Swot Analysis For Macy's

Macy’s is a popular department store chain started in 1858 on the corner of 14th and 6th Avenue in New York City. Rowland Macy’s store first day of sale was $11.06, but at the end of the first year, his store revenue $85,000. Macy’s innovative spirit made it stood out as they were the first retailer to promote a woman to be in an executive position, started a one-price system, heavily focus on advertisement, sold the first colored bath towels, and was the first retailers in New York City to have a liquor license. In 1902, the Macy’s opened another store on Broadway and 34th Street. By 1924, after continuous expansion, that location became the world’s largest store measuring at 1 million square feet. Recently, the location grew to 1.1 million

The Macy’s day parade has been engrained into our culture as it has been a tradition for almost a decade now. Macy’s also developed a brand of selling higher quality products, and a culture of community involvement. Their strong online present is an advantage as they made it simpler for consumers to shop through all their products without having to leave their home. Macy’s understood how important it is for their growth in the online market as they offer in-store pickups at any of their 728 stores in the United States, simplifying and expediting the online process for consumers. Macy’s is parent company of Bloomingdale’s since 1949. This high end department store offers upscale merchandise such as Burberry, Chanel, Prada, Christian Dior, and Jimmy Choo. Consumers that shop at Bloomingdale’s has a higher level of brand loyalty and willing to spent more than Macy’s consumers. Macy’s other strength is their portfolio of strong, diverse private brands. Each of their brands offer a different or unique factor that attracts specific consumers and their needs. Rivalry in the department store business is high because of their current competitors and new ones emerging online. A threat of a new entrants is low due to a high amount of investment required. Because Macy’s is just a store that sells various products, the treat of substitute is high because consumers can get the same products elsewhere. Macy’s two main weaknesses include a slow growth on their return on investment and the high volume of employee