...| Macy’s Inc. Valuation Report | | Table of Contents Objective 2 External Sources of Information 2 Company Identification 2 History 3 Executive Management 3 Financial Overview 4 Stock Classes and Ownership 5 Market Data and Analysis 5 Overview of Valuation Approach and Method 7 Valuation Results 9 Appendix A 10 Appendix B 11 Macy’s Valuation Report Objective Our objective is to estimate the Free Cash Flow (FCF) value of Macy’s Inc. as of July 24, 2011 (date of valuation). Macy’s Inc. is a C-Corporation organized under the laws of Delaware. It is primarily engaged in the business of premier retail fashion. The standard of value was Free Cash Flow Value, which measures the company’s ability to generate cash after accounting for capital expenditures, which is a fundamental basis for stock pricing. FCF provides a viable indication of Macy’s ability to develop new products, buy back stock, pay dividends, or reduce its debt depending on the amount of cash the company has to expand. Since FCFs indicate the financial health of a company in its current environment, this valuation’s purpose is to determine Macy’s ability to increase stock prices and maximize shareholder wealth. External Sources of Information We have used various external sources of economic and industry data to assess the condition of the general economy, trends in the fashion retail industry, and the condition of the securities markets. Among those sources, we used Plunkett Research...
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...------------------------------------------------- Group assignment 2: Macy’s Case ------------------------------------------------- Strategic Marketing 2013-2014 Macy’s Department store repositioning Guidelines You are asked to prepare a report, answering the questions below (max 10 pages). In solving the case and answering the questions, you could use not only the information given in this case and attached articles, but can seek further information about the market and consumers if necessary. * The case can be found on the Pointcarre webpage * Deadline for submission is: 27/03/2014 * Professional text and layout; no writing or grammar errors * Refer in a correct manner (e.g. APA-style) * Mention names and enrollment numbers of all the team members on the first page * Hard copy Questions regarding the Macy’s case 1) Make a situational analysis of the traditional department store industry and of Macy’s as of 2005. Which factors in the external environment could (positively or negatively) affect the success of Macy’s new strategy? Which internal factors could affect the success of the company’s strategy? (don’t forget to look at the exhibits!) 2) Evaluate Macy’s 2005 consolidation and repositioning strategy: what are its strengths? What could be the benefit of each strength? Evaluate Macy’s 2005 consolidation and repositioning strategy: what are its weaknesses? What could be the possible outcome of each weakness? 3) Porter argues that...
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...Executive Summary Macy’s, Inc. is one of the Nation’s Premier Retailers, with Fiscal 2010 sales of $25.0 billion. Macy’s, Inc. operates the Macy’s and also Bloomingdale’s brands. The company has approximately 850 department stores in 45 states, DC, Guam and Puerto Rico, and also the macys.com and Bloomingdales.com websites. Macy’s, Inc. also operates four Bloomingdale’a outlet stores. Macy’s, Inc. has been a strong company and has maintained stable earnings in the midst of an economic recession. After analyzing the long term debt strategies to decrease the cost of capital, the investors grew confidence in 2010. Introduction Macy’s, Inc was established in 1858. It has been named the Great American Department Store-an iconic retailing brand with nearly 810 stores operating coast to coast and online at macys.com. (website) In my reading I noticed that Macy’s is distinctly different from other major retailers. Macy’s Chairman, President and Chief Executive Officer is Terry J. Lundgren. The fiscal year for 2010 ended on December 31, 2010. Bloomingdale’s performance was strong in 2010 with sales growth that compared favorably to its upscale competitors. The impact of all of these fundamental changes began coming to fruition in 2010. Simply put, it was a terrific year. • Same-store sales were up 4.6 percent. Additional information about the Company’s stores and warehouses, distribution and fulfillment centers (“DC’s”) as of January 29, 2011 is as follows: ...
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...as styling salons, optical, portrait photography, and custom decorating. The company offers various products and services online via its website, a platform that has been the nursery for industry giants like Amazon (AMZN) and eBay (EBAY). Its direct rivals include Kohl's (KSS) and Macy's (M), among others. J.C Penney's most recent quarter results least impressive among peers The company announced December quarter results on Wednesday, February 27, an event that sent the company's shares down the charts at Wall Street. The company's sales and revenues declined shamefully by huge margins. Revenues were down 25 percent for the quarter while Internet sales dipped 34 percent. On the other hand, Macy's online business soared 48 percent and looks set to take over what J.C Penney leaves behind. Last year, J.C Penney sent home 19,000 staff, and recently trimmed its workforce by 2,200 employees as it sought to cut fixed costs following a tough campaign. Customers are losing trust in the Texas-based company despite the massive experience garnered over the years. The company did not impress in terms of market share, with fewer than 17 percent approaching the retailer's stores. Contrary to J.C Penney, Macy's Q4 results tramped analyst expectations with sales increasing by 7.2 percent year-over-year to $9.35 billion. This included the extra weeks in the 2012 calendar. However, the management noted that, comparing the same number of weeks as 2011 sales grew by 3.9 percent. Operating income...
