Macy’s is expanding its brand portfolio across categories in order to capitalise on new consumer prospects.
Macy’s Inc. announced during its results conference this morning that it drew nearly five million new consumers to the Macy’s brand in the 13-week period ending Aug. 1, marking a 30 percent growth over Q2 2019. 41 percent of these newcomers arrived via the digital route.
According to Macy’s Inc. chairman and CEO Jeff Gennette, the rising Bronze loyalty programme consumer is “our youngest and most diversified reward tier.” This sector expanded by nearly two million new members in the third quarter. The average expenditure of bronze buyers increased by 15% in the second quarter.
Macy’s “We are building upon our expertise in the home category with brands such as Hotel to launch Oak, a new private-label home and textiles brand for our more socially-conscious customers” The company is also applying a physical expression of this strategy in 160 of its stores where these Contemporary boutiques will sit near front entrances. Macy’s Inc. saw Platinum, Gold and Silver customers in its Star Rewards Loyalty program reengage in Q2, with the average customer spend up 15% compared to Q2 2019.
Macy’s Inc. posted a 58.6% increase in Q2 net sales to $5.65 billion from $3.56 billion in the same period last year. The company also reported a 6% decline in digital sales from last year, but a 45% increase compared to 2019. Macy’s: “We are very pleased with our results for the second quarter of the year”
Macy’s Inc. posted a 5.2% gain in comps on an owned-plus-license basis, “representing a nearly 16-point improvement to Q1” Macy’s Backstage off-price division also enjoyed a strong quarter, with a 28% increase compared to Macy’s full-line stores. Bloomingdale’s was strong online and in stores, with comps up 11.5% over the same time last year.
