) is striving to further its "millennial strategy" in order to
catch the attention of a new generation of customers. The
millennial strategy was announced by the company in Oct 2012 as a
tactical tool to keep itself buoyed on growth.
As part of this strategic endeavor, Macy's has already
launched/expanded 20 brands for the spring of 2013. Further, the
company will add 2 special new brands, Maison Jules and QMack to
its assortments. Macy's intends to launch these 2 brands in
nearly 150 stores in August.
These brands will be showcased at mstylelab stores, targeting
customers in the age group of 13 to 22, and Impulse departments,
principally catering to consumers aged 19 to 30. The company's
"millennial strategy" aims at tapping the young demographics of
America, who are trendier and more fashion oriented. With the
execution of its plans, Macy's expects to attain a complete
makeover by the end of 2013.
Apart from these two brands, the company will be offering several
new brands to allure the fashion-conscious consumers. Such brands
include Marilyn Monroe, MADE Fashion Week, Keds and Teen
Over the past year, the company has worked upon nearly 20 of
its other brands which include Truth or Dare, G-Star Raw,
Ambiguous, Ezekiel Clothing, COMUNE, DTA, Fatal Clothing, Plan B,
Argyleculture, RACHEL Rachel Roy, else, kensie, DV by Dolce Vita,
Material Girl, American Rag, Inglot cosmetics, Smashbox
cosmetics, Kipling, Steve Madden handbags and Stussy.
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Other than the millennial strategy, Macy's has undertaken several
prudent measures to drive sales, profitability and cash flow.
These include integration of operations, consolidation of
divisions and customer-centric localization initiatives. To help
boost traffic, Macy's continues to focus on price optimization,
inventory management and merchandise planning to generate
long-term profitability, which is well evident from its record of
beating the quarterly earnings expectations.
Going forward, Macy's is expected to continue with its upbeat
performance through the My Macy's localization initiatives, omni
channel integration, robust online sales and effective cost
management. The company is seeking to expand both the Macy's and
Currently, Macy's carries a Zacks Rank #3 (Hold). Alongside,
other well-performing stocks in the retail sector include
The Gap, Inc.
Citi Trends, Inc.
). While The Children and Gap carry a Zacks Rank #1 (Strong Buy),
Citi Trends carries a Zacks Rank #2 (Buy).