a) Accounting policies and comparison with international accounting standards: Net sales, cost of sales, gross margin, expense, operating income, interest income, taxes, cash, assets, long-term and short-term liabilities, Properties, common stock dividends, total shareholder’s equity are all the accounting policies. All of those and other financial data be used in preparing the Macy’s financial reports. In the section of the common stock. The company’s Board of Directors has the discretion of the declaration and payment of future dividends.
(Anderson, 2015) Department stores such as Dillard’s, Macy’s and Nordstrom, have experienced challenges, the channel's long slump raises questions about the overall health and relevancy of the department store sector. Let's be honest; department stores for the most part are being 'out-retailed' by the specialty stores and online shopping. The favorable sales growth Vera Bradley showed in 2016 was driven by new store openings rather than an increase in comparable store sales. Although revenue rose 1% year-over-year in 2016 Q1, its total comps, including e-commerce, actually fell 4.6%. (Vera Bradley 10K, 2018)
Background: “In 2001, FASB Statement No. 142 Goodwill and Other Intangible Assets replaced APB Opinion No. 17 Intangible Assets (issued in 1970)” (Hillenmeyer & McMillen, 2013). The new statement eliminated goodwill amortization which was previously amortized over its useful life at a maximum of 40 years. Statement No. 142 required that goodwill be tested for impairment annually using a two-step process. Step one compares all of an entity’s reporting units fair value to their carrying value including goodwill.
According to SNHU (2016), Michael Porter describes cost leadership, differentiation, or focus on a target market that ranges from narrow to broad are the generic strategies a company can pursue. A company can add unique values and differentiate from its competitor, or lower its production cost and passes on the savings to its customers or focus different market depending on its core competence to its own advantages while planning and designing a strategy. The factors that differentiate one competitive strategy from another depends, if the company follows a competitive advantage linking to lower cost or targeting a broad or narrow market. Two types of competition lower cost and differentiation, two types of the target market broad and narrow provided total 4 competitive strategies and the 5th the best-cost provider strategy is a blend of all the four (Thompson, Peteraf, Gamble, and Strickland, 2016).
Current Strategies &Alignment with goals According to (unknown, 2017) Lowes focused is evolving around the business and to be further drive trust and loyalty by empowering customers throughout their project journey. Robert A. Niblock, Lowe’s chairman, president and CEO said that “We’re building on our past success and adapting to meet the needs of a changing customer.” Our goals are a line with the strategy of the company, few of the goal are • Expand home improvement reach to drive profitable share gains • Further adapt to the customer, developing capabilities to anticipate and support their needs • Generate long-term profitable growth and substantial returns for shareholders Compare with competition Competition includes: Home depot, Fastenal and Wal-Mart •
Also, with the individual tax cuts, this will induce customers to spend more and at the same time be rewarded for their spending. Hence sales is forecasted to rise further over the next 12 months and as consumer spending increases, this will increase GDP. Furthermore, Macy’s competitors Abercrombie & Fitch, Banana Republic, J.C.Penny and more are closing stores due to declining sales (Ramer, 2018). Macy’s on the other hand, is expanding their business with plans to open another 100 stores this year and one distribution centre in Columbus, Ohio which will not only boost sales, but also create more jobs which is in line with the forecast of unemployment rate decreasing. The opening of the new distribution centre is to increase efficiency in transporting merchandise with more flexibility to stores within the region and surrounding states which will reduce transportation costs in the long run, thus increasing net income which will increase earnings per share (Driscoll,
Macy’s Inc., a renowned American department store chain, is subject to scrutiny not only for its operational performance, but also for its accounting practices. Focusing on evaluating Macy’s accounting policies for the fiscal year ending January 28, 2023, focusing on receivables, inventories, property, plant, and equipment (PP&E), intangibles, liabilities, and revenue recognition. Macy’s Inc. presents its financial statements in accordance with generally accepted accounting principles (GAAP) in the United States. The company’s accounting policies are disclosed in its annual report and provide a basis for understanding how financial transactions are recorded, reported, and interpreted. Macy’s accounting policy or receivables is by recognizing
We decided to analyse the three upmarket department stores which have determining roles in the UK retail market. Due to the recession the department stores are still facing enormous challenges, the volumes of the sales are dropping, the mature market of retail has low growth rates and the buying habits of the customers have also changed in the last few years therefore the competition is extremely tense. Although the price is still an important factor for the consumers, they have become more sensitive to the value, the quality, the longevity rather than the quantity of the purchased products or services. (Debenhams, Annual Report & Accounts, 2014) Competitors have extended their range of products and services, through the internet and online
Macy’s is a clothing and fashion store with a broad range of career opportunities with 800 stores, with 12 locations containing Visitor Centers. In Macy’s retail stores have many principles which encourage employees to work hard. For example, “maintain a professional attitude with sincerity and enthusiasm reflecting Macy’s commitment to our customer- the most important person in our store.” Retailers have the important duty of making the customer happy. That employee has the highest position in the store.
Annals of Operations Research, 244(2), 257-294. doi:http://dx.doi.org.wgu.idm.oclc.org/10.1007/s10479-015-1982-6 This academic journal piece presents an analysis that shows results of profitability if those within the retail industry were to fully invest in both their online and retail store sales. The article also discusses
Kmart was one of the largest discount retailers in United States and international. However, back in 2002, Kmart had filed a bankruptcy due to significant lost in market share. To help the company return to healthy financial status, the company has made some changes within its organizational structure. To reduce cost the company had decided to downsize intervention by closing three hundred stores nationwide. According to the Kmart CEO, the company will create “a new organization that will provide a clear, focused and strong leadership for our store teams.”
The major trend within the customer service industry such as retail tends to heading towards more a technology and social media customer service. Given, that online sales has increased within this industry in the past years, which is due to superior customer service over more traditional on site stores. Which has lead Wal-Mart in direct conflict with other major online retailers such as Amazon.com. Whose organizational structure allows for greater managerial and logistic control over their daily business operations. While Wal-Mart, the price leader, offering of free direct shipping to stores and multi media platforms that gives customer online shopping flexibility.
Executive Summary This report intent to explain an analysis of the current strategies followed by the company Marks and Spencer (M&S) from 2013. To perform this analysis various business models have been taken on consideration like SWOT, (Porters, 1985) supply chain and more. After analysing the actual situation, future actions are recommended for M&S, like adopting a new innovative customer oriented strategy or the use of effective method of marketing segmentation which will help to target customer more efficient.
Internet Website and Social Media Infrastructure Investments can leverage big profits for Retail Businesses! Retail Businesses leverage the Internet to grow sales by appealing to and connecting with the millions of new potential Internet consumers that shop on the web. The Internet consumers are very valuable to all types of businesses from the local brick and mortar store to the online retailer because the majority of all potential consumers now are connected, via smartphones, tablets, car GPSs or desktops. This essay will address three major topics; the first one is what online retail consumers demand from a website retailers, the second discuss the challenges of starting an online retail business, and the last topic provides ideas on how online retailers can manage the increased competition and complexities of doing business on the Internet. The first topic details what online retail consumers demand from a website.
is an online retail organization that deals with a wide range of products such as electronics, books, magazines, foodstuff, house-ware, clothes, shoes, etc. The company’s position in the field of online business is attributed to strategies such as organizational culture, human resource and cost policies. 2 ×2 SWOT Matrix Helpful
