Macy’s is leading the department store resurgence.
The iconic retailer unpacked its third quarter earnings today, and while sales fell slightly when compared to 2021, business is up over the pre-pandemic benchmark of 2019. The results from the company, which says it’s in much better financial health than it was prior to the pandemic, show a shift in digital traffic back to physical, an improved supply chain, and stronger inventory management.
The news pleased Wall St. sending Macy’s share price on the uptick as the company raised its guidance for the full year.
For the toy industry, the opening of Toys “R” Us at Macy’s has been watched closely, and Macy’s Chairman and CEO Jeff Gennette says the departments are off to a strong start.
“Last month, we introduced permanent Toys ‘R’ Us shop-in-shops within all Macy’s locations providing an experience that does not exist on a national basis elsewhere,” Gennette said on a call with analysts this morning. “These shops are adjacent to the kid’s department making it easier to discover, with room for kids to explore in a space designed for them. We are encouraged by the initial response. Overall, the Toys ‘R’ Us customer is younger and more diverse than our Macy’s customer, and we have discovered that 85% of Toys ‘R’ Us customers are cross-shopping. Toys ‘R’ Us is a great example of finding a hole in the market and strategically filling it, gaining share and loyalty, and creating lasting memories for children and adults alike.”
While there has been some industry concern over an October downturn in retail sales, Macy’s has a positive outlook for the season as it hones what it calls “the modern department store.”
Next week, Geoffrey the Giraffe will be present at Macy’s Thanksgiving Day Parade on a massive Toys “R” Us float.