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...Aeropostale” that caters to the 7-12 year olds (Aeropostale Inc., 2012, April). Mergent Online disclosed that Aeropostale Inc. “sells a range of apparel, including graphic t-shirts, tops, bottoms, sweaters, jeans, outerwear and accessories” (Mergent, 2012). Mergent’s Online Business Summary of Aeropostale Inc., reports that, “as of Jan 29 2011, [Aeropostale Inc.] Co. operated 965 Aeropostale stores, consisting of 906 stores in 49 states and Puerto Rico, 59 stores in Canada, as well as 47 P.S. from Aeropostale stores in 13 states (Mergent, 2012). Aeropostale was started for Macy’s department store under a private label in 1982 (Shop Aeropostale, n.d.). The name Aeropostale, according to Aeropostale corporate website, dates back to the 1920’s: “Compagnie Generale Aéropostale, a pioneer airmail company, was the first ever to fly between France, South Africa, and South America”, this is who the beginning Aeropostale stores were honoring in the “store designs” and “aviation styled leather bomber jackets” (Aeropostale Inc. Corporate, n.d.). In 1987, the “first [Aeropostale] store opens” (Shop Aeropostale, n.d.). With the help of Federated Department Stores Inc., Macy’s was able to open “over 100 Aeropostale stores” (NASDAQ, 2002, p.1). In 1996 Aeropostale expanded from a brand...
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...collect certain amount of data to better help the organizations also to learn more about what is going in the organization. Information flows in different directions and have different meanings which is formally and informally, downward, upward, even horizontally through various levels. Information is also used through knowledge and data they can be derived. We all know if you don’t have any information in a workplace or organization it will collapse. Companies cannot operate without a proper and concise information flow which is accessible through company’s different departments. My current place of employment is Macys. Macy’s Inc. is one of the nation’s premier retailers, we have over 800 stores. The company operates the Macy’s and Bloomingdale’s brands. In Macy’s, information flows all over the company, from the employees payroll, records, and emails. As Macy’s is a nationwide company that have stores all over even in Puerto Rico, Guam and Columbia. To keep all the employees on the same page we have a system to control the flow of our information, I just know so much of the spectrum of the Information Technology aspect of the company. We have a database it’s called insite connection website, only employees have access, and where all the employees information is organized and secure. Also this website lets employees check on their benefits, check and make changes to their medical, and dental care. The employees also can view their W2 and other information, their 401K information...
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...EXECUTIVE SUMMARY Macy’s Department Stores, Inc. is a large organization with many stores, departments, and employees. They have a quick employee turnover rate and high goal setting. They expect their employees to reach sales goals in set periods of time which causes stress amongst the ranks. Each department in a store is accountable to one or more managers, those managers have a floor manager and so on. Although it is tough to work for Macy’s, the goals they set have allowed them to thrive in the competitive department store world. There are three levels to the makeup of a company. Each level has many independent variables; we will be focusing on one for each level. The first level is the individuals with their skills and abilities. By using a questionnaire and sales results, we found how employees use their skills and abilities to meet their day-to-day goals. The next level is group processes. At Macy’s, departments are expected to meet goals from all their employees together. The independent variable that we chose to analyze is group characteristics. This also uses the questionnaire and sales results used for the individuals. The last independent variable that will be discussed is the organizational goals. When employees meet their goals, this allows the group to perform well and the whole store is better off. Each store competes to help Macy’s be a great organization. In our analyses we found that workers at Macy’s are stressed to meet their goals. This stress factor...
