads
• Opportunities to buy out smaller
brands because of its size
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