Introduction
This paper analyzes the similarities and distinctions between Macy’s and its principal competitor, the Dillard’s Inc. The two companies operate mainly in the U.S., and they offer similar products. However, Macy’s and Dillard’s differ in their marketing and sales strategies.
Similarities
Both companies are present in most states in the U. S. While Macy’s has a presence in 45 states (Macy’s, 2016), the Dillard’s operates in about 30 states (Dillard’s, 2016). Also, the companies have numerous outlets in the U. S. Macy’s, and Dillard’s have 900 and 270 stores respectively. Importantly, these two companies seek to open many stores to reach as many customers as possible. Additionally, Macy’s and Dillard’s companies target the same client; their products are meant for women, men, and children. The businesses stock similar products including clothes, cosmetics, and home furnishings. Evidently, the companies struggle to push sells in a market that is already saturated.
Most importantly, both companies utilize their official websites to make sales or direct customers to their stores. A client can view products online, compare prices, place an order of even search the direction to the nearest outlet. Thus, Macy’s and Dillard’s are taking advantage of contemporary technologies to drive sales.
Differences
Macy’s and Dillard’s have a difference in geographical reach. Although the two companies have a presence in most states in the United States, their range is entirely different. Macy’s earns 100 percent of its sales in the U.S. without relying on particular geographical location (Macy’s, Inc. Reports, 2016). That is one of the competitive advantages of Macy’s Company. On the other hand, Dillard’s Inc has the largest stores in Texas and Florida (Dillard’s, 2016). Hence, the company relies on a few states that contribute a significant portion of its revenues.
The two companies have diverse marketing strategies. Dillard’s mainly advertises its products in open-air forums and shopping malls. Also, Dillard’s Company has entered into agreements with various companies as a way of boosting its product range and uniqueness. For instance, in 2014, Dillard’s signed a deal with Time Inc to be supplied with home accessories in its outlet. The agreement aims at providing Dillard’s with exclusive products that aren’t available in any other outlet. In 2014, the company also partnered with James Avery with an objective of acquiring unique jewelry (Dillard’s, 2016). James Avery now supplies the jewelry to over 40 outlets across the United States.
On the contrary, Macy’s relies on the media as a way of promoting its products on the market. Print media and television commercial are the primary marketing channels of Macy’s (Macy’s, 2016). Also, the company uses mail to direct customers to the website and stores. Macy’s is not very keen on entering into partnerships with other enterprises like Dillard. However, the two companies are keen on reaching their customers through different platforms.
Another fundamental difference between Macy’s and Dillard’s is the operational strategy. Macy’s is keen on expanding its operations into new markets and opening large outlets. In 2015, Macy’s used $400 million to broaden its chief outlet (Macy’s, 2016). After the expansion, the company achieved a sales space of 100,000 square feet. Additionally, in 2015, Macy’s opened a large store in Puerto Rico in a bid to increase its sales. Contrary, Dillard’s is not keen on opening new outlets; in fact, the company closed about 60 stores in 2015 a strategy meant to reduce operational cost (DuBois, n. d.). Also, Dillard’s plan is to open small specialty outlets other than large general stores (Dillard’s, 2016). The management plans to open stores of 170,000 square feet in average rather than large stores like the Macy’s. The company adopts this strategy based on past success of such stores. Unlike Macy’s that targets new markets, Dillard’s wants to broaden their fashion line by including products from other companies such as J. C. Penney.
Evidently, Macy’s Company target customers at shopping malls and other posh areas. That’s why it plans to launch more large outlets in prime locations. Dillard’s, on the other hand, has taken an entirely different approach. The company plans to launch its stores in open-air centers to target the changing shopping trends where people seem to shop more in outdoor markets than in malls and prime outlets.
How Omni-channel strategies affect the Dillard’s and Macy’s
Despite their different operational plan, Dillard’s and Macy’s utilize Omni-channel strategies. This approach helps to improve sales since products reach many customers through the online and offline stores (Anderson, 2015). However, Omni-channel benefits Macy’s more than Dillard’s. Dillard’s closed some of its outlets around the U.S. to reduce operational cost while Macy’s keeps on launching new stores since it doesn’t suffer losses. However, Dillard’s also realizes huge profits from other stores across the U.S. Additionally, Macy’s ships beauty and home products to about 100 countries around the globe to increase its customer base and sales.
Conclusion
Dillard’s and Macy’s are similar in that they have many stores across various states in the United States. Also, the two companies use their websites to drive sales and direct customers to their physical stores. However, there are profound differences in the operational strategy of the two companies. While Macy’s concentrates on opening large outlets in malls and prime locations, Dillard’s plans to open small stores in open-air centers. Additionally, Macy’s markets its products through the media while Dillard’s advertises in malls and air-open forums. Both companies realize huge benefits from the Omni-channel strategies.
References
Anderson, G. (2015, August 9). Will Omnichannel keep Macy’s ahead of Amazon? Forbes. Retrieved from <http://www.forbes.com/sites/retailwire/2015/08/09/will-omnichannel-keep-macys-ahead-of-amazon/#5813ee6744f8>
Dillard’s, Inc: Company Profile|. (2016). Retrieved May 9, 2016, from Vault, <http://www.vault.com/company-profiles/retail/dillards,-inc/company-overview.aspx>
DuBois, S. How Dillard’s did it. Retrieved May 9, 2016, from <http://archive.fortune.com/2010/12/20/news/companies/dillards-retail-success.fortune/index.htm>
MACY’S, INC: Company Profile. (2016). Retrieved May 9, 2016, from <http://www.vault.com/company-profiles/retail/macys,-inc/company-overview.aspx>
Macy’s, Inc. Reports Third Quarter Results. (2016). Retrieved May 9, 2016, from <http://investors.macysinc.com/phoenix.zhtml?c=84477&p=irol-newsArticle&ID=2111423>
