This paper analyzes the strategies that four retailers-Target, J.C. Penney, Macy's, and Neiman Marcus-are using to deal with recession-era spending. It compares the dimensions of inventory, staffing, store openings, and promotion to consider the way each is dealing with the challenges of lean times when many consumers are being forced to watch rapidly depleting budgets and to reevaluate spending plans. Each has a distinctly different philosophy, and all four suggest the variety of approaches with which businesses (in this case, department stores focused on apparel and home goods merchandise) are facing the challenge of lean economic times.
Jayne O'Donnell highlights four retail department stores that serve slightly different segments of the buying public. Demographically, Neiman Marcus shoppers are the most upscale of the four, J.C. Penney's are the least, and Target and Macy's are, in that order, the next steps up. The survey of regular shoppers included a much larger pool at the lower three stores, indicating that the Neiman Marcus shopper tends to be more exclusive, a smaller group, somewhat less affected by the recession, and harder to find and survey.
O'Donnell notes, "In this economy, sales figures show, the safest demographic spot for retailers to occupy is either the low end or the very high end" (2B), suggesting that J.C. Penney and Neiman Marcus can afford to take the greatest risks in planning on all four dimensions. This does appear to be the case when looking at the way all four are strategizing their survival.
Regarding inventory, Neiman Marcus "may adjust the amount of merchandise in stores, but otherwise is 'just continuing business as usual" (2B). J.C. Penney's plan includes expanding its inventory to "further invigorate the Penney brand" and compete with lines in some of the more upscale retailers (2B).
By contrast, while Macy's is introducing a line that will be almost exc...