Macy’s Doing ‘Great’ Heading Back-to-School
Macy’s reported better than expected numbers for July with
same-store sales up 7.3 percent and total dollars up 11
percent for the period. For the year-to-date, Macy’s same-store
sales are up 5.2 percent and, overall, the retailer has a
year-over-year gain of 7.2 percent.
"Our strong sales performance in July and the second quarter resulted
from the continued evolution of our core Macy’s strategies, including My Macy’s
localization and centralization of the organization. We also are benefiting
from the continued strength at Bloomingdale’s, which will open its newest store
tomorrow in Santa Monica, CA," said Terry Lundgren, chairman, president
and chief executive officer of Macy’s, Inc., in a statement.
A Wall Street
Journal article suggested that Macy’s numbers improvement
may be due to it having gotten away to a degree from its "upmarket image," putting
it in a position to steal market share from rivals such as J.C. Penney.
Grom, an analyst with J.P. Morgan, told the Journal that Macy’s
continues to be more expensive than Penney, but has introduced more moderately
priced items in the past year.
Mr. Lundgren pointed to exclusive brands as a
reason for optimism.
"We have planned for a successful back-to-school season and it is off
to a great start with the phenomenal launch this week of Madonna’s new Material
Girl juniors brand," said Mr. Lundgren. "We also are launching our
exclusive brand for young men, Slade Wilder, and the early response has been
Macy’s has also benefited this year from greater integration
of its store and online channels.
"Our Search & Send capability has now been rolled out to every Macy’s
store nationally and is helping us to capture new sales opportunities in every
location by accessing online inventories," said Mr. Lundgren.
for macys.com and bloomingdales.com were up 28.1 percent in the second quarter
and 31.0 percent for the first six months of 2010. Online has given the company
a 0.8 percent boost for its same-store numbers this year.
Discussion Questions: What is your assessment of Macy’s at this point and
time? What initiatives have impressed you most and where do you think the company
continues to face challenges?
- Macy’s, Inc. Same-Store Sales up 7.3% in July – Macy’s, Inc./Business Wire
- Macy’s Sets the Pace for J.C. Penney – The Wall Street Journal
- Wary shoppers give retailers only modest gains – The Associated Press/The