Customer Service Department Stores Employee Motivation Human Resources Macy's Online Retail Seasonality
Sep 14, 2018
by Matthew Stern
Another holiday shopping season is on the way, and Macy’s is among the retailers announcing news about the temporary talent they’re bringing on for 2018. The apparel chain is making a big investment again this year, this time pointing more resources at its e-commerce fulfillment.
Macy’s plans to hire 80,000 temporary employees for the season, according to Reuters. While that’s the same number overall that the chain began the season with in 2017, it will be deploying 5,500 more of those employees at online fulfilment centers than it did last year.
So far, 2018 has been a year of reinvention for Macy’s as it has begun to rebound from a long stint of low sales alongside an overall downturn in the department store segment. In March of this year, the chain’s CEO, Jeff Gennette, announced the introduction of such enhancements as mobile scan, pay and go to improve the in-store checkout experience, and the redesign of macys.com and the retailer’s mobile experience. At that time, he cited capitalizing on momentum from last year’s holiday season as important for the chain’s rebound.
Increasing the size of its seasonal workforce focused on digital seems to make sense for Macy’s in light of its strong pre-holiday online performance. Sales via mobile app increased more than 50 percent for Macy’s year-over-year, and its online business grew in the double digits over the second quarter, Bloomberg reported.
But the holiday hiring landscape could be different this year. A strong economy and low rate of unemployment could cut into the amount of temporary talent Macy’s is able to bring on. The situation might demand a more significant commitment from the retailer in terms of pay or longer-term opportunities.
Despite a few quarters of good news from Macy’s, Wall Street hasn’t been entirely rosy in its view of the retailer. The company reported a second quarter stock drop in August despite posting positive comps and increasing its yearly fiscal outlook.
- Macy’s to hire 80,000 for holiday rush, boost online staffing – Reuters
- Macy’s shares get crushed after it beats expectations – RetailWire
- Macy’s CEO discusses mobile checkouts and other planned changes – RetailWire
DISCUSSION QUESTIONS: Is Macy’s right to focus on digital with its seasonal hires, or might the holiday store experience suffer due as a result? Will economic trends impact the willingness of temporary/seasonal employees to work at Macy’s?
Please practice The RetailWire Golden Rule when submitting your comments.
Braintrust
"It’s important to have the necessary fulfillment staff, but it is equally important to have the needed in-store associates. "
Art SurianoChief Executive Officer, The TSi Company
"I do have concerns about the tight labor market and I think retailers are going to have to pull out all the stops ... offering incentives to meet their staffing needs."
Neil SaundersManaging Director, GlobalData
"Hiring additional staff for the holidays is a smart move for Macy’s, as this is a great opportunity to “Wow” customers with great service."
Ken MorrisManaging Partner Cambridge Retail Advisors
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9 Comments on "Macy’s plans for a very digital Christmas with seasonal hires "
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BrainTrust
Jeff SwardFounding Partner, Merchandising Metrics
4 years 8 months ago
This move by Macy’s makes complete sense. Their online business is growing and they dare not disappoint at the execution level for holiday e-commerce orders. The traffic surge creates the opportunity to make new friends and converts. Doesn’t have to be fancy. Just execute.
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Art SurianoChief Executive Officer, The TSi Company
4 years 8 months ago
I would caution Macy’s not to put all their eggs in one basket. It’s important to have the necessary fulfillment staff, but it is equally important to have the needed in-store associates. Christmas shopping is most retailers’ key event of the year. Miss the projected numbers and the following year is gloom and doom. So with a booming economy, and store and mall traffic showing signs of increasing, Macy’s would be best served to make sure they staff their stores to handle the customers’ needs. This includes keeping the lines at the registers down because again not everyone is ready to use mobile scan, pay and go. What Macy’s needs to do is to listen to their customers. That means making sure they offer appealing merchandise both in-store and online, competitive prices and, most importantly, shopping conveniences which include having enough in-store associates. Emphasis only on their fulfillment staff will not accomplish those needs.
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Min-Jee HwangDirector of Marketing, Wiser Solutions, Inc.
