Macy’s plans for Black Friday sales focus on online shopping with curbside pickups
Macy’s is redesigning what the Black Friday sales bonanza events will look like in a pandemic after a staggering $ 3.58 billion loss for the corona virus-stricken first quarter.
CEO Jeff Gennette told analysts on Wednesday that the department store will focus its Black Friday business more on online sales and will probably go ‘full’ with holiday marketing immediately after Halloween.
It will also be stunning events to cut customer traffic in the stores, and pickup pickup will become a ‘big secret weapon’ – a service it didn’t offer during the 2019 holiday season.
“We have a very strong game plan on how to keep this trend of digital going,” Gennette said in a conference call.
Macy’s is redesigning what the Black Friday sales bonanza events will look like in a pandemic after a staggering $ 3.58 billion loss for the corona virus-stricken first quarter. The retailer’s flagship store in Manhattan was pictured last week
The interior of Macy’s flagship store in Manhattan is full of crowds during last year’s Black Friday, a scenario the retailer hopes not to repeat with more focus on online sales and curbside pickup
Crowds have been pictured waiting to get into Macy’s the night before Black Friday last year
“But when you think of Black Friday, when you think of the 10 days before Christmas, what does that mean in terms of traffic when people are nervous about getting together with a crowd? Everything is now on the table. ‘
Gennette said Macy’s will release details in early September about plans for Black Friday – the day after Thanksgiving that traditionally starts shopping for the holidays.
His comments came when Macy’s final fiscal first quarter results ended May 2, demonstrating that the retailer was taking a big financial toll on the shutdowns to curb the spread of the corona virus.
Macy’s reported a massive loss of $ 3.58 billion, or $ 11.53 per share, on Wednesday, compared to a profit of $ 136 million, or 44 cents per share, compared to the same period a year ago.
That included pre-tax earnings, non-cash goodwill and long-term impairments on assets of $ 3.1 billion and $ 80 million, respectively. The adjusted loss was $ 2.03 per share.
The reported loss comes after the global health crisis prompted physical retailers to tap credit lines, lay off workers, and suspend dividends and redemptions in an attempt to survive.
“As our stores reopen, we expect the COVID-19 pandemic to continue to affect the country for the rest of the year,” Gennette said in a statement, adding that the retailer did not expect a new total store shutdown.
Macy’s, which also owns Bloomingdale’s, said net sales for the first quarter through May 2 were nearly halved to $ 3.02 billion.
“As our stores reopen, we expect the COVID-19 pandemic to continue to affect the country for the rest of the year,” Jeff Gennette, CEO of Macy (pictured last year) said in a statement, adding that the retailer will not expected another complete closure of stores
The retailer’s results are due to the fact that some of its industry peers, including J Crew, JCPenney and Neiman Marcus, have filed for bankruptcy for failing to address the market uncertainties and rising debt.
Macy’s, which said on June 25 that it would lay off about 3,900 employees in corporate and management positions in an effort to save money, offered no updated prospects.
Macy’s has faced a massive slump in stores, especially in malls and urban areas hit harder by lockdowns aimed at curbing the spread of the virus, Gennette said Wednesday.
Macy’s results come because some of his colleagues, including J Crew, JCPenney and Neiman Marcus (pictured), filed for bankruptcy after failing to handle the market uncertainties and rising debt
He does not expect the “virtual disappearance of international tourism spending” to “recover” anytime soon.
In turn, Macy’s has invested heavily in improving its digital business and personalized marketing, clearing up unsold inventory, and offering services such as curbside pickup.
“Whether it’s staff, fleet size, online initiatives, or real estate revenue generation, (Macy’s) is finally implementing the radical operation that should have started years ago,” said Craig Johnson, president of Retail Consultancy Customer Growth Partners.
Per share, Macy’s reported a net loss of $ 11.53 in the first quarter ending May 2, compared to a profit of 44 cents a year earlier.
Excluding one-off items, the company lost $ 2.03 per share, which met expectations, according to Refinitiv’s IBES data.
The company expects comparable sales to improve by about 6-7 percentage points in the second quarter, compared to a 35 percent decline in the first quarter.
On May 2, Macy’s had $ 1.52 billion in cash and cash equivalents and $ 18.58 billion in total liabilities and equity.