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Macy’s Offers New Merchandise to Boost Same-Store Sales

Sharon Bailey

Macy’s Makes Some Aggressive Moves in June to Revive Sales

(Continued from Prior Part)

Partnership with Dormify

Macy’s (M) has teamed up with Dormify, a dorm-room furnishings online retailer, to offer an exclusive bedding collection for fall 2015. This will be the first time that Dormify’s products will be available at a traditional brick-and-mortar store. The bedding collection will also be available on macys.com.

The new collection, designed especially for the 2015 back-to-school season, will enhance Macy’s home merchandise selection and will include comforter sets, sheet sets, and decorative pillows. The Dormify collection, with prices starting at $30, specifically targets the Millennial consumer.

Time to fight fire with fire

Macy’s same-store sales have grown at a slower pace in recent times. In fiscal 2014 ending January 31, 2015, same-store sales increased by 0.7%. In comparison, same-store sales were up by 1.9% in fiscal 2013 and by 3.9% in fiscal 2012.

Despite improving conditions, consumers still prefer to look for discount deals at off-price retail stores including TJX Companies (TJX), Ross Stores (ROST), and Nordstrom’s (JWN) Rack stores. In Part 1 of this series, we discussed Macy’s plans to open its own off-price stores.

Initiatives to improve same-store sales

Macy’s has expanded its merchandise selection to increase its same-store sales. In April 2015, Macy’s teamed up with popular model Heidi Klum to offer a contemporary collection of intimate apparel. The company also expanded its line of beauty products with the March 2015 acquisition of Bluemercury, a luxury beauty products and spa services retailer.

Macy’s makes up ~0.1% of the iShares Core S&P 500 ETF (IVV).

In February 2015, Macy’s collaborated with Martha Stewart Living Omnimedia (MSO) to launch Whim, an exclusive bedding and dinnerware collection.

Macy’s also launched Thalia, a new line of apparel, shoes and accessories inspired by the popular icon Thalia Sodi. The collection targets Hispanics, a rapidly growing demographic in America.

The next part of this series discusses Macy’s other initiatives to improve its business.

Continue to Next Part

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