topic Re: Don't blame Amazon in Community Chat

Don't blame Amazon

software — Fri, 10 Mar 2017 15:22:07 GMT

Amazon is an easy source of blame for the ongoing wave of store closures happening at bricks-and-mortar chains.

But according to Macy's CFO Karen Hoguet, there's a bigger competitive threat challenging her company's business over time: off-price.

As chains like Macy's and J.C. Penney remove 100 or more stores from their fleets, TJX , Burlington and Ross are on the expansion track. Their stores are resonating with shoppers because of their constantly changing inventory, as well as their consistently low prices, Hoguet said at the UBS Consumer & Retail Conference in Boston on Wednesday.

To fight back, Macy's is taking a page out of those chains' books.

"I think you're going to see more of that enter into the Macy's logic," she said.

Macy's has already started rolling out two off-price strategies to help boost its business. The Backstage concept operates as a pure off-price shop akin to Marshalls or T.J. Maxx. Macy's has been building standalone locations for Backstage, as well as dedicating branded sections in its stores for the inventory.

Meanwhile, the department store has tweaked its traditional strategy of marking down clearance goods on the main sales floor, in favor of sectioning off an area meant strictly for these goods. Those sections, called Last Act, have helped Macy's clear through dated inventory quicker and at better prices, Hoguet said.

Despite leaning into some of the strategies that have helped off-price retailers thrive, Hoguet said Macy's stores will always incorporate promotions. That's even as vendors like Michael Kors opt to sit out of its prolific Friends and Family sales. One example of how the chain could tweak its strategy is by better incorporating its loyalty program on these types of exclusionary purchases, Hoguet said.

"Customers typically don't need most of what we sell, and there is a psychology that loves that promotion," Hoguet said. "Every time we try to say to a customer group, 'What if we didn't have coupons?' The answer is, 'We hate them. But whatever you do, don't take them away.'"

This article is from Yahoo Finance

Re: Don't blame Amazon

hoosieroriginal — Fri, 10 Mar 2017 15:28:46 GMT

I love my TJ Maxx - it's basically the only place I shop for clothing, household goods, beauty products. I do like that the inventory changes all the time. I haven't stepped foot in a Macy's for over 5 years - and if I can remember at that time, they already had a section for reduced clothing - wasn't impressed - just stuff that everyone else didn't want. I don't think it will work unless they open a "discount" store.

Re: Don't blame Amazon

deepwaterdotter — Fri, 10 Mar 2017 15:34:18 GMT

I've never been to an "off-price" store, will have to check it out.

Re: Don't blame Amazon

Trix — Fri, 10 Mar 2017 15:36:15 GMT

Macy's store managers had better take better care of the Backstage area of their stores if corporate expects it to succeed. Not many people have the patience, or time, to shop racks on which the majority of the items are out of place from the size and section to which they belong. By this I mean finding size XS sweaters hung with size 12 dresses, etc. I got a headache during my first visit to the Macy's Backstage in the Chicago State Street store as it was so disorderly and messy. However, I did find a lovely Armani X skirt while looking through tees and athletic tops. I personally never understand a customer not placing something back on the rack where they found it, not doing so seems to be the normal, so it falls upon the store to have a clerk designated to make sure the racks are orderly.

Re: Don't blame Amazon

bonnielu — Fri, 10 Mar 2017 15:42:32 GMT

We had two malls. One closed over 15 years ago. Nothing has replaced it. City politics, drainage problem, ownership transfer.. who knows. So all we really have is a long ride to outlet malls or a longer ride to malls in other areas. Amazon, Walmart and Costco are our only salvation.

And it seems Amazon has it all with a opportunity to select from a large variety of products. Walmart and Costco fill in. We do have great grocery stores so we are not starving.

Re: Don't blame Amazon

software — Fri, 10 Mar 2017 15:45:50 GMT

Was hoping QVC could take a cue about the "changing inventory" quote.

I'm so tired of the same old stuff, day after day.

Re: Don't blame Amazon

QVCkitty1 — Fri, 10 Mar 2017 15:47:20 GMT

I would love to shop locally, but there isn't much where I live. Amazon fills a need, and while I feel for the people who have lost their jobs, I don't know what the answer is.

Re: Don't blame Amazon

LTT1 — Fri, 10 Mar 2017 15:48:29 GMT

@software

Amazon has spoiled me because of quick delivery of supplements mostly.

QVC has spoiled me with a liberal return policy.

i have often wondered if one day someone says " I have a GREAT new idea! Why not start a store where people can see the items "in person?" LOL

Re: Don't blame Amazon

software — Fri, 10 Mar 2017 15:49:44 GMT

Good point!

@LTT1 wrote:
@software
Amazon has spoiled me because of quick delivery of supplements mostly.
QVC has spoiled me with a liberal return policy.

i have often wondered if one day someone says " I have a GREAT new idea! Why not start a store where people can see the items "in person?" LOL

Re: Don't blame Amazon

sidsmom — Fri, 10 Mar 2017 15:51:43 GMT

So sad to see an American iconic retail foundation

being dumbed down to Marshalls & TJ Maxx level.

....and it all boils down to Macy's CEO quote:

"Customers typically don't need most of what we sell..."

I wish we could recapture the essence of QUALITY vs Quantity,

but I guess that genie's out of the bottle never to return.

Went once to Marshalls/TJ Maxx to see what all the buzz was about, never to return. It's like someone vomited old merchandise, no one wanted, onto fancy displays...no rhyme or reason. Reminds me too much of a Salvation Army/Goodwill...with cleaner floors. And truth be told, the clothes fished out of Grandma's attic at Goodwill are probably circa 60-70-80's...and better quality!

