STORES 2014 BIG Show Daily - January 14, 2014 - 12


Tuesday

12

Macy's Woos the Millennial Market

M

illennials may not be at the
stage where they're ready to
change their Facebook status to
"in a relationship," but Macy's is already
committed, targeting the influential demographic with the aim of being there from
the first date.
"We know we can be there for every
major important milestone in their lives,"
said Martine Reardon, Macy's chief marketing officer. "By high school and college,
they have their own style. Then when they
come to us out of college, they need to get
great interview clothes. As they start to
think about their first apartment, we're the
perfect place to buy their home products.
Then they get engaged and find our bridal
registry [and] we go through that whole
cycle again."
If it seems that Macy's has fallen deeply in like with Millennials, this is not just
a one-sided crush. While it isn't releasing
sales figures, Macy's Millennial strategy
did merit a mention in both the 2012 annual
report and CEO Terry Lundgren's remarks
at the annual shareholders' meeting.
Ivan Feinseth, chief investment officer
for Tigress Financial Partners, sees nothing but the upside for reaching this demographic now. "The strategy to target that
group as they start to become independent
shoppers means hopefully they stay loyal
shoppers," he said. "It is a nice tie-in with
Macy's overall strategy."
It's given Macy's a slight edge in
the department store category, believes
Jeff Fromm, executive vice president at

ad agency Barkley and co-author of the
book Marketing to Millennials: Reach the
Largest and Most Influential Generation
of Consumers Ever. Macy's is "probably
ahead of their peer group," he said. "But
they're not limited to competing with just
retail brands. They'll have to go against the
best in class. Not just best in class in retail,
but better than Chipotle in the restaurant
space, better than the Dollar Shave Club.
"The benchmark that they should
strive to set is best in class, period," he said.
"I see a lot of positive things they're doing.
But it's particularly hard to be a disrupter
when you're an iconic brand."
Millennials "are the fastest-growing
demographic in the States today," Reardon
said. "They have the largest buying power
and they are the future. We've always been
extremely interested in that younger consumer. Now because it's such an important
demographic, we're making a stronger play
for them."

"Millennials
are redefining
parenthood,
home ownership
and career life.
Understanding
those lifestyle
differences is
key to success
for Macy's,
which is capable
of outfitting
consumers
with career and
casual clothes,
as well as home
goods."
- Jeff Fromm,
Barkley

Changing the language

Millennials - those born between
the early 1980s and early 2000s - number about 80 million, a slightly larger
group than Baby Boomers. Macy's has a
solid head start on winning their dollars,
Fromm said. The retailer is in the process
of introducing 13 new fashion brands and
repositioning 11 others, with plans to do
the same in housewares and furnishings.
"It's a brilliant strategy," he said. "Millennials do like name brands, but private
brands can be successful too, if they are

"We know
we can be
there for
every major
important
milestone in
[Millennials']
lives."
- Martine
Reardon,
Macy's

well positioned. For the Millennial segment, it's much easier to launch a new
brand than to reposition an existing one."
Macy's, with a mix of both approaches, has cast Millennials into two large
groups - recognizing that those in their late
twenties have different needs than teenagers, and that both groups have distinctly
different desires than their parents and
grandparents.
Take Fiesta Ware, around since just
after the Great Depression. Grandma may
have the original set and Mom may have
collected the dinnerware that made a revival in the 1990s, "but they see how hip and
cool it can really be," Reardon said. Macy's
once focused on "beautiful furniture for
homes for big families," she said, but, "If
you come to any of our home floors now,
you'll see delineation between a 3,000-sq.ft. home and a 650-sq.-ft. apartment."
Home furnishings and housewares that
appeal to Millennials are still in the early
stages; Macy's apparel and accessories are
much further along. The junior-oriented
Marilyn Monroe brand, part of the Mstylelab segment for Millennials ages 13-22,
launched in Spring 2013 along with Keds;
others are being rolled out regularly.
Bar III, a big Impulse apparel seller
aimed at Millennials ages 22-30, is starting to make an appearance in home goods.
"We felt that the Millennial who really
loves looking like Bar III might [like] her
bedroom to look more like Bar III," Reardon said.
While Macy's may be a few steps
ahead by categorizing Millennials into two
distinct groups, Fromm sees the greatest
shopping differences based on when the

Millennials become parents.
"We are seeing distinct purchasing and
behavior differences between Millennials
overall and those that have had children,"
Fromm said. "In our new research, we
found Millennials are redefining parenthood, home ownership and career life.
Understanding those lifestyle differences
is key to success for Macy's, which is capable of outfitting consumers with career
and casual clothes, as well as home goods."

