As I often repeated before, businesses succeed by building on their strengths. Yet, when business slows and growing becomes challenging, companies are often tempted to try something new and very different. However trying the new and very different often means straying far from the strengths of the business. So, it is refreshing to see companies make strategic changes that build on their strengths.
An early June 2026 Wall Street Journal article offers an example. The article explains Macy’s new strategy. It reports that Macy’s will be focusing more heavily on upscale merchandise. This new approach has benefits in today’s economy where lower income consumers are cutting back while higher socioeconomic groups are still spending.
As I see it, Macy’s recent upscale emphasis does seem to build on its strengths, at least to some degree. When Macy’s entered the Chicago area market several years ago, it did so by acquiring the upscale retailer Marshall Fields and converting their stores into Macy’s. Granted, Macy’s may have been less upscale than Marshall Fields. However, since several of Macy’s acquired locations were once more upscale stores, Macy’s does have some prior background with upscale markets. Thus, Macy’s has some prior upscale strengths. And, Mzcy’s does have stores that are located in upscale malls.
Nonetheless, Macy’s has to be careful so it doesn’t fall into the trap of retaining too many less upscale ways that it has been using previously. This is especially critical if its previous methods interfere with meeting the needs of the more upscale consumers it now plans to target. Success will depend on getting the new upscale emphasis right. Yet, it can be done. After all, even Wal-Mart has successfully shifted to serving more upscale markets than it did in the past. But, it has to be done in a way that meets the needs of those upscale consumers. And, Macy’s will have to make that shift in order to succeed.
In summary, Macy’s has some prior strengths that can help support its new strategy. Building on those strengths can help Macy’s succeed.
