The Technology That We Chose For Macy’s To Utilize Is A Virt ✓ Solved
The technology that we chose for Macy’s to utilize is a virt
The technology that we chose for Macy’s to utilize is a virtual experience in their fitting rooms. This technology is modeled after the new additions that Neiman Marcus has made to their new NYC location in Hudson Yards (Grill-Goodman, 2019). Each fitting room will be equipped with the ability for customers to connect with sales associates even while they are privately in the fitting room, to get a different size, color, or style of the clothing they are trying on. It will be touch screen application, where customers will be able to browse all inventory within that department to try on.
Respond to the following:
1) Complete a demographic and psychographic profile for the consumer that your technology is designed to target. Be specific: lifestyle, mindset, income level, product needs; customer should be part of Macy’s target market.
2) Why does this consumer need/demand this technology in fashion? How will this technology provide enough value to convert to a purchase?
3) How will the benefits offered by this technology be communicated to the customers?
4) How can your selected technology reinforce all shopping channels for Macy’s including brick and mortar, e-commerce, and mobile?
5) Complete two comprehensive SWOT analyses - one on Macy’s and the other on the technology that you have selected; include both charts in the appendix.
6) Which categories of product offered by the retailer would benefit most by implementation of the technology? Select one category and explain.
7) Identify potential implementation challenges for the retailer.
8) Develop specific criteria the retailer can use to measure the effectiveness of the roll-out.
9) Provide a detailed explanation as to how the technology will be introduced to the customer, how it will be marketed, what benefits it provides, and how it offers a unique platform to Macy’s.
10) Develop an expansion strategy for your chosen technology, demonstrating how the retailer will integrate it into their operations and how to determine stores for testing and full roll-out if successful.
Use the Neiman Marcus Hudson Yards fitting-room technology as a model. Provide recommendations grounded in research.
Paper For Above Instructions
Executive Summary
This paper proposes a Macy’s deployment of in-fitting-room interactive touchscreen experiences modeled on Neiman Marcus’s Hudson Yards implementation (Grill-Goodman, 2019). The system enables private in-room assistant requests, inventory browsing by department, instant size/color exchanges, and curated outfit suggestions. The goal is to convert trials into purchases, reduce returns, and reinforce Macy’s omnichannel proposition.
1. Target consumer: demographic and psychographic profile
Demographic profile: Female primary shopper, age 25–44, urban/suburban, household income $60,000–$150,000, college-educated, employed full-time or dual-income household. This aligns with Macy’s core midmarket-to-moderate-luxury customer base (Macy’s, 2023).
Psychographic profile: Time-pressed, convenience-oriented, digitally fluent, values personalized service and style guidance, prefers a blend of online convenience and tactile in-store experiences. Lifestyle: social, career-focused, shops for work-casual wardrobes and weekend wear, motivated by efficient multi-channel shopping and curated recommendations (McKinsey, 2021).
2. Consumer need and value proposition
Consumers seek the convenience and personalization of online shopping while still desiring fit and tactile confirmation in-store (Verhoef et al., 2015). Fitting rooms are a friction point—customers waste time requesting sizes, lose momentum, or abandon purchases. The technology addresses these pain points by enabling immediate size exchanges, in-room outfit suggestions, and direct associate communication, reducing friction and increasing conversion (Accenture, 2020). The value is measurable: higher conversion rates, larger basket sizes via cross-sell suggestions, and fewer returns due to better fit guidance (Rebecca Minkoff case studies show significant sales lifts with fitting-room tech) (Retail Dive, 2017).
3. Communication strategy
Benefits should be communicated using an omnichannel marketing campaign: email and mobile app push notifications for loyalty members, in-store signage at entrances and departments, and social media demos (short videos) showing how seamless the experience is (Deloitte, 2019). Associates will verbally introduce the feature and offer short demos; digital channels will include instructional micro-videos and FAQs to reduce user hesitation. Messaging should emphasize speed, privacy, and personalized style assistance.
4. Reinforcing all shopping channels
The fitting-room touchscreens will integrate with Macy’s inventory and e-commerce systems to display real-time stock and allow customers to request items from other locations or add items to an online cart or wish list for later purchase (Macy’s, 2023). Mobile integration enables customers to start a session via the Macy’s app (instantly pull saved preferences), and e-commerce benefits when in-store analytics inform online personalization engines (McKinsey, 2021). This creates a continuous customer journey across brick-and-mortar, mobile, and web.
5. Product category focus
The primary beneficiary category is women’s casual apparel. This category often involves exploratory shopping and multiple fit iterations; in-room tech increases the likelihood that a casual-shopper will continue trying recommended pieces until purchase (Business of Fashion, 2019).
6. Implementation challenges
- Systems integration: real-time inventory and POS integration require robust APIs and data governance (Accenture, 2020).
- Staff training: associates must be trained to support and promote the technology and deliver the human touch where needed (NRF, 2018).
