According to Terry Lundgren, Macy’s chairman and CEO, the reason for spending demands on consumers from health care and technology as a reason for “OK, but not great” numbers so far in 2013 for the retail industry.
“The first nine months of the year, you just haven’t seen it in discretionary items, in the products that we sell in department stores. We expected the consumer to be behaving slightly differently by now,” he said.
Still, “I’m optimistic about what could happen and should happen,” Lundgren added.
The National Retail Federation predicts that approximately 19.2 percent of 2014’s annual sales for the retail industry will come from shopping during the November to December stretch. As consumers are ready to spend during the holiday season, the CEO believes Macy’s is well-positioned to reap the gains from pent-up demand. More than 800 stores operate under the Macy’s brand in the United States and its territories, ringing up $27.9 billion in sales last year.
Macy, like many retailers that are growing more tech savvy, with a multichannel strategy that connects the store to consumers—allowing them to shop whenever, wherever and however they prefer. Macy’s online store grants access to their entire product inventory to shoppers. All told, the department store has preserved market share as other retail chains like Sears and JCPenney close lower-performing locations.
“We’ve grown by $4.4. billion in the last four years alone, and that’s without really adding any new stores,” Lundgren said.
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