The retail world is changing and Macy’s is transforming with it according to reporting in Retail Information System News. The retail giant putting its money where its intentions are, and throwing its $1billion-plus annual CapEx budget to building their infrastructure to fulfill a variety of consumer demands.
“We have learned that our success is greatest when we do things big and when we emphasize great brands to draw customers to Macy’s and Bloomingdales,” said Macy’s CFO Karen Hoguet “Examples include, making Macy’s America’s destination for handbags. The development of our powerful active strategy and all we are doing our business with Millennial customers.”
Macy’s and Bloomingdales performed strongly during the second quarter of 2014—particularly in online sales. The retailer is projecting continued growth in that area—particularly as it continues to roll out its buy-online, pick-up in store (click-and-collect) program. The program has thus far show up as a popular option, though a full marketing push has yet to be done for the service. Macy’s Hoguet does forecast that the new ominchannel program will be a strong performer or the store, particularly during the holiday season when the retailer believes it has the potential to seriously contribute to foot traffic.
“We are excited though by what we have seen so far and expect it to be a help in the holiday selling season,” noted Hoguet. “Omnichannel strategies are clearly enabling us to accelerate growth and we are just at the early stages of exploring all the opportunities.”
The CapEx fund is focused on tech and building out the Omnichannel experience. The infrastructure development is all focused on enhancing Macy’s connection to the consumer and helping those consumers engage with the Macy’s/Bloomingdales brands in new ways.
“We will continue to invest and there are different parts of the investment,” said Hoguet. “The first would be how to make our strategies between dotcom, stores and the systems work well together. That’s one piece of investment. You’ve got the warehouses that we have been investing in and we’ve just started building a new one in Tulsa, so those will continue.”
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