Target marketing

Millennials have required a new strategy for Macy's marketing. "We have had
to work a little bit harder," Reardon said.
"They are not reached through traditional
forms of media - they're not necessarily looking at catalogs that arrive in the
mailbox."
Macy's has launched a strong digital
and social approach to attract Millennials,
"which makes them feel like they're in their
own space," she said.
Social media is extremely important
for reaching Millennials but, "I would
caution brands to not just dive into social
media," Fromm said. "Macy's has done a
great job. They may have been a little late,
but they do a nice job with fashion news
and special URLs. The quality of the effort
is strong."
Barkley's research "tells us that Millennial women in particular need a store
associate they view as a trusted fashion
expert," he said. "Macy's can have the best
social media strategy going, but they have
to translate at the store level in order to
See "Millennials" on page 28



Table of Contents for the Digital Edition of STORES 2014 BIG Show Daily - January 14, 2014

STORES 2014 BIG Show Daily - January 14, 2014 - 1
STORES 2014 BIG Show Daily - January 14, 2014 - 2
STORES 2014 BIG Show Daily - January 14, 2014 - 3
STORES 2014 BIG Show Daily - January 14, 2014 - 4
STORES 2014 BIG Show Daily - January 14, 2014 - 5
STORES 2014 BIG Show Daily - January 14, 2014 - 6
STORES 2014 BIG Show Daily - January 14, 2014 - 7
STORES 2014 BIG Show Daily - January 14, 2014 - 8
STORES 2014 BIG Show Daily - January 14, 2014 - 9
STORES 2014 BIG Show Daily - January 14, 2014 - 10
STORES 2014 BIG Show Daily - January 14, 2014 - 11
STORES 2014 BIG Show Daily - January 14, 2014 - 12
STORES 2014 BIG Show Daily - January 14, 2014 - 13
STORES 2014 BIG Show Daily - January 14, 2014 - 14
STORES 2014 BIG Show Daily - January 14, 2014 - 15
STORES 2014 BIG Show Daily - January 14, 2014 - 16
STORES 2014 BIG Show Daily - January 14, 2014 - 17
STORES 2014 BIG Show Daily - January 14, 2014 - 18
STORES 2014 BIG Show Daily - January 14, 2014 - 19
STORES 2014 BIG Show Daily - January 14, 2014 - 20
STORES 2014 BIG Show Daily - January 14, 2014 - 21
STORES 2014 BIG Show Daily - January 14, 2014 - 22
STORES 2014 BIG Show Daily - January 14, 2014 - 23
STORES 2014 BIG Show Daily - January 14, 2014 - 24
STORES 2014 BIG Show Daily - January 14, 2014 - 25
STORES 2014 BIG Show Daily - January 14, 2014 - 26
STORES 2014 BIG Show Daily - January 14, 2014 - 27
STORES 2014 BIG Show Daily - January 14, 2014 - 28
STORES 2014 BIG Show Daily - January 14, 2014 - 29
STORES 2014 BIG Show Daily - January 14, 2014 - 30
STORES 2014 BIG Show Daily - January 14, 2014 - 31
STORES 2014 BIG Show Daily - January 14, 2014 - 32
http://www.nxtbook.com/naylor/NRFK/NRFK0318
http://www.nxtbook.com/naylor/NRFK/NRFK0218
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20180116
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20180115
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20180114
http://www.nxtbook.com/nxtbooks/nrf/STORES2018_preview
http://www.nxtbook.com/naylor/NRFK/NRFK0118
http://www.nxtbook.com/naylor/NRFK/NRFK0917
http://www.nxtbook.com/naylor/NRFK/NRFK0817
