Macy's, Inc.’s (M) omnichannel initiatives have been in full swing since these are integral part of the company’s strategic plans.
In an attempt to increase sales, profitability and cash flows, the company has been taking steps such as integration of operations, omnichannel strategies, consolidation of divisions, and developing eCommerce business as well as online order-fulfillment centers.
In fact, My Macy's localization initiatives, omnichannel integration and magic selling drove the company’s results in the second quarter of 2014, with earnings of 80 cents a share surging 11.1% year over year, and sales of $6,267 million climbing 3.3%. Favorable weather conditions and calendar shift for its major event in the first two days of the quarter also had a positive impact on sales.
Recently, the company announced new additions to its attractive technology-driven strategies so as to support its omnichannel initiatives.
Macy’s introduced various innovative services including Apple Pay, Same Day Delivery, Buy Online Pickup in Store Rollout Completed, Enhanced Shopping Apps, Innovation in Stores Selling Technology, Macy’s Image Search, Macy’s Wallet/Bloomingdale’s Wallet, Shopkick, Smart Fitting Rooms, Macy’s Digital Editions, RFID Yielding Results and Expanding, and Bloomingdale’s Tabletop Builder.
The Apple Pay service, slated for launch in October, is a mobile payment system whose availability will commence this fall. This system will be supported by Apple Inc.’s (AAPL) latest iPhone 6 and iPhone 6 Plus devices, and its Apple Watch. Bloomingdale’s and Macy’s will be among the first retailers to support this feature and facilitate convenient, private and secure customer payment.
Further, Macy’s and Bloomingdale’s have initiated mobile shopping apps for Android and iOS, for example, the Macy’s Image Search where the user can search any product on macys.com, by uploading a photo.
The aforementioned introductions also feature various specialties, which are likely to enhance customer convenience by enriching their shopping experience.
The company's premier chains — Bloomingdale’s and Macy’s — are two well-recognized names in the department store industry. Going forward, this customer-oriented retailer intends to maintain its focus on innovations and expansions in the omnichannel world.
However, the company operates in a highly competitive retail merchandise sector, facing stiff competition from a diverse group of stores including Target Corp. (TGT), Wal-Mart Stores Inc. (WMT), Bed Bath & Beyond Inc., and other specialty and discount stores, which are likely to weigh on its results.
Nevertheless, we believe that the company’s sustained focus on price optimization, inventory management, merchandise planning and enhancement of its omnichannel capacities, positions it well to drive traffic, meet customer-oriented demand and improve in-store shopping experience.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment