Friday, September 22, 2023
Homemad moneyClever strategy impresses Cramer

Clever strategy impresses Cramer

Some business strategies are just so clever all Jim Cramer can do is step back and smile.

Cramer believes it's that very cleverness that sent shares of Macy's shooting higher thanks to strong holiday sales and a preliminary forecast for 2014 that suggested Macy's will continue to outpace its rivals

Cramer has been a fan of Macy's for quite some time.

As recently as December 12th he advocated establishing a long position saying, "I think you should take advantage of any weakness to do some buying in this terrific retail stock."

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Largely, Cramer sees a bet on a shrewd retail strategy being implemented by CEO Terry Lundgren.

On Mad Money, during interviews with Cramer, Lundgren has often detailed his strategy for success.

For example, he explained that by converting other stores to the Macy's moniker, he was able to create a national powerhouse that allowed the company to save on advertising and keep prices low due to leverage with apparel makers.

Also, Lundgren detailed how stores tailor merchandise, recognizing that customers in different regions needed vastly different apparel, not only in weight or size but often color too.

And Lundren often talked about his website and Macy's aggressive plans for competing online.

It's a strategy that impressed Cramer.

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Because the retail environment is evolving rapidly, "Macy's knew it had to change radically to prevail," Cramer said. And change they did.

And because of that change, Macy's is thriving when rivals are simply surviving.

"Lundgren reinvented the paradigm in a way that a Sears or Kohls or Wal-Mart can only dream of. What can I say except it's working. , "Macy's is going to be a dynamite 21st century retailer."

Call Cramer: 1-800-743-CNBC

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