http://www.nxtbook.com/naylor/NRFA/NRFA0017
http://www.nxtbook.com/naylor/NRFA/NRFA0317
http://www.nxtbook.com/naylor/NRFK/NRFK0717
http://www.nxtbook.com/naylor/NRFK/NRFK0617
http://www.nxtbook.com/naylor/NRFK/NRFK0517
http://www.nxtbook.com/naylor/NRFK/NRFK0417
http://www.nxtbook.com/naylor/NRFK/NRFK0317
http://www.nxtbook.com/naylor/NRFK/NRFK0217
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20170117
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20170116
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20170115
http://www.nxtbook.com/naylor/NRFK/NRFE0017
http://www.nxtbook.com/naylor/NRFK/STORES2017_Preview
http://www.nxtbook.com/nxtbooks/nrf/STORES0117
http://www.nxtbook.com/nxtbooks/nrf/STORES1216
http://www.nxtbook.com/nxtbooks/nrf/STORES1116
http://www.nxtbook.com/nxtbooks/nrf/STORES1116v2
http://www.nxtbook.com/nxtbooks/nrf/STORES1016_esri
http://www.nxtbook.com/nxtbooks/nrf/STORES1016_radial
http://www.nxtbook.com/nxtbooks/nrf/STORES1016
http://www.nxtbook.com/nxtbooks/nrf/STORES0916_customcontent
http://www.nxtbook.com/nxtbooks/nrf/STORES0916
http://www.nxtbook.com/nxtbooks/nrf/STORES0816
http://www.nxtbook.com/nxtbooks/nrf/STORES0716_jestacustomcontent
http://www.nxtbook.com/nxtbooks/nrf/STORES0716
http://www.nxtbook.com/nxtbooks/nrf/STORES0616
http://www.nxtbook.com/nxtbooks/nrf/STORES_sourcebook2016
http://www.nxtbook.com/nxtbooks/nrf/STORES0516
http://www.nxtbook.com/naylor/NRFK/NRFE0416
http://www.nxtbook.com/nxtbooks/nrf/STORES0416
http://www.nxtbook.com/nxtbooks/nrf/STORES0316_visualsearch
http://www.nxtbook.com/nxtbooks/nrf/STORES0316
http://www.nxtbook.com/nxtbooks/nrf/STORES0216
http://www.nxtbook.com/nxtbooks/nrf/STORES2016_20160119
http://www.nxtbook.com/nxtbooks/nrf/STORES2016_20160118
http://www.nxtbook.com/nxtbooks/nrf/STORES2016_20160117
http://www.nxtbook.com/naylor/NRFK/NRFE0016
http://www.nxtbook.com/nxtbooks/nrf/STORES2016_Preview
http://www.nxtbook.com/nxtbooks/nrf/STORES0116
http://www.nxtbook.com/naylor/NRFK/NRFC1215
http://www.nxtbook.com/nxtbooks/nrf/STORES1215
http://www.nxtbook.com/nxtbooks/nrf/STORES1115_buyersguide
http://www.nxtbook.com/nxtbooks/nrf/STORES1115
http://www.nxtbook.com/naylor/NRFK/NRFE1015
http://www.nxtbook.com/naylor/NRFK/NRFC1015
http://www.nxtbook.com/naylor/NRFK/NRFE0915
http://www.nxtbook.com/naylor/NRFK/NRFM0016
http://www.nxtbook.com/naylor/NRFK/NRFE0815
http://www.nxtbook.com/naylor/NRFK/NRFE0715
http://www.nxtbook.com/naylor/NRFK/NRFE0615
http://www.nxtbook.com/naylor/NRFK/NRFD0015
http://www.nxtbook.com/naylor/NRFK/NRFS0015
http://www.nxtbook.com/naylor/NRFK/NRFE0515
http://www.nxtbook.com/naylor/NRFK/NRFC0315
http://www.nxtbook.com/nxtbooks/nrfe/STORES0415
http://www.nxtbook.com/nxtbooks/nrfe/STORES0315
http://www.nxtbook.com/nxtbooks/nrfe/STORES0215
http://www.nxtbook.com/naylor/NRFK/NRFG0115
http://www.nxtbook.com/nxtbooks/nrfe/STORES0115
http://www.nxtbook.com/nxtbooks/nrfe/STORES1214
http://www.nxtbook.com/naylor/NRFK/NRFG1114
http://www.nxtbook.com/nxtbooks/nrfe/STORES1114
http://www.nxtbook.com/nxtbooks/nrfe/STORES1014
http://www.nxtbook.com/naylor/NRFK/NRFM0015
http://www.nxtbook.com/nxtbooks/nrfe/STORES0914
