Macy’s Inc (NYSE:M) Surprises With Its Announcement
In what seems like a bid to circle the wagons and make a last stand against the rampaging online retailers (which are achieving quarter on quarter sales growth at the expense of traditional retail stores) Macy’s Inc (NYSE:M) has for the very first time in its existence decided to open its store to customers on Thanksgiving Day. It made the announcement on Monday that it will open its fabled store doors to customers from 8:00 PM on Thanksgiving Day and will remain open all through the night. Analysts are speculating that this move by Macy’s Inc (NYSE:M)’s is to retain its loyal customers who would otherwise be thronging its competition stores to make the best of the black Friday markdowns and deep discount deals on offer. With the latest move, Macy’s Inc (NYSE:M)’s has tried to kick start the shopping binge earlier rather than wait until Black Friday, which is when traditionally most retailers record maximum sales for a single day during the holiday season.
Having changed tack to keep its customer base intact, the retailer has also continued to strengthen its online presence. It e-commerce website has been voted by online users as one of the better designed ones. It is available 24X7 and has steadily increased its revenue share and overall contribution to the retailer’s bottom line. Conservative estimates peg online revenue for Macy is hovering around the $3 billion mark of the total $27 billion that was reported over the trailing twelve months. Macy’s has close to 800 departmental stores across U.S. and made it voluntary for its employees to turn up for work after 8:00 PM on Thanksgiving.
Analysts are speculating that Macy’s Inc (NYSE:M)‘s is attempting to recoup some of the lost momentum through this drastic change, since its second-quarter sales numbers were disappointing when compared to its own previous year sales and higher sales recorded by its competition.