When the average American thinks of Macy's they think of the Thanksgiving Day Parade and the enormous department store in New York City. What they need to think of is a strong management team fending off fierce online competition and a strong network of stores committed to customer service. Macy's is an aggressive company differentiating itself from other department stores. Recently it revamped its credit card accounts to better take care of the customers. It has priced products aggressively to get customers in and shopping. It has a superb management team that has many years in retail and constantly looking at the competitors. They have sales above $26 billion and are in a strong position against other department stores. The team has managed the recession well and have emerged stronger to face new challenges.
They have centralized control and are adding more fulfillment centers in stores. Cutting out districts and moving only to regions has reduced waste and will make Macy's a more competitive business against online retailers. The fulfillment centers will boost store sales while also getting the product quickly to the customer. It will open up ways to order from other stores quicker and seamlessly. Macy's making online business and retail stores stronger and more interconnected moves the company forward.
The head management are focusing on what the local customers want to buy and are delivering goods that meet local tastes. People on the Southern coastline do not have the same preferences as those in the mid west. Those customers will now get different goods and can order the other goods not found in their particular store. Also, many stores have a local shop that is connected to a local attraction. The Bowling Green, KY store has a Corvette shop with ties to the National Corvette Museum. It adds character. No other store has the same local shop and no other stores in the area have that shop.
Macy's balance sheet and numbers have looked spectacular over the past few years. The stock has returned 579.29% over the past five years. A wonderful return for any investor. The fundamentals look good with earnings growing over the past few years and revenue increasing. All signs to a well managed company.
Macy's deservedly gets the first pick as a well managed company. It is a bastion of retail and Americans love retail. With the management in place, Macy's will remain a strong pick from a managerial viewpoint. Things could change with the leadership or bad decisions could remove them from the index. Congratulations Macy's on gaining the coveted first spot.
Disclosure: I work at Macy's part-time but own no shares in the company and no one in my immediate family owns shares.
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