[Image of: RetailWire Logo and Tagline (for print)]


Online Selling Strategies
Social Marketing Campaigns
RR Donnelley:
In-Store Marketing
Enriching Customer Relationships

Macy's Quiero Latinas

December 6, 2013

Macy's recent success can be attributed in large part to the chain's emphasis on tailoring product selection and promotions to local markets as part of its "My Macy's" micro-marketing initiative.

Part and parcel of that effort has been the chain's emphasis on specific demographic segments. Last year, for example, the company announced plans to become "the store of choice" for Millennials by 2015. Now the chain appears to have similar plans for Latinas, as well.

Earlier this week, the department store announced an exclusive deal to market a new fashion brand inspired and fronted by Thalía, an actress and popular music star who was born and raised in Mexico and later became a U.S. citizen. The new line called Thalía Sodi, which will include dresses, pants, tops, shoes and jewelry, is expected to debut in 300 of Macy's stores across the country as well as on Macys.com in spring 2015.

"Hispanic women are one of the fastest-growing consumer segments in America and already important customers for Macy's in major markets across the country," said Terry Lundgren, chairman, president and chief executive officer of Macy's, Inc., in a statement. "With this new Thalía Sodi brand, sold only at Macy's, we will have an even stronger fashion offering that directly addresses the style, fit, and color preferences of this customer."

"We saw white space in this more mature, meaning nonmillenial, Hispanic or Latina customer," Jeffrey Gennette, chief merchandising officer at Macy's, told The New York Times. "We were not addressing her as fully as we want to."

"I am very excited and honored to partner with Macy's, an iconic American brand that believes in our community, to launch a collection that will be fabulous, fun and flirty — truly representative of who I am as a Latina," said Thalía. "This new fashion venture of apparel and accessories has been a longtime passion of mine and I can't wait for my fans and women from all over the world to wear my collection."


Discussion Questions:

How does Macy's targeted marketing efforts differ from other retailers? What is the likelihood that the chain's focus on Latinas will succeed?

While we value unfettered opinion, we urge you to show respect and courtesy for people or companies about whom you comment. Keep in mind that this is a public, professional business discussion. RetailWire reserves the right to edit or refuse the publication of remarks that we deem unsuitable. We may also correct for unintended spelling and grammatical errors.

Instant Poll:

How likely is Macy's to succeed with its Latina target marketing strategy?


To some degree, the Daisy Fuentes brand was originally targeted to Kohl's Latina customers as the chain expanded into Texas and the West. But the brand was eventually embraced as an all-store strategy, along with the much bigger rollout of the Jennifer Lopez brand. So Macy's is late to the party, to some extent.

However, Macy's has demonstrated expertise in micro-targeting, both in its merchandising messages and in its content by location. (Here in Milwaukee, for example, the two Macy's locations have far different product focus even though they are 10 miles apart.) The key to the success of the Thalia brand will involve not only placing the goods in the right locations - obviously - but also making the brand look like a well-designed "big idea," not just a token offering to a growing population segment.

[Image of: View Braintrust Panelist button]
Dick Seesel, Principal, Retailing In Focus LLC

Smart move all the way around on Macy's part. An attractive, savvy Latina as a spokesperson, a decided focus on segmentation of store merchandising to embrace the Hispanic market, and a recognition that the Hispanic market continues to grow and they are superb consumers. Macy's has over 1,000 locations scattered about the country, so segmentation of this department store giant is a natural. The strategy offers revenue and share growth that is vital in a highly competitive economy.

Hispanic female shoppers like Macy's. Macy's has to appreciate those shoppers, as well. When asked "Where do you shop MOST often for Women's Clothing," the Prosper Insights & Analytics Monthly Consumer Survey of 6,000+ Adults points out 8.2% of Adults, 18+ shop Macy's MOST often, while 8.6% of Non-Hispanic Females choose Macy's and fully 10.0% of Hispanic Females prefer Macy's.

The Hispanic female gets more important to Macy's. Just 7.6% of Non-Hispanic moms say they shop Macy's MOST often, while 11.5% of Hispanic moms walk into Macy's MOST often for their women's clothing store of choice. Hispanic females spend on average $57.16 per month on women's clothing vs. $44.03 per month by Non-Hispanic Females.

The consumer insights become even more compelling when competitive factors are brought into play. When consumers are asked about stores that they have shopped for Women's Clothing in the past 90 days, Hispanic Females demonstrate that they cross shop store banners -- 30.1% of Hispanic Females shop Target, 28.2% have shopped JC Penney, 27.8% have shopped Walmart, 25.4% have shopped Macy's, 25.0% have shopped Kohl's, 23.5% have shopped Old Navy, 18.6% have shopped TJ Maxx, and 14.4% have shopped Victoria's Secret. Top that with the fact that 21.9% of Hispanic Females have shopped Amazon for Women's Clothing in the past 90 days, and it is easy to see the wisdom of Macy's strategic move.

[Image of: View Braintrust Panelist button]
Roger Saunders, Managing Director, Prosper Business Development

This is SMART. The Latina segment of US women is growing and will continue to grow, perhaps someday being the LARGEST group of US females by culture?

It is smart to show and display that you care about their interests and desires and that you are taking time to offer things that while they may have a broad appeal, are actually in tune with what Latina women would want. Macy's should do this with all large groups of women and to some extent I think that they do - just like other larger retailers.

At the same time, this has to be done with care so as not to seem disingenuous, or like "pandering." These shoppers are smart and will see through that in a minute. If execution is handled well, then it should be a big win which will carry forward into the future.

William Passodelis, associate, ML Co.

Macy's under Terry Lundgren has established its ability to effectively and profitably buy and flow segmented product assortments by location - no easy task. They have also shown an ability to effectively utilize PR to tell their story, e.g. "My Macy's" and this effort to target Hispanic/Latina consumers. I see them continuing to improve their localized execution and the story surrounding it.

[Image of: View Braintrust Panelist button]
Mike Osorio, Senior VP Organizational Change Management, DFS Group

Search RetailWire
Follow Us...
[Image of:  Twitter Icon] [Image of:  Facebook Icon] [Image of:  LinkedIn Icon] [Image of:  RSS Icon]

Getting Started video!

View this quick tutorial and learn all the essentials...

RetailWire Newsletters