CEO: ‘My Macy’s’ Working
Terry Lundgren, chief executive officer at Macy’s
Inc., is happy with the department store chain’s 20-area test of its “My
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.'”
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?