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Bill Bittner

Principal
BWH Consulting

Macy's Cans Gift Wrapping Department

March 3, 2010

FROM RETAILWIRE:
If you're looking to buy a gift in Seattle and have it wrapped, Macy's may no longer be your store of choice. The chain has confirmed it is doing away with its gift wrapping departments in the city. Where do you stand on the elimination of services such as gift wrapping in department stores?      [more...]

MY COMMENTARY:

I have to agree with the retail analyst who regards the Macy's decision as short sighted. Retail stores have to do all they can to differentiate themselves from their Internet competitors. Even Amazon offers gift wrapping, although not for large screen TVs. The more service they give up, the more difficult it becomes for stores to explain their higher margins. With no apparent added value, more consumers will move to the Internet. The smartest thing a store operator can do is have two banners with distinctly different consumer targets. I think (thought) of Macy's as the service banner.

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