Swot Analysis Of Macy's

Great Essays
Yuriko Martel
Macy’s Inc. is a well-known company and #1 department store chain. It is one of the nation’s premier Omni channel retailers, with fiscal 2013 sales of $27.9 billion. With about 840 stores in 45 states, the district the Columbia, Guam and Puerto Rico.
Macy’s is different from other retailers, because Macy’s embraces customers and strives them to provide quality experience transcending ordinary shopping. Macy’s provide to customers the most unique and interesting fashion merchandise for women’s, men’s, children, home furnishing, and more. Including exclusive brands that customers won 't find anywhere else. They sell the most wanted brand such as Calvin Klein, Estee Lauder, Thalia Sodi, and more. They engage customer in stores,
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Penny Corporation Inc., and Khol’s
Macy’s SWOT analysis:
S = strong brand equity, Macy’s exclusive brands only, strong advertising, economies of scale, ethical, socially responsible, and sustainable company with strong value, Bloomingdale’s (Macy’s subsidiary) focuses in niche markets involving upscale customers while Macy’s offers “affordable luxury, has a large piece of the market share, very large stores sizes.
W = not being able to find the middle ground between Wal-Mart’s low prices, and Bloomingdales high prices while maintaining reputation, Macy’s has to overcome the client’s perception of the impersonality of national brand, internationally customers can only shop online.
O = Opened new store and will continuously do to increase revenues, there is a growth through of sales in the online retail spending, robotic machines help sales such as iPads, ability to step out from the crowd via name recognition and ability to overtake smaller brands, and small
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When looking at the days’ sales uncollected, it is important to notice the credit term. Also, in the case of Macy’s their day’s sales uncollected ratio is extremely low, which is good.
Asset turnover ratio describes how many times a year a company uses its assets to generate a profit, it can be said that every company wants a high ratio. In this case Macy’s turnover ratio is 1.3 for year 2013, although this is high compare to previous years, this is a place that no matter what but improvement can be a goal.
In total debt to equity, industries who has more variables tend to have lower ratios, while industries that are more stable ten to have higher ratios, and this ratio measures the risk of a company’s financing structure. In this case, the debt holders contribute $2.47 (2013) for each dollar contributed by equity holders.
Also, working Capital Turnover is a turnover ratio to review revenues over working capital. A working capital of five would mean that a company is generating five times its revenue per dollar of working capital. So in Macy’s case means that it generating 10 times its revenue per dollar, which also very

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