Ibrahim Rahal – Retail Case Study

The retail space is rapidly evolving, and customers are attracted to shopping experiences that
allow them to shop in ways that are most convenient for them. In addition, retail industry has
been dealing with a number of challenges the last few years: increased complexity in the supply
chain, more demand for online and omnichannel shopping experiences.
Thus, some reinvention will be necessary to show customers that retailers really understand their
wants and needs.

In this case study we will see how Macy’s with the help of PERCH agency revolutionize the
fragrance counter to bring the best of digital and physical marketing.

Overview:

Macy’s is an American department store which continually experimenting new formats and
concepts to remain relevant and drive engagement in the face of tough competition from
ecommerce and niche brands.

On 2019 Macy’s launched an interactive fragrance experience to bring its beauty department
to life. The moment shoppers pick up a fragrance or tester, they are greeted with product
details, videos, ratings and reviews and page for the brand collection. This combined physical
and digital experience maintain customer engagement, understanding and increases brand
loyalty.

Objectives:

Macy’s was looking at its online customer behavior and realized that when its customer
shopped for fragrance by category, like sweet, citrus or floral. However, in-store, fragrances are
organized by brand.
This business model with co-op advertising and brand promotion is actually opposite with
how consumers want to shop for products. So, in order to allow customers merchandise
according to their preferences by bringing together digital content with physical products.

The Macy’s fragrance bar lets shoppers shop the way they want (customer preference) and
letting brands ensure their message (brand messaging) is delivered with integrity.

Another revenue streams:

Retailers nowadays have insight into store traffic and sales data. This new concept will allow
retailers to know what customers are doing before they convert to a sale. Data examples: how
many shoppers approached to the display, who touched the product, who interacted with the
screen and for how long.
This data is a possibility of another revenue for the retailers. Macy’s can sell the user
engagement data to the brands, so they can improve their in-store messaging, product
presentation and price.
Ibrahim Rahal – Retail Case Study

Questions:

-How do you think online and omnichannel shopping will evolve department stores and physical
retail?

-What does co-op advertising means? And does it beneficial to retailers and consumers?
-What is the impact of product presentation on decision-making and purchasing?
-Do digital displays appeal consumers towards brands and ensure that the brand messaging is
delivered?

References:
Interview: A Macy's Fragrance Experience Points To The Future Of The Department Store (psfk.com)

Digital Retail Solutions | Avanade

5 Inspiring Digital Solutions to Increase Retail Sales | Sprinting Software

Macy's Fragrance Experience — Perch - Retail Marketing Lift-And-Learn Digital Signage, Kiosks, and In-
Store Analytics Software (perchinteractive.com)