Partnership with zTailors
On June 1, Macy’s (M) signed an agreement that will see zTailors provide customized alterations on online purchases. If you opt for alterations after making an online purchase, a certified tailor from zTailors will arrive for a fitting at your home or office and complete the alterations within a week.
With about 600 tailors on its payroll, zTailors is an on-demand digital tailor network founded by George Zimmer. Interestingly, Macy’s also signed an agreement in June 2015 with Men’s Wearhouse, a company that George Zimmer created but was ousted from in 2013.
Macy’s is currently rolling out the zTailors service in the Los Angeles area. The service will then be extended to metro New York City, San Diego, and San Francisco, then on to Washington, Oregon, and Florida later this month. A complete nationwide rollout is expected by early fall 2015.
Focus on online business
Macy’s partnership with zTailors is part of a strategy to strengthen its online business. Meanwhile, Macy’s already ranks second in the Digital IQ Index for department stores compiled by L2, a benchmarking and education firm. Upscale department store Nordstrom (JWN), which has invested heavily in its online channels recently, sits on top of the L2 Digital IQ Index. Sears (SHLD) and JCPenney (JCP) rank third and fifth, respectively.
In January 2015, Macy’s announced investments for enhancing technology, speed, and customer experience on macys.com and bloomingdales.com. The company also announced plans to hire over 150 individuals to expand its San Francisco-based digital technology organization.
Macy’s online business allows it to reach its international customers more easily. Macy’s ships its online orders to about 100 countries.
In late 2014, Macy’s tested same-day delivery in eight Macy’s and four Bloomingdale’s markets. The company is extending same-day delivery to additional markets in 2015.
Macy’s makes up ~1.1% of the SPDR S&P Retail ETF (XRT).