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What Our Colleagues Are Doing Right, Pt. 1 – Macy’s

One of the best parts of being involved in multiple areas of the apparel industry is the diverse range of companies we get to work with. We admire them. We learn from them. And we’re always proud whenever our apparel supply chain management and third party logistics services can help them thrive.

Take Macy’s, for example. As we’ve mentioned several times recently on the Apparel Logistics blog, many big box brick-and-mortar apparel retailers have adjusted to the digital age mostly by, well, kicking and screaming. The meteoric and inexorable rise of apparel e-commerce has not been easy for some of America’s most famous stores.

Despite double-digit annual growth in e-commerce ($188 billion in 2011 alone, with $270 billion projected by 2015), the amount of physical shopping space per person continued to balloon, from 18 square feet in 1999 to 23 square feet per shopper in 2009. When the financial crisis hit in late 2008, all that extra space was suddenly filled with, well, not much more than hot air. Companies that failed to build an online presence were hit extra-hard.

Macy’s, however, has embraced the digital revolution with an attitude best described as “bring it on” -- so much so, in fact, that MR Magazine tabbed the company as its “Online Retailer of the Year.”

According to Mrketplace:

For Macy’s however, both website and stores are expanding simultaneously.

How is this possible? In a word: omni-channel. A newly implemented fulfillment system ships product from both the warehouses and the stores, thereby maximizing efficiency (and customer satisfaction) all around. What’s more, Macys.com has its own team of truly talented merchants, planners and technology experts (more than a thousand employees), tremendous financial support from top management, and extremely strong partnerships with vendors, relationships that are proving to be highly profitable for both sides.

Macys-OnlineRetailer.gif

In other words, the keys, as always, are apparel supply chain management and top-notch fashion logistics.

E-commerce presents a host of logistical challenges unfamiliar to the brick-and-mortar world, and it places an even heavier emphasis on efficiency and speed-to-market. Customer preferences change more quickly. Ubiquitous discounts and deals eliminate margins for error. The abundance of choice makes apparel quality control and apparel customer service critical.

The Apparel Logistics Group is here to help. Contact us to learn more about how our 3PL services can help your apparel company thrive in this brave new digital world.

Posted: 6/7/2012 1:14:11 PM by Global Administrator | with 0 comments


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