Macy's consumer target is broad with a heavy emphasis on age, rather than other psychographic factors, and lacks specific direction.
Chasing The Modern Consumer
Macy’s vaguely states their new target for the Polaris strategy as wishing to appeal to those under 40. Again, this is quite broad. However, industry experts have made conclusions on their possible target, based on the strategy’s choices that indicate a shift towards younger consumers through different merchandise groupings. Macy’s has launched a private label brand called “And Now This,” which Macy’s says is intended for a “fashion-forward, contemporary dresser” (PYMTS, 2021). The private label features on-trend clothing and an overall minimalistic look, which industry experts feel is targeted toward a Millennial demographic that is known to value this aesthetic and will be tuned into relevant trends. Macy’s also has a potential to reach Generation Z and may be keeping this private label open to appeal to either audience, as it emphasizes a core expression of showing off your authentic self. Macy’s feels confident in choosing a new private label rather than pairing up with an existing brand, like Walmart has done with Justice, because they feel they have control to adapt the brand to evolving consumer preferences.
Macy’s is making adjustments to other processes in their stores, like payment, to appeal to younger customers. Macy’s has instituted Klarna options for all of their brands to appeal to younger consumers who appreciate buy now pay later (BNPL) systems that take pressure off their more limited / maturing budgets. Plus, BNPL programs encourage customers to feel more comfortable making larger buys per visit. So far, Macy’s has seen that 45 percent of its Klarna users online are under the age of 40.
Macy’s is also looking to capture even younger consumers and their parents through a new partnership with Toys ‘R Us in certain Macy’s locations.
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