Macy’s Inventory Management System Back in the Spotlight

Macy’s recently released its second-quarter earnings report and the results are incredibly positive. Despite turbulent economic conditions and heavy competition from J.C. Penney and Kohl’s, Macy’s has managed to gain market share and improve its overall earnings.

Spotlight, QuickBooks Inventory ManagementA lot of Macy’s success is once again thanks to the company’s superb inventory management system.

“The company posted better-than-expected earnings and raised its full-year sales and profit forecasts, helped by inventory management that protected its margins,” says the Reuters article “Macy’s Gains Market Share, Sees Better Sales.”

How does inventory management protect a company’s margins? It cuts down on wasted materials, idle equipment and overstocked warehouses. When a company keeps track of all of the products it has on hand and how many it needs to order it avoids having to slash prices to move inventory.

Macy’s Secret to Cutting Down on Discounts

They’ve done less discounting. Their gross margins are telling you that either there are fewer promotions, or the promotions that they’re running are planned,” said Sterne Agee & Leach analyst Ken Stumphauzer.

Inventory management software is a big part of this strategy. With inventory management software, retailers can keep just enough inventory on their shelves to meet demand without having lots of leftovers that get sold at deep discounts.

It looks like Macy’s competitors need to start using inventory management software to keep up with the clothing retailer. The ABC News article notes, “Last week, Macy’s reported a 7.3-percent rise in July same-store sales, while [J.C.] Penney and Dillards posted unexpected declines as they slashed prices to move inventory.”

Start Using Inventory Management Software

If you would like to take advantage of inventory management software for your business, I recommend checking out Fishbowl Inventory. It’s the top-selling inventory management solution for QuickBooks users. It works great for companies in a variety of industries, including retail, wholesale and manufacturing.

Get a free trial of Fishbowl Inventory here.

If all of this sounds familiar it’s because I talked about Macy’s successful use of inventory management software in my earlier blog post “Strong Inventory Management Boosts Macy’s Q1 Profits.”

About Robert Lockard

Robert Lockard is a copywriter with Fishbowl. He writes for several blogs about inventory management, manufacturing, QuickBooks and small business. Fishbowl Inventory is the #1-requested inventory management software for QuickBooks users. Robert enjoys running, reading, writing, spending time with his wife and children, and watching movies. His favorite movies include Mr. Smith Goes to Washington, Fiddler on the Roof, Back to the Future and Lawrence of Arabia.
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2 Responses to Macy’s Inventory Management System Back in the Spotlight

  1. Pingback: The Secret to Nordstrom’s Success: Inventory Management | Inventory System Software Blog

  2. Pingback: Macy’s Inventory System Keeps Costs Down | Inventory System Software Blog

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