You’ve heard all the nightmare stories about various retailers closing dozens of stores – or even going out of business entirely.
…But what do some of the bigger names do that keep them in business, even with Amazon approaching $1 trillion in value?
Macy’s is going exactly the opposite way many retailers are heading. They beat Wall Street expectations in the first quarter and showed a positive second quarter of comparable sales.
Their stock price has risen from $17.53 in November of last year to $37.55!
That’s a 114% gain in under a year.
So what does Macy’s know that few other retailers don’t seem to get? And what can you learn and apply from Macy’s example?
Well, take a look:
1. They Get What Customers Actually Want
Customers do want discounts and promotions. But, big names have found out those aren’t as effective as the in-store experience, where Amazon currently can’t compete.
Macy’s CEO Jeffrey Gennette even said in a recent earnings call,”We are in the experience business.”
Macy’s has been piloting virtual reality to show customers what furniture looks like in real living spaces, for example.
2. Innovations in Their Flagship Store
Macy’s Herald Square in New York CIty is currently the world’s largest store, with 10.5 stories and nearly 2 million square feet of shopping space.
The store has its own app. For example, when customers walk in, they immediately get a notice that tells them they get 25% off on select items.
The app also offers indoor navigation maps for the store. And to make the retailer’s beloved Santaland tradition practically painless, the app allowed customers to make their reservation ahead of time so they didn’t have to stand in line.
3. Macy’s Loyalty Program
At the most difficult time in the past year (back in November when Macy’s stock price cratered), the company decided to add a loyalty program (rather than a deals, deals, deals program).
Customers who spent $1,200 or more with Macy’s in a year, for example, got 5% back in store credit and free shipping.
So, the focus wasn’t offering deals which led to one-and-done customers. They wanted to get customers back to having a strong relationship with Macy’s.
That’s how Macy’s totally knocks it out of the park – even amidst all these other retailers shutting their doors. Of course, it’s not all they do.
But what can you learn from them, and are you willing to study Macys to see what might help you thrive in retail in 2019 and beyond?