4 years 8 months ago
This is the right call for Macy’s. Digital is a key part of most shoppers’ paths to purchase today, either wholly digital or a multi-channel approach. That trend should only continue, and history shows that the traditional department store model has struggled. So why not evolve with the times?
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BrainTrust
Neil SaundersManaging Director, GlobalData
4 years 8 months ago
Macy’s hiring seems about right to me. There will be a focus on the shop floor, but digital and growth is huge and ensuring that fulfillment and logistics operations are properly resourced is vital.
I do have concerns about the tight labor market and I think retailers are going to have to pull out all the stops in terms of offering incentives to meet their staffing needs over the holidays.
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BrainTrust
Ricardo Belmar
Retail Transformation Thought Leader, Advisor, & Strategist
4 years 8 months ago
Clearly, Macy’s expects significant increases in digital shopping from their customers and so they have to adapt their seasonal labor to accommodate this. That said, they shouldn’t assume stores won’t be a focal point for shoppers this holiday season and need to be sure they have properly trained associates in stores for this outcome. Unfortunately, Macy’s has a reputation for not having well-staffed stores and that’s not going to help them in the holiday season. They, like other retailers, will need to fight for new hires in what may be a tighter labor market. They can’t afford to scrimp on training either! Overall, it sounds like they have the right idea so long as they are sufficiently cautious — I’m cheering for them to have a great holiday season!
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BrainTrust
Ray RileyChief Executive Officer, Progress Retail
4 years 8 months ago
As long as the market continues to reward comparative store performance these efforts on “digital” while important, won’t have the same impact that highly prepared and trained in-store associates can have during the most critical time of the year.
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BrainTrust
Mel Kleiman
President, Humetrics
4 years 8 months ago
Good Luck Macy’s. No matter what area they focus the new hires on. The question is, where are they going to find them not only for the retail floor but, more importantly, for the distribution centers?
Look who they are competing with for those positions. UPS, Amazon and FedEx, All of them willing to pay more than retailers are used to or willing to pay. What is going to be their unique employment proposition to attract those workers?
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BrainTrust
4 years 8 months ago
Macy’s has a solid opportunity to reinvent itself. I am a fan. Yet in-store, there is no one around to help or ask a question of — and if you do find someone usually they are a new hire with limited knowledge. I get it that Macy’s is counting on mobile and online shopping to hit it out of the park, “flawlessly” shipping orders to happy customers. But without in-store “talent” the holiday magic of Macy’s becomes PR soundbites, training shoppers to avoid shopping in-store.
The Macy’s in-store customer experience is an overwhelming product search followed by an underwhelming ability to physically purchase the product. Possibly the strategy behind mobile scan and go purchasing? It’s a challenge for sure, in a strong economy, to hire thousands of people able to represent the Macy’s brand.
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BrainTrust
Ken Morris
Managing Partner Cambridge Retail Advisors
4 years 8 months ago
Hiring additional staff for the holidays is a smart move for Macy’s, as this is a great opportunity to “Wow” customers with great service. The holidays have notoriously been a time of poor customer service at many brands and if you can stand out by providing an outstanding experience, you will generate a lot of good will with customers. And with the continued increase in BOPIS, it puts a lot of stress on store associates’ time. More staff will help with BOPIS execution as well.
There is no doubt that finding the right people to fill the positions will be difficult. It will probably require higher pay and promises of longer term employment past the holidays.
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FAQs
What is the new strategy of Macy's? ›
The strategy: Macy's off-mall strategy includes building smaller fill-in stores in markets that already have big box Macy's stores, entering markets that have never had a Macy's stores like Jacksonville, Fla., and returning to markets Macy's exited in the past few years.
What is the Polaris strategy of Macy's? ›The company's Polaris strategy, aimed to help the company “stabilize profitability,” includes: Strengthening customer relationships. Curating quality fashion. Accelerating digital growth.
Is Macy's doing well? ›As of Thursday's close, Macy's shares are now up 10% this year, outpacing the S&P 500, which rose by about 4% during the same period. The company's shares closed at $22.70 on Wednesday, bringing Macy's market cap to about $6.15 billion.
