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Jewelry Among Best Performers for Macy’s

Sep 3, 2020 8:19 AM   By Rapaport News
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Jewelry was one of the top-selling categories at Macy’s during the second fiscal quarter, even as overall sales declined at the department-store chain.

Group revenue dropped 36% to $3.56 billion in the three months ending August 1, while comparable-store sales — at owned and licensed shops open for at least a year — fell 35%, the retailer reported Wednesday. However, sales rose at its “Focus Four” businesses, which include fine jewelry, as well as beauty, furniture and mattresses, and backstage off-price.

“These are the four categories where customer demand is strong, we have a dominant or growing market position, and we feel we can drive profitable growth over a multiyear horizon,” Macy’s CEO Jeff Gennette said in an earnings call transcribed by Seeking Alpha.

The move away from spending on travel due to the pandemic has benefited both Macy’s and sister company Bloomingdale’s, particularly when it comes to luxury products, he noted.

“From textile to shoes, to handbags, to mattresses, to diamonds, luxury proved to be strong across almost every category of the Bloomingdale’s business, significantly growing its penetration of the business year over year,” added Felicia Williams, Macy’s interim chief financial officer. “Given our strength in this area, we are leaning harder into luxury in order to capitalize on the shift in spending.”

Sales of those items have been “disproportionately strong” in comparison to other categories, such as luggage, which has fallen during the pandemic. To reap the benefits of this change, Macy’s will hold an “elongated” holiday sales season to give consumers enough time to shop without crowding stores, Gennette stated.

Macy’s will also open several smaller off-mall stores over the next two years, which it will dedicate to its higher-selling products. The retailer will use those smaller locations to sell to customers who are not comfortable going into a mall during the coronavirus outbreak.

“We want to have all the right access points for customers, however they choose to shop,” Gennette said. 

Image: Macy’s flagship Manhattan store. (Shutterstock)
Tags: Bloomingdale’s, Felicia Williams, Focus Four, jeff gennette, Jewelry, Macy’s, Rapaport News
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