Macy’s SWOT Analysis | SWOT Analysis of Macy’s
Through thick and thin, Macy’s is the leading US department store. With over 160 years of operation, you can learn a lot from Macy’s SWOT analysis. But it is necessary to understand Macy’s past and present to assess its strengths, weaknesses, opportunities, and threats. It’s headquarter is located in NY, United States. The current CEO is Jeffery Gennette.
Company: Macy’s, Inc.
Founder: Rowland Hussey Macy Sr.
Established: October 28, 1858
CEO: Jeffrey Gennette
Head office: NY, United States
Type: Public
Symbol: M
Present Employees (2020): 123,000
Annual Revenue (2019): American $25.3 Billion
Net income | Profit (2019): American $564 million
Products or Services: Clothing | Apparel | Footwear | Cosmetics | Accessories | Sportswear| Inner Wears | Home Furnishing | Consumer Goods | Miscellaneous Products
Surprising Fact: You will surprise to know that Macy’s First supervisor, Margaret Getchell was one of the first female executives in American retail history.
Here is the SWOT analysis of Macy’s
Macy’s SWOT Analysis | SWOT Analysis of Macy’s
Macy’s Strengths:
1- Huge Variety:
From clothes to accessories, fragrances, cosmetics, and home furnishings, Macy’s offer a huge variety of products for women, men, and kids. The company’s range includes Bluemercury and Macy’s Bloomingdale’s.
2- Excellent Customer Relationship Management:
Macy’s has a powerful customer relationship management (CRM). This strategy turn disappointed consumers into a satisfied customer if their complaints and queries are addressed fully. Macy’s is best known for its customer dealing services.
3- Precious Brand:
Macy’s customer-centric strategies proved beneficial for the company. This thing helps the brand to stable its name and reputation. It is ranked 120th by Fortune in the list of 500 companies.
4- Powerful e-Commerce Sales:
Due to lockdown, the trend of online shopping is very popular. Macy’s online strategies are very strong compare to other competitors. Due to this reason, Macy’s annual revenues increased.
5- Successful Marketing:
Most of the companies spend millions of dollars for marketing or advertising purposes. Macy’s has its Thanksgiving Day Parade that proved advantageous for the company. It covers both the cultural and marketing sectors of Macy’s.
6- Massive Investment in Automation:
Macy’s spend a lot of money to modify its automation services to streamline its actions. The flexibility, productivity, efficiency, and affordable cost presented by automation will Macy’s a benefit.
7- Family Name:
The synonym of Macy’s is the clothing retail portion the globe over. This household name presents huge benefits, especially in marketing.
Macy’s SWOT Analysis | SWOT Analysis of Macy’s
Macy’s Weaknesses:
1- Poor Administration:
In this kind of business, poor administration is the biggest weakness for any organization or company. Some decisions adopted by Macy’s have proved unconstructive for users. It is important for Macy’s to implement Polaris Plan in order to maintain its operations.
2- Small Existence:
Even though Macy works internationally but has a very small presence in some regions. The position is aggravated further due to the pandemic, which results to close Macy’s 125 outlets in the US.
3- Failed Expansion:
When a company decides to increase its expansion in other parts of the world but cancels at the last minute, it will corrode the trust of loyal consumers. Customers in the UAE are still waiting for the appearance of Macy’s but they pulled out of the Abu Dhabi extension.
4- Declining Quality of Service:
Due to the rapid expansion of stores across the US, the company spiraled out of hand and outlets became untidy and unattractive. This reason leads to a decline in the worth of customer service.
5- Emotional Cut off:
Due to the rapid change of technology and the emotional disconnect cause the biggest loss in the revenues. Because customers missing human employees and friendly warm faces.
6- Overreliance on the US Market:
Even though Macy’s has worldwide exposure but the company heavily depends on the US market. After the murder of Floyd, the company faces a lot of loot during the protests in New York City.
Macy’s SWOT Analysis | SWOT Analysis of Macy’s
Macy’s Opportunities:
1- Strengthen Overall Presence:
It is very vital to focus on the bigger international market because it offers various advantages and opportunities. Macy’s should revise its strategies and stores to strengthen its international presence.
2- Enlarge e-Commerce Sales:
Macy has obtained immense success due to the practice of e-Commerce. But there’s a lot of potential in this sector. Expanding in this sector allows Macy’s to earn more revenue and reputation.
3- Diversify Products:
The company already sells apparel, shoes, sportswear, cosmetics, and many more. But they need to focus on second-hand clothes or food industry to diversify their impact.
4- Pay Attention to Rising Markets:
Rising economies like Africa and Asia, Macy’s should focus on these areas to expand its reputation and profits. They can earn a lot of money and grow their business by paying attention to these emerging economies.
5- Develop through Acquisitions:
Macy’s should diversify their strategies and products. They should pair with other companies in the form of partnership and sponsorship. It is important to acquired Story to produce the latest ideas.
Macy’s SWOT Analysis | SWOT Analysis of Macy’s
Macy’s Threats:
1- Global Recession:
With the global tension or virus, every company or brand suffers a lot in the form of followers and profits. Macy’s is also planning to scale down the business which causes enormous loss in revenues.
2- Decreasing Retail Sector:
Due to the economic crisis, Macy’s also experience a loss of revenues for the last 4 years. If it continues, the business will definitely collapse before 2025.
3- Hard Competition:
In the existence of Nordstrom, JC Penney, TJ Maxx, Kohls, and so on, Macy’s market share is in danger. The hard competition between these heavyweights can break the impact of Macy’s.
4- Trade Pressure:
The businesses also face a huge decline due to unconstructive political policies, economic factors, and many more. These factors heavily affect the business for the past three years. Macy’s stocks were dropped by 50 % after these trading pressures.
5- Uncertain Periods:
According to economic experts, the second wave of the Coronavirus is completely drastic. Macy’s has previously lost $1.1 billion due to quarantine or lockdown.
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