How does Macy's make money? ›Macy's has one revenue stream: revenues it generates from sales of its products to customers.
What are the 5 P's of Macy's? ›“So we took 50 doors that are representative of a lot of other doors and we are focusing on the 5 Ps which for us are product, presentation, process, promotion and making sure that they are right. And the fifth is really people.
What is new retail strategy? ›“New Retail” is the term Alibaba uses to describe the blending of online and offline commerce through the digitization of the entire retail value chain for the benefit of both the merchant and the consumer and, of course, the company enabling this transformation.
What is Macy's weakness? ›Weaknesses. Over-dependence on the US market: For their sales, Macy's is highly dependent on the US market. Therefore, the economic condition of the US will directly impact the business of Macy's.
What are the five major components of the Polaris strategy? ›The five major components of the Polaris strategy are strengthen customer relationships, curating quality fashion, accelerating digital growth, optimising store portfolio and resetting cost base.
Does Macys have a point system? ›You can earn anywhere from one to five points per dollar you spend at Macy's, depending on your Rewards status. Points are the bulk of Macy's Star Rewards, but members get other perks, too. Like member exclusives, birthday gifts, and free shipping perks.
How often do Macy's employees get raises? ›Yearly, 10, 20, 30, 40, 50 cent raises. twice a year.
Is Macy's raising minimum wage? ›
8, 2021, that The department store chain confirmed it will raise its minimum wage for both new and current employees to $15 per hour by May 2022. Macys Inc. on Monday became the latest retailer to announce plans to boost minimum hourly pay in a bid to attract more talent in a squeezed labor market.
Is Macy's onboarding paid? ›Yes they provide paid training.
How much do Macy's employees get off? ›How much is the colleague discount? The colleague discount is up to 20% on clothing, accessories, furniture and most cosmetics and 10% on electrics and electronics. This discount is taken off of the full point of sale amount including tax.
How much is commission at Macy's? ›The base commission percentage of only 3% is slightly lower than Amazon's 4% in the fashion category. Macy's is diverse in its prices, but on average, prices can go up to $120 per piece, which means you will still be able to earn a solid commission for every purchasing customer you refer!
What are the perks of working at Macy's? ›Macy's Perks & Benefits
We offer medical, dental, vision, life and disability insurance, HSA and FSA account options, and more. Not only will you have access to 401k and Roth IRA accounts, but also pre-tax commuter benefits, 529 education savings plans. Easily access wages you've earned, without waiting for payday!
Compliance Ethics
Our Compliance and Ethics program promotes a company culture of ethical conduct by emphasizing our company's core values of acceptance, respect, integrity, and giving back.
These seven are: product, price, promotion, place, packaging, positioning and people.
What are the 9 P's of retail? ›The 9Ps of marketing mix consists of nine variables, i.e., product, price/pricing, promotion, place/distribution, people/target market, planning/process, partners, presentation, and passion.
What are the four retail strategies? ›It involves the planning, promotion, and presentation of a product. Having a unique commodity is only the first step -- addition components of retail marketing include ergonomic packaging, competitive pricing, and sales campaigns. The four gold standards of retail marketing are product, price, place, and promotion.
What are the 4 Ps of retail strategy? ›The four Ps are product, price, place, and promotion.
What are the four pillars of new retail? ›
- Community. Your store should help customers meet other people who share certain hobbies or interests. ...
- Experience. When we discuss physical retail, the term “experience” refers to everything customers see and hear from the moment they enter a store to the moment they exit. ...
- Socialization. ...
- Destination.
When asked in an Indeed survey about the difficulty of their interview at Macy's, most respondents said it was easy. Indeed's survey asked over 4,795 respondents whether they felt that their interview at Macy's was a fair assessment of their skills. 88% said yes.
Why is Macy's failing? ›“It isn't just 'boring retail. ' Retail isn't failing, retail is distributing, and mid-tier retail is shrinking in accordance with the redistribution of wealth,” Kelly said by email. “To me, it's the reason why Macy's is failing or why Kohl's or Dillard's or Belk are also struggling.
