In 2009 and 2008, a period of intense economic turmoil, Macy's CEO Terry Lundgren directed a large scale transformation of the iconic department store. Having previously converted the many department stores owned by Macy's to the Macy's names (except Bloomingdale's), Lundgren and his team set out to produce a more efficient, dynamic organization.
Their "One Macy's" initiative consolidated and centralized all crucial functions, while their "My Macy's" initiative emphasized on customizing the contributions of personality stores to local market. By the year 2011, Macy's had several advantages, including an energized, highly knowledgeable executive team; a nationwide existence and strong brand in the U.S.; a competitive offering of private label and exclusive brands; and, subsequent to the performance of One Macy's and My Macy's, an innovative, unique foundation for future growth. But, the company still faces important challenges, including low sales productivity (in part due to the substantial size of its shops), the decline of mall-based shopping, poor floor-level sales capabilities, lack of attractiveness to younger consumers, intensifying competition, and an overall dearth of future growth opportunities. This case allows students to evaluate Lundgren's direction to date and alternatives for the future, in addition to the overall practicality of the department store business model.
Terry Lundgren at Macy's case study solution
PUBLICATION DATE: February 17, 2012 PRODUCT #: 412033-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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