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Macy's (M) Benefits From Digital Growth & Polaris Strategy
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Despite a challenging retail landscape due to the pandemic, Macy's, Inc. (M - Free Report) has managed to stay afloat on the back of growth in the digital realm. Moreover, this well-known retailer of a wide range of consumer goods is gaining from efforts undertaken as part of the Polaris Strategy. The strategy includes rationalizing store base, revamping assortments as well as managing costs prudently. Let’s delve deeper.
Strong Digital Offerings is a Key Upside
Macy’s digital platform has continued to remain a healthy business component. During the first quarter of fiscal 2021, the company’s digital sales surged 34% from the year-ago quarter’s figure and contributed 37% to net sales. Nearly 22% of online sales were generated from stores, including curbside pickup and same-day delivery. Moreover, management highlighted that 47% of new customers acquired during the quarter came from the digital channel. Additionally, 82% of the digital orders came from repeat customers. Mobile devices contributed nearly 60% to digital demand sales.
Management continues to focus on extending the availability of online assortments as well as the expansion of omni-channel capabilities. In this respect, its tie-up with DoorDash for expediting delivery service is encouraging. The company has also collaborated with Sweden-based buy-now, pay-later group — Klarna — for offering online shoppers financial ease and payment flexibility. Additionally, the company is constantly improving its mobile and website features to deliver enhanced shopping experience. These apart, the company has a lot more to offer for online consumers in the form of Macy’s Star Rewards, Macy’s Gift Cards, experts’ help and other options. The company anticipates online sales to reach nearly $10 billion by fiscal 2023. We note that other retailer such as Kohls Corporation (KSS - Free Report) , Target Corporation (TGT - Free Report) and Walmart Inc. (WMT - Free Report) have also been gaining from strong growth in the digital realm.
Other Prudent Growth Efforts
Macy's is on track with its three-year Polaris strategy, which focuses on strengthening customer relationships, expanding assortments, optimizing store portfolio and reducing costs. In respect to cost management, the company expects that the Polaris strategy will help it attain gross savings of nearly $2.1 billion by 2022. Additionally, the company is on track with expanding brand offerings to support customer self-expression at all price points. Apart from these, the company is also committed toward boosting supply chain infrastructure. It also strives to drive value across product categories and boost merchandise margins by adopting effective pricing as well as reduced promotions.
Moreover, the company’s expanded Star Rewards Loyalty program, which was initiated in 2018, is driving better customer engagement. Apart from these, Macy’s is evaluating its store portfolio and is on track with its plans to shutter stores in lower tier malls that are least productive, while upgrading the rest. Apart from these, the company’s focus on inventory management and private label offering is helping it meet customer-oriented demand as well as enhance in-store shopping experience. Clearly, Macy’s prudent operating strategies keeps it well positioned for growth in the forthcoming periods.
Zacks Names “Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Macy's (M) Benefits From Digital Growth & Polaris Strategy
Despite a challenging retail landscape due to the pandemic, Macy's, Inc. (M - Free Report) has managed to stay afloat on the back of growth in the digital realm. Moreover, this well-known retailer of a wide range of consumer goods is gaining from efforts undertaken as part of the Polaris Strategy. The strategy includes rationalizing store base, revamping assortments as well as managing costs prudently. Let’s delve deeper.
Strong Digital Offerings is a Key Upside
Macy’s digital platform has continued to remain a healthy business component. During the first quarter of fiscal 2021, the company’s digital sales surged 34% from the year-ago quarter’s figure and contributed 37% to net sales. Nearly 22% of online sales were generated from stores, including curbside pickup and same-day delivery. Moreover, management highlighted that 47% of new customers acquired during the quarter came from the digital channel. Additionally, 82% of the digital orders came from repeat customers. Mobile devices contributed nearly 60% to digital demand sales.
Management continues to focus on extending the availability of online assortments as well as the expansion of omni-channel capabilities. In this respect, its tie-up with DoorDash for expediting delivery service is encouraging. The company has also collaborated with Sweden-based buy-now, pay-later group — Klarna — for offering online shoppers financial ease and payment flexibility. Additionally, the company is constantly improving its mobile and website features to deliver enhanced shopping experience. These apart, the company has a lot more to offer for online consumers in the form of Macy’s Star Rewards, Macy’s Gift Cards, experts’ help and other options. The company anticipates online sales to reach nearly $10 billion by fiscal 2023. We note that other retailer such as Kohls Corporation (KSS - Free Report) , Target Corporation (TGT - Free Report) and Walmart Inc. (WMT - Free Report) have also been gaining from strong growth in the digital realm.
Other Prudent Growth Efforts
Macy's is on track with its three-year Polaris strategy, which focuses on strengthening customer relationships, expanding assortments, optimizing store portfolio and reducing costs. In respect to cost management, the company expects that the Polaris strategy will help it attain gross savings of nearly $2.1 billion by 2022. Additionally, the company is on track with expanding brand offerings to support customer self-expression at all price points. Apart from these, the company is also committed toward boosting supply chain infrastructure. It also strives to drive value across product categories and boost merchandise margins by adopting effective pricing as well as reduced promotions.
Moreover, the company’s expanded Star Rewards Loyalty program, which was initiated in 2018, is driving better customer engagement. Apart from these, Macy’s is evaluating its store portfolio and is on track with its plans to shutter stores in lower tier malls that are least productive, while upgrading the rest. Apart from these, the company’s focus on inventory management and private label offering is helping it meet customer-oriented demand as well as enhance in-store shopping experience. Clearly, Macy’s prudent operating strategies keeps it well positioned for growth in the forthcoming periods.
Zacks Names “Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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