http://www.nxtbook.com/nxtbooks/nrfe/STORES0814
http://www.nxtbook.com/nxtbooks/nrfe/STORES0714
http://www.nxtbook.com/nxtbooks/nrfe/STORES0614
http://www.nxtbook.com/nxtbooks/nrfe/STORES0514
http://www.nxtbook.com/nxtbooks/nrfe/STORES_sourcebook2014
http://www.nxtbook.com/nxtbooks/nrfe/STORES0414
http://www.nxtbook.com/nxtbooks/nrfe/STORES0314
http://www.nxtbook.com/nxtbooks/nrfe/STORES0214
http://www.nxtbook.com/naylor/NRFK/NRFG0114
http://www.nxtbook.com/nxtbooks/nrfe/STORES0114
http://www.nxtbook.com/nxtbooks/nrfe/STORES1213
http://www.nxtbook.com/nxtbooks/nrfe/STORES1113_buyersguide
http://www.nxtbook.com/nxtbooks/nrfe/STORES1113
http://www.nxtbook.com/nxtbooks/nrfe/STORES1013
http://www.nxtbook.com/nxtbooks/nrfe/STORES_mediakit2014
http://www.nxtbook.com/nxtbooks/nrfe/STORES0913
http://www.nxtbook.com/nxtbooks/nrfe/STORES0813
http://www.nxtbook.com/nxtbooks/nrfe/STORES0713
http://www.nxtbook.com/nxtbooks/nrfe/STORES0613
http://www.nxtbook.com/nxtbooks/nrfe/STORES0513
http://www.nxtbook.com/nxtbooks/nrfe/STORES0413
http://www.nxtbook.com/nxtbooks/nrfe/STORES0313
http://www.nxtbook.com/nxtbooks/nrfe/STORES0213
http://www.nxtbook.com/nxtbooks/nrfe/STORES2013_20130115
http://www.nxtbook.com/nxtbooks/nrfe/STORES2013_20130113
http://www.nxtbook.com/nxtbooks/nrfe/STORES2013_20130114
http://www.nxtbook.com/nxtbooks/nrfe/STORES2013_preview
http://www.nxtbook.com/nxtbooks/nrfe/STORES0113
http://www.nxtbook.com/nxtbooks/nrfe/STORES1212
http://www.nxtbook.com/nxtbooks/nrfe/STORES1112
http://www.nxtbook.com/nxtbooks/nrfe/STORES1012
http://www.nxtbook.com/nxtbooks/nrfe/STORES_mediakit2013
http://www.nxtbook.com/nxtbooks/nrfe/STORES0912
http://www.nxtbook.com/nxtbooks/nrfe/STORES0812
http://www.nxtbook.com/nxtbooks/nrfe/STORES0712
http://www.nxtbook.com/nxtbooks/nrfe/STORES0612
http://www.nxtbook.com/nxtbooks/nrfe/STORES0512
http://www.nxtbook.com/nxtbooks/nrfe/STORES0412
http://www.nxtbook.com/nxtbooks/nrfe/STORES0312
http://www.nxtbook.com/nxtbooks/nrfe/STORES0212
http://www.nxtbook.com/nxtbooks/nrfe/STORES2012_preview
http://www.nxtbook.com/nxtbooks/nrfe/STORES0112
http://www.nxtbook.com/nxtbooks/nrfe/STORES1211
http://www.nxtbook.com/nxtbooks/nrfe/STORES1111
http://www.nxtbook.com/nxtbooks/nrfe/STORES1011
http://www.nxtbook.com/nxtbooks/nrfe/STORES_mediakit2012
http://www.nxtbook.com/nxtbooks/nrfe/STORES0911
http://www.nxtbook.com/nxtbooks/nrfe/STORES0811
http://www.nxtbook.com/nxtbooks/nrfe/STORES0711
http://www.nxtbook.com/nxtbooks/nrfe/STORES0611
http://www.nxtbook.com/nxtbooks/nrfe/STORES0511
http://www.nxtbook.com/nxtbooks/nrfe/STORES0411
http://www.nxtbook.com/nxtbooks/nrfe/STORES0311_v2
http://www.nxtbook.com/nxtbooks/nrfe/STORES0311
http://www.nxtbook.com/nxtbooks/nrfe/STORES0211
http://www.nxtbook.com/nxtbooks/nrfe/STORES0111
http://www.nxtbook.com/nxtbooks/nrfe/stores1210
http://www.nxtbook.com/nxtbooks/nrfe/stores_mediakit2011
http://www.nxtbook.com/nxtbooks/nrfe/stores1110
http://www.nxtbook.com/nxtbooks/nrfe/stores1010
http://www.nxtbook.com/nxtbooks/nrfe/stores0910
http://www.nxtbook.com/nxtbooks/nrfe/stores0810
http://www.nxtbook.com/nxtbooks/nrfe/stores0710
http://www.nxtbook.com/nxtbooks/nrfe/stores0610
