Macy’s continues to gain ground on competitors thanks to their smart inventory management, growth in e-commerce and cost-cutting measures. Macy’s clothing sales jumped 5.8 percent in February, doubling January’s 2.6-percent increase, according to the article “Macy’s Sales Up.”
The article credits Macy’s strong sales to their efforts to integrate operations, combine divisions and focus on customer service. It also singles out inventory management, cost control and merchandise planning as the three main ways Macy’s gets customers to come to their stores.
I’ve talked about the positive effects of Macy’s inventory system many times on the Inventory System Software Blog. It’s amazing how this clothing retailer has taken a simple principle of effectively managing their inventory and become such a big success because of it.
Retailers who specialize in luxury items like prestigious clothing have to really focus on keeping prices down. By definition, luxury items are discretionary and unnecessary, so they’re easy for consumers to cut out of their budgets. To maintain prestige but also offer value, luxury retailers need to balance goods’ costs so they can earn a healthy profit and keep sales strong without raising or lowering prices too much.
Macy’s has been successful at this balancing act because they use inventory management software to automate the more complex processes. Inventory management software uses barcodes, scanners and other tools to make it easier to keep the right amount of inventory in stock and cut unnecessary costs.
Any retailer or other type of business can use inventory management software to improve their operations and save money. Get more information and schedule an inventory software demo today.