Macy’s is Expanding Into New Categories, Including Pets and Hair Care
Macy's has begun investing in new product categories to grow its business, CNBC reported. The department store chain is hoping these new categories, including toys, health and wellness, hair care and home decor, will attract new customers while at the same time keeping its existing customers happy.
Jeff Gennette, CEO at Macy's, shared during an earnings conference call that customers voiced to the company what categories they wanted to see more of. Gennette mentioned pet products, nail accessories and gourmet food items as other categories Macy's will explore.
Macy's e-commerce site is already featuring some of the new brands and products. Gennette shared that the ultimate goal is for the company to target the "millennial mom" and attract more customers under 40 years old.
Surprisingly, Macy's saw 4.6 million new customers in its fiscal first quarter, a 23 percent increase from the same period in 2019, CNBC reported. This stimulated the department store to raise its full-year forecast since consumers are spending more money as life returns to "normal."
Total Retail's Take: The decision to expand its product categories is a necessity for Macy's, not a luxury. The pandemic has pushed consumers into shopping more online, and they expect their favorite stores to offer all the products they want and need, particularly competing against Amazon.com's seemingly endless product assortment. Furthermore, these new product categories are especially important to the target customer demographic Macy's is hoping to attract more of. This move could make the department store a closer competitor to big-box retailers, such as Target and Walmart, that sell a little bit of everything.
Ashley Chiaradio is the Senior Content Strategist at Total Retail. Ashley has been creating content for more than 7 years, and provides a unique insight in covering the retail industry having worked directly for retailers in the past. She’s passionate about profiling women leadership in the space.