- Privacy and UX: design must prioritize privacy (clear consent, no intrusive cameras unless opt-in) and simple UX for diverse shoppers (HBR, 2017).
- Maintenance and cost: hardware upkeep and software updates will incur CAPEX and OPEX; ROI must be measurable (Deloitte, 2019).
- Novelty fatigue: continuous UX improvements and periodic feature updates will be necessary to sustain engagement (McKinsey, 2021).
7. Metrics to measure roll-out effectiveness
Core KPIs: conversion rate lift in outfitted departments, average order value, fitting-room session-to-purchase rate, reduction in returns for items tried in tech-enabled rooms, dwell time in fitting rooms, customer satisfaction/NPS among fitting-room users, and incremental revenue per store (Macy’s, 2023; Accenture, 2020).
8. Customer introduction and marketing plan
In-store: associate-led demos, QR codes at fitting-room entrances linking to short tutorials, and loyalty-member invites for early access. Digital: pre-visit emails and app notifications offering a “reserve a tech-fitting room” option; social videos and influencer demonstrations highlighting convenience. Benefits to highlight: instant size/color access, stylist suggestions, privacy, and reduced wait times. Unique Macy’s platform advantage: integration with Macy’s broad brand assortments and loyalty program to deliver personalized recommendations at scale (Macy’s, 2023).
9. Expansion and testing strategy
Begin with a pilot in 6–8 stores selected by criteria: high women’s apparel sales, dense urban/suburban traffic, and strong Wi-Fi/tech infrastructure. Use A/B testing vs. control stores to measure lift across KPIs over 6 months. If pilot KPIs exceed thresholds (e.g., >=10% conversion lift, >=8% AOV uplift, and positive NPS delta), implement a phased roll-out by region prioritizing top-performing geographies and stores with existing omnichannel readiness. Continue iterative UX improvements, add features (virtual try-on overlays, loyalty personalization), and scale hardware procurement with vendor SLAs (Accenture, 2020; McKinsey, 2021).
Conclusion
An in-fitting-room interactive touchscreen, modeled after Neiman Marcus’s Hudson Yards implementation, provides Macy’s an evidence-based route to enhance in-store experience, increase conversion, and strengthen omnichannel integration. With a focused pilot, clear KPIs, staff training, and privacy-first UX design, Macy’s can leverage this technology to differentiate its store experience and recapture incremental revenue while aligning with modern consumer expectations (Grill-Goodman, 2019; Macy’s, 2023).
Appendix: SWOT Charts
Macy’s SWOT
| Strengths | Weaknesses |
|---|---|
| - Strong brand recognition and nationwide footprint (Macy’s, 2023)- Established omnichannel infrastructure and loyalty program- Large merchandise assortment | - Declining foot traffic in some markets- Legacy systems requiring modernization- Margin pressures and store costs |
| Opportunities | Threats |
| - Invest in experiential retail to drive traffic (Deloitte, 2019)- Leverage data to personalize experiences- Partnership with tech vendors | - Competition from pure-play e-commerce and fast fashion- Rapid tech obsolescence and high implementation costs |
Fitting-Room Technology SWOT
| Strengths | Weaknesses |
|---|---|
| - Improves conversion and reduces returns (Retail Dive, 2017)- Enhances customer experience and loyalty integration- Scalable to multiple stores | - Requires significant integration and training- Upfront hardware and maintenance costs- Risk of novelty fatigue |
| Opportunities | Threats |
| - Add AR/AI personalization features- Cross-sell and inventory optimization benefits (McKinsey, 2021) | - Privacy concerns if mismanaged- Competitors may replicate quickly |
References
- Grill-Goodman, J. (2019). First Look: The Technology Behind Neiman Marcus's New Retail Experience at New York's Hudson Yards. Retail Dive. (Grill-Goodman, 2019)
- Macy’s, Inc. (2023). Annual Report 2023. Macy’s Investor Relations. (Macy’s, 2023)
- McKinsey & Company. (2021). The value of getting personal: How retailers can win at personalization. (McKinsey, 2021)
- Accenture. (2020). Technology Vision for Retail: The new omnichannel imperative. (Accenture, 2020)
- Deloitte. (2019). The Omnichannel Opportunity in Retail: How experience drives store traffic. (Deloitte, 2019)
- Retail Dive. (2017). How Rebecca Minkoff tripled sales with RFID-enabled fitting rooms. (Retail Dive, 2017)
- National Retail Federation (NRF). (2018). Fitting-Room Technologies and the Shopper Experience. (NRF, 2018)
- Verhoef, P. C., Kannan, P. K., & Inman, J. (2015). From Multi-channel Retailing to Omni-channel Retailing. Journal of Retailing. (Verhoef et al., 2015)
- Business of Fashion. (2019). Retailers Turn to Tech to Drive Store Traffic. (Business of Fashion, 2019)
- Harvard Business Review. (2017). Making the Most of the In-Store Digital Experience. (HBR, 2017)