Is Macys declining? ›Net sales were $24.4 billion, down slightly, (just -0.1%) versus reported 2021 sales of $24.5 billion. The company reported that 42.7 million active customers shopped the Macy's brand; that is a -4% decrease compared to the prior year.
What are the 3 core areas of strategy? ›Strategy is comprised of three parts: Vision, Goals, and Initiatives: Vision describes who the customers are, what customers need, and how you plan to deliver a unique offering.
What is the Macy's Growth 50 initiative? ›The plan includes: an expansion of Backstage and Big Ticket; more fashion and localized product; improved fixtures and facilities; expanded in-store technology, top talent, localized marketing and community engagement; and a focus on leased business like food and beverage.
What are the three directional strategies? ›The primary directional strategies discussed in the strategic management literature are mission, vision, and values. B. Note that strategic goals also provide direction to the organization.
Do Macys employees get bonuses? ›Macy's offers comparable compensation and benefits such as health and life insurances. They provide merit incentives as well as quarterly bonuses based on profitability. Macy's also offers Leave of Absence and Paid Time Off for personal needs.
What credit score does Macy's require? ›Most applicants who are approved for a Macy's Credit Card have a FICO® Score of 600 or higher. If you're aiming for the Macy's American Express® Card, you'll likely need a score of at least 670; ideally, your score should be 700 or higher.
What is the highest Macy's card? ›Platinum: The highest level, Platinum, earns 5% back on Macy's purchases. You must spend $1,200 or more annually at Macy's to maintain that status.
Does Macy's give Christmas bonuses? ›
Yes, they do.
Do Macy's employees get Christmas bonuses? ›Macy's - No Christmas bonuses, horrible in-fighting, stay away | Glassdoor.
How long is Macy's lunch break? ›Breaks: Employees shall be granted a fifteen (15) minute paid break for each four hours worked, or major portion thereof.
Does Macy's pay PTO when you quit? ›Yes. Any accrued PTO is paid.
Does Macy's pay time and a half? ›Commission associates are paid time and ½ at pro rate plus commission when they work a contractual holiday. You are entitled to a full work week whether or not you work the holiday. If you're a 5 day per week associate you should be scheduled 4 days besides the holiday, not 3.
What does enhanced part time mean at Macy's? ›Standard would just be a normal shift. Coming in to run a register and clean the assigned areas. Enhanced would starting out in your regular position, and then being moved around to other departments throughout the shift.
Does onboarding mean I'm hired? ›But as you begin the onboarding process, you may wonder, does onboarding mean you are hired? In most companies, beginning the onboarding program for a new employee means that the job has been filled. The employee can rest easy, knowing they've likely attained a long-term position where they can grow professionally.
Does onboarding mean first day of work? ›Onboarding new hires is the process companies go through to welcome and integrate employees into the workplace. This very definition suggests that the employee onboarding process extends far beyond the first day of a new hire – it continues until they've fully adjusted to their role and team.
What is the dress code for Macy's employee? ›General sales associates: basic, unbranded clothing in solid colors (black is preferred), with professional footwear, and accessories similar to those sold in-store.
How long does Macy's take to hire? ›The hiring process at Macy's involves an online application, initial phone screening, and a series of interviews lasting between 15 to 45 minutes. The entire hiring process for a retail position takes one to two weeks. For a management or corporate position, the hiring process takes between three to five weeks.
What does Macy's look for in an employee? ›
2) Interviewers at Macy's are looking for individuals who are passionate about taking part in their vision to "see opportunity on the horizon and have a clear path for capitalizing on it." In other words, they want to hire people who look for creative solutions, take initiative and aren't afraid of failure.
Do Macy employees get discount on furniture? ›We love to share, so We're sharing With you: *Discount on electrics & electronics, furniture, mattresses and area rugs is 10%. Valid only in-store or online at macys.com and macysweddingchannel.com.
What is a good commission pay? ›The average commission rate for sales sits somewhere between 20% and 30% of gross margins, but this depends on the sales structure. Some workers may earn their whole salary through 100% commission, while others earn 10% on top of a base salary.