http://www.nxtbook.com/nxtbooks/nrfe/stores0510
http://www.nxtbook.com/nxtbooks/nrfe/stores0410
http://www.nxtbook.com/nxtbooks/nrfe/stores0310
http://www.nxtbook.com/nxtbooks/nrfe/stores0210
http://www.nxtbook.com/nxtbooks/nrfe/store_bigshow2010_post
http://www.nxtbook.com/nxtbooks/nrfe/stores_bigshow_20100112
http://www.nxtbook.com/nxtbooks/nrfe/stores_bigshow_20100111
http://www.nxtbook.com/nxtbooks/nrfe/stores_bigshow_20100110
http://www.nxtbook.com/nxtbooks/nrfe/stores0110
http://www.nxtbook.com/nxtbooks/nrfe/store_bigshowpreview2010
http://www.nxtbook.com/nxtbooks/nrfe/stores1209
http://www.nxtbook.com/nxtbooks/nrfe/stores1109
http://www.nxtbook.com/nxtbooks/nrfe/stores1009
http://www.nxtbook.com/nxtbooks/nrfe/stores0909
http://www.nxtbook.com/nxtbooks/nrfe/stores0809
http://www.nxtbook.com/nxtbooks/nrfe/stores0709
http://www.nxtbook.com/nxtbooks/nrfe/stores0609
http://www.nxtbook.com/nxtbooks/nrfe/stores0509
http://www.nxtbook.com/nxtbooks/nrfe/stores0409
http://www.nxtbook.com/nxtbooks/nrfe/stores0309
http://www.nxtbook.com/nxtbooks/nrfe/stores0209
http://www.nxtbook.com/nxtbooks/nrfe/stores0109
http://www.nxtbook.com/nxtbooks/nrfe/stores1208
http://www.nxtbook.com/nxtbooks/nrfe/stores1108
http://www.nxtbook.com/nxtbooks/nrfe/stores1008
http://www.nxtbook.com/nxtbooks/nrfe/stores0908
http://www.nxtbook.com/nxtbooks/nrfe/stores0808
http://www.nxtbook.com/nxtbooks/nrfe/stores0708
http://www.nxtbook.com/nxtbooks/nrfe/stores0608
http://www.nxtbook.com/nxtbooks/nrfe/stores0508
http://www.nxtbook.com/nxtbooks/nrfe/stores0408
http://www.nxtbook.com/nxtbooks/nrfe/stores0308
http://www.nxtbook.com/nxtbooks/nrfe/stores0208
http://www.nxtbook.com/nxtbooks/nrfe/stores-globalretail08
http://www.nxtbook.com/nxtbooks/nrfe/stores0108
http://www.nxtbook.com/nxtbooks/nrfe/stores1207
http://www.nxtbook.com/nxtbooks/nrfe/stores1107
http://www.nxtbook.com/nxtbooks/nrfe/stores1007
http://www.nxtbook.com/nxtbooks/nrfe/stores0907
http://www.nxtbook.com/nxtbooks/nrfe/stores0807
http://www.nxtbook.com/nxtbooks/nrfe/stores0707
http://www.nxtbook.com/nxtbooks/nrfe/stores0607
http://www.nxtbook.com/nxtbooks/nrfe/stores0507
http://www.nxtbook.com/nxtbooks/nrfe/stores0407
http://www.nxtbook.com/nxtbooks/nrfe/stores0307
http://www.nxtbook.com/nxtbooks/nrfe/stores0207
http://www.nxtbook.com/nxtbooks/nrfe/stores-globalretail07
http://www.nxtbook.com/nxtbooks/nrfe/stores0107
http://www.nxtbook.com/nxtbooks/nrfe/stores1206
http://www.nxtbook.com/nxtbooks/nrfe/stores1106
http://www.nxtbook.com/nxtbooks/nrfe/stores1006
http://www.nxtbook.com/nxtbooks/nrfe/stores0906
http://www.nxtbook.com/nxtbooks/nrfe/stores0806
http://www.nxtbook.com/nxtbooks/nrfe/stores0706
http://www.nxtbook.com/nxtbooks/nrfe/stores0606
http://www.nxtbook.com/nxtbooks/nrfe/stores0506
http://www.nxtbook.com/nxtbooks/nrfe/stores0406
http://www.nxtbook.com/nxtbooks/nrfe/stores0306
http://www.nxtbook.com/nxtbooks/nrfe/stores0206
http://www.nxtbook.com/nxtbooks/nrfe/stores0106-globalretail
http://www.nxtbook.com/nxtbooks/nrfe/stores0106
http://www.nxtbook.com/nxtbooks/nrfe/stores1205
http://www.nxtbook.com/nxtbooks/nrfe/stores1105
http://www.nxtbookMEDIA.com