Belk Inc is exploring a sale that could value the largest family-owned and operated department store chain in the United States at as much as $4 billion, including debt, people familiar with the matter said on Thursday. Belk has hired investment bank Goldman Sachs Group Inc to help it evaluate strategic alternatives, including a potential sale, the people said. Major department stores, such as Macy's and Nordstrom, as well as large private equity firms are expected to be contacted by Belk to solicit their interest in a deal, the people added.
You lipstick-hating, tech-savvy millennials are killing Macy's mojo. On Tuesday, Macy's CFO Karen Hoguet blamed Netflix, millennials and women who like to shop without wearing makeup on weaknesses in the luxury retail market. "We did some consumer research, and the customers said she likes going to the off-price retailers because she doesn't have to put lipstick on," Hoguet said at an industry conference. "I've walked through a lot of malls. I'm not sure." Macy's reported a 1.8 percent increase in revenue last quarter to $9.36 billion that fell short of analyst expectations.
American shoppers have never been able to earn loyalty points from one retailer and then redeem them at another. That's about to change. In May, Macy's, Rite Aid, ExxonMobil and four other brands plan to introduce the first U.S.-based loyalty program that encompasses an entire team of retailers. The program, called Plenti, will be operated by American Express. For example, a Macy's customer will be able to use Plenti points won from, say, buying a pair of shoes at one of its stores to fill up at a Mobil gas station or to pay an AT&T phone bill.
A New York state appeals court on Thursday revived most of Macy's lawsuit accusing J.C. Penney of interfering improperly with its exclusive merchandising contract with Martha Stewart Living Omnimedia Inc. The 5-0 decision by the Appellate Division in Manhattan restored two claims by Macy's that a lower court judge had dismissed. It also upheld the validity of a third Macy's claim, but said Macy's didn't deserve punitive damages. Thursday's decision is the latest step in an unusual battle over the right to sell home goods from a company named for one of the most famous U.S. names in homemaking.
In a session yesterday at the National Retail Federation's Big Show in New York city, three retail executives from leading brands Macy's, Lowe's and The Limited discussed how their companies have optimized omnichannel. R.B. Harrison, chief omnichannel officer at Macy's; Debra Ellis, CEO of The Limited; and Brent Kirby, chief omnichannel officer at Lowe's, participated in a panel discussion that broke down the multiple facets of being an omnichannel retail organization, from customer service to inventory to fulfillment and more.
Macy's announced a sweeping reorganization fueled by big changes in how Americans shop. Both Macy's and Bloomingdale's, the department store's upscale sister chain, are restructuring their merchandising and marketing functions so that one unified merchandising and marketing organization — a combination of store and online buying — will support the entire Macy's business. The changes are designed to accelerate both store and digital growth.
Macy's, which traditionally kicks off the U.S. holiday shopping season with a nationally televised parade in Manhattan, will join a handful of other companies this year parading its ads on Facebook's fledgling video feeds. As the social media platform slowly rolls out its premium video offerings to advertisers, Macy's will launch its online video ads Thursday. "As we were anticipating Black Friday, we wanted to take a look at how the product evolved and try to figure out how to distribute our video in a balanced way," said Jennifer Kasper, Macy's group vice president for digital media and multicultural marketing.
Macy's and Bloomingdale's will expand their horizons by opening in Abu Dhabi, United Arab Emirates (UAE) in 2018. Until now, Macy's has remained a domestic retailer while other brands, including Bloomingdale's, have expanded globally. The stores will open in the Al Maryah Central, a new regional shopping center on Al Maryah Island. It's a mixed-use 3.1 million-square-foot development with retail, cafes, restaurants, a cinema, health club, luxury hotel and residential towers.
Imagine spilling coffee on your way to a holiday party and needing a new shirt right away. Macy's has a solution: A quick Google search on your smartphone will tell you if that red sweater is stocked at a Macy's nearby, in your size, and at what price. Beginning in November, shoppers can search for an item on their phone and see what's stocked at their nearest Macy's location. Alongside the images are product details like price, size and color, directions to the store, and a link to the item on the retailer's website.
The Black Friday fight is on with the announcement Tuesday that Macy's will open stores at 6 p.m. on Thanksgiving, two hours earlier than last year. Macy's is the first major retailer to announce store hours for the Black Friday weekend, often seen as the kickoff to the holiday shopping season. Last year marked the first time the department store opened its doors at 8 p.m., after opening at midnight in the several years before. The company said the earlier opening is "in response to the significant, sustained customer interest in last year's opening on Thanksgiving."