Macy’s is aiming to be there for Millennials, every step of the way from college to marriage, and everything in between.
According to Stores, the retail chain is hoping to reel in the much sought after demographic early in their lives, perhaps during college, so that they come to Macy’s for everything from a suit for their first interview to their wedding registry.
From the article:
Ivan Feinseth, chief investment officer for Tigress Financial Partners, sees nothing but the upside for reaching this demographic now. “The strategy to target that group as they start to become independent shoppers means hopefully they stay loyal shoppers,” he says. “It is a nice tie-in with Macy’s overall strategy.”
It’s given Macy’s a slight edge in the department store category, believes Jeff Fromm, executive vice president at ad agency Barkley and co-author of the book Marketing to Millennials: Reach the Largest and Most Influential Generation of Consumers Ever. Macy’s is “probably ahead of their peer group,” he says. “But they’re not limited to competing with just retail brands. They’ll have to go against the best in class. Not just best in class in retail, but better than Chipotle in the restaurant space, better than the Dollar Shave Club.
“The benchmark that they should strive to set is best in class, period,” he says. “I see a lot of positive things they’re doing. But it’s particularly hard to be a disrupter when you’re an iconic brand.”
Millennials “are the fastest-growing demographic in the States today,” Reardon says. “They have the largest buying power and they are the future. We’ve always been extremely interested in that younger consumer. Now because it’s such an important demographic, we’re making a stronger play for them.”
Millennials — those born between the early 1980s and early 2000s — number about 80 million, a slightly larger group than Baby Boomers. Macy’s has a solid head start on winning their dollars, Fromm says. The retailer is in the process of introducing 13 new fashion brands and repositioning 11 others, with plans to do the same in housewares and furnishings.
“It’s a brilliant strategy,” he says. “Millennials do like name brands, but private brands can be successful too, if they are well positioned. For the Millennial segment, it’s much easier to launch a new brand than to reposition an existing one.”