Re: Don't blame Amazon

123SuzyQ123 — Fri, 10 Mar 2017 15:51:25 GMT

In my younger days, I absolutely loved, loved, loved shopping in stores! It was a Saturday tradition for me! I would go to the mall, shop, eat lunch there, shop more, and come home with packages almost every time!

But now, I am on such a limited income, that I am very thrifty with every cent I spend! I expect there are lots of ladies in my very same boat! As you get older/wiser, you protect your income a bit better. And that is MY reason for not shopping in mall stores any longer. When I do need something new, I shop online for the lowest price, then buy online.

Re: Don't blame Amazon

jackthebear — Fri, 10 Mar 2017 16:00:38 GMT

I think part of Macy's problem is rolling all the regional department stores that everyone loved, into a national department store; coupled with the other things, internet and off price

Re: Don't blame Amazon

DiAnne — Fri, 10 Mar 2017 16:02:57 GMT

I do not enjoy shopping but do make occasional trips to my local mall. I went there last Tuesday to pick up something from the Container Store, check on an item at Crate and Barrell and pick up a shirt that Talbots was holding for me. These were all things I had seen either in a catalog or on line.

Re: Don't blame Amazon

stevieb — Fri, 10 Mar 2017 16:05:24 GMT

@software wrote:
Was hoping QVC could take a cue about the "changing inventory" quote.
I'm so tired of the same old stuff, day after day.

Amen to that...

Re: Don't blame Amazon

Peaches McPhee — Fri, 10 Mar 2017 16:16:44 GMT

Don't blame Marshall's or TJMax either. Instead, we need to look in the mirror. The consumer speaks with her/his dollars.

Re: Don't blame Amazon

stevieb — Fri, 10 Mar 2017 16:29:02 GMT

Retail is in transition and what it'll look like when and if the dust settles is anyone's guess.

I like Amazon a lot, but only for certain things. I'm no more willing to search through hundreds of pages of merchandise than I am to scour through racks and racks of items at most brick and mortar stores.

I think one big reason the TJX stores thrive is that while they offer variety, they offer contained variety. They're easy to shop, usually easy to get to, easy to park and you don't have to walk a mile from where you park to the store... You also don't have to traipse up and down long mall corridors to reach your destination... Personally, I've generally found nice options at the TJX stores I frequent, but clearly not all all of their stores are evenly or equally stocked, maintained or managed... I've been less enamored of Ross or Burlington...

I do think Macy's will miss the boat with any 'store within the store' concept, because it just adds one more layer to the search... I'd also note that personally, I'm a bit weary of all the 'promotions'. I like that I can go to an off-price store and know from the get-go that I'm going to get a lower price... Moreover, Macy's can open stand alone off-price stores if they choose, but a large percentage of the buying public are probably going to stick with the tried and true. This says to me that they're going to have to build a clientele for those stores over time.

For me, QVC misses on all cylinders... Their narrow branding means fewer options and less variety, while prices, shipping and return shipping are high for some items...

I once enjoyed the ambiance of the truly nicer stores, but let's face it, other than in the very best of stores, which I don't frequent, that ambiance has long been gone... Added to that, overall, the shopping experience of a big department store is something I once relished, but no longer do...

Re: Don't blame Amazon

software — Fri, 10 Mar 2017 16:39:41 GMT

I don't know how long ago you mean, but I'm in my 60s and yes I agree with you. I was not as good a shopper as my late mom. She could make a day of it. She showed me how to compare prices, and where to look for the best bargains in the department store. We'd do lunch and have a ball. But there are so many more choices today. I don't feel like crawling the mall after working all week. And I sure don't want to go once a month and see the same old inventory. At least move it around!!

I quit shopping at Steinmart about a year or more ago because they never rotated their stock. I saw the same old tired items month after month. TJ Maxx is probably my favorite off price store now, it used to be Burlington but the store near me looks more like a thrift store now. Not that there's anything wrong with thrift stores!

@123SuzyQ123

Re: Don't blame Amazon

ccassaday — Fri, 10 Mar 2017 16:41:47 GMT

Retail is defintly changing. My mom took my niece to the mall Wed and she mentioned how there is no place to eat anymore. We are just entering a different time. I don't think there is anything brick and mortor stores can really do. Everything always changes. Internet is 100% the reason mall stores are failing. Our mall is always dead except maybe at Christmas time.

Re: Don't blame Amazon

Zhills — Fri, 10 Mar 2017 16:50:14 GMT

People seem to think that if you shop "online" you bypass the local stores.

I buy online from our local stores! I can go to 3 malls to Macy's and find something I like but can't find my size.......go online and purchase it.

I understand that every Macy's can't keep every style in store in every size, but it eases my frustration to be able to get the item I desire by purchasing it online.

Amazon is great, but so are the other stores that have websites so you can still purchase from them "online."

Re: Don't blame Amazon

HappyDaze — Fri, 10 Mar 2017 16:55:35 GMT

I don't and I won't.

Businesses need to learn to adapt to a changing environment and if you don't, you will fail. That is the very nature of business.

I buy as much as I can from my locally owned, small businesses and from farmers markets. Everything else I buy mostly online. Rarely do I shop in stores but I do like to once in awhile, I just don't have the time to do so.

Clothes and shoes in particular I like to check out in person before I buy. I cannot stand going into those "off price" stores- they are usually messy and unorganized and sometimes even disgusting. Even the Last Act section of Macys bothers me as nothing is organized or labeled by size and I don't have the time nor the patience to go through racks and racks of clothes looking for my size and colors I like.