Macy’s Inc. (M) has hired BBDO as part of the company’s new marketing strategy. Macy’s, once one of the largest retailers in the United States, has struggled with slow sales, falling revenue and store closings in recent years.
The company, two weeks ago, announced plans to implement a loyalty program and a new marketing strategy.
The announcement came as the retailer’s net income rose to $116 million, up from $11 million a year ago, in the second quarter of the year. The company’s sharp rise in income still fell short of expectations of $156 million in net income.
Investors started a sell-off of the company’s stock, pushing Macy’s stock down 10.25% following the second quarter release.
“We are working with a mindset of continuous improvement and will adapt our business in order to reach or goal of stabilizing the brick-and-mortar business while investing for accelerated growth in digital and mobile,” states CEO Jeff Gennette.
Gennette’s plan has brought in BBDO New York as the creative agency of record for Macy’s.
The company will be tasked with helping Macy’s increase their brand, value, loyalty and fashion authority.
“It’s so important to know your personal brand and convey that in every element,” states PSM Marketing.
BBDO has refused to comment, instead deferring the commenting to Macy’s.
Macy’s, known for their large marketing budget, spent 18% less on their marketing in 2016, bringing their expenditures to $591 million. The company hired Jim Reath to improve their marketing department this spring. Reath is a senior VP who previously worked for BBDO New York.
The company plans to begin their new marketing strategy in September, which BBDO will be key in implementing. October will mark the company’s loyalty program that comes right before the holiday season.
Macy’s has stated in the past that the company will “reengineer its entire marketing machine.”
Gennette is hopeful that the loyalty program and new marketing strategy will boost the company’s sales in the latter half of the year. Macy’s will reveal more targeted ads that are focused on regional segments.
The company is known for their 30-second ad buys that go out to customers on a national basis. The company will reel in their 30-second ads instead opting for 15-second ads that will focus on the needs of regional consumers.
Macy’s hopes that the marketing change will put an end to the company’s 10th straight quarterly sales decline. Same-store sales fell 2.8% in the most recent quarter, with Macy’s projecting a sales decline for the full year.