Macy’s Inc. (M - Analyst Report) 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 Vogue.
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.
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 Bloomingdale's brands.
Currently, Macy’s carries a Zacks Rank #3 (Hold). Alongside, other well-performing stocks in the retail sector include The Gap, Inc. (GPS - Analyst Report) , The Children (PLCE - Snapshot Report) and Citi Trends, Inc. (CTRN - Analyst Report) . While The Children and Gap carry a Zacks Rank #1 (Strong Buy), Citi Trends carries a Zacks Rank #2 (Buy).