The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Macy's Inc. Chief Executive Officer Jeff Gennette says the holiday season is off to a strong start, helped by a surge in outerwear sales.
The retailer had sold 200,000 coats by 7 a.m. on Friday morning, Gennette said in an interview with Emma Chandra on Bloomberg Television. And he expects to ring up a million coats, sweaters and fleeces by the end of the long weekend.
The outlook suggests that Macy’s and other retailers are getting help from Mother Nature this year. Chilly weather hit much of the eastern U.S. this week, creating prime conditions for apparel shopping.
Macy’s and other department stores hope this holiday season marks an inflection point in their comeback efforts. The industry has suffered from same-store sales declines, sluggish foot traffic and the rise of Amazon.com Inc.
ADVERTISEMENT
Even facing challenges, Gennette sees an advantage in being a brick-and-mortar retailer during the holidays.
“Customers today want to go to a store -- the sights, the smells, the sounds,” he said. “How you can create that in a department store is a unique opportunity that we have.”
Macy’s shares gained 2.1 percent to $21.07 on Friday. But they remain down more than 40 percent this year.
Revamping Real Estate
Macy’s downturn prompted the company to target 100 of its locations for closure. Last year, it also announced that it would team up with Brookfield Asset Management to redevelop 50 stores.
The store closings have left Macy’s real estate portfolio in stronger shape, Gennette said. The company has 250 stores in “premium” malls, which will remain attractive, he said.
Its Manhattan location in Herald Square, touted as the world’s largest store, has been valued at as much as $4 billion. Gennette called it testing ground for new concepts.
More than 16,000 people were lined up at the store before it opened.
ADVERTISEMENT
“This is a great laboratory for us,” he said.
By Lauren Coleman-Lochner with assistance from Janet Freund and Emma Chandra; Editors: Nick Turner and Jonathan Roeder.
From analysis of the global fashion and beauty industries to career and personal advice, BoF’s founder and CEO, Imran Amed, will be answering your questions on Sunday, February 18, 2024 during London Fashion Week.
The State of Fashion 2024 breaks down the 10 themes that will define the industry in the year ahead.
Imran Amed reviews the most important fashion stories of the year and shares his predictions on what this means for the industry in 2024.
After three days of inspiring talks, guests closed out BoF’s gathering for big thinkers with a black tie gala followed by an intimate performance from Rita Ora — guest starring Billy Porter.