Jeffrey Gennette – Macy’s, Inc.
I am confident that Macys will win again
“I also know that we operate in an environment of intense and disruptive competition, and that our customer has more shopping options than ever, and we need to provide her with a compelling and a unique proposition. So winning in this environment requires us to act with a great sense of urgency to make changes in how we operate and to move faster. And as we do this, I am confident that Macy’s will win again.”
Good signs so far on back to school
“On back-to-school, good signs so far. There’s a lot of good trends that are going on in the business. Charles, to your comment or question about we’re not seeing any differences really between how the southern stores are, outside of the fact that many of them have gone back to school. And so you’re seeing some lifts there that are encouraging for where stores go later around the east coast or in the northern states, but we expect they will all even out when the calendar is evened out.”
Going to remain promotional
“Let me just back up a bit and just say that when you look at the marketing strategy, we really wanted to reengineer the entire marketing machine at Macy’s and it has a lot of moving parts as we look at the fall season. Number one, we’re going to remain very promotional. And what we’ve spent a lot of time on is reducing the overlap of promotions, reducing the amount of overlap of discounts on top of each other. But we’re doing that all the way through the back half and that really is a big focus of ours.”
Omnichannel customer is clearly a potent one
“today, 25% of our entire digital demand could be satisfied in a door that is in the ZIP Code that is generating that online sale. And so that gives us huge fire power opportunity to convert that to a buy online pick up in store if that’s what the customer would like to do. We love that because when they’re in that store, they generally upsell about 25% of additional goods. The omnichannel customer is clearly a potent one when they buy in both channels, so all good things come from that. So the first thing was having the inventory availability to do that.”
Karen M. Hoguet – Macy’s, Inc.
Tourist sales were weak
“In the second quarter, international tourist sales were down approximately 9%, which was much worse than in the first quarter and negatively impacted our comp owned plus licensed sales in the second quarter by approximately 40 basis points.”