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...FOCUSED ON THE CUSTOMER MACY’S, INC. • 20 09 ANNUAL REPORT MACY’S Macy’s, established in 1858, is the Great American Department Store – an iconic retailing brand with about 810 stores operating coast-to-coast and online at macys.com. Macy’s offers powerful assortments and the best brands, tailored to each and every customer with obvious value, engaging service and unforgettable moments. MACY’S, INC. IS ONE OF THE NATION’S PREMIER RETAILERS, WITH FISCAL 2009 SALES OF $23.5 BILLION. THE COMPANY OPERATES THE MACY’S AND BLOOMINGDALE’S BRANDS, WITH ABOUT 850 DEPARTMENT STORES IN 45 STATES, THE DISTRICT OF COLUMBIA, GUAM AND PUERTO RICO AND THE MACYS.COM AND BLOOMINGDALES.COM ONLINE SITES. Celebrating the Magic of Macy’s Clearly, Macy’s is distinctly different from other major retailers. Macy’s embraces customers and provides an experience that transcends ordinary shopping. Our heritage includes magical special events – the Macy’s Thanksgiving Day Parade, Fourth of July Fireworks, flower shows, fashion extravaganzas, celebrity appearances, cooking demonstrations and holiday traditions ranging from the arrival of Santa Claus to tree lightings and animated window displays. But beyond these signature events, Macy’s delivers magical moments every day with our merchandise, a great deal of which is sold exclusively through our stores, as well as our shopping environment and service. You’ll see our newest looks in fashion magazines. Our associates take the extra step to...
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...Introduction: Macy’s Inc. Quality Management Related Problem: Customer Service over the phone and within the store front. Employees need to be visible and provide more customer service. Customer service is very vital and it goes a long way. Macy’s has great vendors and partnerships and there is quality within those 2 important factors. However, the customer service factor overall is lacking and it falls short. Great customer service brings customers back for more. Recommended Direction to Implement/Quality Management: The recommended direction is to revamp their customer service techniques and strategies. Starting with upper management and working the system all the way down, keeps everything in perspective with the support of upper management. Macy’s employees will also need to see this change being supported by upper management. We perceive change by seeing in order to support and believing. Changing with the times keeps organizations above water; with changes new approaches and strategies must be evaluated and implemented. In the retail industry, organizations who are consistent and lead take risks however they set a forecast report. This report gives them a heads up on planning for the next season and what decision needs to be made to keep their organization relevant. This course paper will show you how Macy’s is a steady leader within the retail industry, how they are consistent as a company, how they build their partnership, quality in their venders, along with a SWOT...
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...Stacy Bradford Management Fundamentals MGM255-1202B-05 Phase 3 – Task 2-IP Macy’s Strategic Plan Richard Hilliard June 18, 2012 Executive Summary Macy’s is the nationally recognized brand of the Federated Department Store Cooperation. The organization consists of over 850 departments stores from coast to coast and online throughout the United States. In this paper we will look at the company’s strategic plan for success, its mission, its vision, its organizational structure, and what’s working and what’s not. In addition, we will examine the strategies and initiatives that have helped Macy’s to continuously grow and remain competitive over the past 150 years. Mission Statement "Our goal is to be a retailer with the ability to see opportunity on the horizon and have a clear path for capitalizing on it. To do so, we are moving faster than ever before, employing more technology and concentrating our resources on those elements most important to our core customers. " Vision Statement "Our vision is to operate Macy's and Bloomingdale's as dynamic national brands while focusing on the customer offering in each store location." In just a few words, the above referenced statements convey Macy’s purpose and why it exists. Macy’s commitment to sharing the company’s mission and vision with the employees has kept the entire company moving forward in the face of difficulties, enabling and inspiring leaders and employees alike. Moving toward...
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...Lydina J. Howie Developing Good Business Sense /BUS 210 William Price Jr. March 7, 2010 The three companies that I choose for this project are Procter & Gamble, Macy’s, and Red Lobster. I will make notations of how employees do their tasks. I will discuss the main kinds of OMM costs companies have and how does this affect their OMM operations. Also will be discussing how companies design their operating systems to give them a competitive advantage. I will point out the five main sources of operating costs affected by OMM. The primary goal of the operations manager is creating cheerful and devoted customers. By evaluating and supervising their business's operations, they can create products for the right cost. The below three companies are: 1. Procter & Gamble (P&G)is a global company that provides consumer products in the areas of pharmaceuticals, cleaning supplies, personal care, and pet supplies. P&G is known for hiring the person - not the position, and have a strong history of operating with integrity throughout the Company at all levels, in all countries, both internally and externally. A few of the task provided by employees are to: Impact P&G business from start to finish. As an SNO/logistics coordinator, you will support external trade customers as well as internal sales personnel through order processing, shipping, invoicing, financial reconciliation, and data analysis. Administrative/Non –...
