Terry Lundgren, chief executive officer at Macy's Inc., is happy with the department store chain's 20-area test of its "My Macy's" customer micro-marketing program.
The program, which matches executives and buyers with a small number of stores, is focused on delivering a selection of products in demand in local markets. According to Mr. Lundgren, the typical "My Macy's" store carries 10 to 15 percent of unique inventory based on location.
To date, stores in "My Macy's" markets have achieved sales increases of 2.5 percent versus control locations. The company plans to expand the program to the rest of its stores by February of next year.
A Knowledge@Wharton article referenced another piece from The Columbus Dispatch that reported on the types of changes brought about with the "My Macy's" program. Buyers in the area, noticing that locals wore golf attire not just on the course but also to church, expanded offerings in local stores. With Columbus being the home of Ohio State University, buyers also added Buckeye products while expanding jeans for the large population of college-age consumers in the area.
Mr. Lundgren told attendees at a lecture held at the Wharton School of the University of Pennsylvania that he sees the consumer insights work his company is doing with dunnhumby as critical to achieving the type of personalized approach needed to achieve the full potential of the "My Macy's" program.
Before, he said, the company used to send out four different catalogs for fall based primarily on climate. It sent out 695 highly-targeted versions this year.
"When you start sending a petite customer a large-sized catalogue, she says, 'You know, you really don't get me -- you really don't know who I am,'" Mr. Lundgren said. "So what My Macy's means is that when you get something from us in the mail or when you walk into a Macy's store, you say, 'This is my Macy's. This isn't just a Macy's for everyone.'"
Discussion Questions: What is your evaluation of the "My Macy's" program? What do you see as the opportunities and challenges facing Macy's as it rolls out the program chain-wide?