Macy's Competition
Now Viewing Macy's's competition in: Department Stores
Recent Developments
CFOs, Stores Benefit from "Green" Initiatives - "Green" initiatives can make financial and marketing sense for a variety of businesses, including department stores. Sustainable buildings reduce risk, enhance brand and customer retention, and improve employee health and productivity, according to a recent study by CFO Research. In a public awareness campaign, Macy's teamed with the National Park Foundation to sponsor multiple events promoting sustainability and eco-friendly products and practices during Earth Week in April 2008, with ticket proceeds going to the Foundation.
Women's Clothing Leads Decline in Apparel Prices - Consumers are paying less for women's apparel than a year ago, as clothing prices fall. US consumer prices for apparel declined almost 1 percent in February 2008 from a year earlier. Prices for women's apparel dropped 3.8 percent, but men's apparel prices were essentially flat, rising less than 0.1 percent.
Consumer Prices Fluctuate for Cosmetics Categories - Consumer prices for cosmetics and related products are slipping from year-ago levels. US consumer prices for cosmetics, perfume, bath, and nail preparations and implements collectively rose less than 0.1 percent in February 2008 and fell 0.2 percent in January compared to year-ago levels. Average annual consumer prices for the products increased 2.3 percent in 2007 from 2006.
Competitive Landscape
Consumer spending and fashion trends drive demand. The profitability of individual companies depends on effective merchandising and marketing. Large companies have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by offering unique merchandise, providing superior customer service, or delivering a distinctive store experience. The industry is labor-intensive: average annual revenue per worker is $130,000.
Department Stores Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of the US retail industry, which includes department stores, is forecast to increase at an annual compounded rate of 4.2 percent between 2007 and 2012.
Retail Industry Growth Level
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Tied to consumer income
- Need good merchandising
- Risk: Slowing economy limits spending on non-essentials
Industries Where Macy's Competes
- Retail
- Department Stores (primary)
- Apparel & Accessories Retail
- Cosmetics, Beauty Supply & Perfume Retail
- Nonstore Retail
- Catalog, Mail Order & Television Sales
