1.3 Discussion: Examples of Failed Strategic Policies
Macy’s is a U.S. department store in the retail business. In the past, the company has enjoyed a huge market share. However, the current results do not give an impression of an innovative venture that is forging ahead. Instead, it points to an entity that is merely surviving and still has a long way to go for it to thrive. The strategic policies adopted by the company demonstrate that the company should do more not only to resuscitate the current financial performance but to also secure its long-term existence.
In recent years, the company has been trying out various strategies to meet with the clients where they are. As a result, the company adopted the Market by Macy’s concept which seeks to bring forth an experience-based approach to improve customer engagements (Meagher, 2020). In other words, the concept sought to make the business personable and possess an emphatic customer-facing relationship. Nevertheless, the strategy did not bear the anticipated fruits as the company’s financial position has continued to take a hit. This is attributed to the fact that the company did not take into account how incredibly challenging it is for department stores, and particularly for an enterprise of its size to walk down that road-creating personable and emphatic customer-facing experience. Now, Macy’s has to encounter a Generation Z client base with a different consumer desire for the revolutionized retail experience, thereby making it seem like it has to scramble. When one can find almost anything they want from a social media application like Instagram or through a direct-to-consumer brand, a department store is rendered obsolete.
As a result of the strategy, the company has been struggling financially in the recent past (market share has reduced and customers fled). It has now adopted the “Polaris strategy” which will be rolled out over three years. The approach aims to shut many of its stores across different operational location within three years (Loeb, 2020). The decision is as a result of a loss of business to rival retail companies.
References
Loeb, W. (2020, February 26). Macy’s 4th quarter results reflect transition period that will extend through 2020. Forbes. Retrieved from: https://www.forbes.com/sites/walterloeb/2020/02/26/macys-4th-quarter-results-reflect-transition-period-that-will-extend-through-2020/#536bca142fe1
Meagher, S. (2020, February 25). The new market by Macy’s is just the same old story. Forbes. Retrieved from: https://www.forbes.com/sites/syamameagher/2020/02/25/the-new-market-by-macys-is-just-the-same-old-story/#631575827fa4