Macy’s Reports Earnings Third Quarter 2020


CEO Macy Jeff Gennette (Getty; iStock)

CEO Macy Jeff Gennette (Getty; iStock)

With Macy facing a net loss of $ 91 million in the third quarter, the brand is once again imagining what the future of its business might look like.

One possible answer: fulfillment centers.

As two of his stores “darkened” or were closed for personal purchases, they were turned into online order processing centers. Stores in Colorado and Delaware will be used to fulfill online and curbside orders.

“We’re experimenting with that,” Macy’s CEO Jeff Gennette said on Thursday.

Other brands, including Whole meals, are testing dark stores because customers have avoided retail because of the pandemic.

Overall, Macy’s reported net sales of $ 3.9 billion, down from $ 5 billion in the same period last year. Nevertheless, its profits were above the level recorded in the second quarter, when the retailer suffered a net loss of $ 431 million.

The company’s revenues were largely driven by an increase in e-commerce, which grew by 27 percent in the same period last year. Online sales accounted for 38 percent of the company’s total sales in the third quarter.

The retailer operates 764 stores across the Macy’s, Bloomingdale’s and Bluemercury brands, but between the second quarter and now seven branches have closed.

Gennette also noted that while customers in the Mac area are witnessing the return of customers, their flagships are struggling, mainly due to a lack of tourism and office workers.

“When you look at Herald Square, you look at 59th Street at Bloomingdale’s, State Street, Union Square – they’re our most challenging,” Gennette said.

Similarly, other stores take into account the importance of e-commerce and how to fulfill online orders. On Wednesday, Target announced that it would take a another approach: opening more stores for digital sales.

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