It might not be a miracle, but Macy’s may reach a 34th milestone by Christmas.
Shares of Macy’s Inc. hit a two-year high today when the Cincinnati-based department store chain announced sales that beat its own expectations, encouraging it to lift its outlook for the second quarter.
Sales at stores open at least a year rose 6.7 percent in June. Analysts had expected a 5.1 percent gain, according to Thomson Reuters. Total sales advanced by 7.5 percent, to almost $2.4 billion from $2.2 billion.
Shares in the retailer, which also owns Bloomingdale’s, rose $1.59, or 5.5 percent, to $30.46.
Terry Lundgren, CEO of Macy’s, said in a press release that the sales growth came from across the company, at Macy’s, Bloomingdale’s and its online channels, where sales rose 45 percent.
Speaking of Macy’ performance, he credited new sales and operations strategies, which no doubt include its My Macy’s program. My Macy’s breaks the chain’s vast network of stores into small geographic segments, each of which is overseen by on-the-ground buyers who select merchandise based on the specific demands of a store’s customers.
This kind of shopper customization is hard to come by, but it is of greater necessity in an environment where fewer major chains are vying for our attention. It is why companies invest millions of dollars in data collection and segmentation.
By combining this once-removed analysis of what we buy with observations of how and why we buy, retailers not only speak to us, they show that they are listening. That’s how to build loyalty.
And that sort of engagement can sell stock of all different kinds.
