Macy's is revamping its website and reeducating staff to offer personalized styling services.

• Macy's is planning to revamp its website and teach some employees as personal stylists in an attempt to attract more customers.
• Recently, AlixPartners assisted the retail giant in conducting a business review to determine if it should separate its e-commerce division from its physical stores.
• An individualized online shopping experience is available through a personalized website landing page based on past purchases.

The department store chain announced on Tuesday that it is preparing to revamp its website and train some of its employees as personal stylists in order to attract more customers looking for the latest fashion trends.

The retailer aims to enhance the shopping experience by providing personalized attention from staff in stores and user-friendly online tools. To remain competitive, it is targeting to improve its standing against rivals, including department stores, boutique clothing shops, and online-only fashion retailers that specialize in style advice.

AlixPartners assisted the chain in conducting a business review to determine if it should separate its e-commerce division from its physical stores.

Macy's has decided not to pursue a split, as stated last month. Instead, the company is focusing on enhancing its online and in-store experiences.

Macy's chief brand officer, Rich Lennox, stated in an interview that although the retailer has already invested heavily in its digital presence and social media strategy, the review revealed that it needed to improve its communication to customers about what sets it apart from competitors.

Soon, the branding rollout with the new motto "Own Your Style" will be implemented in both the stores and online.

Lennox stated that the objective was to discover a unifying customer truth that would cater to the acquisition of younger customers, while also considering the needs of older and high-value customers.

Macy's will train its employees to assist customers with style choices and enlist certain employees into its "Style Crew" group. These employees will receive a commission for increasing sales and promoting the program through social media.

Lennox announced that Macy's dress code will be relaxed, allowing employees to express their personal style in their daily attire.

According to a spokeswoman, Macy's current dress code is best described as business casual. However, under the new branding initiative, clothing choices will vary based on an employee's role within the company. For instance, a worker in the general selling area can opt for a more casual look with their favorite jeans and sneakers, while a staff member in jewelry might wear a blazer with flashy accessories.

In stores, Macy's will be introducing digital screens that display rotating style tips and outfit inspiration for shoppers, who can then purchase the same clothing items and accessories nearby.

Macy's refused to reveal the amount of money it would be spending on these initiatives, as a spokeswoman stated that the company does not disclose such detailed financial information.

Macy’s website gets a makeover

Macy's announced a three-year plan named Polaris in February 2020, which aimed to increase digital growth, shut down underperforming stores, and invest in top-performing stores to enhance profitability.

Despite the Covid pandemic stalling some progress, Macy's CEO Jeff Gennette stated in late February that the company is now more digitally focused than it was in 2019. In line with this, Macy's is preparing to launch a digital marketplace where third-party brands can sell their products, positioning it as a competitor to Amazon or eBay.

In 2021, Macy's digital sales represented 35% of net sales, up 10% from 2019 levels. In comparison, Target's digital business made up 42% of net sales in the same year. Meanwhile, Walmart reported that its online business accounted for 32% of total revenue in 2020.

In fiscal 2021, Macy's net sales were $24.46 billion, a slight decrease from the $24.56 billion reported in the previous year. For fiscal 2022, the company anticipates revenue growth of no more than 1%.

An upgraded dashboard will provide loyalty members with information on their rewards points, upcoming orders, and unique style recommendations, while a personalized website landing page will be available for online shoppers based on their buying history, one of the changes announced Tuesday.

Lennox stated that there would be a streamlined global navigation, a revamped contemporary search bar, and a customized customer dashboard for an enhanced digital experience.

Wissink, a Jefferies analyst, stated that concentrating on speeding up the achievement of its Polaris objectives instead of pursuing an operational separation is a "prudent" approach. This year is crucial for the chain to demonstrate the sustainability of its enhanced performance, she emphasized.

Macy's could rival a company like Nordstrom, which offers personalized styling boxes based on customer preferences, by expanding its own personal styling services. Nordstrom is known for its exceptional customer service and individualized fashion advice, which sets it apart from other high-end chains such as Saks Fifth Avenue and Bloomingdale's, which Macy's owns.

Macy's aims to be a go-to destination for consumers seeking fresh new looks for their return to offices, parties, weddings, and other public events this year, despite facing challenges such as inflation and supply chain disruptions.

Lennox stated that our business model revolves around offering a diverse range of brands to establish ourselves as a leading style consultant in the market. Macy's has excelled in this area, and we aim to improve upon their success.