Macy’s and Retail Industry

The founder of the Macy’s and retail industry is known as Rowland Hussey Macy. The company opened four retails that dealt with storing dry goods between the year 1843 and 1855. Macy’s and retail is considered to be the representative of the retail industry. The common activity carried out in the industry is selling of their products to their customers. Macy’s and retail industry is quite similar to the service industries such as barber, travel agency and hotel (Barmash, 2003). The only difference is that it offers tangible products while the service industry offers services to their customers. Macy’s and retail industry offers different products to its clients and the products vary in the strategy of its planning. Their online marketing sites as well their retail stores, provide the sales that are clear, constant, of great deals, with a high discount, coupons and special. Macy’s and retail industry mostly try to produce products that will be affordable to their clients within the country. However, the pricing that is placed in the overseas markets is much higher because they are putting their concern on the many factors. This paper analyses Macy’s and the retail industry.

Market structure and pricing

According to the timeline that showsMacy’s expenditure while advertising their products in the United States from the year 2009 and the year 2017, the department chains of Macy’s spent 1.4 us dollars in the year 2017 while advertising their products in the United States. As a result, it generated up to 24.84 billion USdollars in the same year, this was roughly 38% with the inclusion of the accessories used by the women, apparels that are intimate, cosmetics as well as the shoes, 23% with the feminine apparel and another 23% with the men and children apparel (Brennan & Schafer, 2010). The 16% that remained was generated in the miscellaneous or the home segment.

It is well known that Macy’sand retail industry is one of the representatives in the retail industry worldwide. Their commonly business activities are to sell products to customers both from within and overseas. Just like the service industry such as barber, travel agency and hotels and retail industry also is doing great with its businesses. The only difference is that retail industry provides the tangible products, but the service industry is providing the service. Macy’sand retail industry has a diverse product offering hence has a different pricing strategy (Krafft & Mantrala, 2010). Products across their various categories have varying prices. The prices of products available in countries other than India are quite affordable. The prices for India are on the higher end owing to shipping costs included. They’re online, as well as retail stores, provide a lot of clearance sales, steady sales, deals of the day, discounts, coupons, and specials. Macy’sand retail industry tries at all times to provide the affordable products to customers in the country. When it comes to its markets that are overseas, the price probably higher because we need to concern about many factors which include the taxes in the foreign land as well as the charges required during the process of exportation.

Macy’s and retail industry is mostly known to operate with the departments. At first, it was known as the federated organization. Therefore, its departments were known as the federated departments. The federated departments announced on July 18, 2005, that it would acquire the May department stores company at $11 billion which is equivalent to $ 13.8 billion applied in the year 2018. This amount was applied in cash and stock of the company.

On the other hand, the bridal and the formal unit of Maywereconsidered to be the part of the buyout. This consisted of David’s Bridal and After Hours Formalwear. Federated, the owner of the company would also assume a total sum of $6billion which was equivalent to $ 7.52 billion in the year 2018 of the debt which he was owed by May. This brought into consideration, a total of $17 billion which is equivalent to $21.3 billion in the year 2018. As a result, the deal created the largest departmental store in the nation. This was with a total of 1000 stores and a $ 30 billion equivalent to $ 37.6 in 2018 in its annual sales (Brennan & Schafer, 2010). Federated departments agreed upon selling his combined proprietary credit card business to finance the business deal with the Citigroup. As a result, he still administered with the FACS group which was its subsidiary. However, the merging of the groups was completed on August 30, 2005, after an agreement as well as an assurance with the attorney general of the New York, California, Massachusetts, Maryland, and Pennsylvania.