What percent commission do salesman make? ›What is the typical sales commission percentage? The industry average for sales commission typically falls between 20% and 30% of gross margins. At the low end, sales professionals may earn 5% of a sale, while straight commission structures allow a 100% commission.
What is commission pay usually? ›A sales commission is a sum of money paid to an employee upon completion of a task, usually selling a certain amount of goods or services. Employers sometimes use sales commissions as incentives to increase worker productivity. A commission may be paid in addition to a salary or instead of a salary.
What is the weekend bonus program at Macy's? ›Colleague Weekend Bonus Program – earn up to $2.00 more an hour! Employee Discount at Macy's AND Bloomingdale's (on top of other offers and discounts!)
What are the pays for Macys? ›| Job Title | Range | Average |
|---|---|---|
| Job Title:Sales Associate | Range:$10 - $17 | Average:$13 |
| Retail Sales Associate | Range:$10 - $18 | Average:$13 |
| Merchandiser | Range:$10 - $18 | Average:$13 |
| Counter Manager | Range:$12 - $21 | Average:$16 |
You have the power to choose the option that works best for you! You can make pre-tax contributions to your 401(k) Plan account, which allows you to contribute before federal taxes have been paid. In addition, you are eligible to receive the company match up to 6% of your pay.
What is the new company brand strategy? ›New Brand. The new brand strategy means developing a new product line and a brand that would be associated with it. The product line needs to be outside the scope of the current brand offering, that's why it requires a new brand.
What is Macy's mom strategy? ›Macy's core business strategies include My Macy's, Omnichannel, and Magic Selling or known by the acronym M.O.M. [M] My Macy's is a localization strategy designed in 2008 which focuses on offering localized merchandise selections so that it can better target each customer base.
What is Macy's plan to attract Millennials? ›
Macy's has announced the rollout or expansion of more than 20 brands as part of its Millennial initiative, designed to target consumers ages 13-30.
How Macy has reinvented the shopping experience? ›The app has a "scan and pay" option that makes it easier and faster to check out. Clients simply scan the barcode on an item; they pay for it using their cards on the app, go to Macy's "Scan \& Pay Checkout" counter. There the security tag on the item is removed, and customers get their shopping bags.
What are the 4 C's of brand strategy? ›The 4 C's of Marketing are Customer, Cost, Convenience, and Communication. These 4 C's determine whether a company is likely to succeed or fail in the long run. The customer is the heart of any marketing strategy. If the customer doesn't buy your product or service, you're unlikely to turn a profit.
What are the 4 brand strategies? ›The four brand strategies are line extension, brand extension, new brand strategy, and flanker/fight brand strategy.
Who is Macy's biggest competitors? ›Macy's's competitors. Macy's's competitors and similar companies include J.C. Penney, Nordstrom, Target, Gap, Ross Stores, Ascena Retail Group and Kohl's. Macy's is a retail company that sells apparel, accessories, cosmetics, home furnishings, and other consumer goods.
Who is Macy's target customer? ›Macy's core demographic
Macy's target consumers for the Macy's brand stores are the American middle class who prefer quality products at reasonable prices.
Macy's Perks & Benefits
We offer medical, dental, vision, life and disability insurance, HSA and FSA account options, and more. Not only will you have access to 401k and Roth IRA accounts, but also pre-tax commuter benefits, 529 education savings plans. Easily access wages you've earned, without waiting for payday!
macys.com Audience Demographics
macys.com's audience is 33.67% male and 66.33% female. The largest age group of visitors are 25 - 34 year olds (Desktop).
Macy's is embroiled in a legal battle with its landlord to prevent Amazon from using a billboard on top of its most iconic store. The department store chain has asked the Kaufman Organization to stop a potential deal with Amazon to use the billboard on its storied Herald Square location.
Who was Macy's old competitor? ›Gimbels was also considered the chief rival of Macy's with their feud popularized in American culture. As of 1930, Gimbels had grown to 20 stores, whose sales revenue made it the largest department store chain in the world.
What software does Macys use? ›
TIBCO Cloud™ is the digital platform that runs and adapts your connected business.