Will a tactical marketing strategy see turnaround for Macy's?

Dive Brief:

Macy's new CMO Richard Lennox hopes to revamp the 159-year-old department store's marketing strategy with a more tactical approach, Ad Age reported. Lennox was named Macy's CMO last year after a previous stint at Toys R Us.
Lennox, speaking at the brand's annual investor conference this week, said Macy's hopes to both retain older, loyal customers while also bringing newer, young consumers into the fold. Two key changes include a shift in Macy's media mix away from 30-second national TV spots in favor of more 15-second local TV ads. Instead of running sporadic promotions, Macy's will focus on four annual tentpole events based on the seasons.
Lennox also told Ad Age Macy's is rolling out a new loyalty program in Q4 with an eye toward simplifying the coupon process. The current loyalty program is geared toward credit card users, but the new offering will be "tender neutral" to include customers regardless of payment type.

Dive Insight:

Brick-and-mortar retailers are experiencing heavy churn as they face down stiff e-commerce competition and changing shopping habits. Macy’s has hardly been free from grappling with these disruptions, downsizing considerably over the past year and recently seeing investors flee amid poor performance.

Macy's revamped strategy under Lennox appears to be honing on a more targeted strategy to spur growth, opting for local TV pushes over broader national campaigns. The tentpole promotions will also lean into an emotional sentiment, per Ad Age, as consumers appear to find marketing with greater resonance more appealing. Last year, retailers were criticized around key sales periods like the holidays for leaning on tired tactics like deals and discounts as opposed to richer, heftier marketing — a mistake Macy's is clearly trying to avoid in 2017.

While the retailer is certainly changing up its media model, significant digital integrations were not outlined, though the brand is "committed to getting double-digit growth online," CEO and President Jeff Gennette said at the investor conference.

Stemming from that, Macy's is looking to continue growing its buy online and pick-up-in-store service, including experimenting with pick-up lockers in select locations this year, per Ad Age. It is also taking stock of real estate strategies to boost revenue from valuable properties, such as leasing roof space to a bar and restaurant at its Herald Square location in Manhattan, the publication said.