Macy’s said these are the five areas where it plans to invest in 2019

on Feb27
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Macy's at Chula Vista Center prepares for the Grand opening of its off-price shopping experience, Macy's Backstage, on Wednesday, Sept. 12, 2018 in Chula Vista, Calif.

Stephanie Diani | AP

Macy’s at Chula Vista Center prepares for the Grand opening of its off-price shopping experience, Macy’s Backstage, on Wednesday, Sept. 12, 2018 in Chula Vista, Calif.

Then, Macy’s said it will work more closely with top vendors this year with the goal of getting hot items to market more quickly. It’s faced with growing competition from an onslaught of digital-first brands that sell directly to consumers — such as Warby Parker, Outdoor Voices and Allbirds — to keep its assortment of goods in stores and online fresh.

Fourth, the company said it will think “mobile first” and continue to update its app. Mobile is the retailer’s fastest-growing channel for sales today, Macy’s said. It reached $1 billion in mobile sales last year.

And lastly, Macy’s said it will invest in the categories where it believes it can gain the most market share: dresses, fine jewelry, women’s footwear and beauty. It could stand to take some market share as rivals Sears and J.C. Penney falter.

“We are a stronger company than we were a year ago,” Gennette said on Tuesday.

But Macy’s still has its fair share of challenges ahead of it.

One of the biggest challenges is figuring out what to do with all of its real estate. The company has been evaluating other uses for some of its flagship locations, including the iconic Macy’s store in Herald Square in New York. On Tuesday, Gennette said the company is in the process of holding “preliminary meetings with city officials and community stakeholders” to discuss “complementary uses” at the Herald Square shop.

Then, Macy’s must still find ways to ease pressure on profits. The new restructuring plan should help with that. But Macy’s said it expects inventory to creep back up this spring. And that could push the company to rely on promotions to get rid of it.

Macy’s shares were up just about 1 percent by Tuesday afternoon. The stock has dropped nearly 18 percent already this year. That’s compared with the S&P 500 Retail Index, which has risen nearly 11 percent over the same time period.



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