Macy’s and retail industry suggested that its board of directors would inquire from the shareholders of the company if the company would be able to change its name to Macy’s group Inc. this suggestion was made on February 27, 2007. The process was effective the organization was renamed on March 28, 2007. This transformed it from its previous name which was federated direct holdings, Mica. The new name was effective on June 1, 2007. From the beginning, the company has always known that the best element in the business strategy is pricing (McGrath & Gourlay, 2012). As a result, it relay watches how it determines its sales, profits as well as its growth. While determining the modes of pricing, it puts into consideration, the flexibility of their prices. They ensure that their prices are real and finally, they put in too much consideration the personalization between their customers and the products. According to Macy’s and retail industry, a planned pricing strategy is highly likely to award the company and as a result, earns the company more revenue. That is why it pays more attention to building their costs to a correct net price as well as providing a room for a discount to their clients.

In case there is a change in the costs, Macy’s and retails industry does not in any way erode its margin in case there is a fluctuation in its prices. It does not have its raw material prices change to earn more. Instead, it puts its customers into consideration (Salvendy, 2001). Macy’s and retails industry does this because it believes that even without any means of adjusting the sales dynamically, the sales based on the cost of the goods are the mercy of the margin volatility. Macy’s and retails industry tries its best in the act of trying to persuade the buyers to go for their goods. The best way in which the company applies is allowing an opportunity for a discount on their pricing strategy. Also, its pricing strategy outlines ways/ tactics in which their employees can persuade a buyer.

Resources and demand

Just like many other industries, Macy’s retails industry applied many resources in their businesses for its business to grow worldwide. It has stores that supply their products as well as the goods within its nation. Also, it also has branches that sales its products overseas. However, it earns more on the products sold overseas because their products are on a much higher demand outside. This enables them to raise more revenue and as a result get to expand the company even more and give rise to more departments. Macy’s and retails industry has a high demand for their products worldwide (Mohammed, 2010). This is because it offers quality goods. Also, its prices are customer friendly. They are affordable, and the industry offers a room for discount to its customers. This is to enable that none of the buyers who are interested in their goods ends up missing out due to high unaffordable prices. The industry deals with the products such as the accessories used by the women, apparels that are intimate, cosmetics as well as the shoes

As mentioned earlier, Macy’sand retail industry is one of the industries that are more representable worldwide in the retail industry. This is because of their common activity which is the selling of products to their customers. It is similar to other industries that are carried out in the global. The only difference Is that the retail industry mainly deals with the provision of the tangible products, on the other hand, the service industry is highly specialized in the provision of service to its clients. Macy’s has a diverse product offering hence has a different pricing strategy (Salvendy, 2001). Products across their various categories have varying prices. The prices of products available in countries other than India are quite affordable. The prices for India are on the higher end owing to shipping costs included. They are online, as well as retail stores provide a lot of clearance sales, constant sales, deals of the day, discounts, coupons, and specials. Macy’sand retail industry try at all times to provide the affordable products to customers in the country and mostly for the overseas market, the price probably higher because we need to concern about many factors.

Conclusion

From the research carried out above, Macy’s and retail industry is growing at the rate that is pleasing. It is achieving the good sales because it pays considerable attention to the wants of its customers. It enables that the desires of its customers are handled instantly. This is in matters quality of the products, availability of the products as well as the costs of the products. It keeps the needs of its customers in the frontline. As a result, it has branches overseas to ensure that none of their buyers misses out in their products. The company achieved this with the help of good leaders as well as the understanding stakeholders who are at all times ready to support them in case there is a change that is required to be made in the organization.

References

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Media and Mobility. Chichester: Wiley.

Krafft, M., & Mantrala, M. K. (2010). Retailing in the 21st century: Current and future trends.

Heidelberg: Springer.

McGrath, R. G., &Gourlay, A. (2012). The End of Competitive Advantage: How to Keep Your

Strategy Moving as Fast as Your Business. Boston: Harvard Business Review Press.

Mohammed, R. (2010). The 1% Windfall: How successful companies use price to profit and

grow. New York: HarperCollins e-books.

Salvendy, G. (2001). Handbook of industrial engineering: Technology and operations

management. New York, NY: Wiley.