Macy’s Makes Some Aggressive Moves in June to Revive Sales
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.
Browse this series on Market Realist: