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Macy's Millennial strategy unveiled
Mar '12
Macy's Inc. outlined a new initiative to grow and develop Macy's business with customers in the Millennial generation (ages 13 to 30). This is now America's largest and most diverse generation, spending an estimated $65 billion each year for the type of goods sold at Macy's.

The plan, to be implemented in progressive stages over the next three years, includes a series of steps to significantly enhance Macy's assortment and shopping experience in mstylelab (the merchandise area primarily serving customers ages 13 to 22) and Impulse (primarily serving customers ages 19 to 30).

“We believe we have great opportunity to accelerate sales growth among customers in this generation. Doing so requires us to think from the customer's point of view about our assortments and store experience, and to align our internal resources so we can move quickly and with focus,” said Jeffrey Gennette, Macy's chief merchandising officer. “The Millennial strategy is a natural extension of Macy's very successful work over the past three years in developing My Macy's localization, omnichannel integration and customer engagement through MAGIC Selling.”

Key elements of Macy's Millennial strategy include:

Identifying Customer Lifestyles – Millennials comprise a highly diverse generation. Macy's extensive research into Millennial customers, their shopping preferences and buying habits demonstrates significant variation in what Millennial customers want and expect from their favorite store. Recognizing this, Macy's has developed four customer lifestyle profiles for both Millennial women and men. These lifestyles express how the customers see themselves, primarily along the spectrum of their interest in fashion and newness, and will be used internally by Macy's buying, planning, private brands, marketing and visual merchandising teams to better understand the customer so they can make informed decisions going forward.

Enhancing and Localizing Merchandise Assortments – Based on the understanding that brands are very important to Millennial customers, as well as a hallmark of Macy's, the company will be further developing its assortments of brands that appeal to each of the customer lifestyles for women and men in mstylelab and Impulse. Some of Macy's anchor brands for Millennials will be familiar names. In addition, the buying and planning organization will be working with its private brands organization and market vendors to bring fresh and exciting new brands and lines to the Millennial customer at Macy's in apparel, accessories, beauty and home. Through the deep experience of the My Macy's stores, districts and field planning teams, the company is able to effectively mold the mstylelab and Impulse assortments in each and every store for the Millennial customer who shops that location.

Relevant Omnichannel Environments – Macy's will continue to use new and emerging technologies, as well as enhanced in-store and online environments, to create a fun, interesting and convenient shopping experience for Millennial customers. Macy's will engage Millennials through mobile and digital channels, including social media. The use of QR codes, tablets, texting, tap-and-go transaction processing and offers delivered via mobile will be refined. Local events will appeal to the sense of style and fast fashion that Millennial customers seek.

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