Portal de Periódicos da CAPES

Terry Lundgren at Macy's

2012; RELX Group (Netherlands); Linguagem: Inglês

1556-5068

José B. Alvarez, Robert S. Kaplan, Natalie Kindred,

Marketing and Advertising Strategies

In 2008 and 2009, a period of severe economic turmoil, CEO Terry Lundgren led a large-scale transformation of the iconic department store. Having previously converted the many department stores owned by to the names (except Bloomingdale's), Lundgren and his team set out to create a more efficient, dynamic organization. Their Macy's initiative consolidated and centralized all key functions, while their Macy's initiative focused on customizing the offerings of individual stores to local markets. By 2011, had many advantages, including an energized, highly experienced executive team; a nationwide presence and strong brand in the U.S.; a competitive offering of private label and exclusive brands; and, following the execution of One and My Macy's, a fresh, unique foundation for future growth. However, the company still faces significant challenges, including low sales productivity (in part due to the large size of its stores), the decline of mall-based shopping, poor floor-level sales capabilities, lack of appeal to younger consumers, intensifying competition, and an overall dearth of future growth opportunities. This case allows students to assess Lundgren's leadership to date and options for the future, as well as the overall viability of the department store business model.Learning Objective: To understand the threats to survival in the highly competitive retail industry and the CEO-led efforts to adapt business model to new industry challenges.