MKTG 2030 Chapter : Macy's notes
18 Mar 2014
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Document Summary
Federated department stores looking to develop macy"s as national brand. Consolidated other stores- allowed for maintaining business rather than starting from. Market share of traditional department store: 30% in 1950s and 7% in 2010. Consolidated 810 department stores from 15 different chains across us. Allowed for national advertising and national brand. Affordable above mid-level department store, below higher end. After consolidation, bought mass amounts from same suppliers -> buyers- higher power. Created own brands; became their own suppliers. Broad customer base; no single buyer influential enough. Some found new prices higher than stores consolidated from. Quality and service same at macy"s; unique advantages of new macy"s. Closed stores in unprofitable areas; opened in more upscale areas. Macy"s focused efforts to be unique . America"s department store": repositioned as an upper-middle level store, focused on less traditional and conservative [than other department stores, produced own brands in conjunction with nationally-advertised brands, consolidated brands, cut costs.
