Macy’s CEO sees opportunity in luxury retail as others go bankrupt – tech2.org

Macy’s CEO sees opportunity in luxury retail as others go bankrupt


Macy’s luxury retail is seen accelerating as its high-end department stores fall under peer.

In a phone interview on Wednesday based on the company’s second-quarter earnings report, Macy Chief Executive Jeff Gennett said, “Look at the luxury this time, look at Neiman, look at parts of Lord & Taylor.” “The opportunity is there for us. Nordstrom is closing stores.”

“Bloomingdale’s having a moment,” he said of Messi’s high-end department store banner. “We have brands in our arsenal that we haven’t had before that are looking for additional distribution.”

Messi’s latest financial results exceeded analysts’ expectations, thanks in large part to the online boost. The company said digital sales were up 53% from a year earlier, as consumers were moving jewelry, makeup, sneakers and mattresses to visit Macy’s websites.

Macy’s shares recently gained nearly 4% in early trading.

Surrounded by the coronovirus epidemic, the department store has seen a good chunk of turmoil this year. Neiman Marcus, Jessie Penny, Stage Stores and Lord & Taylor have each filed for bankruptcy protection during the Kovid-19 crisis. Nordstrom is closing 16 locations permanently in 2020. Lord & Taylor is the nation’s oldest department store chain, now set to destroy its remaining 38 stores. Penny’s future is still uncertain as discussions with potential bidders have recently come with a deadlock, with the clock ticking for another plan to come through.

However, Gennett says he sees a $ 10 billion share in the market due to the robbery in the retail sector. He said that some dollars are coming from consumers who have more money to spend.

“Customers have got time on their hands. They can’t travel. They were budgeting for the trip, and they want to reward themselves,” Gennett said.

This trend is helping to offset some of the sales the company has lost since international tourism came to a standstill.

To build on the momentum Macy is currently seeing in Bloomingdale’s, the company is going to test Bloomingdale’s department store located away from the mall. Which is expected to open later next year.

“This test has to be done, and it has to be proved,” Gennett said of the new location. “Customer is going to vote on it.”

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