Macy’s Inc. reported Feb. 27 that digital sales decreased yr over yr in its fiscal Q4 ended Feb. 3. In-store sales were roughly flat in comparison with Q4 2022. Macy’s digital and in-store sales for the complete 2023 fiscal yr each decreased.
For Q4 2023, Macy’s reported $8.12 billion in net sales. That’s a 1.7% decrease versus $8.26 billion within the prior-year’s comparable period. Meanwhile, Macy’s full-year net sales decreased to $23.09 billion in 2023. That marks a 5.5% decrease from $24.44 billion in its fiscal 2022.
Because of this, the retailer announced that it would be closing 150 “unproductive” locations by the tip of 2026, including 50 by the tip of the fiscal yr.
“In fiscal 2023, they represented about 25% of Macy’s, Inc.’s gross square footage but lower than 10% of its sales,” CEO Tony Spring said in a Feb. 27 earnings call with investors.
Spring became Macy’s latest CEO on Feb. 4, replacing now-retired predecessor Jeff Gennette. The corporate said Spring’s focus in the course of the past yr has been on Macy’s, Inc.’s digital, customer, merchandising and brand teams, along with Bloomingdale’s and Bluemercury.
Macy’s is No. 17 within the Top 1000, where Digital Commerce 360 categorizes it as an Apparel/Accessories retailer. The Digital Commerce 360 database ranks North America’s largest online retailers by their annual web sales.
Macy’s digital — and in-store — sales struggle
In Q4, Macy’s digital sales decreased 4%. Meanwhile, brick-and-mortar sales were “roughly flat” yr over yr, the retailer said.
Macy’s digital sales for fiscal 2023 fell 7% yr over yr. Similarly, brick-and-mortar sales decreased in fiscal 2023 as well, down 5% yr over yr.
“As we glance across our omnichannel enterprise, we’re taking a balanced portfolio approach to determine the fitting mixture of on- and off-mall Macy’s, Bloomingdale’s and Bluemercury stores in one of the best locations and markets,” Spring said.
Customers “want an omnichannel shopping environment that’s neat, easy and convenient,” he said. In addition they want an updated number of relevant trending products, clarity on value and pricing, and a greater availability of employees to assist find products and complete purchases, he added.
Sales at Macy’s subsidiaries
Bloomingdale’s net sales increased 3.5% yr over yr in Q4. Comparable sales, however, decreased 1.6%.
Meanwhile, Bluemercury posted its twelfth consecutive quarter of comparable sales growth. Its net sales grew 7.8% and comparable sales 2.3% yr over yr.
Bloomingdale’s has a powerful digital presence, Spring said.
“Currently, about 80% of Bloomingdale’s digital sales are in markets where we have now physical stores,” he added. “We imagine that entering latest markets should only profit the digital business further.”
Macy’s operated 33 Bloomingdale’s locations and 159 Bluemercury locations at the tip of its fiscal 2023.
Macy’s within the news
In January, Macy’s laid off 2,350 members of its corporate staff. That’s 13% of its corporate staff, and three.5% of its overall workforce, excluding seasonal staff.
Macy’s had reported net sales declined 7% to $5 billion in its fiscal third quarter ended Oct. 28. Digital sales and brick-and-mortar sales declined at the identical rate.
Also in January, Macy’s rejected a takeover offer from Arkhouse Management that may have taken the retailer private for $5.8 billion. A month later, Macy’s confirmed that it received nominations of nine individuals to its board from the investment firm, showing that Arkhouse’s efforts are ongoing.
Macy’s earnings
For its fiscal fourth quarter ended Feb. 3, 2024, Macy’s reported:
- Net sales declined 1.7% yr over yr to $8.12 billion.
- Comparable sales decreased 5.4%.
- Macy’s digital sales decreased 4% yr over yr.
- Brick-and-mortar sales were roughly flat versus Q4 2022.
For its fiscal yr ended Feb. 3, 2024, Macy’s reported:
- Net sales declined 5.5% to $23.09 billion.
- Comparable sales decreased 6.9%.
- Macy’s digital sales decreased 7% yr over yr.
- Brick-and-mortar sales decreased 5% versus 2022.
Percentage changes may not align exactly with dollar figures because of rounding. Check back for more earnings reports.
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