The Macy’s Inc. retail machine continues to roll on.
The end result of decades of consolidation — with 840 doors and nearly $28 billion in sales — Macy’s has scale on its side.
This story first appeared in the December 16, 2013 issue of WWD. Subscribe Today.
What seems to keep the company moving forward is its ability to focus on major initiatives and keep at them for years, changing the tenor of the business.
M.O.M. (which stands for My Macy’s, Omnichannel and MAGIC Selling) — Macy’s jargon for its localization drive, a push to integrate its bricks with its clicks and the MAGIC sales training initiative — is a mantra for Terry J. Lundgren, chairman, president and chief executive officer.
Lundgren told investors at the Morgan Stanley Global Consumer & Retail Conference last month that he doesn’t “get in front of an audience of smaller than 20 people — or larger than 20 people” without talking about the M.O.M. suite of initiatives. The efforts have Macy’s better tailoring assortments for stores, fulfilling online orders directly from 500 doors and focusing on customer service.
As a result, the company has more than held its own in a tough consumer climate.
After the third quarter, J.P. Morgan analyst Matthew Boss called Macy’s the “best boat in choppy waters.”
The company’s third-quarter comparable-store sales rose 3.5 percent, with both the Macy’s and Bloomingdale’s divisions seeing improvement across the country. The comp gain for the full year is expected to range from 2 percent to 2.9 percent.
Macy’s stock is up roughly 35 percent in a rising market this year, beating out smaller gains from broadline competitors such as Nordstrom Inc., Target Corp. and Wal-Mart Stores Inc.