M8: Assignment 3 Deniro Dawson Justin Palyvoda Caitlin Gayle Po Melanie Shane INFO 290_21 Professor Chen Macy’s vs. JCPenney Word Count: 1205 Introduction Macy's, Inc. is a retail company operating stores, websites and mobile applications under various brands, such as Macy's. The Company sells a range of merchandise, including apparel and accessories, cosmetics, home furnishings and other consumer goods.
This industry is very competitive with as many as thirty-seven firms and total estimated annual revenues of $125,904,840,000 (http://bi.galegroup.com/essentials/industry/448140?u=bentley_main). Retail giants like TJX, H&M and Gap are the top players of this industry with Nordstrom vying for the fourth largest market share and Dillard’s further down on the list. The success of Nordstrom Inc with respect to
Carrefour S.A. Crystal Rock Holdings, Inc. Delhaize Group SA Cencosud S.A. EBay Inc. J. C. Penney Company, Inc. Koninklijke Ahold N.V. Metro AG Price Chopper Operating Co., Inc. Roundy's, Inc. Sears Holdings Corporation Shopko Stores Operating Co., LLC The Kroger Co. There always will be a rivalry in this particular market; because they are always competing for consumers, governments, and businesses to purchase their merchandises.
Companies like Gap, Abercrombie & Fitch and Victoria’s Secret have been called out
Sears and Montgomery Ward sold some houses that were so similar it can be difficult to tell them apart without an interior inspection. If a certain style was selling well for one company, the other rival would design their own version of the same house. This leads to all kinds of confusion today, when homeowners misidentify their houses as being from Sears and they are actually from Wards, and vice-versa.
Harry, I agree that Macy’s and JCPenney immediately lures consumers to shop on their websites due to online coupons promoting additional percentages off of their merchandise. Macy’s send their customers coupons in the mail monthly and when there is a One Day Sale promotion. These coupons give extra money off the total purchases and can be presented in the store or online. Giving customers more choices to do business with a company increases the chances that the customer will purchase from the firm again. The customer’s experience is very important when it comes to maintaining repeat clients.
Competition According to Hoovers, Target main competitors are Macy’s, Kohl’s, and Sears (Hoovers, n.d.). The reason why these retailers are competitors is, because they are large department chains, and they sell similar merchandise as JCPenney. For instance, these retailers offers a wide range of products which includes, apparel, footwear, jewelry, housewares, handbags, cosmetics, electronics, and many other products. The department stores Kohl’s, Macys, and Sears all sells different type of brands that sets them apart from competitors, as well. Kohl’s added Under Armor to its store, as a way to attract younger shoppers who shop there.
Macy’s is a well-known brand that has maintained an upscale market appeal for many years. Macy’s is considered to be a high-end retailer which has been operating since 1858. Macy’s quickly grew from the one manned dry goods store that started out bringing less than $15 of revenue in each day to mega retail store with more than 800 locations in 45 differents states. Macy’s has connections with many well-known brands, Michael Khors, Coach, Burberry, Clinique, Tommy Hilfiger, Ralph Lauren and countless more that all contributes to the success of this retailer. However, in recent years, Macy’s has been struggling to keep above the competition.
In the early 1990s, when facing severe financial pressure, Sears Roebuck & Co. implemented various shady economic tactics that resulted in a 50 percent increase in consumer complaints over a three-year period causing several states to conduct undercover operations to investigate these claims. When implementing both “bait and rip off” tactics and a quota based system of compensation for its mechanics, Sears Auto Repair Centers acted in bad faith operationally and ethically. Both of these economic strategies were ingrained with potential business law time bombs that threatened financial loss from settlements, litigation, restitution, and lost future sales. These management decisions threatened the integrity of Sears as a company, the integrity
Gap is one of America’s leading chain of clothing stores that operates under the brand names Gap, Old Navy, Banana Republic, and Athleta. This humongous company has over 3000 stores worldwide and is located in major outdoor shopping centers and malls. The store's chain offers American type style clothing that ranges from Jeans, Shirts, and Khakis at a fair price. One of its brands, Old Navy offers lower priced clothing’s that include denim, t-shirts, and cargo pants. Its other Brand, the Banana Republic offers a much higher priced luxury line of clothing along with other accessories like shoes.
RECENT OPERATIONAL PERFORMANCE Gap Inc. Gap Inc. is a global specialty retailer offering clothing, accessories and personal care products for men, women, children and babies. The company has grown from a single store to a global fashion business with five brands — Gap, Banana Republic, Old Navy, Athleta and Intermix. Gap was founded by Doris and Don Fisher in 1969. The Fisher family still owns about 40% of Gap Inc..
Sears Roebuck Company is currently a subsidiary of Sears Holdings Corporation a publically traded company. Sears Roebuck Company is in the retail industry providing merchandise and related services to consumers. Sears Roebuck Company range of services include the following: merchandise, apparel, and automotive products. The Kmart Holding Corporation acquisition of Sear Roebuck Company was corporate strategy completed in hopes of creating synergy. Sears Roebuck Company offered consumers leading proprietary brands that included the following: Kenmore, Craftsman, and Diehard.
Banana Republic’s biggest competitor is J.Crew with the addition of Brooks Brothers and for the purposes of our collaboration, Alexander Wang. These brands carry products very similar to Banana Republic such as casual and dress shirts, sweaters, outerwear, pants, denim, swimwear, sleepwear, shoes, bags, accessories, fragrances and stationery gifts. (Add individual market share here). Competitors have their own strategies and ways to stand out. For example, J.Crew partnered with New Balance to bring a sportswears collection to their store and attract a new customer.
GAP is a popular retailer provides several lines of products, clothing, personal care products, accessories, for women, men, children and babies. 2. GAP owns different brands (GAP, Old Navy, Banana Republic, Piperlime, and Athleta) which provides different styles, and targeting different segments which makes it meeting different consumers wants and needs. 3. GAP has franchising agreements with unaffiliated franchisees that operates GAP and banana republic around the world.
For this particular segment, what’s in and what’s out is a matter of what fashion magazines dictate the next day. Gap should have instead done a thorough market research to identify if its customers would want such a new product line. d. DISCOUNT PRICING: Another quick fix method that Gap used only ended up increasing gaps within sales.
