Macy's announced its earnings a couple days ago (Feb. 26) and they were good. Year-end results showed sales jump 4.9% from $26.4 to $27.7 billion. Store sales increased 3.7% in 2012 on top of 5.3% in 2011 and 4.6% in 2010.
According to Forbes' Walter Loeb, much of this growth can be attributed to the company's M.O.M. initiatives, which stand for My Macy's localization, Omnichannel, and Magic selling.
I am excited about Macy's growth prospects. In recent years, shopping in a department store has been a scary, time-consuming experience.
Loeb on My Macy's: "For more than three years the company has worked on specific localization, which focuses on having each store feature merchandise that is relevant to customers who live and shop in that area. For example, whether it is Latino or Asian customers, the selection of fashion merchandise, as well as the taste level and sizing of the clothing, is often very different from store to store, and requires a trained buying staff."
On Omnichannel: "In addition to warehouse fulfillment of purchases from in-store, on-line or mail order customers, Macy’s now has 292 stores that participate in the fulfillment of orders -– to insure that the customer receives better service as purchases are delivered quicker than ever before. By the end of the year management expects to have about 500 stores participating in this program."
Store associates are taught how to be more engaged with the customers and to make decisions on the selling floor.
On Magic selling: "Through new training tools, associates are taught how to be more engaged with the customers and how to be more empowered so that they can make decisions on the selling floor. It is an important step ensuring more caring and responsive customer service."
In conclusion, Loeb expresses excitement about Macy's growth prospects. "In recent years, shopping in a department store has been a scary, time-consuming experience. (Macy's is showing that) the department store can still feature new fashions and determine new trends."