Throughout history, fashion has seldom reached the stature of paintings, sculpture and music. And so whether or not fashion can be considered an art form is not an entirely new argument. While it is true the industry thrives on artistry and creativity, it is first and foremost a business. The clothing is of course the center point of the industry, but commerce is what keeps it alive.

Like most industries, the fashion industry is evolving. With the rise of the internet, the way that retailers and customers relate to one another has completely changed and the ease of online shopping has lead to fewer people going to stores to buy products.

The reason behind this shift is explained in an Forbes article by retail journalist Nikki Baird:

“Department stores were built around the idea that consumers would come to the store for inspiration and discovery. But retailers can no longer rely on that draw. Consumers increasingly get inspiration online first, from social media and blogs, and not from the retailers themselves.”

THE MACY’s STRATEGY

Macy’s is a very successful omni-channel retailer, which means they take a multi-channel approach to sales which aims to give customers a seamless consumer experience whether they be shopping in a brick-and-mortar store or online from a desktop, mobile device or by telephone.

The department store is fully aware of the change in consumer needs and is adapting to cater to the needs and expectations of its customers. We met with the Macy’s Bridgewater Personal Stylist, Sue Squires, who gave us insight into the way Macy’s is working behind the scenes to improve the consumer experience while ensuring sales.

“There is a different business model for ‘.com’ than there is for brick-and-mortar. Sometimes you’ll have customers asking why the pricing online is different to the pricing in store. If you shop on your computer then they’re shipping it right to your door, you don’t need to talk to the stylists, to be called, need customer service, you’re doing it all yourself. The extra added cost in brick-and-mortar is that you’re paying for the experience and expertise of all the sales people here. Everyone that works here is trained to have excellent customer service skills to be able to connect with each and every person that walks in the store.”

We visited the ‘At your service’ desk at Macy’s Bridgewater, where customers go to pick up orders they make online as well as make online-order returns, checkout and seek customer service. Squires explained the click-and-collect service provides customers with immediacy that normal home delivery can not match. The type of customers who use this service tend to have a very ‘get in get out’ attitude to shopping and so Macy’s has implemented a few strategies, aimed at these customers, to increase in-store revenue.

Squires said, “We use our inventory to first fill those online orders, and if our store doesn’t hold the item you need, we can call up another Macy’s store and ship it to you. We do this so we don’t lose a sale, so we don’t lose a customer.” By using the in-store inventory, Macy’s are still building revenue instead of selling items that come straight from the factory like most other online stores.

Another way Macy’s increases their in-store revenue with ‘At Your Service’ customers, is by increasing the chances of ‘impulse buying’. Squires explained Macy’s has strategically placed items around the checkout. This merchandise is usually low-cost and includes items such as candy, hair accessories, socks and beauty products in order to tempt the ‘get in get out’ customers to make a few extra purchases during their short time in the store. Although these items are low-cost, every penny counts.

Squires also hi-lighted the importance of placing Macy’s exclusive brands and sale items close to the desk. As we walked down the aisle from the doorway and past the ‘At Your Service’ desk to the center of the floor, it was hard to miss the ‘SALE’ and ‘Only at Macy’s’ signs. It is obvious why a sale item may catch the eye of a shopper, but why would the Macy’s exclusive brands?

Squires said “Style & Co., Karen Scott, Charter Club and Maison Jules are all private labels only available at Macy’s. With these types of brands, you can control from source to store or source to customer. With this supply chain, meaning raw materials to distribution to merchandising to sales, you have a higher profit margin.”

So there we have it. A few simple strategies that department stores are implementing to improve shopper experience and increase their profits.