Macy's Digital Transformation Strategy

This assignment examines Macy's journey in digital transformation, highlighting its strategies to integrate online and physical channels. It discusses initiatives like Omni-channel approach, in-store digital experiences, and mobile wallet integration. The analysis explores the impact of these strategies on customer experience and Macy's brand value, recommending future directions for enhancing the digital strategy.

RUNNING HEAD: E-Business Applications
E-Business Applications
Macy’s Inc.

Macy’s Inc. 1
Contents
Introduction................................................................................................................................2
Macy’s Digital Transformation in Retail...................................................................................2
Conclusion..................................................................................................................................3
References..................................................................................................................................4

Macy’s Inc. 2
Introduction
Retail Business is not as the same it was decades before. The nature, scope and
operational aspect of retail business are changing in rapid manner in recent digital age. The
digital transformation in retail and use of internet has changed the customer interaction and
engagement in retail. Retail businesses are adopting online channel and in-store digital
transformation along with physical channel; overall it is the implementation of Omni-channel
approach (Fulgoni, 2014).
Macy’s Digital Transformation in Retail
To discuss, digital disruption and future of retail stores in digital era, Macy’s digital
transformation is one of the best examples worldwide. It is being 150 years old departmental
store, adopting and implementing digital transformation in consumer centric environment in a
strategic way. As a very traditional retail store, it faced challenges in customer serving in
internet marketplace. Macy’s has committed its effort for transformation in digital revolution
through making $230 million investment in its website from 2006 and 2007.
While implementing it digital stride, it has implemented various strategies like Omni-
channel approach, more focus on online order distribution centres, training of front line
employees about ‘magic selling technique’, integrated consumer experience and consumer
service.
Macy’s has successfully integrated the gap between its physical stores and digital
channels. Its innovative approach of digital in-store experience for its customer and
employees enables it to provide better customer experience and engagement. Employees are
armed with connected iPods to find inventories, implementation of mobile wallet for easy
payment facility and customised in-store digital catalogues are most important initiatives
taken by Macy’s (Bennett and Azhari, 2015).
Macy’s is trying to create a luxury experience through in-store digital personalisation.
MyStylist@Macy’s is helping shoppers to choose the best product from digital catalogue.

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Digital ordering system enabled personal shoppers to order online and pick the order from
nearby local store. Connect@Macy’s kiosks enabled customers to choose from inventories
which are not displayed in the store; where customers can suggest colour, style and design
combination.
Macy’s digital innovation strategy is better known as ‘Top Door Strategy’. This
strategy has contributed in positive manner in growth of Macy’s. It has allocated and utilised
its resources to create a winning customer experience in store. Industry experts praised about
Macy’s commercial website and mobile application (Macy’s, 2017). It has made huge
investment but to get better return on investment (ROI) it must revitalise its digital and
physical approach time to time (Lewis and Loker, 2015). On Black Friday in 2016, it got 3.5
million online shoppers and 300,000 mobile application users.
Conclusion
In conclusion, it can be said that Macy’s digital strategy needs to be more focused on
creating better in-store digital experience. Customers should be provided with much more
easy customisation, design and deliver facility and use of virtual reality to imagine how
products will look in actual usage (Krueger, 2015). Macy’s should collect and analyse the
huge data of customers during their interaction through digital channel and in-store digital
interaction. This new digital transformation strategy of Macy’s will provide more customised
and individualised offerings to customers and ultimately it will increase customer satisfaction
and Macy’s brand value.

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References
Bennett, D.R. and El Azhari, J., 2015. Omni-channel customer experience: An investigation
into the use of digital technology in physical stores and its impact on the consumer's decision-
making process.
Fulgoni, G.M., 2014. “Omni-Channel” Retail Insights and The Consumer's Path-to-
Purchase. Journal of Advertising Research, 54(4), pp.377-380.
Krueger, J., 2015. Omni-channel shoppers: An emerging retail reality. Think with Google,
Accessed, 6, p.2016.
Lewis, T.L. and Loker, S., 2015. Adoption of emerging in-store technology interfaces for the
apparel retail employee. In Successful Technological Integration for Competitive Advantage
in Retail Settings (pp. 119-143). IGI Global.
Macy’s 2017. 2017 Fact Book. Retrieved 15 September 2017, from
http://investors.macysinc.com/phoenix.zhtml?c=84477&p=irol-reportsannual