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...External Analysis for Macy’s Departmental Stores Inc. Introduction Macy’s Department Stores Incorporated or Macy’s is an American based retail chain of departmental stores. It is currently operating under two brand names the Macy’s and Bloomingdale in over forty five states of America. The company specializes in the range of products including jewelry, furniture, house hold items, footwear, clothing and other related items.It also offers online shipping services to the clients in large numbers of countries. The company currently operates in four business segments including Macy’s, macy.com, Bloomingdale’s and Bloomingdales.com (one source, 2011). The company’s stocks are listed in the New York Stock Exchange under the symbol M (Macy’s Inc, 2011). The current market capital of the company is over thirteen billion US dollars and holds second position while Kohl’s Corporation has over sixteen billion US dollars market capital holding first position in the markets (NYSE:M, 2011). SWOT Analysis SWOT Matrix Strengths • Market position • Business operations • ecommerce Weaknesses • Legal issues • Geographic concentration Opportunities • Business expansion • Expanded product lines • mergers Threats • Competition • Regulations • Economic conditions Strengths Macy’s Inc. is among the largest retail outlets operating in the United States that deals in the diverse range of products like apparel, households, jewelry etc. The...
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... ------------------------------------------------- table of CONTENTS EXECUTUVE SUMMARY Since the first opening in 1858 in New York the “world’s largest store” became iconic for the department store industry. From the beginning Macy's Inc. stated its mission to satisfy a consumer as a paramount and recognized that all actions and strategies must be directed toward providing a localized merchandise offering and superior shopping experience. Organization has been following that principal for over a decade and today Macy’s targeting consumers through dynamic department stores and online sites. Main issue Advancing e-commerce and internet technologies cause recent declines in sales in the entire industry. Online retailers offer more convenient and fast shopping on the internet directly from your personal computer or smartphone. Along with efficiency online retailers striking department stores with lower prices and easy shipping. Trends became so effective that consumers rapidly shifting towards online retail channels leaving department store business with a need to create an effective strategy to overcome threats and insure their future in the industry. Strategy Recommendations Department stores such as Macy's and its main competitors Sears, JCPenney, and Dillard's operate as an upscale...
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...Memo of Macy’s Department store repositioning Case Synopsis The traditional department store was the dominant player in the American retail industry in the first half of the 20th century, which was designed to provide a unique shopping experience for consumers. However, only 50 years later, this mainstay of retail world was experiencing declining sales and serious questions were being raised as to whether its demise was imminent. Firstly, this case gives us a brief introduction of Macy’s, which is consolidated by 15 regional department stores with 810 store locations across the country. The company repositioned the consolidated Macy’s in the overall retail landscape in an attempt to differentiate the new company from its competitors. Secondly, the case provides a situation analysis of the factors Macy’s is facing, which includes the general economic environment, industry (product and services and segments), competition and consumers. Last but not the least, the case details not only Macy’s 2005-2006 consolidation and repositioning strategy but also Macy’s 2006-2011 post-consolidation. Questions 1. Complete a situation analysis of the traditional department store industry and of Macy’s as of 2005. Which factors in the external environment could (positively or negatively) affect the success of Macy’s new strategy? Which internal factors could affect the success of the company’s strategy? I think the following external environment factors could affect the success...
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...The Magic CRM of Macy's, Inc. Natalia Lawson University of Phoenix Information Systems Fundamentals CIS/207 Byron L. Kizzie February 4, 2013 The Magic CRM of Macy's, Inc. "Be everywhere, do everything, and never fail to astonish the customer." Macy’s motto. The history of Macy’s, Inc., one of the largest department store retailers in the world, has began with an opening of a small dry goods store in New York in 1858 ("Macy’s: A History," 2013, p.1). ‘First-day sales of the newly born store totaled $11.06 and reached $90,000 by the end of the first year.” Macy’s, Inc. conducted its business in 11 adjacent buildings by the end of the 19th century ("Macy’s: A History," 2013, p. 1). In the 21st century, “the store’s fiscal sales in 2011 reached $26.4 billion. Approximately 171,000 employees work at Macy’s, Inc., formerly known as Federated Department Stores, Inc. The giant retailer has two corporate offices in Cincinnati, 800 department stores in 45 states, the District of Columbia, Guam and Puerto Rico” ("Macy’s Fact Sheet," 2013, p. 1). In addition, the corporation conducts e-business on macys.com website. What has made and continues to make Macy’s, Inc. so successful and respectful? As a former employee of Macy’s, Inc., I can attest from my own experience that the corporation’s success is due to its highly organized and well-developed Customer Relationship Management (CRM) system. How the business requirements drove the system’s initial development...
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