Swot Analysis For Macy's

Paragraph One: In 2012, Macy’s retail strategy to further expand their retail positioning was through targeting the Millennials. Through statistics, there are approximately “76 million Baby Boomers and up to 70 million Millennials” (Young, 2012). Not only is the number of Millennials increasing, but they also have a significant spending amount of “$65 billion” (Young, 2012). Therefore, it is critical that Macy’s places more emphasis on capturing the attention of Millennials; especially when specialty store are major competitors. In which, Macy’s developed Private label brand, in order to compete in terms of exclusivity. When Macy’s considers the Millennial consumers, they divide them into two groups, “mstylelab shopper, between the ages of 13 and 22 and … Impulse consumer between the ages of 19 and 30” (Young, 2012). The brand Bar III was created to target the Millennial group, in specifically the Impulse consumer. On the Macy’s in Herald Square, Bar III is located on the third floor; in which is the location of Impulse brands. Bar III features modern wardrobe for the work environment,

Zara has an extraordinary business structure, in which “the various business elements [are] in close proximity… around its headquarter in Spain.” (Dutta, 2002). Due to Zara’s structure, they are able to quickly design, manufacture, and distribute product within a short time span; which is the key element to the three winning formulas. As Macy’s outsource their production, such as for Bar III, the time frame to get the current trends quickly, with minimal stock, and various styles, is not as efficient for Macy’s. This then poses a challenge for Macy’s to compete with Zara, because they cannot capture the Millennial target as quickly as Zara can. Macy’s would have to reevaluate their organizational structures in order to satisfy the demands of