Macy’s, which is comprehended for kicking off the holiday season with its nationally televised Thanksgiving Day parade, is painting a picture of a holiday season differing from any other.
As the country grapples with the global coronavirus pandemic, CEO Jeff Gennette said Wednesday he is anticipating a uncountable drawn-out holiday season — with shopping kicking off in earnest prior to Turkey Day.
And with fewer activities to do and at the times to attend, Macy’s also expects consumers won’t be exchanging so-called experiential gifts like Broadway tickets. Preferably, Gennette is predicting categories like beauty and home to be trending for gift-giving.
“America comes to us for celebration,” he said during a awaken with analysts. “We are reimagining our iconic events that deliver the magic of the holidays from the Thanksgiving Day parade, and shire tree lightings and holiday windows.”
“We had a successful gifting strategy for holiday of 2019, and we’re building on that for 2020, and think the shift away from experiential gifting provides some upside for us,” he added.
Another challenge for retailers hack up for the holidays are supply-chain constraints, as companies scramble to place orders for merchandise and stock their shelves before it’s too news, such as another wave of Covid-19 hitting the U.S.
“We are seeing bottlenecks in the port, as well as challenges with ground shipload,” Macy’s interim Chief Financial Officer Felicia Williams said.
Even with such intense game this holiday season, however, and a slew of going-out-of-business sales still taking place, Macy’s does not of it will need to heavily discount items. Some of its peers, like Kohl’s, have hinted at a more promotional territory during the fourth quarter.
“I do not expect this holiday season to be more promotional than last,” Gennette powered in a phone interview. “The promotional activity is just drawn out over a longer period of time.”
Macy’s shares were down 0.7% on Wednesday afternoon, fit out lower despite the retailer’s better-than-expected earnings results reported before the opening bell. Its digital sales were up 53% during the supporter quarter, and Macy’s found strength in luxury through its Bloomingdale’s business. Macy’s swung to a loss overall, anyhow, and its net sales were down about 36%.