Macy's Store-based fulfillment, shopper marketing

Macy’s Brings Fulfillment to 500 Stores Nationwide

Never content to rest on their laurels, Macy’s has begun to roll out capabilities to fulfill orders directly from 500 of their stores nationwide. According to Chain Store Age, Macy’s will also undergo a new training initiative for their employees to combat well-informed omnichannel shoppers.

Macy's Store-based fulfillment, shopper marketing

From the article:

Prompted by customers’ desire to place orders in store when sizes and colors were unavailable, in 2011 Macy’s piloted omnichannel fulfillment capabilities in 23 stores. While this was a complicated project, according to CEO Terry Lundgren, it proved so successful that the retailer expanded to 292 locations in the past 12 months. Current plans are to expand fulfillment capabilities to 500 stores, which will serve a “very, very large percent of our customer demand base,” said Lundgren. “We’re no longer going to need fulfillment centers anymore,” Lundgren said. “We’ve got 800 of them, and they’re called Macy’s stores, or 37 of them are called Bloomingdale’s stores.”

Early technology investments have been critical to maintaining profit margins in the context of expanding these fulfillment capabilities. “We’ve been investing in technology very aggressively all along to ensure that the algorithms are choosing where to pull the inventory from, based on avoidance of markdowns,” said Lundgren.