It's a simple proposition really. Retailers looking to grow their businesses, identify demographic groups and then go about delivering on the various marketing P's to turn the opportunity into purchases. For Macy's, the current push is among consumers between the ages of 13 and 30 — the Millennial generation.
According to a report by Reuters, Macy's CFO Karen Hoguet recently spoke about the importance of grabbing greater share of the Millennial market. "That's a customer who buys lots of other things in the store besides apparel," she said.
Company research, according to Ms. Hoguet, found Macy's is not "the store of choice" for older Millennials.
"We believe we have great opportunity to accelerate sales growth among customers in this generation. Doing so requires us to think from the customer's point of view about our assortments and store experience, and to align our internal resources so we can move quickly and with focus," said Jeffrey Gennette, Macy's chief merchandising officer, in a statement. "The Millennial strategy is a natural extension of Macy's very successful work over the past three years in developing My Macy's localization, omnichannel integration and customer engagement through MAGIC Selling."
Macy's is planning to implement its Millennial strategy in phases over the next three years, including enhancing its fashion assortment and shopping experience in mstylelab (targeted for 13 to 22 year-olds) and Impulse (19 to 30).
The department store chain identified several key points of emphasis including:
Reorganizing its corporate structure: The company is making unspecified changes to speed decision-making and product development. According to a Macy's press release, "These adjustments will allow central office buyers, planners, marketers, private brand developers, visual merchandisers and support teams to collaborate more closely across functions to execute strategies and drive the business."
Identifying customer profiles: Macy's has developed four customer lifestyle promotions for men and women in the demographic with the goal of turning better understanding into improved product selection, marketing and in-store merchandising.
Localizing assortments: The chain will make refinements to its mstylelab and Impulse areas in keeping with the successful My Macy's initiative.
Utilizing new and emerging technologies: Macy's plans to engage Millennials through online, mobile and social channel and do so in a manner that it provides a "seamless shopping experience" with the chain's stores. The chain will use technology such as QR codes, tablets, tap-and-go transactions etc. to further improve the experience.
Engaging with content: Macys.com will make more use of expert bloggers on the site to offer advice and engage with Millennials. Microsites will focus on fashion developments while providing tips and information about Macy's events.
Improving the in-store experience: Macy's is planning to make changes to store layouts and make better use of signage and technology to make it easier to shop its stores. The chain is investing in training to raise the performance level of store associates.