Macy’s has recently announced it is beefing up its web investments and making some additional moves to swing revenue into it. The department store’s multiple adjustments include the merger of its online and store merchandising marketing teams. It will hire 150 more employees for its digital center specific to San Francisco, in addition to closing 14 stores while opening two new ones, with less workers in each store. Merchandising is key with any online retail growth. Shoppers know what they want and retailers’ merchandising channels must respond quicker in today’s e-commerce.
“Our business is rapidly evolving in response to changes in the way customers are shopping across stores, desktops, tablets and smartphones,” chairman and CEO Terry J. Lundgren said in the article. ”We must continue to invest in our business to focus on where the customer is headed—to prepare for what’s next.” Years ago online retail wasn’t in the same league with brick-and-mortar stores, yet technology has made shopping so easy. Consumers in fact enjoy the convenience of looking for deals and buying items wherever they are—evening the plain. E-commerce is no longer a distant second, making business sense for Macy’s.
Lundgren went on discussing details behind the new web investment technology to come. “Going forward, Macy’s and Bloomingdale’s will be better able to move more quickly and nimbly to select merchandise, assort inventories and serve total customer demand, no matter how, when or where the customer shops. Some redundant activity also can be avoided to accelerate speed to market, partner more effectively with vendor resources and ensure the merchandising organizations are more responsive to the marketplace in making and implementing decisions”.
Since online retail is growing, retailers are presenting convenience to shoppers with same-day delivery. Multiple big name retailers have implemented it, including Macy’s, which aggressively plunged in with 8 major US cities before last year’s holiday shopping season. Those cities included San Jose, Houston, Los Angeles, San Francisco, Seattle, Washington DC, New Jersey, and Chicago. Sister company Bloomingdale’s launched the service in select cities along with Macy’s. More probably will follow with its’ breadth of web expansion.
Online growth will translate into improved delivery programs. The web technology alone positions retailers and delivery companies to partner to achieve profit and cost savings, something years ago couldn’t be done. For example, Instacart now can do what Webvan did without multimillion dollar distribution centers with only 70 employees. Made up of engineers and administrators, Instacart’s model is smarter and exact with last-mile deliveries, partnering with a same-day courier like 1-800 Courier to service them. Macy’s has partnered with Deliv to meet their same-day delivery demand.
Google, Amazon, eBay, Wal-Mart, and others have invested heavily into their respective online markets, as well as same-day delivery for order fullfillments. Many retailers invest in partnering with a courier like 1-800 Courier to boost their delivery programs. The New York Courier has a national footprint as most large web-based and physical store retailers are in need of an agile partner. Macy’s fast track with e-retail will certainly increase its’ same-day delivery options.
Reference: 1.8.15, Internet Retailer, Don Davis, Macy’s steps up its online investments
